Brown’s Pharma Holdings plc - Updated Financial Analysis Summary

On 27 June 2023, Brown’s Pharma Holdings plc published an updated Financial Analysis Summary. The following are the main highlights of the company’s expected financial performance and position in 2023:

• Revenues are expected to increase by 4.5% to a record of €34.4 million, reflecting both organic growth and additional pharmacy acquisitions.
• In view of the higher level of business as well as higher margins, EBITDA is projected to grow by a further 7.7% to €6 million.
• Net finance costs are expected to be virtually unchanged at €1.08 million. As a result, the interest cover is anticipated to improve to 5.44 times compared to 5.08 times in 2022.
• In terms of financial position, total assets (+1.7%) and total liabilities (+0.7%) are expected to increase marginally to €74.3 million and €45.6 million respectively.
• Total debt is projected drop by 2.1% to €22.3 million, when including €9.5 million in lease liabilities. Coupled with the increase in the company’s equity base to €28.7 million (+3.4%), the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to ease to 43.8% from 45.2% as at the end of 2022. Furthermore, the net debt-to-EBITDA multiple is projected to improve to 3.2 times compared to 3.6 times in 2022.