Celesio sees profits rise by 17.1%

THE Irish operations of German pharmacy and drug wholesaler Celesio proved one of the highlights in the group’s performance last year.

According to results for the year to the end of December, Celesio Ireland — which comprises the retail pharmacy chain, Unicare, the drug wholesale and distribution business, Cahill May Roberts and the pre-wholesale business, Movianto — generated a 17.1% rise in revenues to €299.2 million.

Cahill May Roberts (CMR) was Celesio’s best European performer in the drug wholesale and distribution area, growing by 17% over the last year, well ahead of the market average of 12%.

Its main competitor in the Irish market, United Drug, recently reported 10% sales growth for its last year.

According to a spokesperson for CMR: “Growth has been driven through the combination of our core businesses of pre-wholesale, wholesale and the hospital business, where we are established market leaders with a share of 38%.”

The Movianto business also had a strong year boosted by various contract wins such as taking over distribution duties for Wyeth in Ireland.

“The business continues to increase its range of services and is working with its European colleagues to build strong partnerships with manufacturers,” according to a group source.

Celesio Ireland’s retail side — the Unicare Pharmacies business, which operates 60 shops — also had a good year.

Even in the face of rising competition, it held its own according to the group and Celesio has earmarked Ireland as one of its regions where it sees room for further expansion on the retail side.

“Given the forthcoming Government agreement of a 20% price reduction with pharmaceutical manufacturers for prescription medicines, we will focus on increasing our pharmacy offering in new products and services to generate further growth.

“In terms of expanding our number of shops, we are interested but will be looking for the right opportunities,” said Unicare’s Cormac Tobin.