Healthcare services group United Drug said today that profits for the year to the end of September is in line with expectations but that figures will be hit by currency fluctuations.
The group, which distributes medicines and equipment to hospitals and pharmacies in Ireland, Britain and the US, said that 45 per cent of group profits for the year-to-date have been generated in sterling which has fallen in value by over 16 per cent relative to the euro.
In a statement issued this morning, the group said it continued to experience slow trading conditions during its third quarter but that trading was still in line with expectations.
"Parts of the group continue to experience difficult trading conditions, against a backdrop of reduced consumer spending on discretionary items and lower levels of spending on hospital equipment, while other parts of the group are benefiting from an increased trend towards outsourcing of non-core functions by healthcare manufacturers," it said.
"United Drug remains positive about the fundamentals of its core markets and its position within those markets despite the current extremely challenging economic environment. The group continues to explore opportunities to expand its business, both organically and through acquisition, and has a strong balance sheet to support its growth objectives." it added.
United said that its restructuring programme had resulted in a one-off charge of about €14 million. However, it expects annualised savings of between €9 million and €10 million following the introduction of the cost-cutting programme.
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