UDG Healthcare - formerly United Drug - has said it has made a strong start to the year with trading for the quarter to the end of December well ahead of the previous year.
But in a trading statement for its fiscal first quarter, the company said its Supply Chain Services division was being hit by the changes in the Irish wholesale market. It said that trading in this division was "satisfactory".
UDG said that trading in its Ashfield Commercial and Medical Services division has been strong, with operating profits well ahead of the same time last year. Its healthcare communications business was boosted by acquisitions made during the year.
Its Sharp Packaging Services also had a strong start to the year, with operating profits up significantly on the same time the previous year.
Sharp Europe continues to face challenges, but its US operations saw a continuation of the positive performance in the second half of last year.
UDG said it expects earnings per share for the full year to the end of September 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, it added.
UDG said its profits will benefit from the strengthening US dollar and pound sterling exchange rates as over 70% of its group profits are now in these currencies.
The company also said it 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," it added.
