GERMAN PHARMACY wholesaler Celesio posted mixed first-half results for its Irish businesses yesterday, writes Ciarán Brennan.
Sales at its Irish wholesale business, Cahill Roberts, fell by 3.2 per cent to €157 million. Second quarter turnover totalled €79 million, a 4.9 per cent decline on revenue of €83 million for the second quarter in 2007.
Its pharmacy business in Ireland, where it owns 70 Unicare pharmacies, fared better, with a 19 per cent increase in revenue over the second quarter of 2007 to €37 million. Revenue for the first six months totalled €74.3 million, up 19.7 per cent from €62 million for the same period last year.
Revenues and profits for the group as a whole fell in the first six months of the year, which Celesio management blamed on drastic reductions in British drug reimbursement prices for generics, competitive discounting in the German wholesale market, a change in the distribution model in the UK and weaker sterling.
Celesio said revenues dropped by 2.5 per cent to €10.9 billion.
Earnings before interest, taxes, depreciation and amortisation fell by 26.5 per cent to €310 million, a drop of € 111.6 million on the same period last year. Profit before tax fell by 38.1 per cent to €190.7 million, while net profit fell by €94 million to €123.5 million - a reduction of 43.2 per cent. Earnings per share fell by €0.55 to €0.72.
"We have announced our need to take a breath in 2008 in order to process the massive governmental saving measures from the past year," said Fritz Oesterle, chairman of the management board of Celesio.
