Alliance Pharma PLC (APH) 2021年年度報告「LSE」.pdf

《Alliance Pharma PLC (APH) 2021年年度報告「LSE」.pdf》由會員分享，可在線閱讀，更多相關《Alliance Pharma PLC (APH) 2021年年度報告「LSE」.pdf（146頁珍藏版）》請在三個皮匠報告上搜索。

1、Alliance Pharma plc Annual Report and Accounts 2021Achieving more togetherAn alliance of people,partners and brands,working together to achieve moreContentsCompany Overview2021 Financial Highlights01At a Glance02Our Values04Strategic Report Chief Executives Review07Our Markets13Our Business Model16

2、Our Strategy17Key Performance Indicators23Sustainability Overview25Sustainability Performance28Developing our Environmental Sustainability Strategy33Stakeholder Engagement34Financial Review35 Principal Risks and Uncertainties39GovernanceChairmans Introduction47Board of Directors 48Governance50Nomina

3、tion Committee Report56Audit and Risk Committee Report60Remuneration Committee Report65ESG Committee Report76Task Force on Climate-related Financial Disclosures(TCFD)78Directors Report80Financial StatementsIndependent Auditors Report86 Consolidated Income Statement95 Consolidated Statement of Compre

4、hensive Income96Consolidated Balance Sheet97Company Balance Sheet98 Consolidated Statement of Changes in Equity99 Company Statement of Changes in Equity100 Consolidated and Company Cash Flow Statements101Notes to the Financial Statements102Additional InformationUnaudited Information139Five Year Summ

5、ary140 Advisers and Key Service Providers141 Cautionary Statement142Glossary142GovernanceCompany OverviewStrategic ReportAdditional InformationFinancial StatementsFor more information visit Alliance Pharma plc Annual Report and Accounts 2021The Group delivered a strong operational and financial perf

6、ormance in 2021,leaving it well placed to take advantage of further growth opportunities in 2022.2021 Financial Highlights*Non-IFRS alternative performance measures(see note 34).See-through revenue includes all sales from Nizoral as if they had been invoiced by Alliance as principal.For statutory ac

7、counting purposes the product margin relating to Nizoral sales made on an agency basis is included within Revenue,in line with IFRS 15.Strong overall revenue growth driven by Consumer Healthcare,underpinned by continued market penetration via e-commerce activity,which now represents around 25%of Gro

8、up sales Consumer Healthcare see-through revenue*up 31%to 121.8m(2020:93.0m)and up 36%at constant exchange rates*(CER)with excellent performance from Kelo-cote and the inclusion of Amberen,acquired in December 2020 Robust Prescription Medicines performance with revenues up 8%to 47.8m(2020:44.5m),wit

9、h strong H2 recovery as the effects of COVID-19 receded Strong Free Cash Flow*driving down Group leverage to 1.7x at 31 December 2021(2.4x at December 2020)Amberen fully integrated into the Group Successfully implemented Group-wide ERP system,enhancing visibility across the business US operating cap

10、abilities expanded to provide a platform for future growth Strengthened European management team and expanded the Board to increase consumer brand experience Dedicated Innovation and Development team now in place to underpin Consumer Healthcare organic growth Roll-out of strategic brand plan for Niz

11、oral now well underway Committed to carbon neutral Scope 1&2 emissions from 2021 Certified as a Great Place To Work again in UK and China,and now in Singapore with a Trust Index rating of 76%OverviewUnderlying Profit Before Tax42.2m+26%(2020:33.5m)Free Cash Flow*30.2m-12%(2020:34.1m)Net Debt*87.0m-2

12、0%(2020:109.4m)Underlying Basic EPS6.39p+25%(2020:5.11p)Reported Profit Before Tax18.2m+40%(2020:13.0m)Reported Basic EPS1.37p-9%(2020:1.51p)See-through Revenue*169.6m+23%(2020:137.5m)Statutory Revenue163.2m+26%(2020:129.8m)01Alliance Pharma plc Annual Report and Accounts 2021GovernanceCompany Overv

13、iewStrategic ReportAdditional InformationFinancial StatementsAt a GlanceWe are Alliance,a growing international healthcare groupOur core business is Consumer Healthcare.This accounts for more than 70%of our revenues and is what drives our growth.We also have a well-established Prescription Medicines

14、 business,which operates from the same regulatory platform.In total,we hold marketing rights to around 80brands.Our commercial operations extend across EMEA,AMER and APAC,with revenues generated from a mix of direct,distributor and e-commerce sales.By outsourcing all our manufacturing and logistics

15、activities,we remain asset-light and focused on maximising the value of our brands.Who we are We are Alliance,a growing international healthcare group.A business founded on the principle that by working together,we can achieve more.What we do Our purpose is to improve the lives of consumers and pati

16、ents through making available a range of clinically valuable healthcare products.How we do it Every day,we work with our partners and colleagues around the globe,to maximise the value of our brands.Confident in the knowledge that in doing so,we can make a real difference to peoples lives.Headquarter

17、ed in the UK,we employ around 250 people based in locations across Europe,North America,and the Asia Pacificregion.02Alliance Pharma plc Annual Report and Accounts 2021GovernanceCompany OverviewStrategic ReportAdditional InformationFinancial StatementsOur VisionTo be a leading international healthca

18、re business,built around products that are clinically valuable to patients.We will be both the partner and employer of choice.To improve the lives of consumers and patients through making available a range of clinically valuable healthcare products.Our PurposeAt a Glance continuedOur StrategyThere a

19、re two main strands to our strategy:Delivering solid organic growth from our key brands Supplementing this growth with selective,complementary acquisitions in the consumer healthcare spaceUnderpinned by a focus on:Investing in people SustainabilitySee page 17 Performance Realism Accountability Integ

20、rity Skill EntrepreneurshipOur ValuesSee pages 04&05Our Business Model Leveraging the global platform weve created and the capabilities,expertise and relationships that support this enables us to maximise the value of our existing brands and integrate acquired brands with ease.See page 16Our culture

21、 reflects the spirit of collaboration embedded in our business the tacit belief that through working together,both internally and with external partners,we can achieve more for our stakeholders and for society as a whole.Our CultureSee page 2203Alliance Pharma plc Annual Report and Accounts 2021Gove

22、rnanceCompany OverviewStrategic ReportAdditional InformationFinancial StatementsOur ValuesActing in accordance with our values,we maintain our strong culture of working together to achieve more.Performance Accountability Realism We set stretching goals and targets which we believe are achievableOur

23、high-performing people continually drive business successUndeterred by the challenges of remote working imposed by the global pandemic,in April 2021,members of our global brand marketing team went above and beyond to deliver a very successful Alliance brand week and marketing excellence program virt

24、ually.This enabled the brand leads to showcase the plans theyd created for each of the 13 brands prioritised as part of this programme,building wider awareness and understanding of our brand marketing priorities across the business.We take responsibility and deliver what we promiseFrom developing ne

25、w Key Opinion Leaders endorsements for our products to delivering new or improved processes,many great demonstrations of our values in practice involve our employees taking individual or collective responsibility to ensure that delivery expectations are met at all levels in the organisation.One of t

26、he best examples of Accountability in 2021 came from our UK Facilities team,who successfully managed the transformation of our UK headquarters and the challenge of undertaking works to a listed building,against the backdrop of ever-changing COVID-19 restrictions.When we learnt that the manufacturer

27、of one of the lead products in our Vamousse headlice prevention/treatment range was unable to continue manufacturing it,some quick thinking was needed to avoid a potential out of stock situation in the peak back-to-school season in the US.By working together and adopting a creative,can do approach,a

28、 cross-functional team,with participants from the US and UK,managed to come up with a solution which,with limited compromises and last-minute adjustments,Living up to our valuesSee page 22See page 33they then successfully implemented to resolve what had originally looked like a very challenging situ

29、ation.04Alliance Pharma plc Annual Report and Accounts 2021GovernanceCompany OverviewStrategic ReportAdditional InformationFinancial StatementsIntegrityWe build trust in all our relationshipsTrust is a key element in all our relationships,both internal and external creating successful partnerships a

30、nd business relationships depends on it.In April 2021,after a lengthy process,members of our medical and regulatory teams successfully obtained a new indication for one of our established Prescription Medicines in the UK and 10 other territories across the EU.To do this,they had to overcome multiple

31、 challenges from dealing with several complex information requests from the assessors to translation issues and rigorous challenges from our safety partners.Through exercising a high degree of skill and integrity,showing sensitivity to others perspectives,and persevering with their endeavours,the te

32、am successfully delivered a great outcome,both for Alliance and for patients.Many of our PRAISE awards recognised the utilisation of skills developed over the course of an employees journey with Alliance we see many great examples of employees taking on and successfully delivering projects that lie

33、outside their current experience and skill sets.Our values,and the culture that underpins them,are at the heart of how we operate as a business Each month,we take time to celebrate outstanding demonstrations of our values in practice In 2021,more than 50 colleagues received special recognition throu

34、gh the values-based PRAISE awards scheme,with more than 2,500 donated to charities of their choiceOur Values continuedTired of the daily frustration of trying to locate the right brand assets,our marketing team came together and decided to take the initiative to create a digital asset management sys

35、tem to better manage our growing portfolio of digital assets.The Alliance Asset Hub,an enterprising solution conceived and actualised by a member of our global marketing team,now sits at the heart of our marketing ecosystem,providing a single source of truth for all our digital brand assets.Accessib

36、le by teams around the globe and with the ability to make direct updates to our brand websites,whilst controlling access and usage rights,the system is expected to deliver real business benefits as our focus on marketing excellence continues.For example,in 2021 a member of our customer services team

37、 took on the challenge of consolidating the business activities going through our two UK wholesalers the first project of this size and cross-functional nature they had led.Through effective leadership and strong project management skills,they were able to bring the project to a successful conclusio

38、n and enable the associated cost savings to be realised.Entrepreneurship Our people think of the business as it if was their ownSkill We recruit highly skilled people and develop their talents to the full05Alliance Pharma plc Annual Report and Accounts 2021GovernanceCompany OverviewStrategic ReportA

39、dditional InformationFinancial StatementsStrategic Report Chief Executives Review07Our Markets13Our Business Model16 Our Strategy17Key Performance Indicators23Sustainability Overview25Sustainability Performance28Developing our Environmental Sustainability Strategy33Stakeholder Engagement34Financial

40、Review35 Principal Risks and Uncertainties39GovernanceAdditional InformationFinancial Statements06Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic ReportChief Executives Review See-through Revenue*169.6m+23%(2020:137.5m)Statutory Revenue163.2m+26%(2020:129.8m)Continuing o

41、n our growth trajectory “Im delighted with the strong performance of the Group in 2021.Kelo-cote enjoyed another excellent year,helping us to deliver double digit organic revenue growth,and Amberen is now fully integrated into our enlarged US operations”*Non-IFRS alternative performance measures(see

42、 note 34).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.GovernanceAdditional InformationF

43、inancial Statements07Company OverviewStrategic ReportAlliance Pharma plc Annual Report and Accounts 2021TRADING PERFORMANCEOverviewThe Group delivered strong growth in the year,with see-through revenue up 23%to 169.6m(2020:137.5m),despite the impact of currency headwinds and continuing lockdowns,par

44、ticularly in the APAC region;at constant exchange rates(CER),revenue growth was 27%.Like-for-like(LFL)revenue,excluding revenues attributable to Amberen,which was acquired by the Group at the end of 2020,grew 9%(12%CER).On a statutory reported basis,Group revenues were up 26%to 163.2m(2020:129.8m)(+

45、30%CER)and up 11%to 144.0m(2020:129.8m)on a like-for-like basis,excluding Amberen(+14%CER).Gross profit increased by 32%to 109.5m(2020:82.8m),the increase outstripping revenue growth due to favourable changes in product mix,resulting from the inclusion of Amberen and the significant growth in Kelo-c

46、ote sales.This was balanced by an expected increase in operating costs,primarily reflecting the inclusion of the Amberen cost base,the resumption of discretionary spend deferred from the early stages of the pandemic and higher levels of investment in the business to support growth.Coupled with a sma

47、ll increase in depreciation and amortisation charges,as we brought our new ERP system into service,underlying profit before tax increased 26%to 42.2m(2020:33.5m),with the profit before tax margin increasing by 50 basis points to 24.9%(2020:24.2%).Chief Executives Review continuedNon-cash amortisatio

48、n and impairment charges,together with a provision in relation to the Competition and Markets Authority(CMA)decision and restructuring costs,resulted in reported profit increasing by 39%to 18.2m(2020:13.0m).Consumer HealthcareOur Consumer Healthcare business continued to perform well through 2021,wi

49、th increased e-commerce activity and the integration of Amberenhelping to drive year-on-year see-through revenue growth of 31%(36%CER),to 121.8m(2020:93.0m).On a statutory basis,reported revenues were 115.4m,up 35%from the previous year(2020:85.3m)and up 41%CER.Excluding the impact of Amberen,like-f

50、or-like Consumer Healthcare see-through revenue increased by 10%(14%CER)to 102.6m whilst reported revenue increased by 13%(16%CER)to 96.1m.Kelo-cote scar prevention&treatmentKelo-cote delivered another excellent performance,particularly in the APAC region,generating revenues of 48.8m,up 41%on the pr

51、ior year(2020:34.7m).CER revenues were up 47%due to continued strong demand from China,reflecting the growth of both domestic sales and significant cross-border e-commerce(CBEC)sales.Kelo-cote is very well established in China,with high brand awareness and usage.The growth in domestic and CBEC reven

52、ues reflects the increasing trend for consumers in China and elsewhere to migrate more to online purchasing,both of the brand itself and healthcare products generally a trend accelerated by the pandemic.In 2021,we entered into a new CBEC distribution agreement for Kelo-cote,to move Alliance closer t

53、o the customer and provide greater control of our distribution chain.This decision was taken in response to the success of CBEC in facilitating export sales from the EU to consumers in China,and in recognition of the significant opportunity that China offers for this key brand.As a result,we expect

54、further top-line growth in China over the medium term.Performance across the rest of the APAC region was more mixed,as many countries continued to be impacted by the pandemic,although both Hong Kong and South Korea recorded strong growth.A similar trend was evident across South America and much of E

55、MEA;with strong performances from a number of European territories including France(domestic and export sales),and the UK.*See-through revenue includes all sales from Nizoral as if they had beeninvoiced by Alliance as principal.For statutory accounting purposes the product margin relating to Nizoral

56、 sales made on an agency basis is included within Revenue,in line with IFRS 15.GovernanceAdditional InformationFinancial Statements08Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic ReportChief Executives Review continuedAmberen vitamin mineral supplement for the relief o

57、f menopause symptoms(US)Amberen made an encouraging start during its first year of trading under the Groups ownership,generating net revenues of$26.5m(19.2m)in the Year,with H2 2021 revenues up 12%CER on H2 2020(under previous ownership).Full year revenue growth was up 3%CER,with the brands Amazon s

58、ales in particular experiencing strong year-on-year growth,compensating for more challenging trading conditions for the category as a whole in the bricks and mortar retail sector.We expect to see Amberen revenue growth accelerate in 2022,with a weighting towards H2,as we look to leverage the expande

59、d operating platform we have put in place in the US,increase our focus on brand positioning and execute a new integrated marketing campaign for the brand.We are focused on developing an innovation pipeline to underpin the growth of the brand in the longer term.Nizoral medicated anti-dandruff shampoo

60、Nizoral had a challenging start to the year due to a combination of distributor order phasing,manufacturing delays,and the ongoing impacts of COVID-19 on demand,particularly in India.We experienced some delay to the transitioning of regulatory approvals in Vietnam and the Philippines,whilst growth i

61、n key pharmacy chain listings for the new Triatop combi product in China was also slower than planned.However,revenues started to recover in the second half of the year,with see-through revenue of 11.6m in H2 2021(9.0m in H1 2021 and 11.2m in H2 2020),as the challenging regional trading conditions a

62、ffecting both supply and demand eased.Triatop combi product pharmacy listings in China also improved in the last few weeks of the year,which should help support further sales momentum in 2022.Consequently,see-through revenues for the Year of 20.6m,were up 1%CER(-2%as reported)(2020:21.0m).On a statu

63、tory reported basis,revenues were up 7%,at 14.2m(2020:13.3m)(+9%CER).We expect to see further improvement in 2022,as the pandemic recedes and we take full control of the supply chain following the end of the transition period with J&J.The roll-out of our strategic brand plan for Nizoral is now well

64、underway,with consumer activation campaigns ongoing or planned across a number of key territories,including Australia,South Korea and Taiwan.These activities are being carried out in partnership with our local distribution partners as part of a growth strategy centred around consumer and healthcare

65、professional activation,e-commerce,and Innovation&Development(I&D).Other Consumer Healthcare brandsWe continued to see a mixed performance across our other Consumer Healthcare brands,particularly for those products sold principally through international distributors.MacuShield(eye health supplement)

66、,was an early beneficiary of a recovery in UK retail sales post COVID-19,whilst Vamousse(prevention and treatment of head lice)continued to be impacted by COVID-19 challenges as school closures and social distancing requirements led to significantly reduced incidence of head lice,particularly in the

67、 US,the products primary market.With distributor stocking patterns contributing to declines in Oxyplastine and Aloclair,revenues in other Consumer Healthcare brands fell 9%CER.As we progress through 2022,and global trading patterns and consumer behaviours start to normalise post COVID-19,we expect t

68、o see sales of Vamousse,Aloclair,Oxyplastine and a number of our other smaller consumer brands start to pick up again.Further revenue detail on these brands is available in note 3.Prescription MedicinesThe Prescription Medicines business delivered robust revenues of 47.8m(2020:44.5m),up 8%on the pri

69、or year,reflecting a partial return to the delivery of routine treatments and normalisation of daily life compared with the early stages of the pandemic in 2020.Key drivers of revenue growth included the Opus range of stoma care products,Forceval(nutritional supplement),Hydromol(emollient for the tr

70、eatment of eczema)and Flammazine(prevention of infection of burns and wounds).We continue to actively manage this part of our portfolio,periodically discontinuing or disposing of smaller products that deliver very low sales and margins.However,the cash generation from these assets remains good and,c

71、oupled with their limited requirement for promotional investment,this business will continue to play an important part in our overall product portfolio.GovernanceAdditional InformationFinancial Statements09Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic ReportChief Execu

72、tives Review continuedRegional performanceEMEA(Europe,UK,Middle East&Africa)EMEA regional revenues of 89.2m were down 5%versus those for the prior year(2020:93.8m),primarily due to a mid-year change in the distributor for Kelo-cote CBEC,which is now located in APAC,and hence sales are now included i

73、n APAC revenues,whereas previously they were included in EMEA.This change in revenue classification was partially offset by the uplift in Prescription Medicines revenues,with this region accounting for 95%of all Prescription Medicines sales in the year,coupled with the growth in MacuShield sales,whi

74、ch originate primarily in EMEA(the largest market being the UK).APAC(Asia Pacific and China)APAC regional see-through revenues rose 47%versus the prior year at 54.4m(2020:37.0m),with statutory revenues up 64%to 48.0m (2020:29.3m).Revenues in this region are dominated by Kelo-cote and Nizoral(which i

75、s only sold by Alliance in APAC)and which collectively account for 90%of APAC sales in 2021.Regional revenues in 2021 benefitted from the change in distribution arrangements for Kelo-cote CBEC sales,with revenue recognised as part of APAC,rather than EMEA,from the middle of the year.The uplift in sa

76、les also reflects underlying growth in Kelo-cote sales,both in China and across the wider APAC region,coupled with the slight decline in Nizoral sales.AMER(The Americas)Revenues in the AMER region increased by 19.3m to 26.0m(2020:6.7m),reflecting the acquisition of Amberen,which contributed 19.2m to

77、 sales in the year.On a like-for-like basis,sales were in line with those for the prior year at 6.8m,with a decline in Vamousse sales in the US,due to the continued impacts of the pandemic,offset by increased sales of Kelo-cote in South America.This region now accounts for more than 20%of our Consum

78、er Healthcare revenues.Following a period of investment to expand its local operating capabilities,the US business now has an enhanced platform from which to generate strong growth in Amberen and other existing brands and to scale up further when suitable acquisitions areidentified.CURRENT TRADING A

79、ND OUTLOOK 2022 has started well,and we remain confident in our ability to deliver financial performance in line with market expectations.We now have a clear focus on our core Consumer Healthcare business,supported by a well-defined value maximisation strategy and a scalable platform across EMEA,APA

80、C and the US,to drive futuregrowth.The new distribution agreement we put in place in 2021 will enable us to deliver further growth for Kelo-cote through our CBEC business and gives us the opportunity to extend the range of products made available through this channel,potentially accelerating the gro

81、wth of a number of our other consumer brands.Through 2022,we expect to see increased growth from Nizoral as we accelerate the roll-out of our strategic plan for the brand and as the impact of the pandemic recedes.With Amberen now fully integrated into our enlarged US operations,we expect to see reve

82、nues increasing as we begin to realise the benefits of additional revenue opportunities that the brand has brought into the Group.We now have a more balanced consumer portfolio around the globe and,as our net debt and leverage continue to reduce,we are increasingly well placed to participate in comp

83、lementary acquisitions in the consumer healthcare space and to leverage the operating platform we have built across EMEA,APAC and the US.Coupled with a proven ability to extract value from our key consumer brands,we remain confident in our ability to realise our mid-term growthambitions.Developing o

84、ur regional platform Rounding out our operational capabilities across the three geographic regions in which we operate,EMEA,APAC and AMER,has been a major focus for us in recent years.The platform which weve created across these three regions,underpinned by our global support functions,enables us to

85、 create value through both driving the growth of our existing brands and acquiring and integrating new assets with ease as demonstrated most recently with Amberen.GovernanceAdditional InformationFinancial Statements10Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic Report

86、Chief Executives Review continuedOPERATIONAL DEVELOPMENTSWe recognise the need to invest in our business to maintain strong organic revenue growth.We recently implemented a new Innovation&Development(I&D)process and in 2021 we created new dedicated roles and a central I&D budget to deliver new produ

87、cts,claims and packaging ideas.We expect to see a number of these innovations come to market in 2022 as we refresh existing products to maintain consumer appeal.We have also commenced the roll-out of our new Digital Excellence training programme to our global marketing teams to ensure our staff have

88、 the necessary skills and knowledge to drive sustainable long-term value.Our ERP system went live in the first half of 2021,and we have already realised benefits to the business through the standardisation of processes.Our significant pre-launch preparation ensured a virtually seamless changeover;wo

89、rk continues on refining some of the reporting requirements and rolling the system out to a few remaining smaller entities,but we expect this to complete in the next 12 months.During the year we secured new,larger offices in Cary,North Carolina,to accommodate our growing US team,closed our office in

90、 Los Angeles and streamlined our European footprint through the closure of our Milan office,incurring associated restructuring costs of 2.4m,which have been presented as non-underlying.We also completed further substantial upgrade and refurbishment works at our UK headquarters,improving the building

91、s environmental credentials whilst also reconfiguring space to better accommodate post-pandemic working arrangements.All employees have now returned to the office on a hybrid basis,both in the UK and in our regional offices around the globe,as pandemic restrictionsallow.INCREASING OUR FOCUS ON SUSTA

92、INABILITYWe have continued to focus on developing our sustainable business strategy during the year,under the direction of the ESG Board Committee,and informed by feedback from a number of our key investors plus external gap analysis.This work has resulted in the development of our Sustainability Fr

93、amework;we now have greater clarity regarding our specific areas of focus and the key activities which underpin these.We have initiated a programme of work to drive improvements to the sustainability of our product packaging and are also in the early stages of developing our broader environmental st

94、rategy,including our response to climate change.In 2021,we quantified our Scope 3 greenhouse gas emissions for the first time and are using the results to help inform the development of our carbon action plan,with a view to setting carbon reduction targets and our path to net zero in the near future

95、.Given the nature of our business,and our use of third-party distributors,contract manufacturers(CMOs)and logistics service providers(LSPs),the majority of our greenhouse gas emissions are classified as Scope 3.In 2022,we plan to reach out to our larger CMOs and LSPs to better understand where they

96、are on their respective emissions reduction journeys and to obtain their Scope 1 and 2 data to help improve the methodology used for our Scope 3 calculations.We will also continue to reduce our own Scope 1 and 2 emissions,which were 90tCO2e for our UK operations in 2021,and will achieve carbon neutr

97、ality for these retrospectively in 2022 through the use of sequestration schemes.With the foundations now in place,we will be looking to raise the profile of sustainability within the business more widely in 2022,as we continue our journey to become a more sustainable business.We remain a responsibl

98、e corporate citizen,committed to minimising the negative impacts of our operations on the environment,whilst making a positive contribution to society.Further coverage on the progress we have made with our sustainable business strategy can be found on pages 25 to 33 of this report.Minimising our env

99、ironmental impact In 2021,we completed a programme of upgrading and refurbishment works at our UK headquarters,further improving the buildings environmental credentials.We continue to actively look for ways to reduce our direct(Scope 1&2)emissions as part of the drive towards net zero and intend to

100、achieve carbon neutrality for our Scope 1&2 UK emissions for 2021 retrospectively in 2022,through the use of sequestration schemes.GovernanceAdditional InformationFinancial Statements11Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic ReportChief Executives Review continue

101、dPEOPLEOn behalf of the Board,I would like to take this opportunity to express my sincere thanks to all those who have helped to make 2021 such a successful year for Alliance.We currently employ around 250 people in 10 locations around the globe.In 2021,we created around 20 new roles,spread across a

102、ll our main geographic locations,as we looked to meet our evolving business needs.This included the creation of a new dedicated I&D team to underpin the growth of our Consumer Healthcare brands.We recognise the need to develop appropriate in-house expertise in specific skill sets,using a blend of ex

103、ternal subject matter experts and internal training to ensure our platform remains scalable as we grow.We anticipate continued investment in our global team in 2022.In 2021,we once again participated in the Great Place To Work survey,as we further progressed our employee engagement journey.We were v

104、ery pleased to have received an overall Trust Index rating of 76%and to have been recertified as a Great Place To Work in the UK and China whilst gaining an additional certification in Singapore,with 81%of participants globally saying that Alliance was a Great Place To Work.Further coverage on this

105、and other aspects of our people strategy can be found on page 22.Supporting early-stage career development 2021 saw two of our employees successfully complete their apprenticeship training and move on to new permanent roles within the business demonstrating the continued success of Alliances apprent

106、iceship programme in fostering early-stage skills development.We have since taken on an additional apprentice in our Finance team and have recently launched both a graduate scheme and an industry placement scheme,furthering our commitment to supporting those at the start of their careers.During the

107、second half of the Year,we rolled out and refined our new ways of working to provide flexibility over office and home working for our employees around the globe,based on individual role,activities,and the location of other colleagues with whom they interact regularly.The majority of employees now sp

108、end 2 or 3 days a week in the office,subject to local government guidance,allowing them to combine the benefits of individual focus time with the increased connection and collaboration opportunities that come from being physically present with colleagues in the office.This increased flexibility has

109、been very positively received across the business and is working well for us.We recognise that great people,and the successful partnerships that they build both within the business and externally,are key to the delivery of great results.BOARD CHANGESAs previously announced,Kristof Neirynck,a highly

110、experienced consumer brands executive,took up his position as an independent Non-executive Director of the Group on 1 December 2021,bringing with him almost 20 years of international consumer brand experience,including complex omnichannel business models,direct-to-consumer strategies and CBEC sales

111、into China.His experience will be invaluable as we look to further develop and grow our business,in particular our CBEC activities,over the comingyears.LOOKING FORWARD TO 20222022 has got off to an encouraging start.We remain confident in our ability to further capitalise on identified organic growt

112、h opportunities within the business and to deliver financial performance in line with market expectations.Operationally,the priorities for the Group in 2022 are:To continue to invest behind our larger Consumer Healthcare brands,in order to drive further growth,supported by our increasing focus on e-

113、commerce and I&D activities;To continue to progress our sustainable business agenda,including the creation of our carbon action plan and the setting of emissions reduction targets;To continue to look for opportunities to participate in complementary acquisitions in the consumer healthcare space,to l

114、everage the operating platform we have built across EMEA,APAC and the US,and balance the scale of our business operations across these regions.Peter ButterfieldChief Executive Officer30 March 2022GovernanceAdditional InformationFinancial Statements12Alliance Pharma plc Annual Report and Accounts 202

115、1Company OverviewStrategic ReportOur MarketsThe long-term trends in consumer healthcare remain unchanged,although the COVID-19 pandemic has caused significant short-term impacts.Sustainability is also emerging as a key consideration for both manufacturers and brandowners.Source:https:/ OTC products

116、to manage acute health conditions60%67%tend to take an OTC product before making a doctors appointmentof people are researching health problems1 in 20Google searches relate to healthMacro trends in consumer healthcare Increasing life expectancy increasing longevity and ageing populations have led to

117、 an increased demand for healthcare particularly for products which target conditions typically experienced in later life.Increasing prosperity,self-care,and the wellness movement levels of prosperity and disposable income in many parts of the world,particularly in developing countries,are rising.We

118、 are also seeing a shift towards self-medication using over the counter(OTC)products,rather than relying on prescription medicines,coupled with an increased focus on personal wellbeing,and on prevention rather than cure.Digital healthcare and the empowerment of patients and consumers consumers,espec

119、ially younger ones,are increasingly turning to online resources to self-diagnose and discover solutions to their health concerns.As prospective patients,consumers are becoming active partners in their healthcare journey.With the ability to carry out extensive research online,they are able to become

120、more knowledgeable about the services they receive and the products they use.The growth of e-commerce the emergence of high-speed mobile data,rapid delivery times and increasingly secure and speedy payment methods have led consumers to embrace the convenience of online purchasing.GovernanceAdditiona

121、l InformationFinancial Statements13Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic ReportE-commerce market is worth 4.9tr worldwide of which consumer healthcare isgrowth in China andgrowth in the US in 202130%23%Our Markets continuedAccelerated shifts towards digital hea

122、lthcareImpacts of the COVID19 global pandemic Fluctuating demand consumers and retailers stocked up in the early stages of the pandemic,causing a subsequent reduction in demand and orders,impacting sales.Demand and supply patterns only normalise once inventory has sold through.Strained supply chains

123、 production and logistics have been heavily impacted both by workers being unable to work due to illness or self-isolation requirements,and reduced capacity as a result of compliance with social distancing restrictions.New healthcare habits consumers learnt to manage their minor ailments with home r

124、emedies or went without treatments,for example in the mouth ulcer category.Brands will need to re-engage with consumers about the benefits of treating,now that access to treatment is available again.E-commerce consumers switched to purchasing through online retailers,with global e-commerce sales inc

125、reasing 26.4%in 2020 and a further 16.3%in 2021.E-commerce now represents 19%of total retail sales,driven by the continued impact of the COVID-19 pandemic shifting consumer purchase patterns from traditional bricks and mortar stores to online marketplaces like Amazon and retailer websites*.Consumers

126、 are expected to continue to shop this way.Self-diagnosis consumers turned to the internet to diagnose their health issues and to find recommended solutions,relying less on healthcare professionals,who were often difficult to access.Emerging trends sustainability Consumers,retailers,and healthcare p

127、roviders are increasingly choosing goods and services that promote a lower carbon footprint compared to alternatives.As a result,organisations,consumer healthcare brands and their wider supplier network will need to demonstrate their commitment to the environmental agenda consistently and proactivel

128、y in order to retain and grow their market positions.Relevance of the online channel per CHC product categoryVitamins&supplementsPain killerWound careGastro-intestinalEye careHeart healthCold remediesCough reliefFeminine hygiene1AllergyEar careSedatives/sleeping aidLower online relevanceHigher onlin

129、e relevanceAverageSource:https:/www.simon- 2022;InsiderIThe opportunity for AllianceAlliance is very well-placed to meet the growing need for OTC and self-selection healthcare products and services,with over 70%of our revenues now generated from consumer healthcare products,and with our established

130、global operating platform,strong distributor and retailer relationships,and an increasing focus both on product innovation and on sustainability.260bnGovernanceAdditional InformationFinancial Statements14Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic Reportc.25%of 2021

131、sales through e-commerceOur Markets continuedand how were capitalising on it Our brand prioritisation framework ensures investment and innovation are focussed on the biggest perceived opportunities.In 2021,our key brand,Kelo-cote,delivered growth of more than 40%,driven by favourable category dynami

132、cs and the growing e-commerce channel,which now represents around 25%of Group sales.We have now put in place the brand strategies needed to accelerate growth of Nizoral and Amberen in 2022.To support the growth of our e-commerce sales,in 2021 we set up a dedicated team to lead our cross-border e-com

133、merce(CBEC)activities and develop effective strategies to win in domestic e-commerce channels(see case study Responding to the acceleration in e-commerce growth on page 20).To further fuel the growth of our key and high-priority brands,we introduced new innovation processes,tools and capabilities in

134、 2021 which have resulted in a rapid expansion of our consumer healthcare innovation pipeline.This will be further enhanced in 2022 by the creation of a dedicated team and a meaningful increase in the development budget,designed to deliver breakthrough new product extensions and claims for our key b

135、rands globally.The acceleration in digital healthcare provision and e-commerce has cemented the increasing importance of healthcare brands having an effective digital strategy.In 2021,we launched a new Digital Excellence training programme for our commercial teams,and we plan to expand with more con

136、tent in 2022.We continue to strengthen our marketing investment in order to grow awareness of our key brands and build engagement to secure life-time value.Our pharma heritage continues to provide us with a strong foundation,leaving us well placed to deal with the challenge of increased regulation t

137、hat is now impacting consumer healthcare products for example medical devices,which are currently facing increased regulation in Europe under the Medical Device Regulations.We continue to upskill our medical and regulatory capabilities to provide the necessary support.As part of our wider Sustainabi

138、lity initiatives,we recently kicked off a series of workstreams to help us reduce the carbon footprint of our packaging and will be looking to factor this thinking into all future innovation projects as well as apply best practice to our current packagingestate.GovernanceAdditional InformationFinanc

139、ial Statements15Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic ReportE-commerce capability Dedicated in-house resource with external domain expertise supporting interface with key online retailers Tmall/Alibaba,JD.com,Amazon Supported by brand protection activitiesOur B

140、usiness ModelWorking together to leverage our platform and maximise the value of our brands.Global Marketing Ensures consistency of promotion for each of our lead brands global strategy with local implementation Through our marketing excellence programme all our marketeers are trained to deliver ins

141、ight-led campaigns,with tailored messaging to key customergroupsThe platform weve created across EMEA,APAC and AMER enables us to both drive the growth of our existing brands and to acquire and integrate new assets with ease.This is how we create value and execute our growthstrategy.The key capabili

142、ties,expertise and relationships that enable us to drive value creation are centred around our commercial activities and the brand-specific support functions which underpin these.c.35%of our consumer healthcare revenues are now derived from e-commerceCommercial activitiesDistributor network Relation

143、ships with an extensive network of distributors around the world Sales specialists located in key territories with responsibility for managing key accounts and partnering with distributors on e-commerce initiativesRegulatory expertise Global capability with deep domain expertise across all categorie

144、s of licensed medicinal products.A proven ability to register products in new territories and handle registration transfers and other complex regulatoryprojectsInnovation&development capability Dedicated in-house resource and newly created team supporting key brands in the development of new line ex

145、tensionsBrand-specific support activitiesMedical/claims expertise Key to supporting our focus on clinically valuable products&essential to supporting our licensed medicines Data generation to support core claims in key markets and for the development of new claims and horizon scanning of the evolvin

146、g regulatory landscapeSupply chain management Global sourcing and supply chain capability built up over 20+years with a mix of local and centralised resource Excellent relationships with c.60 CMOs;effective performance management and ongoing programmes to drive efficiency through cost of goods reduc

147、tion GovernanceAdditional InformationFinancial Statements16Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic ReportOur StrategyThis is what enables us to progress towards our vision of becoming a leading international healthcare business,and being both the partner and empl

148、oyer of choice.There are two core elements to our strategy:delivering organic growth from our key brands,and engaging in selective,complementary acquisitions that can leverage our established infrastructure to enhance this growth.Underpinning these are our investment in people and sustainable busine

149、ss strategy.Over the following pages we provide more detail around our core strategy,our progress in 2021 and our priorities for 2022.Similar commentary in relation to investing in people can be found on page 22,with our sustainability strategy being covered on pages 25 to 33.Our strategy enables us

150、 to deliver sustainable business growth through maximising the value of our core Consumer Healthcare business,thereby increasing the number of people who can potentially benefit from our products.Core strategyStrategic elements:Organic growth key brandsSee page 18Complementary acquisitionsSee page 1

151、9 Investing in marketing excellence and Innovation and Development(I&D)to drive growth in major Consumer Healthcare brands Stable,cash-generative Prescription Medicines business provides synergy through in-house regulatory knowledge and supports growth Focus on Consumer Healthcare Leveraging global

152、platform Strong balance sheet means we are increasingly well placed to participate in complementary acquisitionsUnderpinned byStrategic elements:Investing in people See page 22Sustainability See page 25GovernanceAdditional InformationFinancial Statements17Alliance Pharma plc Annual Report and Accoun

153、ts 2021Company OverviewStrategic ReportOur Strategy continuedThe primary driver of organic growth is our Consumer Healthcare portfolio.Our key brands,Kelo-cote,Amberen and Nizoral,are all well-established in their respective core markets,with strong claim sets and good clinical utility enabling them

154、 to deliver real value to users.All target growing demographics,making them well-suited to digital marketing and e-commerce,and all offer good innovation opportunities too.It is this combination of brand characteristics,coupled with the operating platform we have built across EMEA,APAC and AMER,and

155、the expertise and relationships underpinning this,which provides the opportunity for us to drive double digit growth from these brands.Many of our smaller consumer brands share similar characteristics,enabling them to benefit both from the platform and from a common approach to driving growth,focuse

156、d on marketing excellence and where appropriate,innovation.Organic growth key brandsProgress in 2021:Delivered a 430 basis point improvement in gross margin,including the first full year of Amberen allowing for increased investment in marketing and Innovation&Development(I&D)to accelerate future org

157、anic growth Implemented a new cross-border e-commerce distribution agreement for Kelo-cote,enabling us to move closer to the customer and giving further control of our distribution chain Rolled out a new I&D process,supported by a dedicated team,to develop and deliver an innovation pipeline for our

158、key consumer brands.This will enable us to maintain the relevance of our brands to consumers by extending the reach of a number of our larger consumer brands,through brand extensionsPriorities for 2022:Continuing our focus on I&D,with the first new products arising from this process expected to laun

159、ch in 2022 Extending our cross-border e-commerce platform in China,to include additional brands,through the creation of an Alliance multi-brand store Realising the growth potential from Amberen through increasing our focus on brand positioning,executing a new integrated marketing campaign and starti

160、ng to build an innovation pipeline for the brand to underpin its longer-term growthInnovation&development(I&D)I&D at Alliance encompasses a broad range of activities aimed at creating value through:New product development brand extensions(new formulations,targeting related sub-sectors),or new presen

161、tations New thinking for example,classification switches,or the creation of new claims for a product New therapeutic indications Refreshing existing products to maintain consumer appeal47.8m121.8mSee-through revenues*Non-IFRS alternative performance measures(see note 34).See-through revenue includes

162、 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.Consumer Healthcare Prescription Medicines2021202044.5m93.0mGovernanceA

163、dditional InformationFinancial Statements18Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic ReportOur Strategy continuedOur strategy is to acquire new products which meet our selective acquisition criteria and integrate these into the business efficiently,to enhance ourgr

164、owth.The platform we have created across EMEA,APAC and,more recently,the US,enables us to acquire and integrate new assets with ease we continue to evaluate opportunities which meet our selective acquisition criteria to further develop our business.We typically review around 80 to 100 opportunities

165、a year.Our well-established relationships within the consumer healthcare M&A market,clear acquisition criteria and track record mean we continue to have good access to new opportunities,whilst our continued strong cash generation means we can deleverage quickly,replenishing our available debt capaci

166、ty.Progress in 2021:Amberen integration completed,helping to both increase our presence and develop our operating platform in the US Around 80 acquisition opportunities reviewed,of which three progressed to full evaluation Net debt reduced by 22.4m,with leverage falling from 2.43x following the acqu

167、isition of Amberen in December 2020,to 1.73x at 31 December 2021Priorities for 2022:Continuing to identify,evaluate and progress new opportunities which will deliver value to shareholders and help us to achieve our growthambitions Continuing to maintain the strength of our pipeline and our funding c

168、apabilities in both debt and equityEnhancing our growth through complementary acquisitionsWe are a selective acquiror,seeking assets we can integrate into our platform and apply our skills and know-how,to generate strong returns.GovernanceAdditional InformationFinancial Statements19Alliance Pharma p

169、lc Annual Report and Accounts 2021Company OverviewStrategic ReportOur Strategy continuedE-commerce growth The personal care category,which includes healthcare products,grew 18.4%in 2021 to reach$260 billion.This presents a significant opportunity for us to drive enhanced revenue growth*.In 2021,we c

170、ontinued to take advantage of the change in consumer behaviour by embracing e-commerce opportunities both locally and cross-border(CBEC),with a particular focus on Kelo-cote in China.In August 2021,we entered into a new CBEC distribution agreement for Kelo-cote,bringing us closer to the customer and

171、 giving us increased control of our distribution chain.Working with our partner,we launched Kelo-cote flagship stores on the China CBEC marketplaces,Tmall and JD.com,to further accelerate top-line growth in this key market.The initial response has been very encouraging.In 2021,around 25%of Group sal

172、es were e-commerce related,representing around one third of our total Consumer Healthcare sales.In addition to CBEC sales,which remain a key focus,this also included sales in the UK and US through platforms like Amazon,W and B.In 2022,in addition to optimising our existing e-commerce sales channels,

173、we plan to make a number of our other brands available to Chinese consumers through e-commerce platforms,and also to expand our geographical presence on marketplace platforms in South-East Asia,a region with high e-commerce growth.Responding to the acceleration in e-commerce growthGlobal retail e-co

174、mmerce revenues reached$4.9 trillion in 2021,with COVID-19 driving growth of 16.3%.Retail e-commerce sales now represent 19.0%of total retail sales,up from 17.9%in 2020*.Case study*Source:e-commerce report 2021 Food and Personal Care Statista Digital Market Outlook,June 2021.GovernanceAdditional Inf

175、ormationFinancial Statements20Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic ReportOur Strategy continuedThe development of our business in the US,the largest and one of the fastest growing consumer healthcare markets in the world,has been a key strategic focus for us i

176、n recent years.Initiated with the acquisition of Vamousse in 2017,it was the Amberen acquisition in late 2020 which brought pivotal growth.Throughout 2021,in parallel with the integration of Amberen,we have been strengthening our operating capabilities:redesigning our organisation structure,bringing

177、 in new people,and upskilling existing colleagues,to create a team who can both commercialise new products and manage growth.Weve also migrated our US headquarters to new,larger premises,to accommodate our growing team.Our aim in 2022 and beyond is to further exploit the platform we have established

178、 in the US through the inclusion of additional OTC products.Developing our platform in the US2021 saw significant transformation of our business in the US,following the acquisition of Amberen at the end of 2020.We now have a solid platform from which to support growth in the region and to scale up f

179、urther when suitable acquisition opportunities arise.Case studyNew products We expect to launch a number of new products/line extensions in the US over the next 1218 months,and continue to actively look for US acquisition opportunities to build on our strengths in this market.GovernanceAdditional In

180、formationFinancial Statements21Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic ReportOur Strategy continuedProgress in 2021:We continued to strengthen our employee engagement,through actioning findings from the 2020 Great Place To Work (GPTW)survey and ensuring that the

181、employee base stayed connected,particularly through extended periods of remote working We developed and implemented new,more flexible working arrangements based on insights gained from the Ways of Working survey,which we continued to run on a regular basis throughout 2021 to check in on how employee

182、s were feeling,identify any issues or requirements for additional support,and inform our future plans We ensured the effective integration of new employees joining our US business following the Amberen acquisition We put in place a global employee assistance programme as an additional benefit foremp

183、loyees We continued to develop and refine our recruitment and orientation processes,and succession planningInvesting in peoplePriorities for 2022:Action findings from the 2021 GPTW survey:five priority areas have been identified and local focus groups will be used to gain additional insight Continue

184、 to test and refine our new ways of working to ensure this works successfully both at a business and individual level Continue to bring new people into the business to ensure our resource capability continues to support our growth ambitions for 2022 andbeyond Progress with the implementation of our

185、new HR system(scoping and planning already underway in 2021)Survey response rate:74%(2020:73%)Overall Trust Index rating:76%(2020:79%)Employee engagement(GPTW survey):Additional metrics on employees can be found in Sustainability people and human capital management on page 30Great Place to Work We w

186、ere delighted to achieve Great Place To Work (GPTW)certifications in the UK and in China again this year and also to be Great Place to Work-certified for the first time in Singapore Total headcount(incl.non-execs and fixed term contractors(FTCs)256(2020:246)People are a key element of the Alliance m

187、ix.Our vision is to be the employer of choice.To achieve this,its crucial that we continue to invest in our employees and to recognise the changes and challenges to working patterns that have come about in response to the pandemic and respond accordingly.Our overriding objective is to continue to en

188、sure that our resourcing adequately supports the business medium-term growth ambitions and that our strong collaborative and inclusive culture,and the people who form part of it,continue to thrive.Employees by gender*:Board&SLT(n=10)Senior managers1(n=27)All employees(n=245)Male 80%Female 20%Male 74

189、%Female 26%Male 42%Female 58%202020212020202120202021(2020:80%)(2020:78%)(2020:43%)(2020:20%)(2020:22%)(2020:57%)*As at 31 December 2021.1 Defined as those running major divisions or departments,but not part of the executive team.GovernanceAdditional InformationFinancial Statements22Alliance Pharma

190、plc Annual Report and Accounts 2021Company OverviewStrategic ReportKey Performance IndicatorsWe set out here our key financial performance measures.These are the primary measures used by management to monitor business performance,both against short-term budgets and forecasts and longer-term strategi

191、cplans.Financial KPIs:169.6m137.5m144.3m124.0m2021202020192018See-through Revenue*169.6m+23%(2020:137.5m)42.2m33.5m32.9m28.1m2021202020192018Underlying Profit Before Tax42.2m+26%(2020:33.5m)30.2m34.1m29.1m16.1m2021202020192018Free Cash Flow*30.2m-12%(2020:34.1m)6.39p5.11p5.09p4.54p2021202020192018Un

192、derlying Basic EPS6.39p+25%(2020:5.11p)1.73x2.43x1.48x2.33x2021202020192018Leverage11.73x(2020:2.43x)1.691p1.610p0.536p1.464p2021202020192018Dividend Per Share1.691p+5%(2020:1.610p)87.0m109.4m59.2m85.8m2021202020192018Net Debt*87.0m-20%(2020:109.4m)*These measures constitute Alternative Performance

193、Measures(APMs),as defined in note 34 to the Financial Statements.1 Leverage is defined as:Adjusted net debt/enlarged Group EBITDA,calculated using pro forma EBITDA on a trailing 12-month basis for acquired entities,in line with our banking covenants.45.6m36.8m37.4m28.9m2021202020192018Underlying EBI

194、T/Operating profit*45.6m+24%(2020:36.8m)48.6m38.6m39.432.4m2021202020192018Underlying EBITDA*48.6m+26%(2020:38.6m)GovernanceAdditional InformationFinancial Statements23Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic ReportKey Performance Indicators continuedIn addition t

195、o the financial KPIs detailed overleaf,we employ a number of other internal performance measures to enable the effective management ofourbusiness.Other internal performance measures:Other measuresWe also employ a broad range of other measures to help us manage business performance,including but not

196、limited to:Brand revenues,margins and contribution,by management region and having regard to brand prioritisation for marketing investment and innovation Measures around the level and nature ofacquisition opportunities Post-acquisition performance evaluationmeasures On-time in-full delivery,out-of-s

197、tocks (to ensure continuity of product supply)Inventory levels,provisioning and ageing profile;trade receivables and payables levels and ageing profiles(working capitalmanagement)We do not disclose the related metrics associated with these measures,on the basis that they are commercially sensitive a

198、nd/or intended for internal use only.121.8m93.0m92.4m70.3m2021202020192018Revenue*:Consumer Healthcare121.8m+31%(2020:93.0m)72%68%64%57%2021202020192018Revenue*:Consumer Healthcare as a%of total72%+4%(2020:68%)64.5%60.2%59.7%58.6%2021202020192018GM%*:Total64.5%+430bp*(2020:60.2%)Portfolio evolution(

199、driver for organic revenue growth and margin improvement):*See-through basis.*Basis points.2562462142182021202020192018Total headcount*256+0(2020:246)*Defined as total number of employees on payroll as at 31 December.Sustainability:Further detail on our key sustainability metrics can be found on pag

200、es 22 to 33.Employee engagement:GPTW Trust Index rating:76%(2020:79%)Working capital management:Supplier payment days1:46(2020:52)1 Calculated as the month-end value of trade creditors relative to the trailing 12 months cost of goods,expressed as a days equivalent,averaged over the year.GovernanceAd

201、ditional InformationFinancial Statements24Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic ReportSustainability OverviewSustainabilityWorking together to deliver sustainable business growth.Our approachDuring 2021,we refined and formalised our approach to sustainability,u

202、nder the direction of the newly established ESG Committee,creating our sustainability framework,developing actionable plans for each material area,and increasing our focus on environmental considerations,including climate change,metrics,and reporting.Our sustainability frameworkOur sustainability fr

203、amework identifies the eight areas material to our business that we need to concentrate our efforts on to assure the long-term future of the business and to deliver on our Purpose to improve the lives of consumers and patients through making available a range of clinically valuable healthcare produc

204、ts.We refer to these as our Areas of Focus.Environmental impacts supply chain&logisticsPeople&human capital managementPackaging lifecycle managementEthical sales practicesProduct environmental H&SSupply chain managementBusiness ethicsOur contribution to the United Nations Sustainable Development Goa

205、ls(UNSDGs)The UNSDGs to which our business activities contribute are set out below.We believe we can contribute most value to Sustainable Development Goal 3(Good Health&Wellbeing:Ensure healthy lives and promote well-being for all at all ages),as this aligns directly with our Purpose to improve the

206、lives of consumers and patients through making available a range of clinically valuable healthcare products.Further detail around how Alliance contributes to the UNSDGs can be found on our website Delivering sustainable business growthProduct quality&safetyGovernanceAdditional InformationFinancial S

207、tatements25Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic ReportSustainability Overview continuedOverview of progress in 2021:Over the course of the year,we have:Formalised our approach to sustainability and strengthened our governance processes through the creation of

208、a Board-level ESG Committee in February 2021.The committee works with the Senior Leadership Team(SLT)and the corporate sustainability lead in the development and implementation of our sustainability strategy Developed our sustainability framework;identifying then reporting against the key metrics un

209、derpinning this.We also mapped our sustainability disclosures and accounting metrics to the relevant elements of the Sustainability Accounting Standards Board(SASB)standards for the first time,and will look to publish the results on our website in 2022 Published our Business Principles,together with

210、 our Anti-Bribery and Corruption Policy,Whistleblowing Policy,Anti-Modern Slavery Policy and Diversity,Equality,and InclusionPolicy Concluded the implementation of our Know Your Supplier(KYS)programme,with the improvements in supplier management now embedded as part of our business-as-usualprocesses

211、 Engaged with our institutional investors,to better understand their requirements as regards ESG factors and sustainability,and the metrics and disclosures in which they are most interested to help shape our sustainability framework and strategy development Worked with external consultants to quanti

212、fy our Scope 1,2&3 carbon emissions,as a precursor to the development of our carbon action plan and the setting of targets for carbon emissions reduction for both our direct(Scope 1&2)and indirect(Scope 3)emissions Kicked off a sustainable packaging programme in Q4 2021 to develop and implement a fi

213、t for purpose strategy for packaging lifecycle management across our portfolio Established a Sustainability Forum in Q4 2021,comprising a group of employees who will work with the corporate sustainability lead to identify and deliver small-scale sustainable change initiatives across the business.Thi

214、s has initially been focused on our UK operations,with wider regional participation planned for 2022 Evolved our corporate website to include a dedicated section on sustainability(Acting Responsibly),to act as a repository for our sustainability content going forwards Our priorities for 2022:We have

215、 made good progress with our sustainability initiatives in 2021,however we recognise that this is a journey and there is still much to do particularly as the reporting and assurance requirements around ESG,and related sustainability considerations,continue to evolve.Sustainable packaging Awareness o

216、f environmental issues is becoming more widespread,with consumers and retailers increasingly choosing products that support a lower carbon footprint.We recognise that single use plastics and packaging recyclability are an increasing concern for consumers.In 2022 we will be undertaking an extensive r

217、eview of all our packaging componentry,across our portfolio and supply chain,to inform the development and focus of our sustainable packaging strategy with a view to establishing and communicating clear targets in this area.Unlike some consumer goods categories,where packaging changes can be impleme

218、nted relatively quickly with limited hurdles,in the healthcare market,particularly with regards pharmaceutical products,any change in packaging materials cannot be made without a variation to the product license,which in the case of changes to primary packaging,requires the generation,submission and

219、 approval of supporting stability data.With this in mind,in 2021,we created a Sustainable Packaging programme team,to work towards the reduction of single-use plastics and increasing the use of Post-Consumer Recycled(PCR)materials across our portfolio.Going forwards,all new product developments will

220、 require full consideration and review of packaging components to ensure the final presentation is aligned with the sustainability targets we set.GovernanceAdditional InformationFinancial Statements26Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic ReportSustainability Ov

221、erview continuedIn 2022,our focus will be on:Continuing to develop our environmentalstrategy and our response to climatechange.We have committed to achievecarbon neutrality for our 2021 Scope 1&2 emissions in the UK in 2022 through theuse of sequestration schemes.We will alsobe increasing our levels

222、 of engagementwith our CMOs and logistics partners tobetter understand their carbon footprintsand emissions reduction strategies andthe implications these have on our end-to-end carbon footprint;actively looking foropportunities to reduce the Scope 3 carbonemissions in our supply chain as part of ou

223、roverall carbon reduction planDeveloping and implementing a sustainablepackaging strategy,together with appropriatetargets and delivery planContinuing to evolve our data collation andreporting capabilities particularly aroundthe composition of our product packagingand to support the quantification o

224、f ourScope 3 emissionsDeveloping suitable performance metricsand targets for those areas of our Frameworkwhere none exist currently,which we can useas a basis for measuring our progress in futureyears.This will include carbon reductionstargets(aligned with the Science Based TargetsInitiative(SBTi)an

225、d targets around thesustainability of our product packaging.We intend to publish emissions reductions targets in late 2022 for Scopes 1&2 and are aiming to set Scope 3 targets in 2023Progressing towards full disclosures in line withthe Task Force on Climate-related FinancialDisclosures(TCFD)recommen

226、dations for 2022Continuing to improve the assuranceframework around our ethical businesspractices,to ensure that both our suppliersand distributors continue to operate theirbusinesses ethically and in line with allrelevant regulatory requirementsContinuing to develop the sustainable businesscontent

227、held on our website,the transparencyof our disclosures around how we operate asa business,and where were focusing ourefforts to ensure we remain sustainable overthe longer termProgressing ideas generated through theSustainability Forum and other small-scaleinitiatives,both in the UK and across ourre

228、gional officesOur approach to each of the Areas of Focus identified in our Sustainability Framework,together with key metrics,our progress and achievements in 2021,and our priorities and focus for the coming year,are set out on pages 28 to 31.What has become increasingly evident to us,particularly i

229、n the context of our response to wider societal challenges such as climate change,is the importance of working collaboratively both within our own business and with our suppliers,logistics partners,distributors,and other stakeholders,if we are to make meaningful progress.This is particularly true fo

230、r carbon emissions,given that a significant majority of our Scope 3 emissions originate within our supply chain and logistics activities,where our ability to directly control emissions is limited.More information can be found on our website https:/ considerations Working together with our suppliers,

231、logistics partners,distributors and other stakeholders will be key to the delivery of our environmental strategy,as we all seek to address common challenges around climate change.GovernanceAdditional InformationFinancial Statements27Alliance Pharma plc Annual Report and Accounts 2021Company Overview

232、Strategic ReportSustainability PerformanceProduct quality&safetyEthical sales practicesBusiness ethicsWhat it coversWhy its importantFocus for 20222021 OverviewEnsuring we have robust quality assurance systems in place to ensure the quality and safety of our products and to mitigate the supply of co

233、unterfeit productEnsuring the claims made by our products can be properly substantiated and that we maintain ethical business practices in the marketing,advertising,and selling of ourproductsModern slavery,bribery and corruption,ethical considerations around our interactions with healthcare professi

234、onals and the pursuance of other ethical business practicesMaintaining consumers and patients trust in the quality and safety of our products is essential to the maintenance of our corporate reputation and our ability to successfully market our productsEnsuring the accuracy and appropriateness of pr

235、omotional materials and the claims made by our products is key to maintaining consumers and patients trust in our brandsWe are committed to operating our business in an ethical and responsible way,ensuring that we have appropriate policies in place,that employees are properly trained on them and tha

236、t appropriate escalation routes exist for non-complianceContinuing to assure the quality and safety of our products through our rolling,risk-based programme of supplier quality auditsContinuing to ensure that the systems and processes we have in place to ensure the accuracy and appropriateness of pr

237、omotional materials remain fit for purpose and that our internal control systems continue to operative effectively in order to minimise the risk of non-complianceObtaining written confirmations from our contract manufacturers and suppliers that they comply with our ethical standards(phased approach

238、target completion end 2023)9Supplier audits carried out(2020:5)Representing 67%coverage of our supplier base on a rolling 3-year average basis1Number of external regulatory inspections Alliance operating companies have been subject to:7(2020:5)No enforcement actions were taken by Competent Authoriti

239、es in response to non-compliance with appropriate manufacturing and regulated standards in 2021(2020:0)22Routine internal audit assessments carried out(2020:40)Internal audit assessments are carried out on a periodic basis to ensure the robustness of our promotional review procedures.Coverage is tar

240、geted at a constant 10%of total promotional pieces approved per annum.Actual coverage in 2021 was 4.5%,down from 9.4%in 2020 No upheld complaints were made to the ABPI,PAGB,FTC,NAD,or other Codes of Practice bodies regarding promotion of Alliance products,where Alliance is directly responsible for p

241、romotion in 2021(2020:0)1,407 Online2 course completions(2020:1,359)We now have approved escalation procedures in place to work with any supplier who does not meet our ethical standards,with defined timelines for remediation and provision for eventual termination of the relationship,where issues are

242、 not satisfactorily resolvedIn 2021,the total amount of monetary losses we incurred as a result of legal proceedings associated with bribery,corruption and other unethical business practices was Nil(2020:Nil)1 Calculated as the total number of suppliers audited over the 3 years from 2019 2021,divide

243、d by the number of active suppliers as at 31 December 2021.2 Vinciworks is a suite of online training modules covering anti-bribery,anti-money laundering,competition law,GDPR,market abuse,Modern Slavery Act,sanctions and the prevention of tax evasion.GovernanceAdditional InformationFinancial Stateme

244、nts28Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic ReportWhat it coversWhy its importantFocus for 20222021 OverviewEnsuring our products are made with environmentally friendly ingredients;identifying and eliminating REACH1 substances of very high concern(SVHC)from our

245、products and ensuring we have a robust process in place to identify and manage emerging materials and chemicals of concernReducing the environmental impact of our product packaging,through reducing packaging volume/weight,increasing the use of recycled materials,and ensuring that as much of our pack

246、aging as possible is made from materials that can be recycled,reused and/or compostedWe are committed to operating our business in a way which minimises the impact on the natural environment this means ensuring that our products are made with environmentally friendly ingredients and do not contain m

247、aterials and chemicals of concernWe are committed to operating our business in a way which minimises the impact on the natural environment reducing the environmental impacts of our product packaging is one way of achieving this.Reducing packaging volume/weight will also reduce the environmental impa

248、ct of transporting products to consumersContinuing to ensure that our processes for identifying and managing emerging materials of concern remain fit for purpose and that any REACH1 SVHCs are eliminated from our products on a timely basisProgress the creation and implementation of a sustainable pack

249、aging strategy;including the creation of a roadmap for the associated workstreams which feed into this and the setting of targets/defining our level of ambitionPackaging sustainability will now be factored into all Innovation&Development projects at the design stage,and we will be looking to embed t

250、his thinking into brand strategies more widely goingforwards We have established environmental scanning processes to identify and manage emerging materials and chemicals of concern as soon as we become aware of these reformulating products where necessary,in order to ensure that we are able to stay

251、compliant with new regulations as they emergeIn Q4 2021,we set up our Sustainable Packaging programme,to develop and implement a fit for purpose strategy for packaging lifecycle management.This will enable us to address usage and waste across our packaging estate at a holistic level,reducing or remo

252、ving unnecessary elements of our packaging,changing its composition,replacing less sustainable materials,e.g.,single-use plastics,with more sustainable alternatives,increasing the use of recycled content and/or making packaging easier to recycle,orbiodegradableSustainability Performance continuedPro

253、duct environmental H&SPackaging lifecycle management1 REACH Registration,Evaluation,Authorisation and Restriction of ChemicalsGovernanceAdditional InformationFinancial Statements29Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic ReportPeople and human capital managementTh

254、is covers a wide range of social factors,including diversity and inclusion,culture and employee engagement,working conditions,reward structures,training and development,and opportunities for progressionInvesting in People is one of the core elements of Alliances strategy as such,the recruitment and

255、retention of high-quality and highly motivated employees is what lies at the heart of our business successAnalysing and actioning key findings from the Great Place To Work(GPTW)survey,with focus groups planned for H1 2022Continuing to invest in our capability development and the recruitment and onbo

256、arding processes which support this,including the roll-out of a new graduate training schemeContinuing to refine our ways of working to ensure our new hybrid model is working effectively across all areas of our businessAdditional information on how we invest in our people is provided on page 22 and

257、on our websiteSustainability Performance continuedWhat it coversWhy its importantFocus for 20222021 Overview1 Voluntary turnover is defined as those leaving the business by virtue of resignation,or retirement,or the expiry of fixed term contracts;involuntary turnover is defined as those leaving the

258、business by virtue of dismissal or redundancy.Employee turnover rate1:Voluntary20.6%(2020:9.6%)Involuntary8.6%(2020:0.4%)Under 29 2021 30 2020 26 3039 2021 75 2020 68 4049 2021 72 2020 74 5059 2021 55 2020 54 60+2021 11 2020 10 Not known 2021 2 2020 13 Under a year 2021 61 2020 50 12 years 2021 38 2

259、020 31 25 years 2021 78 2020 91 510 years 2021 46 2020 41 1015 years 2021 15 2020 24 15+years 2021 7 2020 8 UK&ROI 2021 170 2020 168 Central Europe 2021 28 2020 36 APAC 2021 28 2020 31 US 2021 16 2020 13Age profile of employees Length of service of employeesEmployees by location202120202021202020212

260、020GovernanceAdditional InformationFinancial Statements30Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic ReportSustainability Performance continuedWhat it coversWhy its importantFocus for 20222021 OverviewSupply chain managementEnsuring that we have good visibility of ou

261、r supply chain so that we can ensure that our suppliers adhere to the same ethical standards as we do,and that they are committed to sustainable manufacturing practices,which aim to safeguard people and planetOur commitment to operating our business in a sustainable way goes beyond the activities we

262、 carry out ourselves.Our contract manufacturers are an integral part of our business activities and as such we expect them to adhere to the same ethical standards which we have set ourselves,and to support our commitment to operate our business in a sustainable wayReview findings from initial test p

263、hase of supplier self-assessment around modern slavery,labour practices and health&safety practices,to determine whether there is value in extending this more widelyCarry out assessment of strategic suppliers sustainable sourcing ratings,and whether these could be usefully employed as part of a more

264、 holistic approach to supplier managementWe will also be looking to increase our focus on Modern Slavery audits(which may also include physical inspections,depending on the evidential value of the same),with a view to having a formal structure and system in place by the end of 2023,whereby 10%of our

265、 contract manufacturers are audited annually on a rolling basis,whether this is based on an external recognised standard or one developed internallyKnow Your Supplier(KYS)programme implemented,providing increased visibility of potential red flags in our supply chain.Associated compliance and escalat

266、ion processes strengthened to facilitate timely resolution of issues53 finished goods supply partners are now being monitored by this programme,representing 90%of our total finished goods suppliers No significant issues were detected in 2021Greenhouse gas(GHG)emissions and other environmental impact

267、s associated with our supply chain and logistics(warehousing and distribution)activities,including transportation of products by our distributorsAs a responsible business,we have a duty to do what we can to reduce the environmental impacts of our business activitiesIn 2022,we plan to reach out to ou

268、r larger CMOs and LSPs(covering two thirds of our 2021 spend)to better understand where they are on their respective emissions reduction journeys and to obtain their Scope 1 and 2 data to help improve the methodology used for our Scope 3 calculationsWe will use the findings from this work to help us

269、 determine realistic Scope 3 emissions reductions targets and our overall path to net zeroAn additional head is being recruited to support this area,and also our sustainable packaging programmeThe quantification of our Scope 3 carbon emissions in 2021 revealed that more than 80%of our GHG emissions

270、originate in our supply chain and logistics activities including onward transportation of products by our distribution partners,so focusing on this area will be key to reducing our overall Scope 3 emissionsWe have already taken a number of actions to reduce carbon emissions in our supply chain,inclu

271、ding:Truncating the supply chains for our lead brands(Kelo-cote,Amberen,Nizoral)to produce closer to market,reducing transportation emissions Improving the efficiency of our logistics operations,through increased order sizes/reduced frequencies and the use of sea rather than air freightMore detail a

272、round the development of our environmental sustainability strategy can be found on page 33Environmental impacts supply chain&logisticsGovernanceAdditional InformationFinancial Statements31Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic ReportSustainability Performance co

273、ntinuedWhat it coversWhy its importantFocus for 20222021 OverviewSocial impactSocial impact activities undertaken to benefit local communities around the world,including those involved in conflict and/or in the developing worldAlliance has always had a strong social conscience and commitment to work

274、 with its employees to support those in need,through donations(of cash,time,products)and fundraising activitiesIn 2022,in addition to continuing our support for IHP,we plan to resume our social impact activities within our local communitiesIn 2021,our social impact activities within our local commun

275、ities were limited by the ongoing impacts of the pandemic,with many of our offices being subject to local work from home guidance for a significant part of the yearHowever,this didnt stop us from continuing our efforts further afield.Through our continued support of International Health Partners(IHP

276、),we enabled 31,979 treatments to be sent to 13 countries in 2021,helping to provide around 10,600 people with the medicine they need.This included responding to an urgent call from their NGO partner in Venezuela,for antimalarial medicine,in response to which we supplied 498 treatments to help meet

277、the needIn addition to the eight Areas of Focus which make up our Sustainability Framework,there are two other areas which,whilst not material to the long-term sustainability of our business,are nonetheless important to us from a broader societal perspective.These are the environmental impacts of ou

278、r own operations,which are discussed further on page 83,in the context of our overall environmental sustainability strategy development and our social impact activities.GovernanceAdditional InformationFinancial Statements32Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic

279、ReportWe are currently in the early stages of developing our broader environmental strategy including our response to climate change.Given the nature of our business,and our use of third-party distributors,contract manufacturers(CMOs)and logistics service providers(LSPs),the majority of our greenhou

280、se gas emissions are classified as Scope 3.In 2021,we quantified our Scope 3 greenhouse gas emissions for the first time(based on data for 2020).We are using the results of this exercise,together with equivalent calculations to be undertaken for 2021,to help inform the development of our carbon acti

281、on plan,with a view to setting carbon reduction targets for Scopes 1,2&3 and our path to net zero in the near future.In addition to revealing the significance of the emissions linked to our supply chain and logistics activities,which now forms one of the eight Areas of Focus within our Sustainabilit

282、y Framework,this exercise also revealed where opportunities may exist to try and improve the basis of measurement,particularly for Scope 3 emissions.In 2022,we plan to reach out to our larger CMOs and LSPs to better understand where they are on their respective emissions reduction journeys and to ob

283、tain their Scope 1 and 2 data to helpimprove the methodology used for our Scope3 calculations.Whilst the environmental impact of our own operations(Scope 1&2)is relatively low,and so not material to the longer-term sustainability of our business,reducing them is nonetheless important to us from a br

284、oader societal perspective.The investments weve made in our UK headquarters building in recent years have significantly improved its energy efficiency,with additional upgrading and refurbishment work having been undertaken in 2021,further improving the buildings environmental credentials.We continue

285、 to actively look for ways to reduce our Scope 1&2 emissions,which amounted to 90tCO2e for our UK operations in 2021,and will achieve carbon neutrality for these retrospectively in 2022,through the use of sequestration schemes.Outside the UK,our office premises tend to be held on all-inclusive opera

286、ting leases,giving us a more limited ability to control their environmental footprint.We will however be looking to increase our understanding of the situation on an office-by-office basis,to see what can be done,as we progress through 2022.We are also looking at ways we can reduce emissions attribu

287、table to some of the smaller categories in Scope 3,such as non-stock purchases,business travel,and employeecommuting.This year,for the first time,we have recognised climate change as an emerging risk within our Principal Risks and Uncertainties and are continuing to work with external consultants to

288、 progress towards full disclosures in line with the Task Force on Climate-related Financial Disclosures(TCFD)recommendations for 2022.For 2021,we have made partial TCFD disclosures,which can be found on pages 78 and 79.Developing our environmental sustainability strategyOver 80%of our GHG emissions

289、originate in our supply chain and logistics activities.GovernanceAdditional InformationFinancial Statements33Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic ReportStakeholder EngagementStakeholder engagement overviewOur principal stakeholders and their primary requiremen

290、tsOur shareholders Strong financial performance Share price appreciation Dividend income Long-term sustainability of the businessConsumers&patients Safe and effective healthcare productsHealthcare professionals Engagement,education,information,and resources Therapy area expertiseDebt providers Stron

291、g financial performance Ability to service&repay borrowingsOur employees Competitive reward structures Share options Flexible working Learning&development opportunities on a global basisSuppliers&partners Continued business growth opportunitiesCommunities Local engagement Charitable&product donation

292、s Working together we create sustainable value for all our stakeholders.The Board recognises the importance of maintaining an engaged and motivated workforce,dependable supply chains,customer confidence in our products,close relationships with healthcare professionals,good returns for our shareholde

293、rs and social impact in both our local and widercommunities.Information on how stakeholder considerations have been considered by the Board in their decision-making in accordance with s172 of the Companies Act 2006 is provided within the Governance section on page 53.Additional content regarding our

294、 stakeholder relationships and how we manage these can be found on ourwebsite.GovernanceAdditional InformationFinancial Statements34Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic ReportUnderlying EBITDA*48.6m+26%(2020:38.6m)Free Cash Flow*30.2m-12%(2020:34.1m)Another ex

295、cellent performance driven by strong revenue growth“Strong growth by our higher margin Consumer Healthcare brands,a change in CBEC distribution arrangements for Kelo-cote and the acquisition of Amberen led to further improvement in margins”Financial Review*Non-IFRS alternative performance measures(s

296、ee note 34).GovernanceAdditional InformationFinancial Statements35Company OverviewStrategic ReportAlliance Pharma plc Annual Report and Accounts 2021Financial Review continuedSummary underlying income statementYear ended 31 December2021m2020mGrowthSee-through revenue*169.6137.5+23%Statutory revenue1

297、63.2129.8+26%Gross profit109.582.8+32%Operating costs(including IFRS 2 share options charge)60.944.2+38%Underlying EBITDA*48.638.6+26%Depreciation and underlying amortisation2.91.8+68%Underlying operating profit(EBIT)45.636.8+24%Finance costs3.43.3+4%Underlying profit before taxation42.233.5+26%Repo

298、rted profit before taxation18.213.0+39%Underlying basic earnings per share6.39p5.11p+25%Reported basic earnings per share1.37p1.51p-9%Proposed total dividend per share1.691p1.610p+5%*The performance of the Group is assessed using Alternative Performance Measures(APMs),which are measures that are not

299、 defined under IFRS,but are used by management to monitor ongoing business performance against both shorter-term budgets and forecasts and against the Groups longer-term strategic plans.APMs are defined in note 34.Specifically,see-through revenue includes all sales from Nizoral as if they had been i

300、nvoiced by Alliance as principal.For statutory accounting purposes the product margin on Nizoral sales made on an agency basis is included within Revenue,in line with IFRS 15.Underlying profitability metrics are presented as we believe this provides investors with useful information about the perfor

301、mance of the business.In 2021,underlying results exclude the amortisation and impairment of acquired intangible assets,the CMA provision and restructuring costs;in 2020,underlying results exclude the amortisation and impairment of intangible assets,and costs associated with the acquisition of Biogix

302、 Inc.Further detail can be found in note 5.Revenue summaryYear ended 31 December2021m2020mGrowthCER growthKelo-cote48.834.7+41%+47%Amberen19.2Nizoral*20.621.0-2%+1%Other consumer brands33.237.3-11%-9%Consumer Healthcare*121.893.0+31%+36%Prescription Medicines47.844.5+8%+8%See-through revenue*169.613

303、7.5+23%+27%LFL Consumer Healthcare see-through revenue*,excluding Amberen102.693.0+10%+14%LFL see-through revenue*,excluding Amberen150.4137.5+9%+12%Statutory revenue Consumer Healthcare115.485.3+35%+41%Statutory revenue Group163.2129.8+26%+30%LFL Consumer Healthcare statutory revenue,excluding Ambe

304、ren96.185.3+13%+16%LFL Group statutory revenue,excluding Amberen144.0129.8+11%+14%Revenues and operating profits The Group delivered a strong financial performance in the year,with see-through revenue increasing 23%to 169.6m(2020:137.5m)and 27%at constant exchange rates(CER).Like-for-like revenue ex

305、cluding Amberen,which was acquired in December 2020,increased 9%(12%CER).Group revenue was adversely impacted in 2021 by exchange rate movements,principally the strengthening of Sterling against the US Dollar,which depressed see-through revenue by approximately 5.1m.Statutory revenue increased 26%to

306、 163.2m(2020:129.8m)and rose 30%CER.The strong growth in our higher margin consumer health brands,coupled with changes to our distribution arrangements for Kelo-cote and the acquisition of Amberen,led to a 32%increase in gross profit to 109.5m(2020:82.8m).Consequently,gross margin increased 430 basi

307、s points(bp)to 64.5%of see-through revenue(2020:60.2%).Gross margin relative to statutory revenue was 67.1%(2020:63.8%).GovernanceAdditional InformationFinancial Statements36Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic ReportFinancial Review continuedUnderlying profit

308、 before tax increased 26%to 42.2m(2020:33.5m)driving 50 basis point(bp)margin improvement to 24.9%despite increased operating expenses through the inclusion of the Amberen cost base,coupled with a modest increase in depreciation and underlying amortisation costs.Reported profit before tax increased

309、39%to 18.2m(2020:13.0m).We increased our investment in the business in 2021,improving our operating capabilities and boosting the level of marketing support provided to a number of our brands.With the resumption of discretionary spend,which we deferred or cancelled in 2020 in response to the global

310、pandemic,in addition to the aforementioned inclusion of the Amberen cost base,operating costs(defined as underlying administration and marketing expenses,excluding depreciation and underlying amortisation charges)increased 37%versus the prior year to 58.6m(2020:42.8m).As a result,operating costs as

311、a percentage of sales increased 3.5%to 34.6%of see-through sales(2020:31.1%).The IFRS 2 share options charge for the year was 2.3m,up 0.9m versus that for the prior year(2020:1.4m)reflecting an increase in the share price in 2021.Net of the increase in operating costs and the share options charge,un

312、derlying earnings before interest,taxes,depreciation and underlying amortisation(EBITDA)increased 26%in the yearto 48.6m(2020:38.6m),whilst underlying operating profit(EBIT)increased by 24%to 45.6m(2020:36.8m).Reportedoperating profit increased by 5.3m to 21.6m(2020:16.3m),with non-underlying items

313、of 24.1m(2020:20.5m).Further detail on non-underlying items is provided below and in note 5.Depreciation and amortisationDepreciation charges for the year were 1.6m,down 0.2m on the prior year(2020:1.8m).In addition,we incurred 1.3m of amortisation costs relating to our new ERP system,which went liv

314、e in 2021.Following a change in accounting policy,the costs relating to this system are now treated as an intangible asset(previously included within tangible assets).Further detail is provided in note 2.9.Finance costsFinance costs remained in line with the prior year at 3.4m(2020:3.3m),with a 1.0m

315、 increase in borrowing costs,reflecting the higher level of borrowings following the Amberen acquisition,being largely offset by higher net gains on currency movements in the year.The average interest charge on gross debt during the year(including non-utilisation fees)was 2.24%(2020:2.55%).Non-under

316、lying itemsNon-underlying items in the year principally comprise amortisation charges for Prescription Medicines and certain other brand assets,impairment charges identified as a result of the annual impairment review(see note 11),a provision of 7.9m in relation to the Competition and Markets Author

317、ity(CMA)decision(see note 20)and restructuring costs relating to the closure of our offices in Milan and Los Angeles.For the prior year,non-underlying items comprised amortisation and impairment charges,together with costs relating to the Amberen acquisition.Further detail on non-underlying items is

318、 provided in note 5.Reconciliation of underlying to reported profit before taxYear ended 31 December2021m2020mUnderlying profit before taxation42.233.5Non-underlying items:Amortisation of acquired intangibles(7.2)(7.2)Impairment of intangible assets and goodwill(6.2)(12.1)CMA provision(7.9)Restructu

319、ring costs(2.4)Other(0.4)Acquisitions costs Biogix Inc.(Amberen)(1.3)Total(24.1)(20.5)Reported profit before taxation18.213.0TaxationThe underlying tax charge for the year was 8.0m(2020:6.4m),which equates to an effective tax rate of 19.0%(2020:19.0%).The total tax charge for the Year was 10.8m(2020

320、:5.0m),equating to an effective tax rate on reported profits of 41.6%(2020:38.3%)and includes a 5.0m charge following the increase in the UK tax rate from 19%to 25%(this charge relates primarily to an increase in the deferred tax balances on intangible assets).Earnings per shareUnderlying basic earn

321、ings per share,the measure used by the Board in assessing earnings performance,was 6.39p,an increase of 25%on the prior year(2020:5.11p),reflecting the increase in the Groups underlying profit after tax offset by a modest increase in the number of shares in issue.Reported basic earnings per share de

322、creased by 9%to 1.37p(2020:1.51p)due to the greater impact that non-underlying items had on reported earnings in the year versus the prior year.DividendThe Board is pleased to announce that it is proposing a final dividend payment of 1.128p per share for 2021,an increase of 5%on the final dividend p

323、ayment for 2020,taking the total dividend payment for the year to 1.691p(2020:1.610p).The Board will continue to assess the level of future cash distributions having regard to overall business performance and future outlook.The final dividend for 2021,subject to approval at the Companys AGM on 18 Ma

324、y 2022,will be paid on 7 July 2022,to shareholders on the register on 10 June 2022.GovernanceAdditional InformationFinancial Statements37Alliance Pharma plc Annual Report and Accounts 2021Company OverviewStrategic ReportFinancial Review continuedBalance sheetIntangible assets increased by 0.8m in th

325、e year to 413.7m(31 December 2020:412.9m).Following the successful deployment of Microsoft Dynamics D365 into the business in mid-2021,we conducted a review of the associated capitalised project costs,and as a result have transferred these capitalised costs,amounting to 15.0m,from property,plant and

326、 equipment to intangible assets in-line with the deployment of the live system into the business.These additions have effectively been offset by underlying amortisation charges of 1.4m,non-underlying amortisation charges of 7.2m and non-underlying impairment charges of 6.2m;the remaining balance bei

327、ng due to exchange rate movements and a 0.2m true-up for working capital relating to the Amberen acquisition.Working capitalNet working capital at 31 December 2021 was 22.0m,an increase of 2.7m on that at the start of the year(31 December 2020:19.3m),primarily reflecting movements in payables and re

328、ceivables balances.Inventories,net of provisions,reduced 1.8m to 21.1m at 31 December 2021(31 December 2020:22.9m).This reduction was caused by the partial unwinding in H1 2021 of the higher inventory levels built up during 2020 in order to mitigate against any disruption to our supply chain followi

329、ng the UKs departure from the EU,and to ensure continuity of supply through the pandemic.Receivables increased by 5.7m,reflecting both the increase in revenues,and the timing of sales and cash receipts in the second half of the year,versus the equivalent period in 2020.Payables increased by 1.2m,ref

330、lecting the phasing of invoices and payments around the year end,with a 2.8m reduction in trade payables being more than offset by a 3.8m increase in accruals and deferred income.ProvisionsIn the year,the Group created provisions totalling 9.5m as at 31 December 2021(31 December 2020:Nil),7.9m of wh

331、ich relates to the CMA decision,the remainder,1.6m,being a provision for restructuring costs.Further detail is provided in note 20.Cash flow and net debtFree cash flow(see note 34 for definition)for the year remained strong at 30.2m(2020:34.1m),with second half cash flows being significantly stronge

332、r than first half(H1 2021:6.5m;H2 2021:23.7m),reflecting both the reversal of the favourable movements in net working capital seen at the end of 2020 during the first half of the year,and the timing of sales in the second half.Cash generated from operations decreased by 3%to 44.9m(2020:46.4m).As a r

333、esult,net debt reduced by 22.4m to 87.0m at 31 December 2021(31 December 2020:109.4m),with Group leverage reducing to 1.73 times(31 December 2020:2.43 times).We expect our cash generation to remain strong in 2022,and for leverage to reduce below 1.5 times by the end of the year,in the absence of furtheracquisitions.Treasury and capital managementThe Groups operations are financed by retained earni