Revenue rises at UDG Healthcare

Healthcare services company UDG Healthcare said revenue and profits rose in the year to September 30th as the company continued to expand its services to international clients.

Revenue at UDG Healthcare, formerly United Drug, rose by 11 per cent year on year to €2 billion, with operating profit up 13 per cent.

The company also incurred exceptional costs of €31.4 million, mainly linked to restructuring. Adjusted pretax profit rose by 8 per cent to €81.8 million.

The company’s US packaging and commercial services division, considered the growth drivers of the group, performed ahead of expectation.

Chief executive Liam FitzGerald said the year has been one of “substantial progress” for the company.

“Following the successful integration of the businesses acquired in 2012 and the recent rebranding, UDG Healthcare has further strengthened its position as an international leader in the provision of high quality outsourcing solutions for healthcare companies across 22 countries,” he said.

“The group has considerable long-term financing facilities available and good internally generated cash flow to support our growth objectives. The group holds strong market positions in attractive markets and remains very positive about our future growth prospects.”

The company invested €81.9 million in acquisitions, computer software, property, plant and equipment during the year, which increased net debt to €237.8 million. Net debt/EBITDA reduced to 2.12 times.

According to UDG Healthcare, the US, UK and euro zone each generated circa about a third of the group’s operating profits in 2013, with the US share rising to 34 per cent.

“Underlying high- single-digit EBITA growth is maintained and speaks volumes of UDG’s progress – especially as it is mostly coming from non-Irish operations,” Davy Stockbrokers said in a note this morning.