Uniphar posts robust set of full-year results

Healthcare services company Uniphar reported a robust set of preliminary results on Tuesday, with EBITDA rising 17.7%, as it achieved a return on capital employed of 15.2% and maintained year-end leverage at 1.6x.

The AIM-traded firm said revenue for the 12 months ended 31 December was up 23.3% at €2.55bn, with gross profit reaching €389.98m, up 27.1% from the prior year.

That growth was driven by strong performance across all divisions, with Uniphar Supply Chain & Retail seeing a 34.5% increase in gross profit, Uniphar Medtech recording 9.8% growth, and Uniphar Pharma experiencing a 34.4% surge.

The company's strategic focus on higher-margin activities was reflected in the improvement of its gross profit margin from 14.8% to 15.3%.

Uniphar recorded EBITDA of €116m, up from €98.6m in 2022, which it put down to both organic growth and the benefits of recent acquisitions.

Despite a slight decline in adjusted earnings per share to 18.3 euro cents, primarily due to increased financing costs, Uniphar said it was still optimistic about its trajectory.

The acquisition of McCauley Pharmacy Group in January 2023 augmented its retail pharmacy footprint and service offerings, positioning it for continued growth.

With net bank debt at €149.9m and leverage at 1.6x, Uniphar declared a total dividend for the year of €5m, reflecting a 5.2% increase year-on-year.

Looking ahead to 2024, the company said it anticipated sustained organic gross profit growth across all divisions, and expressed confidence in meeting expectations.

On the operational front, Uniphar noted that it achieved its target of doubling 2018 pro-forma EBITDA ahead of schedule, and unveiled a new medium-term target of growing group EBITDA to €200m.

The company's new divisional structure aimed to capitalise on growth opportunities, with a focus on Uniphar Supply Chain & Retail, Uniphar Medtech, and Uniphar Pharma.

Moreover, Uniphar said it had initiated strategic capital expenditure in an IT and ERP investment programme, completed acquisitions, integrated previous acquisitions, and made progress in sustainability initiatives across its operations.

“The group performed strongly throughout 2023, making further progress against our financial and strategic objectives,” said chief executive officer Ger Rabbette.

“Organic profit growth across all divisions contributed to 17.7% growth in EBITDA and a 15.2% return on capital employed.

“Following early delivery on our initial public offering targets, we have created a new divisional structure to capitalise on our attractive growth opportunities and are now focused on reaching our ambitious new target of €200m EBITDA over the medium-term.”

At 1115 GMT, shares in Uniphar were down 2.45% at 239p.

Reporting by Josh White for Sharecast.com.