Uniphar maintains expectations amid strong trading

Uniphar reported strong performance over the last year in an update on Thursday, reporting further progress towards its financial and strategic objectives.

The AIM-traded firm, which was holding its annual general meeting, described a robust financial performance, in line with the board's expectations.

It achieved 5.7% organic gross profit growth, with organic growth observed across all divisions.

The supply chain and retail division performed well, surpassing expectations, as the group's EBITDA increased to €98m, reflecting a growth rate of 13.4%.

Uniphar ended its year with strong liquidity, maintaining a modest leverage ratio of 1.0x.

In addition to the positive financial performance, Uniphar said iti made significant strategic advancements in each of its divisions through the year.

The group enhanced its platforms through a combination of organic investments and mergers and acquisitions, positioning itself for resilient growth in 2023 and beyond.

In the product access division, Uniphar acquired BModesto Group and Orspec Pharma, which it said provided it with capability across continental Europe and the Asia-Pacific region.

The acquisitions, combined with ongoing investments, contributed to the expansion and strengthening of the product access platform, the board explained.

It said the commercial and clinical division also experienced progress, as Uniphar broadened its service offering through the acquisition of Inspired Health - a Boston-based market research consultancy firm.

Additionally, the firm made an organic investment in a skilled pan-European medical affairs team, advancing its European commercialisation platform.

The supply chain and retail division made notable progress with the acquisition of McCauley Pharmacy Group - a leading player in health, wellbeing, and beauty products in the Ireland market.

Uniphar said the strategic move bolstered its higher-margin retail offering.

The company also announced a multi-year investment in a new distribution facility, in a bid to future-proof the supply chain and retail business, and support overall group growth.

Looking ahead, Uniphar said it performed in line with its own expectations during the first four months of 2023.

The company was confident in its ability to achieve organic gross profit growth across all divisions, adding that it was poised to meet full-year expectations.

“Sustainability continues to form a key part of Uniphar's culture and business practices. Initiatives such as our hugely successful Unity for Hope charity event, and the launch of our two employee resource groups - the Rainbow Alliance and the Women's Alliance demonstrate our commitment to creating a sustainable workplace,” said chairman Maurice Pratt.

“Our teams also made progress under our environmental pillar, improving our carbon footprint initiatives and focusing on ways to further decarbonise our business.”

Pratt said the company completed its first Scope 3 assessment, highlighting the opportunity for a collaborative approach with its suppliers to reduce their collective environmental impact.

“Finally, our commitment to maintaining the highest standards of corporate governance across the group continued in 2022, where the board adopted the UK Corporate Governance Code, achieving another important milestone on our journey as a publicly quoted company.”

Reporting by Josh White for Sharecast.com.