UDG Healthcare has reported a 19% rise in adjusted operating profit and raised its full-year earnings forecast.
The company, which provides outsourced sales and marketing, drug distribution and packaging services to healthcare firms, said it expects adjusted earnings per share (EPS) growth of 7% to 9% at constant currency rates.
UDG Healthcare had earlier forecast growth of 5-8% for the year to September 30, 2015.
The company said today that its adjusted operating profit rose to €53.6m for the six months to the end of March, up from €45m a year earlier. Pre-tax profits rose by 26% to €28m from €15m.
Revenues for the six month period rose by 9% to €1.131 billion and the company has proposed an 8% increase in its interim dividend to 2.90 per share.
The company's chief executive Liam FitzGerald said that the six months was a period of further strong advancement for the group as its strategy to expand into higher growth areas continued to deliver robust profit growth.
UDG's two growth platforms - Sharp and Ashfield - accounted for over 70% of its operating profits in the six month period, he added.
Revenue at the company's Ashfield Commercial and Medical Services division rose by 35% to €292.8m from €217.7m while operating profits jumped by 55% to €25.9m from €16.7m.
The company said the business was boosted by acquisitions and currency in the six month period.
Revenue at its Sharp Packaging Service division rose by 35% to €110.4m from €81.9m while operating profits grew by 57% to €11.8m from €7.5m
But revenues at its Supply Chain Service division dipped by 2% to €728.2m from €741.8m mainly due to disposals.
Operating profits at the division fell by 24% to €15.9m from €20.8m mainly due to the sale of its 50% interest in the UniDrug joint venture in August and the sale of the Specials business in February.
"UDG Healthcare continues to focus on developing strong market positions across the group's operations to meet the growing demand from our healthcare industry clients," commented Mr FitzGerald.
"The group has considerable long-term financing facilities available and good internally generated cash flows to support our growth objectives. Following growth in earnings during the period we have increased our guidance for the full year and remain positive about our long-term growth prospects," he added.
