Gehe's 22 Irish pharmacies earned revenues of €8.4 million in the first three months of the year, the German group said yesterday. No profit figure for the Irish chemists was given in the group's latest quarterly report, which showed overall revenues up 11.7 per cent at €4 billion.

Gehe is facing a High Court action next month to defend a decision to abandon its €152.4 million takeover of the Irish group, Unicare, which operates 30 chemists.

Citing the Government's repeal of restrictions to trade in the sector, it said: "Due to a fundamental change in the legal conditions for the management of pharmacies in Ireland in the first quarter, Gehe does not believe that the contractual conditions essential for successful conclusion of this agreement were present at the time of completion."

The group's pre-tax profit rose 19.5 per cent to €74.1 million in the January-March period.

Revenues at its Irish wholesale operation, Cahill May Roberts, increased by 3.1 per cent to €86.5 million, buoyed by higher sales to hospitals and general practitioners.

Profits were not disclosed but the group said "keen competition" brought about a slight slowdown in earnings growth.

A trial of Unicare's action against Gehe will be heard on July 2nd. The action is expected to last eight days and Unicare will argue that contracts for the sale of the group to Gehe should be enforced.

Gehe claims the decision last February of the Minister for Health and Children, Mr Martin, to revoke 1996 Regulations endangers the community pharmacy contracts in force at Unicare outlets.