Uniphar results top analysts’ forecasts

PHARMACY supplies group Uniphar has reported gross profit of €217m in respect of last year.

This was an improvement of 21pc year on year on a constant currency basis and came in 3pc higher than analysts’ expectations.

Revenue at the Dublin-listed company increased 9.7pc to €1.8bn, according to annual results.

“Our excellent performance in 2020 is a testament to the dedication and commitment of our people and the continued successful execution of our strategy” said Uniphar CEO Ger Rabbette.

“In what proved to be an unprecedented year, we delivered reported gross profit growth across all our divisions and achieved organic gross profit growth of 6.7pc, driven by strong momentum in our two international divisions, Commercial & Clinical and Product Access.”

Adjusted earnings per share of 12.6cent was 8pc ahead of expectations, increasing 26pc year on year on a like-for-like basis.

“Uniphar has delivered excellent financial year 2020 results, coming in ahead of expectations on earnings growth, cash conversion and leverage,” Davy analysts Allan Smylie and Andrew Young said in a note.

The group is proposing a dividend payment of €4.2m in respect of the year ended 31 December 2020.

In the group’s Commercial and Clinical division, revenue increased 32pc to €270m. Despite Covid-19 affecting all markets within this division, it delivered organic gross profit growth of almost 10pc.

Uniphar’s Product Access division reported revenue growth of 43pc to €187.5m. Gross profit in this division increased by a massive 78.5pc to €30.4m. The performance was driven by the integration of Durbin – acquired in 2019 – into the group.

Its Supply and Retail arm, which includes the Hickey’s Pharmacy Group, delivered gross profit of €95m, an increase of 9pc year on year.

The company completed a total of four acquisitions last year, three of which increased its presence in the US.

Uniphar was founded by a small group of Irish community pharmacists in 1967. It now has more than 2,600 employees. In 2019, it listed on Euronext Dublin and the AIM, a submarket of the London Stock Exchange..

Shares in Uniphar were trading up 1.2pc in Dublin yesterday afternoon.