In Inte terim rim res esult lts for the he six mont nths hs end nded ed 30 Jun une 2019 19 Peter Butterfield Chief Executive Officer Andrew Franklin Chief Financial Officer
Age genda da Business Overview Contents H1 2019 Results Outlook Summary Interim results 2019 September 2019 3
Overview Bu Busi siness ness Ov Over ervie iew Interim results 2019 September 2019 4
Allianc iance e Pharma rma A gr growing g interna nation ional al healt lthc hcare e bu busi sines ess Organic growth: underpinned by effective portfolio prioritisation Organic growth International Star brands now H1 2019 44% International Star brands account for over 40% of Group Revenue by 56% Local brands brand revenues Local brands International Stars – a select group of global growth brands Key component of our portfolio mix Kelo-cote Treatment for scar reduction Highly cash generative Nizoral Medicated anti-dandruff shampoo Sold in a limited number of local markets with little or no MacuShield Eye health supplement promotional investment Vamousse Treatment for head lice Mix of prescription and consumer products – many are Xonvea Prescription medicine for the treatment of nausea niche products, or have an established brand name and vomiting of pregnancy (NVP) where Revenues broadly stable over time conservative management has failed Interim results 2019 September 2019 5
Xonvea ea UK UK £1.5m Allianc iance e Pharma rma The co continue nued d evolut lution ion of f our bu busi siness ess Kelo-cot ote Nizoral oral (Sinclai air) (APAC PAC) £127.5m £60.3m Vamou ouss sse £9.7 – 13.1m Xonvea ea EU Over the past 4 years we have been on a £1.0m MacuShiel eld £10.8m transformative journey, significantly 2018 Business evolution increasing the scale of our business, building 2017 up our portfolio of International Star brands 2016 2015 and diversifying our routes to market through a number of key acquisitions. Routes to market Sales evolution: acquisitions vs organic growth Portfolio mix 3-year CAGR (2015 – 2018): 37% 7% 140.0 17% 44% 25% 120.0 100.0 46% 8% H1 2019 H1 2019 80.0 2015 2015 £m 60.0 40.0 75% 20.0 29% 93% 56% 0.0 2015 2016 2017 2018 Rx OTC International Local brands OTx Star brands Base sales Acquisitions Interim results 2019 September 2019 6
Allianc iance e Pharma rma 2 3 1 5 International In ational reach 4 6 7 T o support this growth, we have 10 scaled up our operating capability: 8 Business evolution from being primarily a UK-centric 9 organisation, we now have offices in 9 countries and a broad international base of distributors. Offices UK – Chippenham (HQ) 1 Revenue by geography UK - Chester 2 Dublin 3 2% Paris 4 Team Countries Offices People 4% 10% 5 Dusseldorf 1 >100 10 >220 20% 6 Milan 7 Madrid 37% 8 H1 2019 Shanghai 2015 9 Singapore 10 North Carolina Distributor relationships 88% 39% Mainland Europe UK & ROI International US 7 Interim results 2019 September 2019
H1 2019 Results H1 2019 Res esul ults Interim results 2019 September 2019 8
2019 Interim rim Re Resu sults lts See-through Revenue* (3 year CAGR 15%) Ov Overview iew H1 2019 £70.3m H1 2018 £54.5m H1 2017 £49.4m Statutory Revenue ‘ See- through’ Revenue* £66.0m £70.3m H1 2016 £46.4m +21%** Underlying EBITDA** (3 year CAGR 13%) H1 2019 Results +29%** H1 2019 £18.8m H1 2018 £14.1m ‘See through’ Gross Margin Rate* Statutory Gross Margin Rate 58.8% 62.6% H1 2017 £13.6m H1 2016 £13.2m (H1 2018: 59.6%) (H1 2018: 59.6%) Underlying Profit Before Tax (3 year CAGR 9%) Underlying EBITDA* Underlying Profit Before Tax H1 2019 £15.2m £15.2m £18.8m H1 2018 £12.1m H1 2017 £11.9m +34%** +25%** H1 2016 £11.7m * Non-IFRS alternative performance measures. See-through revenue includes sales from Nizoral in full. For statutory accounting purposes the product margin on Nizoral sales is included within Revenue, in line with IFRS 15. ** 2018 comparatives restated following the adoption of IFRS 16 Leases and the capitalisation of £0.3m of Nizoral acquisition costs. Interim results 2019 September 2019 9
2019 Interim rim Re Resu sults lts Underlying Basic EPS (3 year CAGR 5%) Ov Overview iew H1 2019 2.34p H1 2018 2.04p H1 2017 1.97p Underlying Basic EPS H1 2016 Free Cash flow* 2.04p 2.34p £14.5m Interim Dividend Per Share (3 year CAGR 10%) H1 2019 Results +15%** (H1 2018: £10.4m)** H1 2019 0.536p H1 2018 0.487p Interim dividend Net bank debt* 0.536p £74.1m H1 2017 0.443p H1 2016 0.403p +10% (31 Dec 2018: £85.8m) Free Cash Flow* (3 year CAGR 90%) Leverage at 1.95x H1 2019 £14.5m H1 2018 £10.4m Adjusted net debt H1 2017 £11.1m to EBITDA ratio H1 2016 £2.1m * Non-IFRS alternative performance measures. See-through revenue includes sales from Nizoral in full. For statutory accounting purposes the product margin on Nizoral sales is included within Revenue, in line with IFRS 15. ** 2018 comparatives restated following the adoption of IFRS 16 Leases and the capitalisation of £0.3m of Nizoral acquisition costs. Interim results 2019 September 2019 10
2019 Interim rim Re Resu sults lts See-through Revenue* (3 year CAGR 15%) P&L &L su summ mmary H1 2019 £70.3m H1 2018 £54.5m H1 2017 £49.4m H1 2016 £46.4m 2018 Six months ended 30 June 2019 Movement ( restated** ) Underlying results £m £m % H1 2019 Results See-through revenue* 70.3 54.5 29.1% OPEX – increase due to transitional service fees Gross profit 41.3 32.4 27.4% Gross profit % 58.8% 59.6% (0.8%) payable to J&J (not in H1 2018) together with Operating costs (21.7) (17.8) (21.6%) increased investments to support Nizoral transition Share-based payments (0.9) (0.6) (49.7%) and Star brands EBITDA 18.8 14.1 33.7% Financing costs – increase primarily due to EBITDA % 26.8% 25.8% 1.0% Depreciation & Amortisation (1.1) (0.8) (44.5%) currency movements: £0.3m benefit in H1 2018 vs £0.6m adverse in H1 2019, including £0.4m EBIT 17.7 13.3 33.1% exchange loss on FX forwards Financing costs (2.5) (1.1) (122.7%) Profit Before Tax 15.2 12.1 24.8% Strong underlying performance – pre-tax profits PBT % 21.6% 22.3% (0.7%) up 25%, with operational leverage maintained Profit After Tax 12.1 9.7 Basic EPS 2.34p 2.04p 14.7% Diluted EPS 2.30p 1.98p 16.2% * Non-IFRS alternative performance measures. See-through revenue includes sales from Nizoral in full. For statutory accounting purposes the product margin on Nizoral sales is included within Revenue, in line with IFRS 15. ** 2018 comparatives restated following the adoption of IFRS 16 Leases and the capitalisation of £0.3m of Nizoral acquisition costs. Interim results 2019 September 2019 11
2019 Interim rim Re Resu sults lts Free Cash Flow** (3 year CAGR 90%) Cash sh fl flow mo movement ments H1 2019 £14.5m H1 2018 £10.4m H1 2017 £11.1m H1 2016 £2.1m H1 2019 Results Cash flow from trading £19.2m * Non-IFRS alternative performance measures. See-through revenue includes sales from Nizoral in full. For statutory accounting purposes the product margin on Nizoral sales is included within Revenue, in line with IFRS 15. ** 2018 comparatives restated following the adoption of IFRS 16 Leases and the capitalisation of £0.3m of Nizoral acquisition costs. Interim results 2019 September 2019 12
2019 Interim rim Re Resu sults lts Summ mmarised rised ba balance ce sh sheet et As at: 30-Jun-19 31-Dec-18 £m £m H1 2019 Results Goodwill and Intangibles 335.0 335.2 Working capital – reduction in total inventory balance (£2.2m) due to wind down Working capital 20.9 26.1 of March Brexit inventory/FMD Corporation tax (3.3) (1.5) Corporation tax – reflects timing of tax payments Deferred tax (net) (26.9) (26.8) Deferred consideration (0.5) (0.5) Other net assets 6.8 5.4 332.0 338.0 Net debt – reduction reflects strong underlying cash generation Net debt (74.1) (85.8) Net assets 257.9 252.2 Interim results 2019 September 2019 13
2019 Interim rim Re Resu sults lts Net de debt bt and l d leve vera rage ge Net debt Debt reduction – net debt H1 2019 Results reduced by £11.7m in H1 2019 New debt facility – in place from 2 July 2019: £165m fully Revolving Credit Facility and £50m accordion Enlarged syndicate of lenders and improved terms Provides flexibility to deliver carefully targeted acquisitions Leverage Leverage reduction – 1.95x 2.33x leverage is forecast to reduce further in H2 2019 Interim results 2019 September 2019 14
Recommend
More recommend
