Drug distributor UDG to stay on acquisition trail

Drug distributor UDG Healthcare will continue to seek acquisitions to grow the international side of its business, although the rate at which it buys rivals is unlikely to match its recent record of five in one year, according to its chief executive, Liam Fitzgerald.

The group, formerly known as United Drug, reported yesterday profits before tax for the 12 months ended September 30th – its financial year – were €35 million, 40 per cent less than the €59 million it reported in 2012.

However, this was subject to €29.7 million in exceptional charges.

Excluding this, the company made a €64.7 million pre-tax gain. In addition, it also pointed out that stripping out the further impact of write-offs and acquisition costs, its actual pre-tax profit for the year was €81.8 million.

Mr Fitzgerald explained that most of the charges taken against its profits related to acquisitions.

UDG bought five companies in its 2012 financial year, including German operator, Pharmexx, which he described as "the most complicated one".