Profits driven by supply chain ‘outperformance’

IRISH healthcare services business Uniphar said it achieved organic gross profit growth of over five per cent in the first half of the year.

This rise in profit was driven by a “continued outperformance” in the group’s supply chain and retail divisions, with organic growth recorded across each division.

Its head office located in Citywest Business Park, Uniphar recorded high single digit rise in gross profit.

It added that the integration of the McCauley Pharmacy Group was progressing in line with expectations.

The deal, which was first announced in September last year, added 37 retail outlets to Uniphar’s Irish footprint.

The group now has 140 pharmacies across the country, as well as distribution relationships with 280 more.

The commercial and clinical division achieved low-single digit organic growth in gross profit in the first six months of the year, driven by medtech activity.

Contract wins in the pharma side of the business is expected to boost profits in the second half of 2023.

Uniphar also anticipates that its product access unit will reach double digit growth in gross profit in the latter half of the year.

The business said it had seen “strong” trading momentum so far this year and is now confident in delivering on current EBITDA expectations.

It added that rising interest rates and resulting impact on costs will be a “modest headwind.”

“The resilience of our business model and the diversity of our product offering has once again been demonstrated with each division delivering organic growth in gross profit during the period,” chief executive Ger Rabbette said.

He added that the group will continue to invest across all platforms, with M&A activity remaining a key part of the Uniphar’s growth.

“Having delivered on our strategic objective of doubling EBITDA within five years of IPO, we will communicate new medium-term targets with our interim results,” Mr Rabbette said.

The group’s interim results will be published on September 14.