1st Quarter Trading Update

UDG HEALTHCARE PLC

FIRST QUARTER TRADING UPDATE

 Strong Start to the Year and Full Year Guidance Issued

3 February 2015: 

UDG Healthcare plc ("the Group"), a leading international provider of healthcare services issues the following trading update covering the period from 1 October to 31 December 2014. The company will hold its Annual General Meeting in Dublin at 12.00pm today. 

Quarter to 31 December 2014

Group

The Group has made a strong start to the year with trading for the quarter to 31 December 2014 well ahead of the prior year.

Ashfield Commercial & Medical Services

Trading has again been strong, with operating profit well ahead of the same period last year. Operating profit growth was particularly strong within the healthcare communications business, which benefitted from the acquisitions made during 2014. As anticipated, the US medical services business (pharmacovigilance and "market access") had a weaker performance relative to a very strong comparable quarter, whilst the European CSO business performed strongly in the period.

Supply Chain Services

Operating profits in United Drug have been impacted broadly as anticipated by the recent changes in the Irish wholesale market and are behind the same period last year. The 2014 disposal of the Specials business and our interest in the UniDrug joint venture has reduced the overall profitability of the division for the quarter. Aquilant performed well in the period with operating profit ahead of 2014. Overall, the trading of this division was satisfactory in the quarter.

Sharp Packaging Services

Sharp had a strong start to the year with the positive Sharp US performance in the second half of 2014 continuing into 2015. Sharp Europe improved slightly but continues to face challenges. Divisional operating profits in the first quarter are significantly ahead of the prior year.

During the quarter we initiated the second phase of the capacity expansion programme at our Allentown facility in Pennsylvania, with the building acquisition now completed. We anticipate this will become operational in late 2016.

Restructuring Costs

The Group anticipates recognising an exceptional charge in 2015. The charge relates to: restructuring of the healthcare communications business following acquisitions in FY 2014, restructuring within the United Drug supply chain business which was carried out in the first quarter and further cost reductions through restructuring across other parts of the Group.

Outlook

Based on the underlying trading performance to date and an expected 2% 2015 restructuring benefit, we expect constant currency adjusted diluted earnings per share (EPS)1 for the year to 30 September 2015 to be between 5% and 8% ahead of last year. If current exchange rates are sustained for the year, reported EPS will be higher than this range.

The Group reports in euro and its profits benefit from the strengthening US dollar and pound sterling exchange rates as over 70% of Group profits are now in these currencies. The average 2014 exchange rates were €1 = £0.82 and $1.36.

The Group also expects to deliver a good underlying cashflow performance for the year. When combined with modest debt levels relative to earnings and significant financing facilities, this continues to leave the Group well positioned to support its future growth objectives both organically and through acquisition.

[1] before the amortisation of acquired intangible assets, exceptional charges and non-recurring costs associated with acquisition and divestment activity

Conference Call: 

UDG Healthcare plc will host a conference call for investors and analysts at 9.30am (GMT) today, 3 February 2015 to discuss this statement. The dial-in details are as follows:

Standard International Access +44 (0) 20 3003 2666

UK Toll Free 0808 109 0700

Ireland +353 (0) 1 436 0959

Password UDG Healthcare

A playback facility will be available for seven days on +44 (0) 20 8196 1998 (UK or International) or + 353 (0) 1 486 4035 (Ireland). The access code for the replay will be 4379868.

Date for Interim Results:

The Group will issue interim results for the six months to 31 March 2015 on Thursday 14 May, 2015.

Forward Looking Statements

This Statement contains certain forward-looking statements. They represent expectations for the Group's business, and involve risks and uncertainties. The Group has based these forward-looking statements on current expectations and projections about future events. The Group believes that expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve known and unknown risks, uncertainties and other factors, which in some cases are beyond the Group's control, actual results or performance may differ materially from those expressed or implied by such forward-looking statements.

For reference:

Investors and Analysts:

Alan Ralph David Marshall

CFO Head of Investor Relations

UDG Healthcare plc UDG Healthcare plc

Tel: +353-1-463-2300 Tel: + 353-1-463-2518

Media:

Greg Lawless / Lisa Kavanagh

Powerscourt

Tel: +44-207-250-1446

About UDG Healthcare plc:

Listed on the London Stock Exchange, UDG Healthcare plc is a leading international provider of services to healthcare manufacturers and pharmacies, with operations in 20 countries including the US, UK, Ireland and Germany.

UDG Healthcare plc operates across three divisions: Ashfield Commercial & Medical Services, Supply Chain Services and Sharp Packaging Services.

Ashfield Commercial and Medical Services is a global leader in the provision of sales, marketing and healthcare communications services to pharmaceutical manufacturers with operations in major developed markets. It focuses on supporting healthcare professionals and patients at all stages of the product life cycle. The division provides sales teams, healthcare communications, telesales, nurse educators, medical information, pharmacovigilance, regulatory and event management services to healthcare companies in 19 countries.

Supply Chain Services includes the United Drug Supply Chain Services and the Aquilant Specialist Healthcare Services businesses. The division provides logistics services to healthcare companies, pharmacies and hospitals in the UK and Ireland. United Drug Supply Chain Services is the largest pharmaceutical wholesaler and pre-wholesaler on the island of Ireland. Aquilant Specialist Healthcare Services is a leading provider of outsourced sales, marketing, distribution and engineering services to the medical and scientific sectors in Ireland and the UK.

Sharp Packaging Services is a leading international provider of pharmaceutical contract packaging and clinical trials materials services with facilities in the US, UK, the Netherlands and Belgium.

For more information go to: www.udghealthcare.com