Healthcare services provider United Drug saw profits fall as the falling value of sterling against the euro hits its balance sheet.
Announcing its preliminary results for the year, the company said pre-tax profit was down 5 per cent to €39.1 million for the year. Operating profit was down 2 per cent.
According to the company, the fall in sterling against the euro reduced translated sterling profits by about €5 million.
Full-year net profit declined to €33.3 million from €50.2 million during 2008.
The firm said revenue growth for 2009 was good, despite the difficult trading environment, growing 2 per cent to €1.72 billion.The figure was hampered by weaker sterling, price reductions in the Republic of Ireland and Northern Ireland wholesale businesses and a decline in spending on medical equipment and consumer products.
A restructuring and cost cutting programme implemented by the firm resulted in a once-off charge of €13.9 million, but is expected to yield annualised savings of between €9 million and €10 million in the future.
Chief executive Liam Fitzgerald said 2009 was a more difficult year for United Drug.
"We have experienced very buoyant trading conditions in parts of the group but challenging conditions in other parts. The year has also seen a 15 per cent fall in the value of sterling relative to the euro that reduces sterling profits when translated to euro for reporting purposes," he said.
Mr Fitzgerald said the company is actively looking at acquisitions. It expects operating profit to rise about 5 per cent next year and be marginally ahead of this year, following its investment in Medco. A joint venture with the firm is aimed at the UK homecare market.
On the Dublin market, shares in the company rose 0.5 per cent to €2.23 by 8.30am.
