United Drug’s profit boosted by recent acquisition

Drugs distribution and packaging services company United Drug said its first-half profit rose 8 percent, boosted by its acquisition of a marketing services provider in 2012.

The company also said it would close its UK commercial packaging facility and record charges of €21 million to €24 million for the full year, largely related to the closure.

United Drug reported an adjusted pre-tax profit of €38 million for the six months to March 31st while revenue rose 14 per cent to €1.02 billion.

Revenue at its sales, marketing and medical division more than doubled to €182 million, with much of this growth coming from the recently acquired Pharmexx.

"During the period, the US became our largest profit-contributing region, followed closely by the UK and the rest of Europe, " chief executive Liam FitzGerald said.

The company said it continued to expect adjusted diluted earnings per share to rise 5 to 8 per cent for the full year on a constant currency basis.

United Drug shares closed at 308.1 pence yesterday on the London Stock Exchange. They have gained roughly a third in value in the past six months.