2nd Sep 2020 09:59
(Alliance News) - Uniphar PLC on Wednesday posted a rise in its earnings for the first half of 2020 as it announced the acquisition of healthcare technology company Innerstrength Ltd and Irish pharmacy chain Hickey's Pharmacy Group.
Shares in the healthcare services firm were trading 4.4% higher at EUR2.40 each on Wednesday morning in London.
For the six months ended June 20, Uniphar posted pretax profit of EUR15.8 million, up 36% year-on-year from EUR11.6 million. This was as revenue rose 8.8% to EUR871.3 million from EUR800.6 million.
Earnings before interest, tax, depreciation, and amortization was EUR30.2 million, up 13% from EUR26.8 million the year prior. Gross margin was 12%, up from 10%.
The Dublin-based company said that while the Covid-19 presented challenges, it also created several opportunities for growth. It added that the new opportunities, coupled with its investment in digital solutions and diversity in its product and services lines helped mitigate the negative impact of pandemic on the business.
On the acquisitions, Uniphar Chief Executive Ger Rabbette said: "Innerstrength is a strategic acquisition and significantly enhances our digital offering, accelerating Uniphar's ability to deliver patient-centric exclusive access programs on a global basis. In Retail, the acquisition of Hickey's into our Supply Chain & Retail division further improves our leadership position in the Irish market. These acquisitions combined will be earnings accretive from completion and will be enhanced further through leveraging our existing platforms and unlocking synergies."
Looking ahead, the company said it remains on track to achieve its objective of doubling Ebitda within 5 years of its 2019 IPO with continued strong growth in earnings per share on a like-for-like basis.
Turning to the impact of Covid-19, it added: "We are cognisant of the ongoing impact the pandemic has on our business. We maintain the guidance issued in relation to the expected impact of Covid-19 to the current year Ebitda of up to EUR5 million. Our learnings from the first half combined with our investment in digital and the agility of our people give confidence that we are well placed to navigate through the challenges Covid-19 presents."
As at the end of June, Uniphar had cash of EUR2.1 million.
By Ife Taiwo; [email protected]
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