United Drug profits down 10%
United Drug has today announced first half results for the six months ending March 31, 2009.
Pre-tax profits, before amortisation and the exceptional item, fell by just less than 10% to €30m.
Revenue for the period is €850.9m, an increase of 1% compared to 2008.
The restructuring programme announced at the end of the 2008 financial year gives rise to a once-off exceptional cost in the period of €6m.
Diluted earnings per share, also before amortisation and the exceptional item fell by 12% to 10.63 cent per share. Despite the fall in earnings, an interim dividend of 2.23 cent per share has been declared, in line with 2008.
The company has highlighted a 19% weakening in the value of sterling relative to the euro in its explanation of the results. The firm stated that, on a constant currency basis, operating profits in the period are 5% ahead of 2008.
"The sharp decline in the economies in which United Drug operates has had a number of impacts on the business during the period resulting in more challenging trading conditions in some parts of the Group and buoyant trading in other parts," said United Drug chief executive officer Liam FitzGerald.
"These factors combined with a 19% fall in the value of sterling relative to the euro have resulted in profits and earnings for the period below those reported in the same period last year.
"At the end of the 2008 financial year, United Drug announced plans to streamline its operating structure into three new divisions; healthcare supply chain, packaging & speciality and contract sales & marketing services; to provide a more efficient and cost effective service to our clients.
"This restructuring programme is well underway and will be completed before the end of the current financial year in line with the timetable set. This programme will deliver annualised savings of €7-8m and leave United Drug as a more efficient organisation going into 2010.
"The timing of this restructuring, announced at the end of the last financial year, has proved very beneficial as it has allowed us to aggressively push forward necessary cost savings at a challenging time."
