United Drug has reported a 1% increase in pre-tax profits for the year ending September as the company faced significant healthcare austerity measures.
Pre-tax profits rose to €67.6m while revenues for the year were also 1% higher at €1.73 billion.
United Drug said its operating profit fell by 3% to €74.2m after taking account of the start-up costs associated with the new Medco UK homecare joint venture as well as the impact of some regulatory changes during the year.
The company said that revenues in the contracts sales and marketing services and packaging and speciality divisions are ahead of last year, while healthcare supply chain divisions revenues are down as a result of reductions in medicine prices and lower capital spending in hospitals.
The company has proposed a final dividend of 6.06 per share. This gives a total dividend for the year of 8.40 cent per share, an increase of 5% on the 2009 dividend.
'Through 2010, United Drug has effectively managed the challenges and opportunities presented by healthcare austerity measures and weak economies,' commented the company's chief executive Liam Fitzgerald.
'These pressures have resulted in lower capital spending in hospitals and reductions in medicine pricing and reimbursement but also a marked increase in demand for outsourced services from healthcare manufacturers,' he added.
