1、Alliance Pharma plcAnnual Report and Accounts 2024COMPANY OVERVIEWWho We Are 022024 Performance Overview 03Why Alliance 04Chairs Introduction 05Purpose,Vision and Values 06Our Purpose in Action 07Our Values in Action 07GOVERNANCEChairs Introduction 48Board of Directors 49Governance 51Nomination Comm
2、ittee Report 56Audit and Risk Committee Report 59ESG Committee Report 63Remuneration Committee Report 65Directors Report 75Directors Responsibilities Statement 80FINANCIAL STATEMENTSIndependent Auditors Report 82Consolidated Income Statement 90Consolidated Statement of Comprehensive Income 91Consoli
3、dated Balance Sheet 92Consolidated Statement of Changes in Equity 93Consolidated Cash Flow Statement 94Notes to the Financial Statements 95Company Balance Sheet 130Company Statement of Changes in Equity 131Notes to the Company FinancialStatements 132ADDITIONAL INFORMATIONUnaudited Information 137Fiv
4、e-Year Summary 138 Advisers and Key Service Providers 139 Cautionary Statement 140Glossary 141Whats InsideAn Alliance of people,partners and brands,working together to achieve moreSTRATEGIC REPORTIntroducing Nick Sedgwick 09Chief Executive Officers Review 10Market Overview 13Our Strategy 14Strategy
5、in Action 15Key Performance Indicators 19Financial Review 21Stakeholder Engagement 24Sustainability 26TCFD 28Principal Risks and Uncertainties 38032024 PERFORMANCE OVERVIEW13MARKET OVERVIEW75DIRECTORS REPORTONLINE ANNUAL REPORT SUSTAINABILITY REPORT PURPOSE IN ACTION15STRATEGY IN ACTION10CEOS REVIEW
6、Alliance Pharma plcAnnual Report and Accounts 202401Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional Information For more information see our strategic priorities|Pages 15 to 18Who We AreAn International Consumer Healthcare CompanyEmpowering people to make a positive differen
7、ce to their health and wellbeing,through making our trusted and proven brands available around the worldA TEAM OF290TALENTED PEOPLEas at 31 December 2024BASED IN9STRATEGIC LOCATIONSWorking together to deliver value for our stakeholders through maximising the potential of our brands.Outsourcing capit
8、al-intensive activities,such as manufacturing andlogistics,toallow us to focus on what we do best.INVESTING IN OUR PRIORITY BRANDS AND CHANNELSINNOVATING TO ENSURE OUR BRANDS REMAIN RELEVANTSELECTIVELY EXTENDING THE GEOGRAPHIC REACH OF OUR BRANDSAlliance Pharma plcAnnual Report and Accounts 202402Co
9、mpany OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationFEMALE REPRESENTATION ON NEWLY EXPANDED EXECUTIVE COMMITTEE58%Read more|Page 12NET DEBT,60.1m-34%(2023:91.2m)SEE-THROUGH REVENUE180.3m-1%(2023:182.7m)2024 Performance Overview1.Non-IFRS Alternative Performance Measures
10、(“APMs”),(see note 30).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 15.2.Not meaningful to
11、show as a percentage movement given the significant changes in numbers which have been explained elsewhere.3.Net debt excludes lease liabilities.STATUTORY REVENUE178.8m-1%(2023:180.7m)FREE CASH FLOW29.1m+37%(2023:21.3m)UNDERLYING PROFIT/(LOSS)BEFORE TAX31.5m+0%(2023:31.5m)UNDERLYING BASIC EPS4.4p-4%
12、(2023:4.6p)REPORTED BASIC EPS(2.0)pNM(2023:(6.1)p)GROWTH IN KELO-COTE FRANCHISE REVENUES AT CER6%Read more|Page 22Underlying group profit unchanged,structuralchanges implemented,new senior hiresGROWTH IN MACUSHIELD REVENUES AT CER11%Read more|Page 224.Top row from L to R:Amy Mi,Angela Brady,Becky Ve
13、rano,Claire Bacon.Bottom row from L to R Eva-Lotta Sjstedt(NED),Jane Burkitt,Julie Skinner,Teresa Gonzalez-Ruiz.58%female ratio reached on completion of Executive Committee recruitment on 1 February 2025.5.CER constant exchange rates.Alliance Pharma plcAnnual Report and Accounts 202403Company Overvi
14、ewGovernanceStrategic ReportFinancial StatementsAdditional InformationWhy AllianceAlliance operates within niche consumer healthcare categories which offer faster growth than the broader global consumer healthcare market.In our focus categories of helping damaged skin and supporting healthy aging,pe
15、ople are taking more proactive steps to preserve their health through a focus on prevention and living well.The arrival of our new CEO,Nick Sedgwick,has provided the opportunity to revise our strategy and accelerate our vision.Alliance has a clear ambition to deliver predictable,organic revenue grow
16、th ahead of the market.We anticipate strong EBITDA expansion through increased investment in innovation and development,optimising the go-to-market and supply chain strategy and through establishing an internal consumer insights and data analytics function.Alliance expanded rapidly through a series
17、of acquisitions which has created a complex business structure,comprising 67 Contract Manufacturing Organisations(“CMOs”)and 59 Logistics Service Providers(LSPs).We see significant opportunities for cost savings through simplification and have commenced a review of our Contract Manufacturing Organis
18、ations(”CMO”)network to identify areas for consolidation.In late 2024 we divested eight tail-end assets and discontinued six loss-making legacy brands.Alliances proven and trusted brands each have clearly differentiated medical claims backed by strong clinical evidence ensuring they maintain a leade
19、rship position in the priority markets where they play.Typically,Alliance targets niche markets with few large competitors where this science-led differentiation also helps to support premiumpricing.The review of our strategy,led by Nick,has identified anumber of high-value,high-growth consumer heal
20、thcare markets where certain of our leading brands are not yet fully launched.Wesee opportunity tosignificantly increaserevenues through targeted marketing to better promote our brands in selectedgeographies.Alliance generates consistent solid cash flow due to its premium-priced brands and asset-lig
21、ht operating model.We have successfully reduced leverage from 2.05 times at 31December 2023 to 1.39times at 31December 2024 and anticipate further reduction below 1.0 times by the end of 2025.Strong market fundamentalsLeading brands with science-led differentiationOpportunities for cost savings thro
22、ugh simplificationSolid cash generationNew management driving revised strategyOpportunities for targeted geographical expansion Read more on pages 15 to 18 Read more on pages 15 to 18 Read more on pages 10 to 12 Read more on pages 10 to 12 Read more on page 23 Read more on page 23TOTAL GLOBAL CONSUM
23、ER HEALTHCARE MARKET WORTH164bn+7%CAGR 2019-2023CONSUMER HEALTHCARE REVENUES REPRESENT 72%OF GROUP REVENUES2.8mCASH RAISED FROM DISPOSAL OF EIGHT TAIL-END BRANDSALLIANCE OUTPERFORMS THECATEGORY IN10 of the13CMUs WE TRACKUS REVENUES REPRESENT ONLY 16%OF GROUP SALES,YET THIS IS THE LARGEST GLOBAL MARK
24、ET FOR CONSUMER HEALTHCARE29.1mFREE CASH FLOW GENERATED IN 2024With a strong portfolio of differentiated brands Alliance is well positioned to deliver revenue growth1.Nicholas Halls D86 Global CHC Database.Alliance Pharma plcAnnual Report and Accounts 202404Company OverviewGovernanceStrategic Report
25、Financial StatementsAdditional Information2024 was an important year for Alliance.A year in which we laid the necessary foundations to better position the business to achieve its vision to become a high-performing consumer healthcare company.A fundamental first step was the appointment of Nick Sedgw
26、ick as our new CEO in May.Nicks extensive consumer healthcare experience has enabled him to hit the ground running.He has already implemented a number of changes to place the consumer at the heart of strategic decision-making and to simplify the organisational structure to make it more efficient.Thr
27、oughout H2 2024 we have worked to refine our strategy to accelerate the transition to consumer healthcare and identify the market opportunity,and therefore areas of focus,for our five largest brands.Weve also made a number of senior hires in H2 2024,including new heads of North America and China,as
28、well as a Chief Transformation Officer to help deliver the revised strategy.2024 was an important year for Alliance in which we laid the foundations toposition the business forfuture success.Id like tothank everyone at Alliance for helping to deliver the 2024results.”Chairs IntroductionLaying the fo
29、undations to deliver our long-term ambitionsSEE-THROUGH REVENUE180.3m+1%CER(2023:182.7m)STATUTORY REVENUE178.8m+2%CER(2023:180.7m)27OUR PEOPLEThroughout the first quarter of 2025 we have worked on the finer details of this strategy,with a view to sharing it to the wider market in H2 2025.We have als
30、o planned workshops with all colleagues to develop and define the right values and culture to support the strategy.On 10 January 2025 we announced the recommended cash offer by DBAYAdvisors Ltd for the entire issued and to-be-issued share capital of Alliance.This offer was accepted by shareholders o
31、n 13 March with 92%of voted shares by value in favour of the transaction.We will now work through the remaining regulatory steps and anticipate that Alliance will cease trading on AIM by the end of H1 2025.Id like to thank everyone at Alliance for their hard work to deliver the 2024results.I feel th
32、at Alliance is in a very strong position and well placed for future growth under new ownership.Camillo PaneChair7 April 2025Alliance Pharma plcAnnual Report and Accounts 202405Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationPurpose,Vision and ValuesPURPOSEWe empow
33、er people to make a positive difference to their health and wellbeing Read more|Page 7 Read more|Page 7VALUESOur PRAISE values are at the heart of how we work together;they are central to what makes Alliance unique.However,its not just about achieving great results.Our PRAISE values strongly underpi
34、n the fact that how we do business is as important as what we do,and our people are rewarded in line with that.This is where Alliance people exceed we believe that by working together we will achieve more.VISIONTo be a high-performing Consumer Healthcare Company,built on a portfolio of leading,trust
35、ed and proven brandsPerformance Our high-performing people continually drive business success.Accountability We take responsibility and deliver what we promise.Skill We recruit highly skilled people and develop their talents to the full.Realism We set stretching goals and targets which we believe ar
36、e achievable.Integrity We build trust in all our relationships.Entrepreneurship Our people think of the business as if it was their own.Read more|Pages 15 to 18Alliance Pharma plcAnnual Report and Accounts 202406Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional Information1 Ma
37、cuShield NPD concept research conducted by Alliance Pharma UK in 2023.2 Euromonitor Health&Nutrition Survey 2023.MacuShield InnovationModern Slavery AuditsMacuShield is our fourth largest brand,and is availablein a broad range of products and formats.The European eye-health vitamin and mineral suppl
38、ements(VMS)category is growing at c.1%per annum,with MacuShield revenues growing significantly above this at 11%in2024.In response to rising consumer awareness of the importance of Omega-3 for promoting eye health,we identified an opportunity for a new product in the range which would provide access
39、 to the faster-growthEuropean fish oils category,increasingat c.3.5%per annum.We consulted with optometrists to gain reassurance that healthcare professionals were also reinforcing the message that Omega-3 nutritional supplements can support eye health,then worked with our contract manufacturing org
40、anisation to create a new formulationof MacuShield,comprising the original base ingredient LMZ(a blend of three macular carotenoids),vitamin B2 and Omega-3,combined intoa once-a-day capsule.MacuShield Omega-3 was launched in the UK in early 2024.Consumer feedback has been extremely positive and we a
41、re looking to implement the learnings from this launch as we enter new geographies in 2025.Our Purpose in ActionOur Values in Action76%OF CONSUMERS1 believe that containing Omega-3 is either quite or very important for an eye health supplement 26%OF CONSUMERS2taking an Omega-3 supplement are doing s
42、o specifically for their eye healthAlliance has long demonstrated its commitment to ethical practices.Toreinforce our values of accountability and integrity,we conduct regular modern slavery audits of our suppliers.Recognising the risks associated with global supply chains,Alliances Quality and Sour
43、cing teams assess our suppliers compliance with international labour standards.In 2024,the audit encompassed five key suppliers across Asia,Europe,and North America,evaluating factors such as worker rights,employee behaviour,working conditions,and child labour.The results were resoundingly positive:
44、no concerns related to forced labour,trafficking,or other forms of modern slavery were identified.This outcome underscores the effectiveness of Alliances rigorous supplier selection process and our ongoing commitment to ethical sourcing.Alliance is also committed to annual follow-ups to ensure conti
45、nued compliance,further embedding accountability into our operational framework.We have a target to audit an additional five key suppliersin2025.1.MacuShield new product development(NPD)concept research conducted by Alliance Pharma UK in 2023.2.Euromonitor Health and Nutrition Survey 2023.5KEY SUPPL
46、IER AUDITS conducted in 20240RED FLAGS or concerns raised Discover more| more| Pharma plcAnnual Report and Accounts 202407Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationIntroducing Nick Sedgwick 09Chief Executive Officers Review 10Market Overview 13Our Strategy 1
47、4Strategy in Action 15Key Performance Indicators 19Financial Review 21Stakeholder Engagement 24Sustainability 26TCFD 28Principal Risks and Uncertainties 3810CEOS REVIEW26SUSTAINABILITYStrategic Report14OUR STRATEGY13MARKET OVERVIEW15STRATEGY IN ACTIONAlliance Pharma plcAnnual Report and Accounts 202
48、408Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationIntroducing Nick SedgwickQWhat has been your career history to date?Ive spent thirty years working in various senior consumer goods roles at major multinational companies such as Reckitt,Coty and Nestl.Most recent
49、ly I was Regional Director for UK and Ireland,Consumer Health at Reckitt responsible for a team of c.400 delivering revenues of over 0.5bn.Whilst at Reckitt,I helped re-energise the Nurofen brand by launching Nuromol into full distribution,in response to consumer insights,which resulted in an award-
50、winning launch.QWhat attracted you to therole at Alliance?I was attracted to the role because I could see a portfolio of strong brands,with clear differentiation supported by clinical evidence.Yetthese brands didnt appear to be delivering revenues to the level I would have expected given their marke
51、t positions in certain geographies.I felt that I had the necessary consumer health experience to help activate these brands and achieve their full revenuepotential.QWhat were your initial observations?Alliance is a company that expanded rapidly through a number of consumer healthcare brand acquisiti
52、ons between 2013 and 2022.Whilst consumer healthcare revenues now account for 72%of Group sales,the Companys structure,processes and culture was still rooted in its legacy prescription medicinesbusiness.To be a high-performing consumer health business we need to change ourmindset to think consumer f
53、irst.Many brands in consumer health are similar to each other so we have to move faster,be more agile and more competitive towin.We need to upgrade our capabilities in consumer insights,ecommerce and innovation.If we know our target consumers better than our competition does,we can market our brands
54、 better and out-innovate the market.We also need to move from a brand-in-market view to a global categories view.We have bought many assets over the years but have notexpanded them to the key markets in other countries.We are now focusingour efforts on winning in the key Category Market Units or CMU
55、s as we callthem.QWhat is your proudest achievement in 2024?I am really pleased that in 2024 we were able to attract and recruit so many talented senior leaders.Iam confident that I now have the right leadership team to support me to deliver improved,sustainable revenue growth and profitability for
56、thebusiness.QWhat are your main areas of focus for 2025?In 2025 I will be working to finalise the detail of our new strategy,determining our five-year objectives and corresponding KPIs to track progress.I will also involve all colleagues at Alliance in a series of workshops to define the appropriate
57、 culture and values to support the delivery of the new strategy.QWhere do you see Alliance in five years time?After a period transforming the business,in five years time we will be enjoying a period of accelerated growth driven by increased innovation and activation of our largest brands,supported b
58、y improved marketing and in-market execution.This will be bolstered by further inorganic growth from acquisitions.I am delighted to have joined the fantastic team here at Alliance.”Nick SedgwickCEO Read my biography|Page 49 See my annual review|Page 10Alliance Pharma plcAnnual Report and Accounts 20
59、2409Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationNick SedgwickChief Executive OfficerChief Executive Officers ReviewTrading performancePerformance in 2024 was consistent with expectations and the guidance we gave at the start of the year,with underlying Group p
60、rofit before tax in line with the prior year as we reinvested for growth.Whilst revenues declined in some of our brands,we deliveredstrong performance in Kelo-Cote,MacuShield,Hydromol,Aloclair and Forceval leading to Group see-through revenues of 180.3m,up1%at constant exchange rates and statutory r
61、evenues of 178.8m.Whilst see-through revenues decreased 1%on a reported basis,gross profit increased 4%to 109.3m(2023:105.0m)due to favourable product mix and a reduction in COGS relating to Nizoral following the move in manufacturing.With a deliberate focus on increasing investment to support our k
62、ey brands,underlying operating costs increased 9%,resulting in underlying EBITDA down 4%to 43.1m(2023:45.0m).However,with lower finance costs on lower debtbalances,underlying profit beforetax was unchanged at 31.5m(2023:31.5m)whilst reported lossbefore tax improved to 14.5m(2023:loss of 48.8m).Corpo
63、rate developmentMy appointment as CEO in May 2024 has provided an opportunity for fresh perspective.Whilst the business has transitioned to a predominantly consumer healthcare company,much of the infrastructure and mindset had remained more aligned with the legacy prescription medicines business.Con
64、sequently,we are working to adapt the Companys culture and capabilities to support our ambition to become a high-performing consumer healthcare company,placing the consumer firmly at the heart of all strategic decisions.This change of focus and refined strategy means we have moved away from referrin
65、g to the three key brands we have previously mentioned(the Kelo-Cote franchise,Nizoral and Amberen)and,from mid-2024,we pivoted our corporate strategy to focus on five strategic priority categories(scar care,scalp care,dry skin care,eye health and womens health)which align with our five largest bran
66、ds in revenue terms(Kelo-Cote,Nizoral,Hydromol,MacuShield and Amberen).2024 has been an important year for Alliance as we implemented the necessary changes to accelerate decisionmaking and to bring the consumer closer to the heart of the business.Whilst we have much to do as we work on our transform
67、ation plans,I am confident that our strong portfolio of clinically differentiated brands will deliver predictable organic revenue growth over the midlong term.”AMBITIONDelivering predictable organicgrowth,ahead of market,and strong EBITDA expansion.Read more|Pages 15 to 18My vision for the long-term
68、 future of Alliance1.Underlying EBITDA is a non-IFRS Alternative Performance Measure(see note 30).Alliance Pharma plcAnnual Report and Accounts 202410Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationThroughout 2024 we restructured the senior leadership team to remo
69、ve layers of complexity and to bring key functions closer to the CEO.The senior leadership team,which we now call the Executive Committee,now comprises 12 people,up from five previously,of which 58%are female,up from 20%.To underline our commitment to globalising the business,five of these roles are
70、 based outside the UK.On 23 May 2024 we announced the successful conclusion of our appeal before the Competition Appeal Tribunal(“CAT”)of a decision by the UKs Competition and Markets Authority(“CMA”).In a unanimous judgment,the CAT upheld Alliances appeal,finding that there was no agreement to excl
71、ude competition from the market and no breach of competition law.The CMAs decision and 7.9m penalty imposed on Alliance have been set aside.In particular,the CAT found that Alliances two key witnesses,former Alliance CEOs Peter Butterfield and John Dawson,were both impressive and compelling,with the
72、ir evidence singled out by the tribunal in its concluding remarks.Director disqualification proceedings brought by the CMA against Peter and John,the first limb of which was joined to the appeal,have also fallen away.The CMA has confirmed that it will not appeal the CATdecision.In 2021 we provided f
73、or the potential penalty but reversed this provision in the 2023 accounts.On 10 January 2025 we announced the recommended cash offer by DBAYAdvisors Ltd for the entire issued and to-be-issued share capital of Alliance.This offer was accepted by shareholders on 13 March,with 80%of shareholders,holdin
74、g 92%of voted shares in value,voting in favour of the transaction.Wewill now work through the remaining regulatory steps and anticipate that Alliance will cease trading on AIM by the end of H1 2025.Innovation and Development(I&D)We continue to actively invest in our business to maintain strong organ
75、ic revenue growth and currently spend some 1m-2m per annum on I&D,with a view to generating 10%of net consumer sales from new product innovation in the future.However,this is one area in which we anticipate increasing investment to accelerate growth and we have appointed a Chief Innovation and Scien
76、tific Affairs Officer,who joined Alliance in January 2025,to support thisambition.In 2024,revenues from new productdevelopment reached 6.4m(2023:3.5m),representing 4.9%ofConsumer Healthcare sales(2023:2.6%).We launched three significant new products during 2024,all of which provide potential for sig
77、nificant organic growth in future years.The latest gummy in the Amberen range,Amberen Energy,Mood and Sleep,was launched in the United States in Q2 24 targeting the perimenopausal consumer.We have partnered with Walmart to promote the product on its social media platforms,and are working with a lead
78、ing social media influencer,Dr.Eva Beaulieu,to expand the brands reach.In the UK,we have expanded the MacuShield range with the launch of MacuShield Omega 3.The product was first placed in Boots,both in store and online,then listed on Amazon from May 2024 ahead of Prime Day in July 2024.The launch w
79、as supported by anextensive PR campaign and is expected to broaden the brands reach rather than cannibalise sales of the base brand.In September 2024,we launched Nizoral Derma Daily to expand the reach of the medicated anti-dandruff Nizoral brand into the larger,adjacent,derma cosmetic market.The in
80、itial launch focused on Thailand,Taiwan,Singapore,Hong Kong and Malaysia.We expect to launch in China in 2025.In addition,ScarAway Kids scar gel was launched in the United States on Amazon in late February 2024 expanding the range of the flagship gellisting.STRATEGYInitial focusGrowing the core and
81、building scaleFuture opportunityInorganic growth through acquisition Read more|Page 14 Read more|Page 9Chief Executive Officers Review continuedAlliance Pharma plcAnnual Report and Accounts 202411Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationContinuing our susta
82、inability journeyWe continue to make good progress on our sustainability journey,and willpublish our third,voluntary,stand-alone TCFD report for 2024 bythe end of June 2025.Throughout 2024,we have focused on developing our social and governance strategies.Having established a partnership with Slave
83、Free Alliance(“SFA”)in 2023,in H1 2024,the SFA conducted a high-level risk assessment on 15 suppliers deemed most at risk from a modern slavery perspective.In H2 2024,we fulfilled our ambition to conduct at least five modern slavery audits in person from this group of 15 high risk suppliers,of which
84、 four were completed in H1 2024,and one in H2 24,with no red flags.We anticipate conducting another five audits in 2025 from the remaining ten high risk suppliers we have identified.We have also joined the UN Global Compact,which is the worlds largest global corporate sustainability initiative.This
85、commits Alliance to meeting fundamental responsibilities in the four areas of human rights,labour,the environment and anti-corruption.During the period,we were pleased to have completed the NHS Evergreen Sustainable Supplier Assessment.This self-assessment and reporting tool resulted in Alliance rec
86、eiving a level 2 accreditation recognising our comprehensive net-zero targets and reporting for carbon emissions.This accreditation is key to remaining a trusted provider to the NHS,supporting us to align with their long-term sustainability priorities and their pathway to net-zero emissions.For furt
87、her detail,please see the Sustainability section of our website: a strong alliance of colleaguesOur business,and the delivery of our strategy,is only possible due to our network of talented,dedicated colleagues.Throughout 2024 we restructured the senior leadership team.The Chief Operating Officer ro
88、le has been removed,to streamline themanagement structure and accelerate decision-making,and both the Heads of North America and China have been replaced to support our growth ambitions.A Chief Transformation Officer was appointed in December 2024;she has spent the first three months of 2025 reviewi
89、ng all existing structures and processes to identify opportunities to optimise our approach and to drive scale benefits.Further senior appointments in early 2025 include a Chief Marketing Officer,Chief Innovation and Scientific Affairs Officer and Chief Supply Officer.We are working to develop a com
90、prehensive people strategy and have begun to develop our belonging and inclusion policy,partnering with an external consultant to conduct a baseline assessment to inform our future strategy.We have introduced belonging and inclusion questions within our new exit interview procedure as part of a plan
91、 to understand and improve diversity metrics beyond our annual engagement survey.We have also introduced a Celebration Day as part of our employee offering,which gives all colleagues an additional day off in the year to celebrate an event of their choice to promote diversity in lifestyle,cultural or
92、 religious beliefs.Work continues on our recognition and reward programme with three new awards to recognise outstanding behaviour and performance through peer-to-peer,manager and Executive Committee team rewards.We have also launched a global wellness programme which includes training for mental he
93、alth first aiders in each of ourlocations and a schedule of wellness webinars.Our investment in colleague engagement continues to pay dividends as evidenced by our re-certification as a Great Place to Work in the United Kingdom,France,China and Singapore.In the 2024 survey we were pleased to have re
94、ceived an overall Trust Index rating of 70%(2023:74%)with 67%of participants globally saying that Alliance was a Great Place to Work(2023:73%).On behalf of the Board,I would like to thank all those colleagues who helped us to deliver our achievements in 2024.Board and executive changesAs announced i
95、n February 2024,JoLeCouilliard stepped down from the Board with the appointment of CamilloPane as the new independent Chair of Alliance that month.Camillo Pane has over 30 years of relevant sector experience.He has held a number of senior positions at Reckitt,including Senior Vice President and Glob
96、al Category Officer for Consumer Health,before moving to Coty Inc,one of the largest beauty companies in the world,where,as CEO,he led the merger with Procter&Gamble Specialty Beauty.Most recently,he was Group CEO of Health&Happiness Group,a global health and nutrition company listed on the Hong Kon
97、g Stock Exchange with revenues of around$2bn.On 8 May 2024,we announced that Peter Butterfield,CEO,had decided to leave the business and,on 13 May 2024,I joined as Alliances new CEO.I bring 30 years of consumer goods experience predominantly in health across European,US and global roles at major mul
98、tinational companies suchas Reckitt,Coty and Nestl.Mostrecently I was Regional Director for UK and Ireland Consumer Health atReckitt,during which time I increasedrevenue and improved profitability in the second largest market for the Company.Prior to this,I worked at Coty holding a number of senior
99、roles,including Senior Vice President for Global Sales and Commercial Capabilities,Senior Vice President Sales for the US business and General Manager Consumer Beauty for UK and Ireland.Throughout my career,I have worked in multiple countries,always delivering high-revenue growth through consumer-ce
100、ntric strategies,high-performance teams and excellence in execution.In order to accelerate the globalisation of the business,simplify the management structure and to bring the consumer closer to the heart of the business,the Board decided that the role of COO was no longer required.Consequently,Jeya
101、n Heper left the business on 31 August 2024.I am excited about the future of Alliance.Whilst we have much to do as we work on our transformation plans,I am confident that our strong portfolio of clinically differentiated brands will deliver predictable organicrevenue growth over the mid-long term.Ni
102、ck SedgwickChief Executive Officer7 April 2025Chief Executive Officers Review continuedAlliance Pharma plcAnnual Report and Accounts 202412Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationOverviewDeveloped markets,primarily North America and Western Europe,continue
103、 to account for the majority of retail sales for consumer health.These countries benefit from stable populations and economies.However emerging countries are expected to experience strong growth given consumers increasing ability and desire to purchase well-known multinational products with higher p
104、erceived quality and purpose.Consequently,well-established international brands can leverage long-standing brand equity by entering new geographies.OverviewWhilst there has been a rapid increase in the purchase of health products and services online,this is not the only way that consumers want to tr
105、ansact.Apurchasing journey may include multiple routes or channels such as first seeking advice from a healthcare professional,a website review,or social media influencers before making a purchase online or in a physical retail store.Each channel must be optimised so that the consumer is able to fin
106、d what they want,when they want it,and can complete their purchase easily.OverviewThere is a greater desire for consumers to maintain health for longer periods amidst challenging and uncertain times.This stems from the need to spend quality time doing what matters to them,including the ability to wo
107、rk,earn and connect with loved ones.Wellness categories are more valuable and growing faster than healthcare categories in the top ten consumer healthcare markets.Consumers are also prepared to pay a premium for something that delivers tangible benefits.OverviewInnovation is an essential growth driv
108、er in consumer healthcare,particularly in categories with lower barriers to entry such as Vitamin and Mineral Supplements(“VMS”).A constant flow of new products and line extensions allows us to increase our presence on shelf and maintain the brand narrative to sustain consumer interest.Innovation,pa
109、rticularly new launches with strong clinical differentiation,also allows us to maintain premium pricing and support price rises.Proactive consumers seeking omni-channel retailIncreased focus on wellness and prioritisation on health in times of economic uncertaintyInnovation important to support grow
110、thResponse Alliance has well established brands in developed markets.Our strategy is to identify opportunities to take these brands into new territories.Our distributor model means we are able to access new geographies in a relatively low-risk way,with minimal investment in marketing and advertising
111、.Response Alliance operates in the more defensive consumer healthcare categories such as scar care,scalp care and menopause relief,which often require repeat purchases over a number of years and are therefore well insulated from economic cycles.With clinical difference supported by scientific eviden
112、ce,our brands typically command a price premium over competitor brands.Response Alliance,through its distributor partners,is present across many channels including ecommerce platforms,pharmacies and retail stores.We work with third-party sales organisations tooptimise our presence in each channel.We
113、 continue to refine and improve our in-house capabilities,particularly in insights and ecommerce.We expect to increase our sales andmarketing investment in 2025.Response 4.9%of consumer healthcare sales in 2024 came from new products launched within the last threeyears.We are aiming to increase this
114、 proportion to 10%in 5 years through increased investment in our innovation and development capabilities.In early 2025 we introduced a new role to our executive team,appointing Angela Brady as ChiefInnovation and Scientific Affairs Officer.Market OverviewMarket factors shaping our businessPositive d
115、emographicsAlliance Pharma plcAnnual Report and Accounts 202413Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationOur StrategyGrowing the core and building scaleGIVE THE CONSUMER WHAT THEY WANT,WHERE THEY WANT ITSIMPLIFYGIVE THE CONSUMER WHAT THEY WANT,WHERE THEY WAN
116、T IT Gain consumer insights Increase brand penetration Accelerate innovation Scale up ecommerceBECOME FULLY GLOBAL Expand geographical footprint of key brands Ensure key talent located in optimal locations globallySIMPLIFY Reduce cost Redeploy savings to fund growthBECOME FULLY GLOBALPURPOSE Read ab
117、out our Purpose|Page 26Alliance Pharma plcAnnual Report and Accounts 202414Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationThe scalp care market spans a wide continuum of treatment options from derma cosmetic products for mild to moderate dandruff through to medic
118、ated solutions for severe dandruff.Itisestimated that 1-5%of all adults in Asia suffer from seborrheic dermatitis2(which causes severe dandruff).Whilst Alliance has historically played in the medicated category with leading brand Nizoral,we see opportunities for expansion into the derma cosmetic mar
119、ket.GLOBAL CATEGORY SIZE&GROWTH(4-YEAR CAGR)780m+4%Alliance AmbitionLeader in scientifically proven dandruff-related scalp careScalp careGLOBAL CATEGORY SIZE&GROWTH(4-YEAR CAGR)407m+7%Alliance AmbitionGlobal leader in scar careMore than 48%of people worldwide have at least one scar and over 100m new
120、 surgical scars are created each year1,creating a significant market opportunity.In a recent survey more than 59%of people said they want to improve the appearance of their scar.Whilst there are a number of treatment options available,silicon-based solutions such as Kelo-Cote and ScarAway(which is o
121、nly available in the US)are considered by healthcare professionals to be the gold standard of care.Wesee opportunities to grow the market through greater consumer awareness and innovation.Scar careGIVE THE CONSUMER WHAT THEY WANT,WHERE THEY WANT ITStrategic priority:Helping damaged skinStrategy in A
122、ction1.Market opportunity statistics are derived from(i)J.M.Amici et al JEADV 2022(ii)Gallileo Consulting U&A study(iii)Walnut U&A study 2021(iv)Supramenesh(iv)Gauglitz et al 2011.2.https:/pmc.ncbi.nlm.nih.gov/articles/PMC4908450/Alliance Pharma plcAnnual Report and Accounts 202415Company OverviewGo
123、vernanceStrategic ReportFinancial StatementsAdditional InformationAtopic dermatitis,or eczema,affects around 20%of children and 10%of adults worldwide3.Management strategies for treating the condition follow a stepped-care approach starting with the use of emollients and topical treatments before pr
124、ogressing to phototherapy and systemic solutions.Hydromol is the leading prescribed ointment in the UK and is currently available in a number of formats including cream,ointment and bath/shower wash.We see significant opportunities to grow through consumer education and increased self-selection.GLOB
125、AL CATEGORY SIZE&GROWTH(4-YEAR CAGR)739m+5%Alliance AmbitionDoctor-recommended eczema and dry skin careEczema and dry skin careStrategy in Action continuedGIVE THE CONSUMER WHAT THEY WANT,WHERE THEY WANT ITStrategic priority:Helping damaged skin continued3.https:/www.eczemacouncil.org/assets/docs/gl
126、obal-report-on-atopic-dermatitis-2022.pdfAlliance Pharma plcAnnual Report and Accounts 202416Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationWomens health needs and life stages are closely related with different phases such as menstruation,pregnancy and menopause
127、which affect their mind and bodies in varying ways.The rise in social media has created much greater awareness and acceptance of the issues women face,with todays consumer likely to be better educated than previous generations.These consumers are now looking for brands that can support them for long
128、er lengths of time,through these various phases5.Amberen is the only clinically proven menopause relief supplement in the United States.We see potential to empower more women to treat their menopause symptoms through product choice and to expand Amberen to meet womens needs in other stages of life.G
129、LOBAL CATEGORY SIZE&GROWTH(4-YEAR CAGR)1bn+10%(Menopause supplements are worth 324m+1%)Alliance AmbitionLeader in womens health supplements5.Mintel report 30 Jan 2024 Womens Wellness US 2024.Strategy in Action continuedGIVE THE CONSUMER WHAT THEY WANT,WHERE THEY WANT ITStrategic priority:Supporting
130、healthy ageingWomens healthAround 8%of the global population suffer from age-related macular degeneration4.Whilst MacuShield was originally targeted at an older population,we see a greater potential opportunity in meeting the needs of younger people who are taking steps to increase healthspan to max
131、imise their period of life spent in good health and protect their eye health before experiencing any serious issues.Building from MacuShields proven clinical efficacy,which is endorsed by ophthalmologists,we are looking to expand into new geographies and consumer eye-health categories.GLOBAL CATEGOR
132、Y SIZE&GROWTH(4-YEAR CAGR)835m+3%Alliance AmbitionGlobal leader in eye health supplementsEye health4.https:/ Pharma plcAnnual Report and Accounts 202417Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationSIMPLIFYBECOME FULLY GLOBAL Portfolio optimisationOptimising the
133、 location of new hires14brands divested or discontinued2.8m cash proceeds generatedStrategy in Action continuedIn 2023 we commenced a project to analyse all 70 brands in our portfolio to identify any that were highly complex to maintain,had high risk of unreliable supply and yielded low profitabilit
134、y to the business.Throughout 2024 we worked to create a model to allocate all appropriate costs to a brand in order to rank the portfolio in terms of profitability.This model identified 14 brands that were suitable for divestment or discontinuation,whilst also ensuring that consumer access to essent
135、ial medicines for which there are no alternatives was maintained.The business development team then secured buyers for eight of these brands,generating cash proceeds of 2.8m in late 2024.Six brands were discontinued.The disposal and divestment of these 14 brands allows Alliance to increase its focus
136、 on its more profitable and faster-growing brands.The portfolio remains under continual review and we now have a tried and tested model for identifying candidates for disposal.An important tenet of our strategy is to become fully global.Alliance has bought many assets over the years but has not expa
137、nded them to the key markets in other countries.Innovation is key to unlocking these new markets,giving us more products on shelf to excite retail partners and to beat the competition.To achieve this ambition,and to elevate the innovation function within our organisation we appointed AngelaBrady to
138、the new position of Chief Innovation and Scientific Affairs Officer in January 2025.Angelahas a strong innovation track record coupled with extensive consumer health experience arising from holding avariety of innovation roles in her 23years industry experience;18 years were spent with GSK,and most
139、recently she was Global Innovation Director at Health and Happiness Group.Underlining our commitment to globalisation,Angela is based in Hong Kong,where she is within close proximity of our Shanghai team and can easily attend important trade shows and scientific conferences in China.She is also clos
140、e to Singapore,an important R&D hub due to the Singapore Governments commitment to,and investment in,the countrys research capabilities.Alliance Pharma plcAnnual Report and Accounts 202418Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationKey Performance IndicatorsFi
141、nancial KPIs1.These measures constitute Alternative Performance Measures(“APMs”),as defined in note 30 to the financial statements.2.Basis points.We set out here our key financial performance indicators.These are the primary measures used by management to monitor businessperformance against both sho
142、rt-term budgets and forecasts andlonger-term plans.SEE-THROUGH REVENUE1180.3m-1%UNDERLYING PROFIT BEFORE TAX131.5m+0%FREE CASH FLOW1 29.1m+37%GROSS MARGIN160.6%+310bpUNDERLYING BASIC EPS14.4p-4%LEVERAGE31.39xUNDERLYING EBITDA143.1m-4%DIVIDEND PER SHARENil+0%NET DEBT160.1m-34%2024 180.3m2023 182.7m20
143、22 172.0m2024 31.5m2023 31.5m2022 30.3m2024 29.1m2023 21.3m2022 15.8m2024 60.6%2023 57.5%2022 59.1%2024 4.4p2023 4.6p2022 4.3p2024 1.39x2023 2.05x2022 2.57x2024 43.1m2023 45.0m2022 39.2m2024 0.0p2023 0.0p2022 1.776p2024 60.1m2023 91.2m2022 102.0m3.Leverage is defined as:Adjusted net debt/enlarged Gr
144、oup EBITDA,calculated using proforma EBITDA on a trailing 12-month basis for acquired entities,in line with our banking covenants.Alliance Pharma plcAnnual Report and Accounts 202419Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationAdditional KPIsOther indicatorsIn
145、addition to these indicators,we also employ a broad range of other measures to help us manage business performance,including but not limited to:Brand revenues,margins and contribution,by management region and relative to marketing and innovation investment.Post-acquisition performance evaluation mea
146、sures.On-time in-full delivery and out-of-stocks(to ensure continuity of product supply).Working capital management including additional detail around inventory levels,provisioning and ageing profile;the level of trade receivables and payables and their ageing profiles.We do not disclose the related
147、 metrics associated with these measures,on the basis that they are commercially sensitive and/or intended for internal use only.1.Month-end value of trade payables relative to the trailing 12 months cost of goods expressed as a days equivalent,averaged over the year.2.Month-end value of trade receiv
148、ables relative to the trailing 12 months sales expressed as days equivalent,averaged over the year.3.Month-end value of inventory relative to the trailing 12 months cost of goods expressed as a days equivalent,averaged over theyear.4.On a see-through basis.5.As at 31 December.6.Percentage point.Key
149、Performance Indicators continuedWORKING CAPITAL MANAGEMENTSUPPLIER PAYMENT DAYS48-12 daysDAYS SALES OUTSTANDING274+0 daysDAYS INVENTORY ON HAND3153+1 dayPORTFOLIO EVOLUTIONREVENUE:CONSUMER HEALTHCARE BRANDS130.7m-4%CONSUMER HEALTHCARE AS A%OF TOTAL REVENUE472%-3pp6RESOURCINGTOTAL HEADCOUNT290-1%EMPL
150、OYEE ENGAGEMENT:(GPTW TRUST INDEX)70%-4pp62024 482023 602022 582024 742023 742022 712024 1532023 1522022 1542024 130.7m2023 136.4m2022 125.2m2024 72%2023 75%2022 73%2024 2902023 2922022 2852024 70%2023 74%2022 79%Alliance Pharma plcAnnual Report and Accounts 202420Company OverviewGovernanceStrategic
151、 ReportFinancial StatementsAdditional InformationAndrew FranklinChief Financial OfficerFinancial ReviewPerformance in 2024 was consistent with expectations,with underlying Group PBT in line with the prior year due to our deliberate increased investment to support our key brands.”The Group delivered
152、underlying PBT in line with 2023Summary income statementYear ended 31 December2024 m2023 mGrowthSee-through revenue180.3182.7-1%Statutory revenue178.8180.7-1%Gross profit109.3105.0 4%Operating costs66.2 60.0 10%Underlying EBITDA43.1 45.0-4%Depreciation and underlying amortisation3.2 3.1 3%Underlying
153、 operating profit(“EBIT”)39.9 41.9-5%Finance costs8.4 10.4-19%Underlying profit before taxation31.531.5 0%Non-underlying items before taxation46.080.3-43%Reported profit/(loss)before taxation(14.5)(48.8)NMUnderlying basic earnings per share4.364.55p-4%Reported basic earnings per share(1.99)p(6.13)p
154、NMProposed total dividend per sharenilnilNM1.The performance of the Group is assessed using Alternative Performance Measures(“APMs”),which are measures that are not defined under IFRS,but are used by management to monitor ongoing business performance against both shorter-term budgets and forecasts a
155、nd against the Groups longer-term strategic plans.APMs are defined in note 30.Specifically,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 on Nizoral sales made on an agency basis is includ
156、ed within revenue,in line with IFRS 15.Underlying profitability metrics are presented,as we believe this provides investors with useful information about the performance of the business.In 2024 and 2023,underlying results exclude the amortisation and impairment of acquired intangible assets.Further
157、detail can be found in note5.2.Including share-based employee remuneration.3.Not meaningful to show as a percentage movement given the significant changes in numbers which have been explained elsewhere.UNDERLYING PBT31.5m+0%(2023:31.5m)See our Financial Statements|Page 81Alliance Pharma plcAnnual Re
158、port and Accounts 202421Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationRevenue summaryYear ended 31 December2024 m2023 mGrowth CER growthKelo-Cote franchise65.463.24%6%Amberen10.111.2-10%-7%Nizoral16.421.7-24%-21%MacuShield10.29.211%11%Other Consumer brands28.631
159、.1-8%-6%Total Consumer Healthcare130.7136.4-4%-2%Hydromol10.39.014%14%Other Prescription Medicines39.337.35%6%Total Prescription Medicines49.646.37%8%See-through revenue180.3182.7-1%1%Statutory revenue Consumer Healthcare129.2134.3-4%-2%Statutory revenue Group178.8180.7-1%2%1.2023 Other Consumer bra
160、nds restated to exclude MacuShield,which is now detailed separately.2023 Other Prescription Medicines restated to exclude Hydromol,which is now detailed separately.RevenuesThe Group delivered see-through revenues in the period of 180.3m(FY23:182.7m),up 1%at constant exchange rates(“CER”)and down 1%o
161、n a reported basis versus the prior period.Whilstrevenues declined in some of our brands,namely Nizoral,we delivered strong performance in Kelo-Cote,MacuShield,Hydromol,Aloclair and Forceval.Group revenue was adversely affected by exchange rate movements throughout 2024,principally the strengthening
162、 of Sterling against the US Dollar and Euro,which decreased see-through revenue by approximately 3.4m.Statutory revenue decreased 1%to 178.8m(2023:180.7m).Consumer HealthcareTotal Consumer Healthcare see-through revenues for the Year were 130.7m(2023:136.4m),down 4%on the prior year(-2%CER).On a sta
163、tutory basis,reported Consumer Healthcare revenues were 129.2m,down 4%from the previous year(2023:134.3m)and down 2%CER.Kelo-Cote franchise revenues grew 6%CER to 65.4m(FY23:63.2m)in line with previous guidance of mid-single digit revenue growth.Whilst we remain committed to moving to smaller,more r
164、egular orders in China,this is taking longer than anticipated.Nizoral see-through revenues declined 21%CER to 16.4m(FY23:21.7m)due to the timing of distributor orders.Amberen revenues declined 7%CER to 10.1m(FY23:11.2m)due to softer trading on Amazon following the loss of the Buy Box to unauthorised
165、 resellers,which has now been resolved,and slower adoption of new product launches than anticipated.MacuShield revenues grew 11%CER to 10.2m(2023:9.2m)boosted by new productlaunches in addition to increased focus and investment to optimise Amazon distribution intheUK.Other Consumer brands declined 6
166、%CER to 28.6m(FY23 restated:31.1m)due to weakness in Lefuzhi and Ashton&Parsons.Prescription Medicines Prescription Medicine revenues increased 8%CER to 49.6m(FY23:46.3m).Hydromol revenues increased 14%CER to 10.3m(FY23:9.0m)as we launched our first ever direct to consumer communication campaign to
167、target consumers and boost sales via Amazon.Forceval delivered another solid performance with revenues up 20%CER to 7.9m(FY23:6.6m)and other Prescription Medicine revenues showed strong recovery as previously out-of-stock products became available.Profit and loss developmentWhilst see-through revenu
168、es decreased 1%in the year,gross profit increased 4%to 109.3m(2023:105.0m)due to favourable product mix and a reduction in COGS relating to Nizoral following the move in manufacturing.Gross margin increased by 310 basis points to 60.6%of see-through revenue(2023:57.5%)and gross margin relative to st
169、atutory revenue was 61.1%(2023:58.1%).However,with a deliberate focus on increasing investment to support our keybrands and operations,operating costs(defined as underlying administration and marketing expenses,excluding depreciation and underlying amortisation charges)increased 9%versus the prior y
170、ear to 64.5m(2023:59.1m).With a 0.8m increase in share option charges versus prior year(2024:1.6m,2023:0.9m)underlying earnings before interest,taxes,depreciation,and underlying amortisation(“EBITDA”)decreased 4%to 43.1m(2023:45.0m),whilst underlying operating profit(“EBIT”)decreased by 5%to 39.9m(2
171、023:41.9m).Reported operating loss decreased by30.3m to give an 8.1m loss(2023:38.4m loss),after non-underlying items of 48.0m(2023:80.3m).Net finance costs of 8.4m(2023:10.4m)include a 0.8m decrease in interest payable to 9.2m(2023:10.0m),due to lower debt balances,with net exchange gains of 0.8m(0
172、.5m loss in 2023).As a result of lower finance costs,underlying profit before tax was unchanged at31.5m(2023:31.5m),resulting in a 30 basis-point margin increase to 17.5%of see-throughrevenues(2023:17.2%).Reported profit before tax increased to a 14.5m loss(2023:48.8m loss),primarily due to lower no
173、n-underlying impairment charges in 2024.Financial Review continuedAlliance Pharma plcAnnual Report and Accounts 202422Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationWith an underlying tax charge of 7.9m(2023:6.9m)equating to an underlying effective tax rate of 25
174、.2%(2023:22.0%),underlying basic earnings per share decreased 4%to 4.36p(2023:4.55p).Reported basic earnings per share was a loss of 1.99p(2023:6.13p loss),a reduced loss versus the prior year due to the lower impact from non-underlying items on reported earnings in 2024 versus 2023.Further detail o
175、n non-underlying items is provided opposite and in note 5.Non-underlying itemsNon-underlying items in the year comprised impairment charges identified asaresult of the annual impairment review,amortisation charges for Prescription Medicines and certain other brandassets,together with restructuring c
176、osts(seenote 5).For 2024,net impairment charges of 36.5m(2023:79.3m)include a charge of 23.5m in relation to Amberen(2023:46.4m),together with 13.0m(net of 2.4m impairment reversals)relating to a number of other products and associated goodwill.Theseimpairments were driven by changes to theirfinanci
177、al outlook and updates to central overhead allocations.Following a comprehensive review of our portfolioto identify brands that were highly complex to maintain,had a high risk of unreliable supply and yielded low profitability,we made the decision to discontinue six assets and divest eight.The dispo
178、sal of these eight brands yielded cash proceeds of 2.8m in December 2024 and aprofit on disposal(net of costs to sell and residual net book value of disposed assets)of 2.4m,which has been included as a non-underlying item.Balance sheet developmentIntangible assets decreased by 46.4m in the year to 2
179、53.6m(31 December 2023:300.0m)reflecting net non-underlying amortisation and impairment charges of 43.0m,underlying amortisation of 1.9m,exchange rate-related revaluation adjustments of 0.7m and 0.8m net book value of disposals.Net working capital at 31 December 2024 was 40.1m,a decrease of 3.3m on
180、that at the start of the year(31 December 2023:43.4m).Inventories,net of provisions,decreased 3.2m to 22.5m at 31 December 2024(31 December 2023:25.7m).Trade and other receivables decreased by 5.3mto 49.4m,reflecting the timing of sales and cash receipts in the second half of the year,versus the equ
181、ivalent period in 2023.Trade and other payables decreased 5.2m on the prior year to 31.8m.Cash generationFree cash flow(see note 30 for definition)for the year rose 37%to 29.1m(2023:21.3m),due tothe strong trading performance in H2 and improved working capital.Cash generated from operations increase
182、d by 20%to 44.3m(2023:36.9m).This solid cash generation supported a reduction in net debt(excluding lease liabilities)of 31.1m to 60.1m at 31 December 2024(31 December 2023:91.2m),with Group leverage(the ratio of net bank debt to EBITDA)decreasing to 1.39 times(31 December 2023:2.05 times).Interest
183、rate cover(the ratio of EBITDA to finance charges)increased to 5.03 times(31 December 2023:4.82 times)reflecting the decrease in net interest cost on lower debt outstanding.Net debt and Group leverage are both expectedto fall further during 2025,with Group leverage expected to be below 1.0 times by
184、the end of 2025.Andrew FranklinChief Financial Officer7 April 2025Financial Review continuedAlliance Pharma plcAnnual Report and Accounts 202423Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationStakeholder EngagementOur shareholders are interested in:Strong financia
185、l performance.Share price appreciation.Dividend income.ESG and long-term business sustainability.How we delivered for our shareholders in2024:Expanded gross margin.Increased investment behind our key brands.Maintained underlying group profit.Strengthened the skills,experience and expertise on the Ex
186、ecutive Committee to align with the long-term strategy.Commenced work to adapt the Companys culture and capabilities to support our ambition to become ahigh-performing consumer healthcarecompany.Good progress made with developing and executing our sustainabilitystrategy.Our employees are interested
187、in:Competitive reward structures.Opportunity to share in the success ofthe business.Flexible working.Meaningful work and connection.Learning and development opportunities.How we delivered for our employees in2024:Annual pay review in line with industry benchmarks.Flexible working arrangements mainta
188、ined.Monthly business briefings.Implemented new reward and recognition suite.Lunch and learn sessions arranged to educate colleagues on topics such as financial planning and mental health.Participation in the GPTW survey.Our customers are looking for:Safe and effective healthcare products,which are
189、widely available,at a reasonable cost.Reliable sources of information and practical help to manage their,and theirfamilys,health and wellbeing.Products and services that have as low aspossible an impact on theplanet.How we delivered for our customers in2024:Safety and efficacy standards maintained.4
190、3m units of product supplied.Worked with Valpak to create a database of all ourpackaging.Innovation launches within our global priority categories.Market and channel expansion for our consumer products,particularly inecommerce.Consumer healthcare product pricing aligned with competitive positioning.
191、ShareholdersEmployeesCustomersOverviewThe Board recognises the importance ofmaintaining an engaged and motivated workforce,dependable supply chains,customer confidence in our products,close relationships with healthcare professionals,good returns for our shareholders and a positive contribution to b
192、oth our local and wider communities.The Board works closely with the Executive Committee to ensure we continue to understand and meet the evolving needs of all our stakeholders,whilstmaintaining our relevance and ability to create long-term sustainable value.On the following pages,we have identified
193、 our principal stakeholders,their primary requirements and how weve delivered against these in 2024.Examples of how stakeholder interests have been considered by the Board in their decision-making are provided in the Governance section|Page 53 Additional content regarding our stakeholder relationshi
194、ps and how we manage these can also be found on our website| Pharma plcAnnual Report and Accounts 202424Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationOur supply and distribution partners are looking for:Continued business growth opportunities.Reliable counterpar
195、ties who share similar values and who act both responsibly andwith integrity.Strong brands with growth potential andappropriate investment in marketing andinnovation.Proactive partnering and regularengagement.How we delivered for our supply anddistribution partners in 2024:Global brand protection st
196、rategies.Regular quality and sourcing audits.Partnership with Slave Free Alliance.Published our Supplier Code ofConduct.Healthcare professionals are looking for:Safe and effective products.Engagement,education,information,andresources.Therapy area expertise.How we delivered for healthcare profession
197、als in 2024:Zero safety actions needed in-market due to defective product.New social media use and control policies published,to help ensure only factual and compliant information is provided on Alliance controlled social media platforms.Responses provided to more than 850enquiries from healthcare p
198、rofessionals(“HCPs”).Over 5,100 responses provided directly to customers and patients.HCP meetings policy updated to ensure we more flexibly meet the needs of HCPs.Our lenders are interested in:Strong financial performance.Ability to service and repay borrowings.How we delivered for our lenders in 2
199、024:Regular communication and reporting of business performance.29.1m of free cash flow generated.Compliance with borrowing covenants maintained.Leverage down significantly intheperiod.The wider community is interested in:Social impact strategy.Local engagement.Charitable and product donations.How w
200、e delivered for the wider community in 2024:Promoted the Alliance Volunteering Day,which is one day of paid leave that can be utilised to support a nominated charity or local community.Supported our colleagues to fund-raise through initiatives such as bake sales,raffles and quizzes,then matched the
201、funds raised.Encouraged colleagues to donate clothes and toiletries to the local homeless shelter in the UK.Helped to pack meals for the RiseAgainst Hunger food bank in the United States.Supply and distribution partnersHealthcare professionalsLendersWider communitiesStakeholder Engagement continuedA
202、lliance Pharma plcAnnual Report and Accounts 202425Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationVisit our Sustainability hub Learn more on our website and in our Online Sustainability Report at people,planet and productOur approachWe are committed to operating
203、our business in a responsible way,minimising our negative impacts and maximising our positive contribution while promoting the sustainability of our business forthe longer term.Our sustainability frameworkOur sustainability framework identifies the key areas we are focusing on to deliver on our Purp
204、ose and to assure the future ofour business for the longer term.PurposeWe empower people to make a positive difference to their health and wellbeingPURPOSEPEOPLEWe are working to improve the quality of life for all people we interact with.Read more|Page 27PLANETWe seek to minimise our carbon emissio
205、ns and reduce our environmental impact.Read more|Page 27PRODUCTWe deliver products that meet the highest standards of quality,safety and supply chain ethics.Read more|Page 27Alliance Pharma plcAnnual Report and Accounts 202426Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional I
206、nformation Further detail,including relevant metrics for all the areas of focus forming part of our sustainability framework,can be found in our Online Sustainability Report| OverviewWe made good progress against our sustainability agenda in 2024 PEOPLEFocus areas for 2024 Continue to increase and i
207、mprove communication throughout thebusiness.Further the development and implementation of our reward and recognition proposition.Develop a comprehensive three-year People strategy to support Alliances growth ambitions and business strategy.PRODUCTFocus areas for 2024 Continue to provide modern slave
208、ry training to relevant colleagues including senior leaders.Undertake a supply chain human rights risk assessment and supplier lifecycle due diligence review.Progress in the year Refreshed our monthly business briefings,rescheduling to a time appropriate for all regions and including a diverse range
209、 of contributions from across the business.Maintained Great Place to Work certification in the United Kingdom,France,China and Singapore.Launched a new recognition and reward suite.Commenced work on a belonging and inclusion policy,partnering with an external consultant to conduct a baseline assessm
210、ent.Launched a global wellness programme,including training for mental health first-aiders in each of our locations.Progress in the year Contacted all contract manufacturing organisation(“CMO”)and logistics service provider(“LSP”)partners explaining our Scope 3net-zero ambitions and our expectations
211、 from them to help achievethese.Completed a supply chain human rights risk assessment and supplier lifecycle due diligence review.Conducted five modern slavery audits in person from our list of 15 high-risk supplier sites.Provided modern slavery training to all colleagues including seniorleaders.Foc
212、us for 2025 Continue to increase and improve communication throughout thebusiness.Continue to embed a culture of wellbeing.Further the development of our learning and development platform.Continue to develop a comprehensive People strategy to support Alliances growth ambitions and business strategy.
213、Focus for 2025 Continue to provide modern slavery training to relevant colleagues including senior leaders.Complete another five in-person modern slavery audits from the remaining ten high-risk suppliers we have identified.Develop a comprehensive human rights strategy.Develop a procurement framework
214、 including sustainability criteria.PLANETFocus areas for 2024 To continue to work towards our net-zero targets through:Embedding ownership of product-related emissions within the appropriatefunctional areas of the business.Continued methodology improvements to increase the accuracy ofemissionsmeasur
215、ement across all categories.The development of a packaging strategy,confirming and publishing sustainability improvement targets for both primary and secondarypackaging.Progress in the year Scope 1 and 2(location-based)emissions down 60%versus 2018 baseline through energy efficient improvements to t
216、he Alliance HQ.Scope 3 emissions down 15%versus 2022 baseline through more efficient downstream transportation and distribution.Joined the UN Global Compact.Received Level 2 accreditation in the NHS Evergreen Sustainable Supplier Assessment.Worked with Valpak to create a database of the weight and c
217、omposition of all ourpackaging to enable more accurate carbon emissions reporting.Initiated a double materiality assessment using an externalconsultant.Focus for 2025 Develop a sustainable packaging strategy with appropriate KPIs.Publish a travel policy for employees to encourage more sustainable mo
218、des of transport.Use the outputs from the double materiality assessment to determine our long-term strategic focus for sustainability.Alliance Pharma plcAnnual Report and Accounts 202427Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationTask Force for Climate-related
219、 Financial Disclosures(TCFD)Climate change remains one of the worlds most critical challenges,carrying with it profound consequences for businesses and people across the globe Climate inaction will intensify this issue to a critical point.At Alliance Pharma(“Alliance”or“the Group”),we understand eve
220、ry business has an impact on the environment.Although our impact may be small in comparison to other industries,we have a responsibility to help mitigate the effects of climate change where possible.Consequently,we have elected to voluntarily report under the Task Force on Climate-related Financial
221、Disclosures(TCFD).Whilst there is no current requirement for us to comply with the requirements of TCFD,we welcome the recommendations.We have structured our report to follow the four themes of the TCFD framework:Governance,Strategy,Risk Management and Metrics and Targets,and we have complied with 1
222、1 out of the 11 recommended disclosures.As with previous years,we have partnered with an external consultancy,Inspired ESG,to support the identification of climate-related risks and opportunities and to evaluate our business through a climate lens.Whilst we use an external consultancy for support,ul
223、timate responsibility for ESG strategy remains with Alliance management and the Alliance ESG team.GovernanceAlliance aims to refine its climate and sustainability approach annually.As FY2024 is our fourth year of voluntarily reporting under the TCFD,we have expanded our assessment scope to include o
224、ur supply chain analysis.We seek to embed climate governance into all levels of the business by integrating the TCFD recommendations into our existing frameworks(Table 1).The Group has gained extensive and essential knowledge on climate matters,including climate change,climate risks,and the TCFD.Tab
225、le 1:The Group Governance Structure for Climate-Related Information in 2024.LevelKey Roles and ResponsibilitiesFlow of CommunicationBoard of DirectorsOversee climate-related risks and opportunities;approve strategy.Holds ultimate responsibility for climate matters.Receives quarterly updates from the
226、 ESG Committee by the Non-Executive Director.ESG CommitteeIdentifies climate-related risks and opportunities,develops strategies,oversees risk management,and monitors progress.Responsible for identifying,assessing and managing climate risks.Reports to the Board quarterly.Members of the Board also si
227、t on the ESG Committee.Met five times formally,but ad hoc meetings were scheduled when required.Consults with the Senior Leadership Team(SLT).Senior Leadership Team(SLT)This is a sub-committee to the ESG Committee,comprised of the Chief People Officer(responsible for People),Chief Operating Officer(
228、responsible for Environmental),Group General Counsel(responsible for Governance)and Head of Investor Relations and Corporate Communications.This sub-committee monitors and oversees progress,and works with relevant Management teams to implement initiatives based on discussions from the ESG Committee.
229、The SLT support the ESG Committee in the management of climate-risks,including mitigation development.Met twelve times in FY2024,provided updates to ESG Committee prior to ESG Committee meetings.Management TeamsImplements Climate Initiatives and reports on performance.The Management teams aid in the
230、 management of climate-risks,including mitigations.Provide progress updates and key information to the ESG Committee when required.1.The SLT was restructured and expanded in late 2024,and is now called the Executive Committee,see page 11 for more detailAlliance Pharma plcAnnual Report and Accounts 2
231、02428Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationBoard OversightThe Board retains responsibility for climate matters and decisions,considering climate related issues when reviewing and guiding business strategy and financial planning.Despite only receiving for
232、mal updates quarterly,the Board discussed climate change at all eleven meetings in 2024,as climate change is a standing agenda item in Board meetings.This is supported by the new ESG committee chair,Eva-Lotta Sjstedt who was appointed in July 2024 and is a Non-Executive Director sitting on the Board
233、.Topics discussed in FY2024 include the Energy Savings and Opportunities Scheme(ESOS),double materiality,TCFD,Scope 3 targets and packaging.In December 2024,Inspired ESG delivered a capacity-building session for the ESG Committee on TCFD,climate change and climate-related risks and opportunities;thi
234、s information was shared with the Board.Members of the Board have exposure and experience with ESG,including climate matters,through professional engagements.Currently,the Executive management teams remuneration is not linked to the delivery of climate change strategy or performance objectives.The p
235、ossibility of linking remuneration to climate change strategy will be reviewed in FY2025.To ensure climate-matters are thoroughly embedded across the Group,the Board have delegated the responsibility of identifying,assessing and managing climate-related risks and opportunities to the ESG Committee.T
236、he responsibility of managing climate-related risks is supported by the SLT and Management Teams,including the implementation of climate-related mitigations.ESG CommitteeThe ESG Committee,established in 2022 and restructured in 2024,is chaired by one of the Groups Non-Executive Directors.The Board h
237、ave delegated the responsibility for identifying,assessing and managing climate-related risks and opportunities to the ESG Committee.The ESG Committee has six key focus areas,including TCFD,net zero(minimum 90%absolute reduction,with residual emissions neutralised using permanent carbon removals),an
238、d packaging improvements.Climate change is a standing agenda item during ESG Committee meetings.Progress is reported quarterly to the Board by the chair,including progress toward climate targets,such as emissions.As an observer on the ESG Committee,the Head of Investor Relations and Corporate Commun
239、ications,engaged with Inspired ESG bi-weekly to collect climate data for emissions and TCFD reporting.Key changes were communicated during these sessions to ensure climate change is considered in business strategy and operational and financial planning.Members of the ESG Committee also attended two
240、climate risk management workshops in November 2024 to assess the impact of associated risks and the effectiveness of current mitigation measures.To ensure all ESG Committee members remain informed on the latest developments,Inspired ESG facilitated a capacity-building session in December 2024 to exp
241、and on members existing knowledge of climate change,TCFD and climate-related risks and opportunities.As members of the ESG Committee are also Board members,information from these sessions is easily reported upward.The Board also reviews the TCFD Statement annually,approving the material climate-rela
242、ted risks and overseeing the risk management process.Alliance considers the financial impact of each climate risk using our internal risk rating system(page 33).In June 2024,the ESG Committee and the Board,supported by the SLT,held a sustainability workshop for employees covering topics such as TCFD
243、,climate change,and net zero,presented by Inspired ESG.In FY2024,the ESG Committee worked closely with the ESG Intern who provided a workshop on the Groups ESG progress to all employees.Inspired ESG also worked with our ESG intern in FY2024 to deliver a climate and net zero capacity-building session
244、 for our supply chain and operations teams.Senior Leadership Team(SLT)During 2024,a delegation from the SLT,comprising the COO,Chief People Officer(CPO),and the Group General Counsel&Company Secretary,executed climate-related strategies across the Group.The SLT ensures that the Groups climate initia
245、tives align with the Boards overarching goals.Regular consultations with the ESG Committee ensure a seamless flow of information and a proactive approach to emerging climate-related risks.The SLT is now known as the Executive Committee,see p11 for details.StrategyAlliance aims to achieve sustainable
246、 growth while maximising the value of our Consumer Healthcare business.We acknowledge that our operations face potential impacts from climate-related risks.Therefore,in collaboration with Inspired ESG,we conducted a climate scenario analysis across September and October 2024 to identify the climate-
247、related risks and opportunities posed to the Group.In November 2024,the analysis results were presented at two climate risk management workshops to assess the significance to our operations,strategy and financial planning and evaluate current mitigation effectiveness.We conducted the analysis on all
248、 seven of our offices.Climate-related disruptions to our key partners and suppliers operations could also impact Alliance.Therefore,in FY2024,we also included 23 key Contract Manufacturing Organisation(CMO)sites and 17 key distributor sites,selected based on financial expenditure,in our assessment.T
249、his approach continues to refine and embed resilience throughout our operations and value chain.Following the TCFD guidance,we classified climate-related risks into two categories:transition risks(risks associated with a shift to a low-carbon economy)and physical risks(the physical impacts of climat
250、e change,either event-driven or longer-term shifts),and across six key themes(policy and legal,market,technology,reputation,acute weather events,and chronic impacts).Climate scenarios are plausible representations of the earths future state.Scenarios consider various global warming pathways to illus
251、trate potential impacts of climate change in the short,medium and long term(see table 3).We consider various combinations of factors such as technology advances,increased regulatory requirements,consumer preference shifts and the potential impacts of climate change on operations,markets,our supply c
252、hain,and reputation.We employed the use of several internationally established frameworks for our analysis,including the International Energy Agencys World Energy Models(“WEM”),Shared Socioeconomic Pathways(“SSPs”),Climate Natural Catastrophe Damage Models,Coordinated Regional Climate Downscaling Ex
253、periment(“CORDEX”)forecasts,and Integrated Assessment Models(“IAM”).Task Force for Climate-related Financial Disclosures(TCFD)continuedAlliance Pharma plcAnnual Report and Accounts 202429Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationTask Force for Climate-relate
254、d Financial Disclosures(TCFD)continuedWhile climate models offer detailed insights into potential futures based on various emission pathways,their accuracy is not guaranteed.Additionally,potential exaggerations or underestimations of climate variables could occur.We utilised three climate change sce
255、narios,considering three distinct warming pathways.Each scenario reflects various levels of global climate action,ranging from a“business-as-usual”approach to a rapid shift towards a low-carbon economy.We utilised three climate change scenarios,considering three distinct warming pathways.Each scenar
256、io reflects various levels of global climate action,ranging from a“business-as-usual”approach to a rapid shift towards a low-carbon economy.The Proactive scenario was chosen to model increasing transition risks and their impacts,including greater climate legislation and increased stakeholder concern
257、.The Reactive scenario was chosen to understand how Alliances business model would cope during a period when both physical and transition risks intensify simultaneously.The Inactive scenario was mapped to understand how significant physical risks might impact Alliances operations and its long-term b
258、usiness strategy.These scenarios are detailed in Table 2(below).Table 2:The three warming pathways for the climate scenario analysis and Alliances resilience.Warming ScenarioExplanationBelow 2C (Proactive scenario)Global efforts to mitigate climate change are substantial to keep global warming below
259、 2C,compared to pre-industrial levels.Many organisations set net zero targets in line with the Paris Agreement goal of 2050.Governments introduce stricter laws and regulations to reduce carbon emissions,encouraging the introduction of low-emission technology to help companies decarbonise.Alliance is
260、 well placed to adapt to this scenario as the Group continues its net zero journey with annual monitoring of upcoming and existing regulations.As Alliance voluntary aligns with the TCFD,the implementation of its recommendations contributes to our resilience as we annually identify,assess and manage
261、climate-related risks,and seek to capitalise from the opportunities this may present to us.Between 23C(Reactive scenario)This scenario represents a postponed response to climate change,resulting in a staggered and uncoordinated introduction of measures to cut global emissions.Pledges,such as those i
262、ntroduced at COP26,sit here.As the climate begins to change,physical and transitional risks are likely to intensify as policies are hastily implemented.A reactive scenario will have implications such as supply chain disruptions;electrical efficiency decreases and increased energy costs as demand for
263、 heating and cooling increases.However,Alliance has ensured resilience under this scenario through our engagement with Inspired ESG and the implementation of our net zero strategy.To maintain resilience,Alliance conducts an annual climate scenario analysis to ensure climate-related risks are appropr
264、iately identified,assessed and managed.This year,Alliance has expanded the scope of this analysis to include key suppliers to understand how supply chain disruptions could impact operations and to take steps to mitigate this.Above 3C (Inactive scenario)Business as usual,where limited climate action
265、is taken,leading to an increase in global emissions until 2040,causing a rise in global temperature of more than 3C.Many climate tipping points are exceeded.This will lead to the highest levels of physical risk.This scenario would see the most extreme instances of climate-related incidents taking pl
266、ace due to the intensification of physical and transition risks globally.Alliance ensures resilience through the annual evaluation of climate-related risks and effective mitigations.The Group annually discloses progress on climate-related matters and targets within its annual report to drive account
267、ability.Climate-related risks and opportunities were assessed over three-time horizons.These horizons were chosen to align with the UKs target to be net zero by 2050.Table 3:Time-horizons.Time-horizonDescriptionShort 20242028Greatest changes would be in the proactive scenario over this period.This t
268、imeframe offers insight into immediate climate-related impacts,such as stricter environmental regulations and growing stakeholder concerns.Medium 20292038Physical impacts would start to be experienced,and policies would tighten in the proactive/reactive scenarios.This timeframe demonstrates intensif
269、ying transition and physical risks,leading to the development of proactive risk mitigation strategies.The medium-timeframe aligns with the Groups Scope 1 and 2 interim goal for emissions.Long20392053Greatest physical impacts would be experienced in this period in the inactive scenario.This timeframe
270、 aligns with the UKs net zero target of 2050 and the Groups Scope 3 net zero target.We identified 19 climate related risks.Of these,any climate related risks with an impact score of 4 or higher,meaning a financial impact to the business greater than 2.5m,were deemed material(see Table 6,Risk Managem
271、ent section).In FY2024,one risk was deemed material to the Group;this was the increased severity of flooding(Table 4).The impact of this risk on business strategy and financial planning will be fully considered in FY2025.Moreover,we identified six climate-related opportunities,and the identified opp
272、ortunities are explained in Table 5.We review this process annually to ensure our scoring is appropriate and mitigations are well placed.There have been no significant changes in our methodology or new material risks in FY2024.Alliance Pharma plcAnnual Report and Accounts 202430Company OverviewGover
273、nanceStrategic ReportFinancial StatementsAdditional InformationTask Force for Climate-related Financial Disclosures(TCFD)continuedTransition RisksTransition risks relate to the risks associated with the move to a low-carbon economy.These risks are most pronounced under a 2C warming pathway,within th
274、e short to medium term,as stricter environmental regulations are introduced to force rapid decarbonisation to meet international agreements.Alliance has fully considered all identified transition risks such as changing customer behaviour and exposure to litigation but has not deemed any transition r
275、isks significant to the Group.Each risk was fully evaluated against likelihood and impact and no transition risk was scored higher than the materiality thresholds.The assessment and scoring took into consideration existing mitigations.Alliance has a net zero strategy focused on decarbonisation in li
276、ne with regulatory requirements,and the Group regularly reviews existing and upcoming legislation to monitor potential market shifts.Physical RisksPhysical risks relate to the tangible consequences of climate change.They can be either acute(event-driven),such as flooding or heatwaves,or chronic(long
277、er-term shifts in the climates atmosphere),such as sea level rise or rising mean temperatures.Physical risks are most significant under a warming pathway with more than 3C warming in the long term.Flooding presents a significant risk to the business operations and supply chain and,therefore,has been
278、 deemed material.In November 2024,our headquarters in Chippenham was flooded,and remained closed for several months.However,Alliance has a robust Business Continuity Plan and the business was unaffected as colleagues were able to work remotely.The office reopened in February 2025 and we continue to
279、conduct site-specific flood risk assessments to monitor long-term impacts of flooding.The Group has appropriate business insurance cover for disruptions.Key OutcomesAlliance,however,is well-positioned to manage the risk of flooding(Table 4)and capitalise on climate-related opportunities(Table 5)wher
280、e possible,increasing the climate resilience of the business.Alliance integrates climate-related risks and opportunities into strategic and financial planning where possible to further enhance resilience,for example,by introducing safety stock in the event of a flood in the supply chain to ensure bu
281、siness continuity.Table 4:Material Climate risks to Alliance.Climate-related riskImpact DescriptionMitigationsRisk:Increased frequency and severity of floodingTime Horizon:Medium Long Term(20292053)Warming Scenario:3C Likelihood:5 Already occurring Impact:5 Highly significant/Over 3.5MFinancial impa
282、ct:Expenditures Increased operating costs.Write-offs and early retirement of existing assets due to policy changesFive of Alliances Offices(direct flood risk in Shanghai,Germany and UK and indirect flood risk in Singapore and France),14 CMO and 9 Distributor sites are in potential high flood risk zo
283、nes.ActualAvonbridge House flooded in November 2024.There is a high flood risk around a CMO site in Largo,Florida(flooding has previously been seen at this site).PotentialFlood events could lead to a closure of sites which may result in a loss of revenue.Flooding can damage property and equipment le
284、ading to an increase in renovation,repair and maintenance costs.Additionally,flooding events can impact critical transport routes causing supply chain or employee disruption as sites are inaccessible,reducing revenue.Damages may require stock to be replaced leading to an increase in capital spend.In
285、surance premiums may increase,or coverage may decrease.Continue to conduct climate scenario analysis annually to monitor this risk.Alliance maintains appropriate business interruption insurance cover and has flood defences installed in its Largo facility.This is to mitigate the potential costs assoc
286、iated with flooding such as increased operating expenses and insurance expenses.Alliance will also maintain communication with top suppliers,sharing their Business Continuity Plans,many of which include mitigation strategies for flooding.Longer lead times and increased safety stock ensure that a del
287、ay because of a one-off event will have less of a direct impact on Alliances operations.Alliance has conducted site-specific flood risk assessments,and flood impacts at the Chippenham HQ office are monitored for long-term impacts.Related Metrics&Targets:Scope 1,2 and 3 emissions.Alliance Pharma plcA
288、nnual Report and Accounts 202431Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationTask Force for Climate-related Financial Disclosures(TCFD)continuedTable 5:The Groups Climate-related OpportunitiesOpportunity Area Opportunity Time HorizonScenarioPotential ImpactReso
289、urce Efficiency(where Alliance has offices)Implement energy-efficient technologies,sustainable transport,streamlined distribution,recycling,efficient buildings,and reduced water consumption.Short Medium Term (20242038)2C 23C Reduces costs and provides fast payback through lower energy use.Efficient
290、buildings increase value and reduce waste.Encouraging energy-saving behaviours(e.g.virtual meetings)boosts employee satisfaction and reduces costs.Alliance aims for net zero Scope 1 and 2 by 2030,Alliance has already taken significant steps such as utilising 100%renewable energy and implementing ene
291、rgy efficiency initiatives such as motion-sensor lighting.These steps have helped Alliance capitalise off this journey.Related Metrics&Targets:Scope 1,2 and 3 emissions.Energy Source(UK only)Use of lower-emission sources of energy(e.g solar,EV charging).Short Medium Term (20242038)2C 23C Onsite sola
292、r generation reduces energy costs and mitigates fossil fuel and carbon price risks.Alliance utilises green energy and is looking to self-generate through solar panels to capitalise from this opportunity.Low-emissions technology improves capital access and boosts reputation,driving demand.Products an
293、d Services (Global)Develop low-emissions products through R&D,innovation,and business diversification.Short Medium Term (20242038)2C 23C Meets growing customer demand,boosts sales and positions Alliance ahead of trends.We are committed to ensuring our products meet the expectations of our stakeholde
294、rs.Drives Scope 3 emissions reduction and offers strong revenue potential despite upfront costs.Related Metrics&Targets:Scope 1,2 and 3 emissions.Reputation(Global)Increased reputational profile and investment opportunities.Short Medium Term (20242038)2C 23C As Alliance voluntarily aligns with the T
295、CFD,we have demonstrated our commitment to taking action against climate change.We report on our progress annually to drive accountability and Alliance has publicly available targets.Transparent reporting aligns with stakeholder values,boosting investments.Clear progress reporting in our annual repo
296、rts communicates growth and competitiveness.To mitigate the risk of reputational damage,Alliance has set environmental targets(see page 34).Progress towards these targets will be reported on annually,demonstrating our commitment to reducing our carbon footprint.Markets(Global)Access to new low-emiss
297、ions markets.Short Medium Term (20242038)2C 23C Partnerships with government and businesses in low-carbon transition.Investment in green assets(technologies and infrastructure)for financial diversification.Related Metrics&Targets:Scope 1,2 and 3 emissions.Resilience(Global)Adaptation to climate chan
298、ge through renewable energy programs,energy efficiency,and resource diversification.Short Medium Term (20242038)2C 23C Through the annual TCFD process we continually increase and embed our climate strategy into our processes and operations,promoting resilience against climate change.Increases asset
299、value by managing climate risks.Enhances operational reliability.Growth from new resilience-focused products/services.Critical for long-lived assets and complex supply chain.To increase resilience,the Group has set environmental targets(see page 34).Progress towards these targets will be reported on
300、 annually,demonstrating our commitment to reducing our carbon footprint.Alliance Pharma plcAnnual Report and Accounts 202432Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationTask Force for Climate-related Financial Disclosures(TCFD)continuedRisk ManagementAlliance h
301、as developed a robust climate risk management process to address evolving challenges and aid in identifying,assessing,and managing climate-related risks.Our approach is underpinned by a dedicated climate risk management framework,developed in alignment with our TCFD commitments and supported by expe
302、rt insights from our third-party ESG consultancy.1.Identify Alliance submits climate data to Inspired ESG in bi-weekly meetings,which support the identification of climate-related risks and opportunities.Inspired ESG conducted climate scenario analysis in October and November 2024.The outcomes were
303、presented at two workshops(covering transition and physical risks)in November 2024 to various stakeholders,including members of the supply chain team and ESG Committee.In FY2024,we included key aspects of our value chain in the analysis;this was included within the physical workshop(see Strategy sec
304、tion,page29).The workshops identified 19 climate-related risks,including 13 transition and 6 physical risks.One risk was deemed material to the Group.Heads of Departments regularly review and monitor existing and upcoming legislation changes and report when required to the ESG Committee.The ESG Comm
305、ittee reviews climate-related legislation with Inspired ESG annually.2.Assess To better understand which risks were material to the Group,we evaluated the identified climate-related risks and opportunities based on their likelihood of occurrence and the impact on the Group should the risk materialis
306、e.This approach allowed us to prioritise areas of the highest impact.The ESG Committee assessed and evaluated climate-related risks,as is their delegated responsibility.The impact of tackling climate-change is one of our 15 Principal Risks and Uncertainties,as approved by the Board.This risk is unch
307、anged in 2024 versus 2023(see p38).Existing mitigations were taken into consideration when scoring the likelihood and impact of each climate-related risk.Risks were scored against likelihood and impact using a 1 to 5 scoring system,with a score of 5 indicating this is already occurring or is highly
308、significant(Table 6).To define which risks are material to the Group,we have set a materiality threshold of a score of“4”or more in impact only.Although the likelihood is assessed and helps dictate future planning,it is not factored into the materiality threshold.We have set this threshold as risks
309、are likely to materialise despite our mitigations,however,the scale of the impact is more within our bounds of control due to mitigation efforts.Table 6:Risk ClassificationLikelihoodImpact5Already Occurring5Highly Significant Over 3.5m4Very Likely4Material 2.5m to 3.5m3Likely3Medium 1.5m to 2.5m2Low
310、2Small 0.5m to 1.5m1Remote1Negligible Less than 0.5m3.Appraise During the workshop,attendees,such as members of the ESG Committee,appraised various mitigation strategies to address the identified risks and opportunities.Key discussions during the workshops evaluated the effectiveness of existing mea
311、sures,such as flood adaptations at sites,and identified areas for focus,such as insurance policies.This evaluation is conducted annually to ensure our mitigations remain effective and appropriate.The updated framework ensures that the Groups operations remain resilient andadaptive to climate-related
312、 challenges.4.Address An overview of climate change and all identified climate-related risks and opportunities was presented to all ESG Committee members in December 2024,ensuring effective oversight and climate management.The ESG Committee has the authority to manage climate-related risks,and is su
313、pported by the SLT,both of whom contribute to developing and implementing mitigation measures to ensure an effective risk management process.We conduct annual reviews of the climate risk register to ensure our classification and mitigations remain appropriate.In July 2022 the Audit and Risk committe
314、e deemed that climate change is a principal risk for the business,with the risk status being reviewed annually.This decision was made due to the expected future impacts of climate change on business operations.In FY2024,climate change remained one of the fifteen principal risks for the Group.Whilst
315、the overall impact during the financial year was deemed to be low,Alliance recognises the impact that climate change poses to the businesss success in the future through disruptions to Group and value chain operations,and therefore requires annual monitoring,which has a cost for the business.The cli
316、mate risk register identifying comprehensive risks relating to climate change is currently separate from the corporate risk register.Alliance will review the feasibility of integrating the climate and corporate risk register in FY2025.Alliance have considered the resilience of the Groups business mo
317、del and strategy against the three different climate scenarios presented in Table 2.We assessed the potential effect on the business model and strategy(Tables 4 and 5)and deemed that they are resilient to the three climate scenarios.Alliance Pharma plcAnnual Report and Accounts 202433Company Overvie
318、wGovernanceStrategic ReportFinancial StatementsAdditional InformationTask Force for Climate-related Financial Disclosures(TCFD)continuedMetrics and TargetsAlliance is committed to achieving sustainable growth and minimising its environmental impact.Targets have been developed to support this(Table 7
319、),which means we are playing our part in helping to mitigate the impact of climate-related risks on our business(Table 4).The environmental metrics have been developed in collaboration with Inspired ESG,aiming to improve data collection and environmental performance annually.We have calculated our S
320、cope 1 and 2 emissions since 2018,followed by Scope 3 starting in 2021.The Carbon Balance Sheet Report in our TCFD standalone report provides further detail on the data sources and methodologies used for each category of emissions.No third-party formal assurance has been provided for emissions calcu
321、lations.Table 7:Alliances emission reduction targetsEmission ScopeFY2024 Gross Emissions(tCO2e)Percentage of EmissionsReduction TargetProgress Scope 1 00%Achieve net zero for Scope 1 and 2 emissions(absolute)by FY2030,compared to a FY2018 baseline.Interim Goal Achieve a 65%reduction(from the 2018 ba
322、seline)of Scope 1 and 2(location-based)emissions(absolute)by FY2025.Emissions have reduced by 60%from FY2018 to FY2024.To achieve net zero by 2030,Scope 2(location-based)emissions must be reduced by 12.5%annually from the FY2024 level.Scope 2(location-based)460.1%Scope 338,95799.9%Achieve net zero*f
323、or Scope 3(from FY2022 baseline)by FY2040(absolute).Interim Goal Reduce Scope 3 emissions by 25%(from FY2022 baseline)by FY2030.Emissions have reduced by 15%(5.5%for net zero).The interim target is a 2.0%annual reduction.Total100%*Net zero is an absolute reduction with a maximum of 10%of baseline em
324、issions being neutralised through permanent carbon removals.Our Scope 1 and 2 targets differs from our Scope 3 targets due to the complexities associated with mitigating emissions beyond direct operational control.We will continue to work with our value chain to reduce Scope 3 emissions.Alliance Pha
325、rma plcAnnual Report and Accounts 202434Company OverviewGovernanceStrategic ReportFinancial StatementsAdditional InformationTask Force for Climate-related Financial Disclosures(TCFD)continuedStreamlined Energy and Carbon Reporting(SECR)Per the UKs SECR requirements,all energy consumption and emissio
326、ns for UK operations have been disclosed below.Carbon emissions are categorised as follows:Scope 1:Consumption and emissions related to direct combustion of natural gas,fuels utilised for transportation operations,such as company vehicle fleets,any other fuels,and fugitive emissions from refrigerant
327、 gases.Scope 2:Consumption and emissions from indirect emissions relating to purchasing electricity in daily business operations.Scope 3:Consumption and emissions cover emissions from sources not directly owned by Alliances,i.e.,grey fleet business travel undertaken in employee-owned vehicles only.T
328、able 8:Alliances Total Energy Consumption(kWh)and Total Location based Emissions(tCO2e)Utility&ScopeFY2024 FY2023 Year-on-Year tCO2e change (%)ScopeTotal Consumption(kWh)Total Emissions tCO2eTotal Consumption(kWh)Total Emissions tCO2eScope 1 Total00000%Natural Gas,Other Fuels,&Refrigerant00000%Scope
329、 2(location-based)Total219,755.3145.50220,105.0045.58-0.17%Grid-Supplied Electricity219,755.3145.50220,105.0045.58-0.17%Scope 3 Total(Grey Fleet)240,674.9755.49239,614.1255.47+0.03%Total460,430.28100.99459,719.12101.05-0.06%Although the environmental impact of our operations(Scope 1&2)is minimal,acc
330、ounting for 0.1%of total emissions in FY2024,reducing these emissions is important as we progress towards our net zero targets(table 7).In FY2024,we maintained zero tCO2e Scope 1 emissions for the second consecutive year because we have eliminated the use of natural gas at our UK Headquarters(Avonbr
331、idge House).In FY2024,our total Scope 1&2(location-based)emissions were 46 tCO2e,achieving an 0.17%decrease from our FY2023 and a 60%reduction compared to the baseline.From our decarbonisation efforts,we are aware of residual emissions we have not yet eliminated from our Scope 1&2 emissions and,as a
332、n interim measure,in FY2023,we purchased offsets to support us to reach carbon neutrality(offsetting total Scope 1 and 2 emissions,without a minimum reduction requirement).Now that emission figures have been quantified,we will purchase offsets for FY2024.In FY2024,we installed solar panels at our Ch
333、ippenham Head Office,aiming for these to be operational in FY2025.Once fully functional,these panels are expected to generate 25%of the sites electricity needs,reducing reliance on grid energy.Subject to planning permissions,we plan to expand this initiative by installing additional PV panels and a new substation to support site operations.To further reduce our operational emissions,we continue to
0731-84720580
sgpjbg002
工作日 9:30 - 18:00
研報
新質生產力
DeepSeek?
低空經濟
大模型
AI Agent
AI Infra
具身智能
自動駕駛
寵物
銀發經濟
人形機器人
企業出海
算力
微短劇
薪酬
白皮書
創新藥
人工智能
AI產業
信息科技
互聯網
消費經濟
汽車交通
電商零售
傳媒娛樂
醫藥健康
投資金融
能源環境
地產建筑
傳統產業
英文報告
其它
最新報告
中英對照
全文搜索
報告精選
PDF上傳翻譯
多格式文檔互轉
入駐&報告售賣
會員權益
機構報告
券商研報
財報庫
專題合集
英文報告
數據圖表
會議報告
其他資源
行業聚焦
芯片產業
熱點概念
全球咨詢智庫
人工智能
500強
新質生產力
會議峰會
新能源汽車
企業年報
互聯網
公司研究
行業綜觀
消費教育
科技通信
醫藥健康
人力資源
投資金融
汽車產業
物流地產
電子商務
傳統產業
傳媒營銷
其它
2025低空經濟/低空產業報告合集（共49套打包）
2025年智算中心/AIDC/AI數據中心研究報告合集（共37套打包）
AI、科技與通信
廣告、傳媒與營銷
消費、零售與支付
HR、文化與旅游
金融、保險與投資
能源、環境與工業
醫療制藥與大健康
物流、地產與建筑
其他行業
AI ? 科技 ? 通信
數字化
金融財經
智能制造
電商傳媒
地產建筑
醫療醫學
能源化工
其他行業
收藏
下載
2025-05-20
AI查數
行業數據
政策法規
商業模式
產業鏈
競爭格局
市場規模
產業概述
其它
2025年
AI讀財報
年報
一季報
半年報
三季報
IPO招股書
社會責任報告
A股
IPO申報
港股
美股&全球
新三板
掃碼登錄
手機快捷登錄
賬號登錄
