United Drug says year profit hits target

DUBLIN (Reuters) - United Drug (UDG.I) said on Friday its results for the year just ended would be in line with its forecast of a double-digit percentage rise in profit and it remained positive for its core markets, despite challenges.

"Operating profit and earnings for the year (to September 30) are again expected to show double-digit growth over the prior year," the Irish company said in a trading statement.

"These results should be in line with current consensus market expectations despite the difficult capital equipment market conditions that continue to impact on our Medical & Scientific business and the on-going weakness of sterling relative to the euro."

The firm, which supplies drugs and medical equipment to pharmacies, hospitals and dentists in the UK and Ireland (UDG.L), said in an update in August that trading in the nine months to end-June was well ahead of the same period the previous year and that it expected double-digit percentage growth for the full year.

On Friday United Drug said a slowdown in sales of capital equipment would result in its medical & scientific division reporting results for the year below its original expectations but ahead of the prior year.

It said its pharma wholesale businesses in the Irish Republic and Northern Ireland had made excellent progress during the year and had increased their market positions.

In the Irish Republic there had been "considerable uncertainty" in the retail pharmacy market following a change in reimbursement rules by the health authority, it said.

United Drug, which plans to release full-year results on November 19, said it remained positive despite challenges presented by government regulation and budgetary pressures on some of its activities.

"The group continues to see considerable opportunities to expand the business, both organically and through acquisition, and has a very strong balance sheet and positive internally generated cash flows to support these growth objectives," it said.

(Reporting by Kevin Smith; Editing by Greg Mahlich)