4% rise in United Drug share price

United Drug’s share price rose almost 4% on the Irish Stock Exchange yesterday after a solid interim statement for its latest trading quarter.

The healthcare supply, sales and packaging company — for whom the first quarter of the present accounting year ended on Dec 31 — is predicting 4-8% higher earnings per share for the year ending Sept 30, 2012.

Stockbrokers agreed with the company’s own reading, with Davy upgrading its adjusted forecast from 23.9c to 24.3c earnings per share. This is equivalent to growth of 6.6% for the year.

United Drug chairman Ronnie Kells stated: “Trading throughout the Group since the start of the new financial year has been good. Group revenues and profits for the quarter to Dec 2011 are ahead of the first quarter of last year.

“Much of this development has come in our international operations, with the businesses outside of Ireland contributing almost 70% of group profits in the quarter. In addition, cash generation for the period was good and ahead of our forecasts.”

This first quarter performance continues the progress made by the company during 2011, when its profits climbed 4% to €76.8m for the year to September.

The company’s share price again rose 2% on the day these results were released last November. The price stood at a little over €2 per share yesterday, up almost 4% for the day.

United Drug said revenues and profits in its healthcare supply chain division are ahead of its forecasts for this latest quarter. It said that while profits in Ireland are down slightly, its wholesale business continues to outperform a market that has declined in value by almost 3% due to recent regulatory changes.