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On Tuesday, Uniphar (LSE:UPR), an international diversified healthcare service provider, reported robust first-half financial results, showcasing significant growth across all its divisions.
The AIM-traded company saw its revenue increase by 10.3%, reaching €1.37 billion, while gross profit rose by 9.9% to €206.7 million. This growth was driven by strong performances in its Pharma, Supply Chain & Retail, and Medtech divisions.
EBITDA grew by 6.3% to €55.9 million, reflecting the successful execution of strategic initiatives and ongoing innovation within the company. The Pharma division was a major contributor to this growth, with a 20.5% increase in gross profit, of which 20.2% was organic. This highlights the effectiveness of its ‘On Demand’ business and pharma services.
The Supply Chain & Retail division also demonstrated strong performance, with an 8.1% increase in gross profit, supported by robust market demand and excellent customer service. The Medtech division posted a 3.4% increase in gross profit, all of which was organic, despite challenging comparisons from the previous year.
Uniphar maintained a stable gross profit margin of 15.1% and demonstrated strong cash flow performance, with a free cash flow conversion rate of 144%. Net bank debt decreased to €143.6 million from €149.9 million at the end of 2023, resulting in a leverage ratio of 1.5x.
The company’s strong balance sheet, bolstered by a €400 million revolving credit facility and an additional uncommitted accordion facility of €150 million, provides significant financial flexibility. Uniphar also highlighted strategic and operational advancements, including the successful integration of the McCauleys Pharmacy Group, which has enhanced its retail pharmacy offerings.
Additionally, Uniphar is progressing with its strategic capital expenditure on a state-of-the-art distribution facility in Ireland, which aims to double capacity and support growth in its Supply Chain & Retail division and global pharma platform.
Looking ahead, Uniphar remains optimistic about achieving continued organic gross profit growth across all divisions in line with medium-term targets. The board has declared an interim dividend of 0.67 euro cents per share, marking a 5% increase from the previous year.
Sustainability continues to be a focus, with the company making strides toward its sustainability goals, including a commitment to reducing absolute scope one and two emissions by at least 50% by 2030.
Chief Executive Officer Ger Rabbette noted the strong performance in the first half of the year, emphasizing the benefits of recent efforts to lay a solid foundation for future growth. Strategic investments in infrastructure and IT are expected to further enhance Uniphar's ability to achieve organic growth and integrate new acquisitions effectively. The company remains confident in reaching its medium-term target of €200 million EBITDA.
As of 0942 BST, shares in Uniphar were down 0.69% at 226.43p.
