Half Year Trading Update and Notice of Results

Uniphar plc

Half Year Trading Update and Notice of Results

Dublin, London | 28 July 2020: Uniphar plc (the "Group") an international diversified healthcare services business servicing the requirements of more than 200 multinational pharmaceutical and medical technology manufacturers today announces the following unaudited trading update for the six months ended 30 June 2020.

The Group's latest guidance as per our AGM Statement of 26 May remains unchanged. The business has performed in line with expectations for the six months to June 2020 at both a gross profit and EBITDA level. While the COVID-19 trading environment has given rise to significant challenges, it has also created several opportunities for growth across all three divisions. These new opportunities, coupled with over performance in certain service offerings, has resulted in the group delivering overall organic gross profit growth of 5% for the first half of 2020.

During the period, Uniphar has continued to deliver on its strategic objectives by meeting the needs of speciality manufacturers through the provision of higher value services and has remained committed throughout the pandemic to ensuring continuity in the supply and distribution of much needed medicines, medical devices and related services through our European and global platforms.

The Group maintains a strong liquidity position with a net cash position retained at the period end. FCF conversion, after Brexit related timing adjustments communicated as part of our 2019 full year results, is in line with expectations.

Outlook

Uniphar is well positioned to deliver gross profit growth for 2020 across all three divisions. The Group's medium term organic growth targets at a divisional level remain unchanged for 2021 and beyond.

Commercial & Clinical

The Commercial & Clinical division has continued to make progress during the period by winning new clients and leveraging existing relationships into new geographies. The integration of medical device distributors, acquired in Q4 2019, has enabled further growth across Europe. While this division was most impacted by COVID-19, due to non-urgent elective surgeries being delayed, the diversity of our portfolio has helped mitigate the impact to our business. COVID-19 has also highlighted the importance of Uniphar's investment in digital solutions and this has allowed the organisation to respond effectively to extreme circumstances, further cementing our relationship with key healthcare stakeholders.  

Product Access

The Group continues to progress its strategy of becoming a leading global player in the Product Access market. As we approach the first anniversary of the Durbin acquisition the integration is substantially complete. The combined Uniphar and Durbin offering has created a strong value proposition in the market fuelling growth across the division particularly in our Exclusive Access business. During the period, the Group completed the acquisition of Innerstrength Limited which further enhances our digital offering and accelerates Uniphar's ability to deliver patient centric managed access programmes on a global basis.

Supply Chain & Retail

Supply Chain & Retail delivered a robust performance during the period. COVID-19 has highlighted the critical role this division plays in the national healthcare infrastructure, ensuring much needed medicines continue to be made available to patients without disruption. This division continues to leverage its high-tech wholesale distribution facilities, longstanding manufacturer relationships and scalable digital infrastructure, to maintain market leadership in the Republic of Ireland. The fragmented retail pharmacy market in Ireland together with Uniphar's advanced digital solutions and our range of pharmacy support services presents opportunity for the division to grow.

1. Durbin plc and Durbin Inc ("Durbin").