Udg Healthcare PLC (LON: UDG) have seen their shares dip on Tuesday despite increases in operating profit growth and a sound update to shareholders.
Udg Healthcare were formerly known as United Drug is a Dublin based international company and partner to the healthcare industry. The firm provides clinical, commercial, communication and packaging services.
The pharmaceuticals industry has seen a mixed set of results by firm across financial 2019.
Market leaders such as Pfizer (NYSE: PFE) and GSK (LON: GSK) have reported bullish interim updates, which gives them further foot holding the global pharmaceuticals market.
Additionally, Roche (SWX: ROG) announced the acquisition of US drugmaker Promedior last week.
The FTSE250 (INDEXFTSE: MCX) listed firm reported adjusted operating profit growth of 5% to $158.4m (€143.8m) in the 12 months to 30 September, as it announced its third acquisition of 2019.
On a more sour note, shareholders will be concerned that the firm saw revenue decline by 1% to $1.3 billion.
UDG Healthcare PLC reported a “year of strong strategic progress” on Tuesday, with both platforms doing well.
“2019 was another year of strong strategic progress for UDG Healthcare. We delivered good financial growth with adjusted earnings per share increasing by 7% on a constant currency basis, the top end of guidance,” said Chief Executive Brendan McAtamney.
“Our two global platforms, Ashfield and Sharp delivered a strong performance through a combination of underlying growth and the benefit of acquisitions.”
Last year, UDG reported two new US business acquisitions in Create NYC and SmartAnalyst which caused shares to rally.
Ashfield reported a 3% revenue growth to $949.2 million, with adjusted operating profit rising by 10% to USD110.0 million in a “good” year.
“Looking ahead to financial 2020, we expect to continue to deliver good growth across our businesses, supplemented by further strategic acquisitions utilising our strong balance sheet,” said CEO McAtamney.
Shareholders should not be too phased by the dip in share price this morning, but should be more optimistic for future outlook as the firm looks to complete its acquisition deals.
