Pharmacy supplier drops in revenue

IRISH pharmaceutical distribution group Cahill May Roberts, reported a 3.2% drop in first half revenue to €157 million.

It is the Irish distribution and wholesale division of German group Celesio.

However, Celesio’s pharmacy group, which trades under the Unicare brand climbed 20% to €74.3m.

Celesio, which is Europe’s biggest drug wholesaler rose the most in 16 months in Frankfurt trading after it said it remains optimistic for 2009 even as this year’s outlook dims.

The wholesaler aims to “significantly” beat 2008 earnings before income, taxes, depreciation and amortisation next year though it expects this year’s profit to fall, it said.

Davy analyst, Jack Gorman called the figures posted by Celesio a grim set of numbers.

He said the figures posted by its Irish wholesale operations would translate as a substantial loss of market share.

“Its Irish pharmacy business generated revenue growth of 19.7%, helped by the acquisition of several outlets we presume,” he said.

Celesio now owns 70 stores in Ireland.

The group has lost more than 30% of its value since September, when the German company reduced its 2010 earnings goal because of lower reimbursements and fees in Britain.

Net income slid 43% in the second quarter to €65m while sales declined 1% to €5.51 billion.

“They’ve brought a lot of trust back into the market with their 2009 outlook,” said Karl-Heinz Scheunemann, an analyst at Landesbank Baden-Wuerttemberg.