United Drug profits still on target
UNITED Drug has reaffirmed its guidance for the current financial year after it delivered a mixed performance in the period from April up to the end of this month.
In an interim management statement yesterday, United Drug said trading in the period had been "satisfactory", with some units reporting a strong out-turn and others continuing to be squeezed by difficult market conditions. The company previously predicted it would return a €67m profit for the current full-year period.
United Drug said revenues at its drug wholesale division declined in line with expectations as it felt the impact of a continuing reduction in the price of off-patent medicines.
It added that the medical and scientific equipment part of the division continued to experience "very difficult market conditions" and was trading below prior year figures.
United Drug said it was continuing to explore opportunities to expand its business organically and via acquisition and has a "strong balance sheet to support its growth objectives".
Goodbody Stockbrokers analyst Ian Hunter said the statement gave him comfort in his current forecast of a near €75m operating profit in the year. The stock closed up 2c at €2.42 yesterday.