United Drug, the healthcare products group, looked forward to a successful full year as it reported a rise in pretax profit, excluding goodwill amortisation, of 35% to euro 10.8 million in the six months to March 31st from a year earlier.
"Our three business divisions of Pharma Wholesale, Contract Distribution and Contract Sales Outsourcing are performing very well in the current year," said chairman Mr Martin Rafferty.
Investment in new infrastructure as well as new business areas in the UK are helping the group's performance and productivity, he said.
"I am confident that United Drug will report another successful year," he added.
Interim pretax profit rose to euro 10.2 million from euro 8.0 million as turnover rose 16 per cent to euro 492 million.
Earnings per share rose to 30.38 cents from 25.12 cents.
The interim dividend rose 15% to 6.15 cents per share.
Mr Rafferty also said group operating profit margins rose to 2.18 per cent in the six months to March 31st from 2.66 per cent a year earlier.
"This was achieved by an improvement in sales mix in our Pharma Wholesale business, a reduction in operating costs to sales ratios in both the Pharma Wholesale and Contract Distribution divisions and an excellent performance in Ashfield Healthcare."
Ashfield Healthcare was bought in May 2000 and Mr Rafferty said its business is "growing strongly and making a significant contribution to group profits."
He noted that United Drug has a strong balance sheet with net assets of euro 100 million and a gearing ratio of 36 per cent.
AP