International drugs distributor Gehe AG, which is the biggest owner of pharmacies in the State, said yesterday pre-tax profit rose 22 per cent in the first six months of its financial year to €157.3 million and said full-year earnings would grow by at least 14.3 per cent.

Net profit after tax grew by 25.7 per cent to €109.5 million. Despite a slight weakening in the pharmaceutical market, sales in the year are forecast to grow by between 8 and 10 per cent.

The company said sales rose 11.3 per cent to €9.1 billion in the first half of its business year on the back of strong growth.

"With what we have achieved already, we are well on the way to finishing 2002 with excellent results," chief executive Mr Fritz Oesterle said.

The first-half figures showed accelerated earnings growth in the second quarter when pre-tax profit rose 19.5 per cent and sales grew 12 per cent.

First-half net profit totalled €109.5 million, up 25.7 per cent from a year ago.

In pharmaceutical distribution, pre-tax profit grew 19.9 per cent, with 18.8 per cent and 25.9 per cent pre-tax profit growth in the wholesale and retail divisions respectively.