United Drug profits leap 21%

Pharmaceutical wholesale group United Drug has reported pre-tax profits of €19.4m for the six months to the end of March , an increase of 21% on the same period a year earlier.

Sales were up to €617.5m, an increase of 15% over the first half of 2003. Earnings per share grew by 17% to 7.29 cent and a 16% higher interim dividend of 1.32 cent has been declared.

Each of our four divisions - Pharma Wholesale, Contract Distribution Outsourcing, Medical & Scientific and Contract Sales Outsourcing, increased both sales and profitability in the period.

"In Pharma Wholesale, the reality that we are now the only wholesale pharmaceutical company on the island of Ireland not competing with our customers has influenced an increasing number of retail pharmacists to transfer their business to United Drug," said a spokesman.

"We have now successfully completed the integration of our three most recent acquisitions, Intraveno in the Republic of Ireland, and both New Splint and Mantis in the UK, within our Medical & Scientific Division," he added.

"Given the strong performance in the first half of this year, I am confident that United Drug will report another very successful year."

UniDrug, the company's joint venture in the UK, has performed below expectations in the period. Unscheduled delays in the project to build a new warehouse led to additional running expenses in the existing premises, that is trying to operate beyond maximum capacity levels.