United Drug forecasts rising earnings

Pharmaceutical and healthcare services group, United Drug, expects earnings this year to grow by between 4 per cent and 8 per cent.

The company told shareholders at its annual general meeting in Dublin this afternoon that trading performance in its current financial year – which began on October 1st – has been good to date.

Based on that, the outlook for the remainder of its financial year and stability in current exchange rates, the group said that it expects diluted earnings per share for the 12 months ended September 30th, 2012 to increase by between 4 per cent and 8 per cent on 2011.

The group's diluted earnings per share were 15.05 cent last year.

In an interim management statement, United Drug said that revenues and profits in its healthcare supply chain division were ahead of forecasts for the period and in line with 2011.

Revenues and profits for the sales, marketing and medical division are running ahead of this time last year.

The group said that its packaging business has made "a very good start to the year" with both revenues and profits ahead of 2011.

"Trading throughout the group since the start of the financial year has been good," United Drug' statement said.

"Group revenues and profits for quarter to December 31st, 2011 are ahead of the first quarter of last year. Much of this development has come in out international operations with the businesses outside of Ireland contributing almost 70 per cent of group profits in the quarter."