Pharmaceutical wholesaler United Drug has reported a 10 per cent fall in pre-tax profits to €30 million for the first six months of the year.
Revenues grew by 1 per cent to €850.9 million over the period when the company took a €5.98 million restructuring charge and currency movements.
Diluted earnings per share fell by 12 per cent to 10.63 cent per share with the company proposing an interim dividend of 2.23 cent.
The company said sterling had weakened 19 per cent against the euro over the period and that this has reduced profits by €3 million.
Liam LitzGerald, chief executive said the sharp decline in the economies in which the company operates contributed to more challenging trading conditions.
He said a restructuring announced last year was on schedule and would be completed within the timeframe set.
United Drug says this reorganisation into three new divisions should result in annual savings of up to €8 million.
Looking forward United Drug said it expects pre-tax profits for 2009 to be “at least in line with the prior year” on a constant currency basis.
Operating profits were €35 million, down 4 per cent on the same period in 2008, although on a constant currency basis was up 5 per cent.
Net debt at the end of the period was €209 million with interest charges covered by 8 times ebitda.
Net assets as of March 31st are €304.9 million, less than at the end of September as a result of a fall in sterling.