Drugs wholesaler Cahill May Roberts continued to lose ground to rival operators in 2003, according to figures published by its parent company yesterday.
Cahill May Roberts, the third-largest distributor of pharmaceutical products, "developed below comparable market growth", its owner, Celesio, said in its annual report.
Merrion analyst Mr Peter Frawley said the company's 4.7 per cent rise in sales compared poorly with the market as a whole, which is expanding at a rate in the low teens.
Mr Frawley said the performance of Cahill May Roberts reflected the reluctance of independent pharmacies to source supplies from a company that was also a competitor on the high street.
Celesio, formerly known as Gehe, has established a substantial retail presence in Ireland in the past two years following the acquisition of the Unicare pharmacy chain.
Since then, Cahill May Roberts has surrendered 4 per cent of the market to its listed rival, United Drug. Mr Frawley says that trend is likely to continue, if less dramatically.
Celesio said pre-tax profit in the Cahill May Roberts division, which had sales of €374 million last year, rose on the back of rationalisation in 2002.
The group's Irish retail division also struggled, with the company admitting the "profit development was not in line with expectations".
Intense competition and restructuring costs were incurred in rebranding all its Irish outlets under the Unicare name. There are now 54 Unicare pharmacies around the State, predominantly in the conurbations of Dublin and Limerick.
Turnover in the division rose 51.9 per cent last year to €105.5 million, largely driven by the acquisition of the 30-strong Unicare chain in the second half of 2002.
Celesio spent millions introducing a new sales and stock management system to its Irish business during the year.
The German-based group as a whole reported its 17th successive year of profit growth, with pre-tax profits climbing 13.7 per cent to €373.8 million on sales that rose just 3.8 per cent to €18.5 billion.
Wholesale operations continue to account for the vast majority of turnover although the profit margins are substantially higher in the retail business.
Celesio employs 871 people in Ireland, 230 of them in the Cahill May Roberts business.
