Brown’s Pharma Holdings plc - Updated Financial Analysis Summary

On 27 June 2022, 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 2022:

• Revenues are expected to contract by 4.3% to €29.8 million as the increase in business from the retail segment and the ‘Pharmacy of Your Choice’ scheme are anticipated to be offset by the declines in income generated from the provision of services as well as the Malta Community Chest Fund.
• Despite the forecasted drop in revenues, EBITDA is projected to grow by 7.8% to €5.45 million reflecting lower cost of sales.
• After accounting for depreciation and amortisation charges of €0.83 million, net finance costs of €0.96 million, and a tax charge of €1.28 million, the Group is expecting to post a net profit of €2.38 million which would be 12.3% higher the corresponding figure of €2.12 million recorded in the 2021 financial year.
• In terms of financial position, total assets and total liabilities are expected to contract to €65.9 million (-2%) and €38.3 million (-5.1%) respectively. In view of the projected drop of 3.7% in total debt to €20.2 million, coupled with the increase in the company’s equity base to €27.6 million (+2.7%), the gearing ratio is anticipated to ease to 42.3% from 43.9% as at the end of 2021. Similarly, the net debt-to-EBITDA multiple is projected to improve to 3.15 times compared to 3.69 times in 2021. On the other hand, given the sharper percentage increase in net finance costs than the growth in EBITDA, the interest cover is expected to deteriorate to 5.69 times compared to 6.59 times in 2021.