An interim management statement from United Drug today suggests that its Irish operations are under review.
The company, which looks after supply chain, sales and packaging for the healthcare sector, said that revenue in its Irish businesses continues to be hit by measures taken by the Irish healthcare authorities to reduce health spending.
It added that it is going to rationalise its cost base here and will fully integrate its most recent acquisitions into the group in the current year, which will result in a once-off restructuring charge of about €9m.
In today's statement, which covers the period from April to today, United Drug says that all of its divisions are trading well. It says its international development continues and businesses outside of Ireland now account for 65% of the company's profits.
Profits and revenues at its sales, marketing and medical division so far this year are well ahead of the same time last year, while revenues and profits in its healthcare supply chain are lower - as expected.
It said its packaging and speciality division has also traded strongly with revenues and profits up on last year.
'Based on trading for the year to date and the outlook for the remainder of the year, the group expects operating profit before restructuring charges for the year to September 2011 to be ahead of last year,' the statement said.
