Alliance Pharma PLC (LON:APH) said it expects full-year revenue and underlying profit before tax to be in line with market expectations despite the coronavirus (COVID-19) pandemic.
The healthcare group said the fall-out from COVID-19 had affected revenue in the first half of 2020, mainly in its prescription medicines business but sales of its consumer healthcare products have remained robust.
Revenue for the first half of £65.3mln was down 7% on the £70.3mln seen in the same period of 2019. Free cash flow clocked in at £10.5mln, versus £14.5mln in the same period of 2019, with net debt reducing by £7mln to £52.2mln, and a further reduction expected in the second half of the year.
The group said it has experienced “only minimal disruption” to its supply chain due to COVID-19 and continues to expect a further recovery in trading during the second half of the year, as markets normalise and demand improves.
Overall, Alliance said it is starting to see some good signs of recovery in its main markets, particularly in China.
"We expected some reduction in demand during the first half of 2020 as a result of COVID-19. That said, we have come through strongly towards the end of the half and expect trading to recover further as we move into the second half of the year,” Peter Butterfield, the chief executive officer of Alliance Pharma said in the half-year trading update.
“The resilience and diversity of our product portfolio, and the ease with which we have managed to transition the business to operating remotely, position us very well to resume our growth trajectory as the markets for our products recover,” he added.