United Drug posts profit increase

IRISH drug wholesaler and diversified healthcare services company United Drug has posted a marginal increase in full-year profits and revenue and has said that it remains well placed to continue growing as a business.

The Dublin-based group, which generates more than 60% of its annual profits outside of Ireland, said pre-tax profit, for the 12 months to the end of September, rose by 1% to €67.6m, with revenue up by the same percentage to €1.73bn. Operating profit fell by 3% to €74.2m while diluted earnings per share amounted to 22.8c, which also represented a year-on-year fall of 3%.

United Drug’s chief executive Liam FitzGerald said: “Through 2010, we’ve effectively managed the challenges and opportunities presented by healthcare austerity measures and weak conditions. These pressures have resulted in lower capital spending in hospitals and reductions in medicine pricing and reimbursement, but also a marked increase in demand for outsourced services from healthcare manufacturers.”

He added that management remains positive about growth opportunities and has a strong balance sheet and good internally generated cash flows to support its growth objectives.

Yesterday’s figures also showed a net debt figure, for the company, of €109.3m for the year. This was down from €162.5m at the end of the previous year.