These solid full-year figures from Ireland-based drugs wholesaler, United Drug (UDG), demonstrate the value of diversification after the group - which is tackling austerity measures in Ireland - shifted into services and packaging for US pharmaceutical companies. That helped adjusted operating profit rise 10 per cent year-on-year to €84.4m (£67.5m), with US operations contributing almost a third of this.
Moreover, the group managed to grow its core business, despite big pressures in the Irish and European medicines market as budgets are cut. Revenue here grew 3 per cent to €1.46bn, with operating profit having risen 9 per cent to €48m, boosted by cost savings. That created a solid platform for the fast-growth packaging business where revenue jumped 16 per cent to €161m and profits soared 26 per cent to €15m - as more companies outsourced their packaging operations. Meanwhile, the healthcare services division, which provides legal, call centre and regulatory advice to pharmaceutical companies, grew sales by a more modest 7 per cent to €214m. This operation, however, should benefit during 2013 from the €35m acquisition of pharmaceuticals logistics company, Pharmexx, announced in July.
Broker Peel Hunt left its forecasts unchanged for now and expects adjusted pre-tax profit for 2013 of €75.6m, giving EPS of 25.6¢ (from 24.9¢ in 2012).
UNITED DRUG (UDG) | ||||
---|---|---|---|---|
ORD PRICE: | 223p | MARKET VALUE: | £534m | |
TOUCH: | 221-224p | 12-MONTH HIGH: | 245p | LOW: 155p |
DIVIDEND YIELD: | 3.2% | PE RATIO: | 14 | |
NET ASSET VALUE: | 179¢ | NET DEBT: | 51% |
Year to 30 Sep | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
---|---|---|---|---|
2008 | 1.68 | 58.6 | 21.8 | 8.00 |
2009 | 1.72 | 39.1 | 14.2 | 8.00 |
2010 | 1.72 | 54.4 | 18.7 | 8.40 |
2011 | 1.74 | 44.1 | 15.1 | 8.66 |
2012 | 1.83 | 58.9 | 19.9 | 9.04 |
% change | +5 | +34 | +32 | +4 |
Ex-div: 21 Nov Payment: 25 Feb *Includes intangible assets of €385m, or 161¢ a share £1=€1.25 |