Alliance Pharma shares slide following challenging H1
Healthcare outfit Alliance Pharma reiterated full-year guidance on Wednesday as it said challenges faced in the first half were expected to ease in the second.
Alliance Pharma said group interim see-through revenues were up 1% year-on-year at £81.6m and down 2% at constant exchange rates.
However, Alliance stated the group's performance will be "more heavily weighted to H2" than in previous years, owing to lockdowns in Shanghai and associated temporary disruption to its supply chain, as well as its anticipated revenue trajectory for both its Nizoral and Amberen assets.
Although the AIM-listed firm said it had controlled costs "well" in the six months ended 30 June, it expects first-half gross margin to be below the prior year due to sales mix and some cost inflation in warehousing and distribution but said it anticipates gross margin improving in H2 as a result of a more favourable product mix and lower freight costs.
Chief executive 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.
"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 H2 as we execute the revenue trajectory expected by us and our distribution partners, in addition to booking the Nizoral orders delayed from H1."
As of 1105 BST, Alliance Pharma shares had slumped 10.30% to 101.72p.
Reporting by Iain Gilbert at Sharecast.com