THE PACKAGING division of pharmaceutical and healthcare distributor United Drug has won a new contract from an existing customer worth an estimated €30 million over four years.
The Irish group said yesterday that a “leading pharmaceutical” company had said that it had been awarded the contact.
United Drug added that the contract would add more than €30 million in revenue over a four-year period.
Speaking after the company’s annual general meeting in Dublin yesterday, United Drug chief executive Liam FitzGerald said he was not in a position to name the company involved. However, he added that it was an “existing customer”.
Mr FitzGerald said United Drug was hopeful of winning further business from the same customer, which is seeking to contract out operations such as packaging.
United Drug expects earnings this year to grow by between 4 per cent and 8 per cent. The company told shareholders that the trading performance in its current financial year had been good to date.
In an interim management statement, United Drug said it expected diluted earnings per share for the 12 months to September 30th, 2012, to increase by between 4 per cent and 8 per cent on the 15.05 cent it reported in 2011.
United Drug said revenue and profits in its healthcare supply chain division were ahead of forecasts for the period and in line with 2011. Revenue and profits for the sales, marketing and medical division are running ahead of this time last year.
The group said its packaging business had made “a very good start to the year” with both revenue and profits ahead of 2011.
“Trading throughout the group since the start of the financial year has been good,” United Drug said in a statement.
“Group revenues and profits for the quarter to December 31st, 2011, are ahead of the first quarter of last year. Much of this development has come in our international operations with the businesses outside of Ireland contributing almost 70 per cent of group profits in the quarter.”
United Drug chairman Ronnie Kells stepped down at yesterday’s meeting after serving in that role for seven years and on the board for a total of 13 years. Peter Gray has succeeded him. Mr Gray is vice-chairman and former chief executive of Icon and an independent director of Danica Life.
