Uniphar (UPR) H2 2024 earnings summary

Executive summary

• Achieved strong 2024 results with revenue of €2.77bn–€2.8bn (up 8.5%), gross profit of €427.6m (up 9.6%), and EBITDA of €123.5m (up 6.4%), driven by all divisions.

• Adjusted EPS rose 11.8% to 20.5c, with basic EPS at 23.5c (up 43.3%).

• ROCE reached 15.2%, leverage reduced to 1.47x–1.5x, and free cash flow conversion was 105.5%–106%.

• Launched a €35m share buyback, reflecting confidence in undervalued share price and proceeds from Inspired Health divestment.

• Maintained disciplined capital allocation, balancing organic investment, M&A, and progressive dividend policy.

Financial highlights

• Revenue: €2,770.4m (+8.5%); gross profit: €427.6m (+9.6%); EBITDA: €123.5m (+6.4%).

• Adjusted EPS: 20.5c (+11.8%); basic EPS: 23.5c (+43.3%); free cash flow conversion: 105.5%.

• Net bank debt at year-end: €147.7m; leverage at 1.47x–1.5x EBITDA.

• Gross margin improved to 15.4% (from 15.3% in FY23).

• Total dividend for 2024 increased 5% to €5.2m (€0.0192/share).

Outlook and guidance

• Targeting €200m EBITDA by 2028, with at least 80% of growth expected to be organic and 20% from M&A.

• Free cash flow conversion guidance updated to 60%–70% at €200m EBITDA.

• 2025 organic gross profit growth targets: Pharma double-digit, MedTech high single-digit, Supply Chain & Retail low single-digit.

• ROCE guidance maintained at 12–15%; leverage target below 2.5x.