Uniphar, a Dublin-listed pharmaceutical wholesaler, retailer and health services group, said on Wednesday its gross margin jumped 30.9% in the first half to 134.3 million euros, fueled by acquisitions.
The company, led by CEO Ger Rabbette, said its commercial and clinical division, which assists pharmaceutical companies and medical device manufacturers in marketing and distribution, has exceeded mid-term targets to generate organic growth of its gross profit of 23.7% over the same period. period last year.
The division’s total operating profit, including the impact of acquisitions, increased 27.5% to 53.4 million euros.
“Despite the difficult business environment of the Covid-19, Uniphar has created many opportunities for growth,” the group said. “These new opportunities associated with our continued investment in mergers and acquisitions [mergers and acquisitions], the digital solutions and the diversity of our products and services have demonstrated the group’s sustainable growth strategy and the resilience of our activity.
In the past two months, Uniphar has completed the business and clinical unit through two acquisitions.
It entered the largest medical technology market in Europe with the takeover of the German group CoRRect Medical in mid-July for an estimated amount of around 25 million euros. Uniphar continued in early August by buying a New York-based company that provides outsourced medical business services, called BestMSL, for $ 36 million (30.2 million euros).
Uniphar’s supply chain and retail division saw 33.8% growth in gross profit to 60.8 million euros, boosted by the acquisition at the end of last year from Hickey’s Pharmacy Group, which includes 36 pharmacies. The group now operates 373 owned and franchised pharmacies, including two additional outlets purchased so far this year.
Davy’s analyst Allan Smylie noted that the network now accounts for 21% of the retail pharmacy market in Ireland.
Organic gross profit growth for this unit was 1.1 percent.
The group’s third division, called Product Access, which sources and delivers unlicensed drugs to retail pharmacy and hospital customers and manages the distribution of specialty drugs for drug makers to approved patients, posted 31.6% growth in gross profit to 20 million euros.
Total group revenue increased 10.7 percent to 964.9 million euros, while the group’s operating profit margin increased to 13.9 percent from 11.8 percent for the period of the previous year. Earnings before interest, taxes, depreciation and amortization (EBITDA) jumped 36.2% to 41.1 million euros.
Uniphar went public two years ago.