ALLIANCE PHARMA PLC WE ARE
ALLIANCE
Alliance Pharma plc
Annual Report and Accounts 2022
Alliance Pharma plc
Annual Report and Accounts 2022
Company Overview | Strategic Report | Governance | Financial Statements | Additional Information | |||||
For more information visit
alliancepharmaceuticals.com
C O N T E N T S
AN ALLIANCE OF PEOPLE, PARTNERS AND BRANDS, WORKING TOGETHER TO ACHIEVE MORE
How we report to our stakeholders
Annual Report | Online Sustainability Report | Our website | ||||||||
View our report online at | Online sustainability report at | Visit our main site for | ||||||||
alliancepharmaceuticals. | alliancepharmaceuticals. | further information at | ||||||||
com/annualreport22 | com/sustainability | alliancepharmaceuticals.com | ||||||||
Company Overview
Who We Are | 01 |
2022 Performance Overview | 02 |
2022 A Year in Review | 03 |
Purpose, Vision, Strategy, Values | 04 |
Strategic Report
Chief Executive's Review | 06 |
Market Overview | 09 |
Our Strategy | 12 |
Spotlight on… | |
Marketing excellence | 18 |
Innovation and development | 20 |
ScarAway™ and Kelo-Cote™ | |
US acquisition | 22 |
Culture, people and values | 24 |
Key Performance Indicators | 27 |
Sustainability | 29 |
Spotlight on… | |
Managing our packaging estate | 31 |
Developing our response | |
to climate change | 33 |
TCFD | 35 |
Stakeholder Engagement | 40 |
Financial Review | 42 |
Principal Risks and Uncertainties | 47 |
Governance
Chair's Introduction | 57 |
Our Governance Structure | 60 |
Board of Directors | 61 |
Governance | 63 |
Nomination Committee Report | 69 |
Audit and Risk Committee Report | 72 |
Remuneration Committee Report | 77 |
ESG Committee Report | 86 |
Directors' Report | 88 |
Financial Statements
Independent Auditor's Report | 93 |
Consolidated Income Statement | 102 |
Consolidated Statement of | |
Comprehensive Income | 103 |
Consolidated Balance Sheet | 104 |
Company Balance Sheet | 105 |
Consolidated Statement of Changes | |
in Equity | 106 |
Company Statement of Changes in Equity 107 | |
Consolidated and Company Cash | |
Flow Statements | 108 |
Notes to the Financial Statements | 109 |
Additional Information
Unaudited Information | 148 |
Five Year Summary | 149 |
Advisers and Key Service Providers | 150 |
Cautionary Statement | 151 |
Glossary | 152 |
Alliance Pharma plc Annual Report and Accounts 2022
Alliance Pharma plc
Annual Report and Accounts 2022
Company Overview
Who We Are | 01 |
2022 Performance Overview | 02 |
2022 A Year in Review | 03 |
Purpose, Vision, Strategy, Values | 04 |
Company Overview | Strategic Report | Governance | Financial Statements | Additional Information | 01 | |||||
W H O W E A R E
WE ARE ALLIANCE
An international consumer healthcare company,
empowering people to make a positive difference to their health and wellbeing, through making our trusted and proven brands available around the world.
A TEAM OF | BASED IN |
285 | 8 |
TALENTED PEOPLE | STRATEGIC LOCATIONS |
as at 31 December 2022 |
Working together to deliver value for our stakeholders through maximising the value of our brands.
INVESTING IN OUR PRIORITY BRANDS AND CHANNELS
INNOVATING
TO ENSURE OUR BRANDS REMAIN RELEVANT
SELECTIVELY EXTENDING THE
GEOGRAPHIC REACH
OF OUR BRANDS
For more information visit alliancepharmaceuticals.com
Outsourcing capital-intensive activities, such as manufacturing and logistics, to allow us to focus on what we do best.
Alliance Pharma plc Annual Report and Accounts 2022
Alliance Pharma plc
Annual Report and Accounts 2022
Company Overview
Who We Are | 01 |
2022 Performance Overview | 02 |
2022 A Year in Review | 03 |
Purpose, Vision, Strategy, Values | 04 |
For more information visit alliancepharmaceuticals.com
Company Overview | Strategic Report | Governance | Financial Statements | Additional Information | 02 | |||||
2 0 2 2 P E R F O R M A N C E O V E R V I E W
SEE-THROUGH REVENUE* | UNDERLYING PROFIT BEFORE TAX* | UNDERLYING BASIC EPS* | ||
£172.0m+1% | £30.3m | -28% | 4.28p | -33% |
(2021: £169.6m) | (2021: £42.2m) | (2021: 6.39p) |
STATUTORY REVENUE | REPORTED PROFIT BEFORE TAX | REPORTED BASIC EPS | |
£167.4m+3% | £5.2m | -71% | 0.17p-88% |
(2021: £163.2m) | (2021: £18.2m) | (2021: 1.37p) |
FREE CASH FLOW* | NET DEBT* | |
£15.8m | -48% | £102.0m+17% |
(2021: £30.2m) | (2021: £87.0m) |
* Non-IFRS Alternative Performance Measures ('APMs'), (see note 31).
See-through revenue includes all sales from Nizoral™ as if they had been invoiced by Alliance as principal. For statutory accounting purposes the product margin relating to Nizoral™ sales made on an agency basis is included within Revenue, in line with IFRS 15.
Alliance Pharma plc Annual Report and Accounts 2022
Alliance Pharma plc
Annual Report and Accounts 2022
Company Overview | Strategic Report | Governance | Financial Statements | Additional Information | 03 | |||||
Company Overview
Who We Are | 01 |
2022 Performance Overview | 02 |
2022 A Year in Review | 03 |
Purpose, Vision, Strategy, Values | 04 |
For more information visit alliancepharmaceuticals.com
2 0 2 2 A Y E A R I N R E V I E W
Whilst trading performance in 2022 was not as strong as had been anticipated at the start of the Year, Alliance successfully completed a highly strategic acquisition of ScarAway™ and the rights to Kelo-Cote™ in the US in March and delivered the first new product launch from its innovation and development platform. The Group has robust plans in place to support a return to growth in 2023
- Consumer Healthcare see-through revenue1 up 3% to £125.2m (2021: £121.8m) (down 3% CER2) with 16% growth in Other Consumer brands partially offsetting softer performance in key brands.
- Revenue growth impacted by lockdown in China, associated temporary business-to-business ('B2B') disruption to the supply chain, slower recovery in B2B demand for Kelo-Cote™ and a one-off destocking effect, but boosted by the US acquisition and FX gains.
- Prescription Medicines performance stable, with revenues of £46.8m (2021: £47.8m), down 2% CER2.
- Underlying PBT declined 28% largely due to less favourable product mix with a lower proportion of Kelo-Cote™ and Amberen™ sales. Reported PBT declined 71% due to higher non-cash impairment charges of £18.2m, including £12.0m for Amberen.
- Free cash flow was lower by 48% at £15.8m, primarily reflecting the timing of sales and cash receipts. Cash from operations declined by 45% to £24.9m.
- Following the highly strategic US acquisition for $19.4m (£14.8m), net debt increased to £102.0m moving Group leverage to 2.57 times at 31 December 2022 (1.73 times at 31 December 2021).
- Integration of the US acquisition completed in just four months, successfully leveraging our established infrastructure, with revenues in line with expectations.
- Last remaining NizoralTM marketing authorisations transferred from Johnson & Johnson ('J&J') to Alliance in both China and Vietnam; new top-tier Chinese distributor appointed and manufacturing supply consolidation progressing well, which will result in improvements in cost efficiencies in the near future.
- Non-IFRSAlternative Performance Measure ('APM'), (see note 31).
See-through revenue includes all sales from Nizoral™ as if they had been invoiced by Alliance as principal. For statutory accounting purposes the product margin relating to Nizoral™ sales made on an agency basis is included within Revenue, in line with IFRS 15. - Constant exchange rates.
- See our Spotlight on ScarAway™ and Kelo-CoteTM US acquisition on page 22
- See the Chief Executive's Review on page 06
- First new product launched from our innovation and
development programme - Kelo-Cote™ Kids.
See our Spotlight on innovation and development on page 20
- Scope 1 and 2 emissions target set to achieve net zero in 2030, with an interim reduction of 65% by 2025.
See our Spotlight on developing our response to climate change on page 33
- Re-certifiedas a Great Place To Work® (GPTW) in the UK, China and Singapore with new certifications in the US and France and a Trust Index© rating of 79% (2021: 76%).
See our Spotlight on culture, people & values on page 24
-
Updated and refined our Purpose, Vision and Strategy to better align with the evolving dynamics of the
consumer healthcare market.
See Our Strategy on page 12
Alliance Pharma plc Annual Report and Accounts 2022
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Alliance Pharma plc published this content on 22 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 March 2023 11:22:16 UTC.
