17th Feb 2009 12:15
UNITED DRUG PLC
ANNUAL GENERAL MEETING
CHAIRMAN'S STATEMENT
UDG.I UDG.L
Dublin, London, 17 February 2009: The following is a summary of the Interim Management Statement issued by the Group ("United Drug") this morning.
At the end of the 2008 financial year, United Drug announced plans to streamline its operating structure into three new divisions; the Healthcare Supply Chain, Packaging & Speciality and Contract Sales & Marketing Services divisions. On 22 January 2009, the Group announced a restructuring programme designed to implement this changed divisional structure and to review the cost base across all parts of the business. This review is expected to result in a once-off exceptional restructuring cost this year, in the region of €10 million, deliver annualised savings of €7-8 million and leave the Group well positioned for growth in future years.
The sharp decline in the economies in which United Drug operates has had a number of impacts on the business, during the quarter ended 31 December 2008, resulting in challenging trading conditions in several parts of the Group but increased opportunities in other parts of the Group.
Based on current trading and the weakness of sterling the Group expects results for the first half of the financial year to be down, compared with a strong first half of 2008. There is currently a lack of visibility on revenues in various parts of the business, however, the Group is working to achieve a profit for the year at least in line with the prior year, on a constant currency basis.
ENDS Tuesday, 17 February 2009
For reference:
Liam FitzGerald Pauline McAlester
United Drug plc Murray Consultants
Tel: +353-1-4598877 Tel: +353-1-4980300
Investors and Analysts
Mark Kenny/Jonathan Neilan
K Capital Source
Tel: +353-1-6315500
About United Drug plc
United Drug is a leading international provider of services to healthcare manufacturers and pharmaceutical retailers, with operations in the UK, Ireland, Holland, Belgium and the USA. The Company has a long-term track record of delivering double-digit profit, earnings and dividend growth. Over the last 20 years pre-tax profits have grown at a compound annual rate of 21%.
The Company operates across three divisions, Healthcare Supply Chain, Packaging& Speciality and Contract Sales & Marketing Services.
United Drug is the largest pharmaceutical wholesaler on the island of Ireland.
It is the market leader in contract distribution outsourcing (pre-wholesaling) in Ireland and has achieved the No. 1 position in the UK through its joint venture business UniDrug Distribution Group (UDG). The Company also provides sales & marketing and technical service solutions, including contract distribution services to medical equipment and devices manufacturers, with a market leading position in Ireland and an emerging presence in the UK.
Through its Packaging & Speciality division the Company provides distribution related services in the areas of pharmaceutical contract packaging and speciality distribution in the US, UK, The Netherlands and Belgium.
United Drug is also a leading provider of contract sales outsourcing and related marketing services to pharmaceutical manufacturers in the UK and Ireland and also provides these services in the US market.
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