Uniphar gross profit jumps in first half

The AIM-traded firm said its supply chain and retail segment continued to surpass expectations, with an impressive 7.7% organic growth.

In addition to the gross profit growth, there was a notable rise in the gross profit margin, which increased from 14.7% to 15.2%, while EBITDA jumped 13.8% year-on-year in the six months ended 30 June to €51.1m.

However, adjusted earnings per share saw a marginal decline of one euro cent to 7.4 cents, primarily due to the surge in financing costs.

In terms of acquisitions, Uniphar strengthened its position in the retail pharmacy sector by acquiring the McCauley Pharmacy Group in January, adding considerable value to its service portfolio.

Financially, Uniphar reported a normalised solid free cash flow conversion rate of 68% - a slight decrease from 70% in June last year.

However, there was an increase in net bank debt, which stood at €178m at the end of June, up from €91.2m in December, resulting in a leverage rate of 1.95x.

The board declared an interim dividend of 0.64 euro cents per ordinary share for the first half - 5% higher than the half-year distribution in 2022.

“Just over four years post-IPO, I am pleased to announce that we have already achieved our target of doubling EBITDA within five years,” said chief executive officer Ger Rabbette.

“We are now focussed on creating a strong foundation for our next phase of growth, reorganising our divisions to reflect our strategic ambitions and accelerating our progress in our target markets.

“As well as maintaining an active acquisition pipeline, we are also making a significant investment in our IT systems to further enhance the technological backbone of our business and reach our ambitious new target of €200m EBITDA over the medium term.”

At 1152 BST, shares in Uniphar were down 3.08% in London, at 220p.

Reporting by Josh White for Sharecast.com.