Uniphar (UPR) H1 2024 earnings summary

Executive summary

• Group revenue for H1 2024 rose 10.3% to €1.37bn, with gross profit up 9.9% to €206.7m and EBITDA up 6.3% to €55.9m, reflecting strong performance across all divisions and successful integration of prior acquisitions.

• EPS was flat due to higher interest rates, while adjusted EPS increased 1.3% to 8.1 cent; profit after tax rose 2.4% to €15.4m.

• Strong organic growth achieved across all divisions, with a focus on expanding existing business, integrating acquisitions, and an active M&A pipeline.

• Sustainability initiatives advanced, including a 50% emissions reduction target by 2030, validated science-based targets, improved board diversity, and sponsorship of a major tree-planting project.

• Strategic investments in infrastructure and IT, including a new high-tech distribution center and ERP system, are progressing on schedule.

Financial highlights

• Revenue increased 10.3% to €1,367.6m; gross profit up 9.9% to €206.7m; organic gross profit growth was 7.4%.

• EBITDA rose 6.3% to €55.9m; adjusted EPS up 1.3% to 8.1 cent; free cash flow conversion at 69.1% (144% including temporary working capital benefits).

• Return on capital employed was 14.7%, at the top end of guidance.

• Net bank debt at period end: €143.6m, leverage reduced to 1.5x EBITDA.

• Interim dividend of €0.0067 per share declared, up 5% year-over-year.

Outlook and guidance

• Confident in achieving the medium-term target of €200m EBITDA, with a 70/30 organic/inorganic growth split and majority of growth expected to be organic.

• Double-digit organic growth expected in Pharma; high single-digit growth targeted in Medtech; Supply Chain & Retail expected to continue margin and share gains.

• Guidance maintained for ROCE at 12–15%, adjusted free cash flow conversion at 60–70%, and leverage not to exceed 2.5x.

• Progressive dividend policy maintained.