Uniphar reports first-half growth across its divisions

3rd Sep 2024 10:14

(Sharecast News) - International diversified healthcare service provider Uniphar reported a solid set of first-half financial results on Tuesday, with notable growth across all of its divisions.

The AIM-traded company's revenue increased 10.3% to €1.37bn, while gross profit rose 9.9% to €206.7m, driven by strong performances in its Pharma, Supply Chain & Retail, and Medtech divisions.

EBITDA grew 6.3% to €55.9m, reflecting the execution of its strategic initiatives and continued innovation.

The firm's Pharma division led the growth, with a 20.5% increase in gross profit, 20.2% of which was organic, underscoring the strength of its 'On Demand; business and pharma services.

Its Supply Chain & Retail division also performed well, posting an 8.1% increase in gross profit, supported by robust market demand and a strong customer service offering.

Medtech saw 3.4% growth in gross profit, all organic, despite strong comparators from the previous year.

Uniphar said its gross profit margin remained steady at 15.1%, while it maintained a strong cash flow performance, with a free cash flow conversion rate of 144%.

Net bank debt decreased to €143.6m from €149.9m at the end of 2023, reflecting a leverage ratio of 1.5x.

The group's strong balance sheet, including a €400m revolving credit facility and an additional uncommitted accordion facility of €150m provided significant financial flexibility.

Uniphar also highlighted recent strategic and operational progress, including the successful integration of the McCauleys Pharmacy Group, which enhanced its retail pharmacy offering.

Additionally, Uniphar said it was advancing its strategic capital expenditure on a state-of-the-art distribution facility in Ireland, aimed at doubling capacity and supporting the growth of its Supply Chain & Retail division and global pharma platform.

Looking ahead, Uniphar expected continued organic gross profit growth across all divisions in line with medium-term targets, adding that it was well-positioned to meet market expectations for the full year.

The board declared an interim dividend of 0.67 euro cents per share, a 5% increase from the prior year.

It added that sustainability remained a key focus, with the company making progress on its sustainability goals, including validated targets to reduce absolute scope one and two emissions by at least 50% by 2030.

"Uniphar has delivered a strong first half, with gross profit growth of almost 10% year-on-year," said chief executive officer Ger Rabbette.

"We are seeing the benefit of the hard work we have put in recently to build the foundations for the next stage of growth."

Rabbette said the strategic investments the firm was making in infrastructure and IT would further improve its ability to generate organic growth, and give Uniphar a stronger platform for integrating and achieving synergies from new acquisitions.

"We are confident that we will achieve our ambitious target of €200m EBITDA in the medium-term."

At 0942 BST, shares in Uniphar were down 0.69% at 226.43p.

Reporting by Josh White for Sharecast.com.