Alliance Pharma’s share price LON:APH is up +0.16% after its FY 2024 results showed a mixed performance among the firm’s varied product lines.
AIM-listed Alliance Pharma’s latest earnings suggest that the company is transitioning its business against a complex market backdrop. The headline numbers don’t look that good, with revenues dipping to £180.3m, from £182.7m last time out.
Yet there is there’s more to this story.
The firm’s star performer, the anti-scar treatment Kelo-Cote, continued to shine, with revenues from the product range growing by +6.0% to stand at £65.40m.
That’s particularly impressive given that it’s Alliance Pharma’s largest and most mature brand.
In the prescription medicines business, there was even better news, with the division growing by +8.0% overall.
Forceval a multi-vitamin supplement, and Hydromol, a non-steroidal anti-itching cream, were the standout performers, posting growth rates of +20.0% and +14.0% respectively.
There have been some issues, however. Anti-dandruff shampoo, Nizoral had a tough year, with revenues down by -21.0% to £16.40m.
Though, this seems to be more to do with the timing of orders, rather than any kind of fundamental problem with the product.
Alliance Pharma’s consumer healthcare segment also had it problems, and revenues here declined by -2.0% overall. That despite a strong showing from food supplement, MacuShield, which grew its sales by +11.0%.
The company is adopting a new approach to doing business in China and is moving towards fulfilling smaller, but more frequent orders from its customers.
This transition is taking longer than expected, yet it seems a savvy move for the businesses and should be beneficial for both its cash flow and logistics.
Looking at the bottom line, the company expects profits to hold steady when compared to 2023. A relatively respectable outcome, given the mixed revenue performance.
Alliance Pharma is aiming for future growth, through a combination of its established brands, outsourced manufacturing, and the ongoing transformation of the business.
Management acknowledges that there’s still work to be done, but they’re confident about the outcome.
The share price is largely unchanged on the update today, but then again, the stock is up by more than +61.0% over the last 6-months, so existing shareholders have already had a pretty decent reward.
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