Revenue rises 1% at United Drug

Revenues and operating profit at Dublin-listed healthcare services group United Drug rose in 2011, despite austerity measures affecting healthcare budgets.

In its preliminary results for the year ended September 30th 2011, the company said revenues were 1 per cent ahead of 2010 at €1.75 billion, while operating profit rose 4 per cent to €52.5 million. Adjusted pre-tax profit was €68.5 million, 1 per cent higher than the previous year.

The rise came despite "significant regulatory pressures" on the Irish business, the group said.

"We have taken steps to address the more challenging environment facing our Irish business with a restructuring that will deliver significant cost savings in 2012," chief executive Liam FitzGerald said.

The restructuring programme is expected to yield more than €5 million in annualised savings, and will cost €7.8 million, net of tax.

The company has focused on growing its international business in recent years, and its operations outside Ireland now account for 65 per cent of profit, with the US making up 20 per cent of that.

United Drug noted strong performance from its sales, marketing and medical division, with the acquisition of World Events during the year allowing the group to expand its service offering to provide global events management services.

In the US in particular, the packaging business showed strong performance.

"Our Irish speciality business has also grown its market leading position, winning contracts with both the pharmaceutical and private health insurance industry," United Drug said in a statement.

The group said it was proposing a 3 per cent increase in dividend for the year, reflecting good trading performance and cash flow.

The company also announced a share buyback in May, and said it would sell its stake in its UK homecare venture to partner Medco Health Solutions.