United Drug profits matching prior year
Published 09/02/2010 | 09:48
United Drug said it sees full-year pretax profit "broadly in line" with the prior year as price cuts on some drugs reduces wholesale revenue.
Earnings in the first quarter ended December 31 met its forecast and were “well ahead” of a “slow” year-earlier quarter, the Dublin-based company said today in a Regulatory News Service statement. The forecast for the year excludes the impact of currency fluctuations.
United Drug has cut costs and reduced its workforce to offset a drop in spending on medicines and equipment by hospitals.
An agreement between the Government and drugmakers to cut the price of some products that have come off patent by 40pc will affect revenue at the wholesale business in the current year, the company said.
“Those areas of the business that performed below expectations during 2009 are now back trading in line with budget,” United Drug said. “Internally generated cash flows continue to be strong.”
United Drug rose 2 cents, or 0.9pc, to €2.25 as 8:53am in Dublin trading. The stock has risen 5.1pc this year, giving the company a market value of €530m.