A record trading month for international healthcare firm Alliance Pharma in June helped shield it from supply chain disruption caused by further lockdowns in China.
But the Chippenham-headquartered group, whose products range from anti-dandruff shampoo to stomach ulcer treatments, said its first-half gross margin was due to be lower because of a revised sales mix and cost inflation in warehousing and distribution.
In a trading update for the six months to 30 June, the group also said it expected its second half to benefit from a bounce back in sales of its Amberen, the relief for menopause symptoms it acquired in December 2020, and Nizoral, an anti-dandruff medical shampoo brand it bought in 2018.
Total first-half revenues were £81.6m, up 1% on the prior period but down 2% at constant exchange rates, helped by its $19.4m (£14.8m) US acquisition of scar treatment ScarAway and the US rights to Kelo-cote, a silicone scar gel, from Irish group Perrigo.
Alliance chief executive officer Peter Butterfield said: “I am pleased with the performance of the group in the first half of 2022 against the backdrop of difficult global trading conditions.
“Our portfolio continues to provide a robust platform from which to grow our consumer healthcare brands. I was also delighted to have closed a highly strategic US acquisition in the period and the integration of ScarAway has gone very smoothly.
“June was a record trading month for Alliance and we expect this positive momentum to continue, delivering strong sales growth versus prior year across our key brands in the second half as we execute the revenue trajectory expected by us and our distribution partners, in addition to booking the Nizoral orders delayed from the first half.”
Alliance Pharma holds marketing rights to around 80 consumer healthcare brands, with revenues generated from a mix of direct, distributor and e-commerce sales in 100-plus countries.
It employs around 250 people across Europe, North America and the Asia-Pacific region.
