UK expansion boosts United Drug profits

Drug distributor Unired Drug announced annual pre-tax profits of €30

Drug distributor Unired Drug announced annual pre-tax profits of €30.2 million as it achieved market share gains in its Irish and British markets.

Group revenues of €1,129 million rose 16 per cent, with British-based subsidiary JV Unidrug performing  well. The British operation reported profits of €2.4 million, a 16 per cent increase on last year. About 37 per cent of group profits were generated in Britain.

The company improved operating margins by twenty basis points over the year to 3.2 in what is considered a low margin business

United Drug reported market share gains were reported in the wholesaling operation in the Ireland, and growth is forecast to continue in-line with expected market growth of around 13 per cent in 2004.

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The total dividend increased 15 per cent to 4.11 cent per share.