UDG healthcare raises EPS forecast on exchange rates
UDG Healthcare has raised its earnings per share growth guidance on the back of favourable exchange rates.
The company also said that revenue and profits in the nine months to the end of June are "significantly ahead" of the corresponding period last year.
It said that because of beneficial exchange rates, its earnings per share growth is expected to be between 18pc and 20pc for the financial year, compared to a previous guided range of between 16pc and 18pc.
The company said that a strong performance at its Sharp packaging services division, and its Ashfield commercial and medical services unit, had driven profit growth in during the first nine months of the year.
Its Ashfield unit operates in about 22 countries, and offers services including outsourced sales teams, event management, training and nurse educators to the healthcare and pharma sector.
"The trading performance across Ashfield in the quarter (to June) was consistent with the first six months of the year, with robust profit growth in healthcare communications and the European commercial businesses," according to UDG.
The company generates about 70pc of its business outside Ireland, primarily in the UK and the United States.
It said that the operating profits generated at the Sharp unit were significantly ahead in the third quarter, with the US performance benefiting from increased demand in bottling, biotech and packaging formats.
However, its Sharp business in Europe, although it improved, made a small trading loss in the latest quarter.
UDG said that it will incur a €15m restructuring charge this year, €11m of which is cash. The charge is at the upper end of a previously guided range.