United Drug has reported adjusted pre-tax profits of €31.5m for the six months to the end of March, up 5% compared to the same time last year.
Revenues were flat at €853m and the company said it expects profits for the full year to be broadly in line with those achieved in 2009.
The company added that the strengthening of the euro against sterling and the dollar reduced reported profits by €750,000.
'The performance of the group in the first half of 2010 has been encouraging,' United Drug's CEO Liam FitzGerald said.
'Government budgetary pressures are resulting in constrained capital spending in hospitals and reductions in medicine pricing and reimbursement, but they are also helping to drive an increased demand for efficient, cost effective outsourcing services,' he added.
The United Drug board has declared an interim dividend of 2.34 cent per share, up 5% on the 2009 interim dividend.
The company said its healthcare supply chain division saw revenues of €715m for the six month period, in line with the same time last year.
Revenues at its contract sales and marketing services division rose by 2% to €78m for the six months to March.
Its packaging and speciality division saw revenues rise by 5% to €60m as its Irish homecare business enjoyed its best ever six month period.
United Drug said that based on current trading, it expects pre-tax profits for the year to the end of September to be broadly in line with the previous year.
Shares in the company closed 2.7% lower at €2.53 in Dublin.
