Drug distributor UDG Healthcare saw revenues rise 2.3 per cent to €1.04 billion in the six months to the end of March, while operating profit was up 4 per cent to €45 million.
The healthcare services company also reported profit after tax that was up 2 per cent at €30 million
Adjusted earnings per share were in line with the same period in 2013 and up 2 per cent on a constant currency basis.
UDG increased its full-year guidance and said it now expects constant currency adjusted diluted earnings per share (EPS) for the year to September 30th to be between 5 per cent and 9 per cent ahead of last year.
Listed on the London Stock Exchange, UDG Healthcare is a Dublin-based provider of services to healthcare manufacturers and pharmacies, with operations in 22 countries.
UDG Healthcare chief executive Liam Fitzgerald said the first half of the year had been another period of substantial progress.
“The combination of strong organic growth with the recent acquisition of the KnowledgePoint360 business is likely to result in this division becoming the group’s largest operating profit contributor in full-year 2015, he said.
Net debt increased to €338 million in the first half with the net debt to annualised Ebitda ratio totalling 2.62. The group attributed the rise in net debt to its €105 million acquisition of healthcare communications provider KnowledgePoint360 in February.
Davy Research said in a note to clients that the addition of KnowledgePoint360 should ensure strong earnings acceleration for the company in the second half of the year.
The company said it saw continued growth in its Ashfield commercial and medical services division, with operating profits up 36 per cent in the six month period.
The board of directors has declared an interim dividend of 2.69 cent per share, a 3 per cent increase on the 2013 interim dividend.
