Half Year 2024 Alliance Pharma PLC Earnings Call Transcript
Key Points
- Alliance Pharma PLC (FRA:DVL) reported a 5% revenue growth at constant currency for the group, driven by strong performance from the Kelo-Cote franchise.
- The company achieved a significant gross margin improvement, increasing by 300 basis points to 59.8%, due to a positive product mix.
- Robust free cash flow generation allowed Alliance Pharma PLC (FRA:DVL) to reduce net debt and lower group leverage to 1.8x.
- The new product development pipeline is gaining momentum, with 6% of consumer revenues in H1 2024 coming from products developed in-house and launched in the last three years.
- The company successfully completed the rollout of its global ERP system, enhancing operational efficiency across the business.
- Amberen revenues declined by 9% at constant currency and 11% on a reported basis due to softer trading on Amazon.
- Nizoral revenues were down 21% at constant currency and 25% on a reported basis, impacted by destocking ahead of a planned manufacturing change.
- The company faced an increase in effective tax rate from 17.3% to 23.4%, which affected the underlying profit before tax.
- High interest rates led to an increase in interest costs, although this was partially offset by net exchange gains.
- The market for menopause relief products, where Amberen operates, is rapidly shifting from bricks-and-mortar to e-commerce, posing a challenge for the brand's traditional sales channels.
So good morning, everyone, and a very warm welcome to our interim results. It's my first presentation since joining as CEO on May 13. I'm delighted to have joined Alliance at such an important and exciting time for the company, having spent 30 years predominantly in the consumer health industry with a number of European, US, and global roles at large multinationals such as Reckitt and Coty.
Andrew will walk through the highlights of the first half and cover our H1 financial results in more detail. Only three months have passed since we presented our results for full year '23, and whilst little has changed financially, since then, we've begun to implement the changes to our operating model, our organizational structure, and recruited some great talent, which I'll cover later.
I will take you through each of the key brands before finishing with my observations from my first 100 days at Alliance, and after that, we'll move to Q&A. So over to Andrew.
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