Healthcare services firm Uniphar records gross profit growth of 5%

The Group said it continues to hold a strong liquidity position and is following medium-term guidance through delivering normalised free cashflow conversion.

Irish healthcare services firm Uniphar has said that its first half results were in line with expectations both at a gross profit and EBITDA level.

In its trading update for the six months ending 30 June 2022, Uniphar achieved organic gross profit growth of approximately 5%. 

The company said this increase in profit was fuelled by organic growth across all divisions and an outperformance in supply chain and retail.

The Group said it continues to hold a strong liquidity position and is following medium-term guidance through delivering normalised free cashflow conversion.

Uniphar said its growth "represents a strong performance"  and demonstrates the resilience of the business despite the uncertain macroeconomic environment and high inflation levels. 

Within its commercial and clinical division, the Group said it is continuing to focus on building a pan-European presence and is moving forward with the integration of the three acquisitions completed in 2021.

For supply chain and retail services, Uniphar holds a market-leading position in Ireland through the two-player supply chain market.

The division performed strongly during the first half of the year and outperformed its medium-term organic gross profit growth guidance.

The Group is targeting low-single digit organic growth in gross profit in the supply chain and retail division in the medium term.

In a statement, the company said: "During the period, Uniphar continued to deliver on its strategic objectives by meeting the needs of healthcare manufacturers through the provision of higher value services."

The firm said it remains confident in achieving the expectations for the current financial year at a Group level.

Ger Rabbette, Chief Executive Officer, Uniphar Group said: “The Group has performed strongly during the period. The resilience of our business model and the diversity of our product offering has once again been demonstrated with each division delivering organic growth in gross profit during the period. 

"Once again, our supply chain and retail division has outperformed its medium-term guidance demonstrating the benefits of our market leading position and the importance of continued investment in this division.

"While the macro-economic environment remains uncertain, we have been successful in using our scale and deep relationships with our long-term partners to mitigate inflationary headwinds.

Mr Rabbette continued: "We remain confident and are on track to achieve our strategic objective of doubling EBITDA within 5 years of IPO."

The Group expects to publish its interim results for the first half on 30 August 2022.