Interim report
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Uniphar plc - 2024 Preliminary Results | 1 Uniphar plc 2024 Preliminary Results Uniphar plc, an international diversified healthcare services business, announces its full year results for the year ended 31 December 2024, delivering a strong performance with Adjusted EPS growth of 12%, ROCE of 15.2% and leverage of 1.47x. FINANCIAL HIGHLIGHTS Growth Year ended 31 December 2024 €’000 2023 €’000 Reported % Constant Currency2 % Revenue 2,770,429 2,553,062 8.5% 8.3% Gross profit 427,604 389,984 9.6% 9.4% Uniphar Medtech 108,915 99,870 9.1% 8.6% Uniphar Pharma 121,561 103,187 17.8% 17.3% Uniphar Supply Chain & Retail 197,128 186,927 5.5% 5.5% Gross profit margin 15.4% 15.3% EBITDA1 123,458 115,985 6.4% 6.4% Operating profit 81,989 67,708 21.1% 21.1% Profit before tax excluding exceptional items 61,130 53,321 14.6% 14.7% Net bank debt1 (147,676) (149,947) Basic EPS (cent) 23.5 16.4 Adjusted EPS (cent)1 20.5 18.3 • Gross profit growth of 9.6% (8.2% organic3). Organic growth delivered across all divisions with the Pharma and Medtech divisions delivering outstanding organic growth of 17.6% and 9.1% respectively. • Continued progression in gross profit margin from 1 5.3% to 15. 4%, reflecting operational excellence and growth in higher margin activities. • EBITDA growth of 6.4% to €123.5m (2023: €116.0m), reflecting the successful execution of our strategy in each division together with investment for future growth across the Group. • Adjusted EPS growth of 11.8% to 20.5 cents (2023: 18.3 cent) reflecting strong EBITDA growth. • Robust liquidity with n et bank debt of € 147.7m as at 31 December 20 24 (2023: €149.9m) and 1.47x leverage. • Total dividend for the year of €5.2m (€0.0192 per ordinary share) representing a 5% increase year-on-year, including a €1.8m interim (€0.0067 per ordinary share) dividend paid in October and a final dividend of €3.4m (€0.0125 per ordinary share) subject to approval at the AGM. • For 2025, Uniphar expects continued strong organic gross profit growth across all divisions . The strong growth momentum provides confidence in reaching our €200m EBITDA target in 2028 with at least 80% of that growth being organic. • The Board announces its intention to return capital to shareholders in the form of a share buyback programme of €35m. The use of capital is considered appropriate in light of the recent disposal of Inspired Health supported by the Group’s strong balance sheet and confidence in the Group’s prospects. 1. Additional information in relation to Alternative Performance Measures (APMs) are set out on pages 41 to 45. 2. Constant currency growth is calculated by applying the prior year’s actual exchange rate to the current year’s result. 3. Organic growth is calculated as the gross profit growth of the underlying business in the period adjusted for the contribution from prior period acquisitions and divestments to ensure a like-for-like comparison.
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Uniphar plc - 2024 Preliminary Results | 2 STRATEGIC AND OPERATIONAL HIGHLIGHTS • Our business performed strongly in 2024 delivering EBITDA of €123.5m driven predominantly by organic growth (8.2% organic gross profit growth ). We have invested in recent years in building the platforms in each division to enable them to achieve scale in their target markets and we are increasingly seeing that strategy delivering strong returns. • Organic gross profit growth of 8.2% in 2024, driven by growth across each of our three divisions: ▪ Uniphar Medtech: 9.1% gross profit growth, all of which was delivered organically. Growth delivered across all regions through excellent performance with existing suppliers in the market, in addition to bringing new specialities to existing markets and developing new areas of partnership. ▪ Uniphar Pharma: 17.8% gross profit growth of which 17.6% is organic growth. Strong performance in the On Demand business solving market supply challenges while 17 new Expanded Access Programs were onboarded in 2024. ▪ Uniphar Supply Chain & Retail: 5.5% gross profit growth of which 2.7% is organic growth. Continued relentless focus on operational excellence , resulting in 7% volume growth ahead of underlying market growth of 5%. Our Retail pharmacy brands continue to be ranked among the most trusted in Ireland in national brand surveys. • The Group has made great progress towards the target of doubling EBITDA to €200m by 2028. The strength of the 2024 results gives confidence that at least 80% of the growth can be delivered organically. M&A remains an objective of the Group in delivering its medium -term targets with the Group continuing to maintain an active pipeline of opportunities. • Reported free cash flow conversion of 105.5% which includes temporary favourable working capital timing benefits that have arisen from the growth in the Pharma division. • Net bank debt remains relatively unchanged in 2024 at €147.7m (2023: €149.9m) representing a leverage multiple of 1. 47x. The Group's strong Balance Sheet provides long -term strategic and financial flexibility with a revolving credit facility of €400m together with an additional uncommitted accordion facility of €150m. • The Group's strategic capital expenditure in a state -of-the-art distribution facility in Ireland is progressing well with the initial build completed and the focus moving to completing the technology infrastructure. Once completed in 2026 , the investment will provide the infrastructure to meet growing market demands by doubling existing capacity levels and future proofing the market leading Supply Chain & Retail division whilst also enabling us to scale our global Pharma platform. • The Group remain focused on driving our sustainability agenda across our five sustainability pillars. SBTi targets have been validated in 2024 with our climate ambition target of at least a 50% reduction in our absolute Scope 1 and 2 emissions by 2030. External ratings maintained with MSCI at ‘AAA’, CDP ‘B’ rating for a third consecutive year and a first percentile risk rating in the healthcare industry from Sustainalytics. • Uniphar has consistently deployed capital in a disciplined manner in both M&A and strategic investment opportunities that are expected to generate returns that exceed the hurdle rate of 12 % – 15% within three years. The Board considers the launch of a share buyback programme as appropriate in light of the recent disposal of Inspired Health in addition to the Group’s consistent ability to generate free cash flow together with the Board’s confidence in the Group’s prospects.
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Uniphar plc - 2024 Preliminary Results | 3 Ger Rabbette, Uniphar Group Chief Executive Officer said: “2024 was an outstanding year for Uniphar with all our divisions contributing to strong organic Gross Profit growth of 8.2%. The results demonstrate the impact of our strategy on our ability to grow at pace organically . We are progressing well towards our target of delivering €200m EBITDA by 2028 and are confident that over 80% of that growth can now be delivered organically.” Analyst presentation A conference call for analysts and investors will be held at 9.00 am (GMT), today, 25th February 2025. To register for the call please visit www.uniphar.ie. A copy of the presentation and announcement will be available on our website at the time of the call. Contact details Uniphar Group Tel: +353 (0) 1 428 7777 Allan Smylie, Head of Strategy and IR Davy (Joint Corporate Broker, Nominated Advisor and Euronext Growth Listing Sponsor) Tel: +353 (0) 1 679 6363 Daragh O’Reilly Niall Gilchrist Ivan Murphy RBC Capital Markets (Joint Corporate Broker) Tel: +44 (0) 20 7653 4000 Jamil Miah Rupert Walford Stifel Nicolaus Europe Limited (Joint Corporate Broker) Tel: +44 (0) 20 7710 7600 Matt Blawat Ben Maddison Francis North Q4 PR Tel: +353 (0) 1 475 1444 Iarla Mongey, Public Relations Advisor to Uniphar Group
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Uniphar plc - 2024 Preliminary Results | 4 About Uniphar plc Headquartered in Dublin, Ireland, Uniphar is an international diversified healthcare services business servicing the requirements of more than 200 multinational pharmaceutical and medical technology manufacturers across three divisions - Uniphar Medtech, Uniphar Pharma and Uniphar Supply Chain & Retail. The Group is active in Europe, North America, APAC and MENA and delivers to 160+ countries. The Company's vision is to improve patient access to pharmaco -medical products and treatments by enhancing connectivity between manufacturers and healthcare stakeholders. Uniphar represents a strong combination of scale, growth, and profitability. Uniphar Medtech Uniphar Medtech is a leading pan -European medical device distributor and solutions partner. The Group’s strategy for Uniphar Medtech is to grow our service offering across Europe and expand our addressable market by serving new specialities and new manufacturers. Uniphar Pharma Uniphar Pharma operates a global business with high-value services across the life cycle of a pharmaceutical product. We enable pharma and biotech companies to bring innovative medicines to global markets and provide healthcare professionals with access to medicines they can not source through traditional channels. Our strategy is to build a leading platform to provide the specialist support and expertise needed to improve access to these medicines. Uniphar Supply Chain & Retail Uniphar Supply Chain & Retail is the leading pharmaceutical wholesaler in Ireland with a growing symbol group offering of retail pharmacies. The Group’s strategy for Uniphar Supply Chain & Retail is to grow our wholesale market share, our symbol group netw ork and our own brand, in -licenced and consumer products portfolio. Cautionary statement This announcement contains certain projections and other forward -looking statements with respect to the financial condition, results of operations, businesses, and prospects of the Uniphar Group. These statements are based on current expectations and involve risk and uncertainty because they relate to events and depend upon circumstances that may or may not occur in the future. There are a number of factors which could cause actual results or developments to differ materially from thos e expressed or implied by these projections and forward-looking statements. Any of the assumptions underlying these projections and forward -looking statements could prove inaccurate or incorrect and therefore any results contemplated in the projections and forward-looking statements may not actually be achieved. Recipients are cautioned not to place undue reliance on any projections and forward -looking statements contained herein. Except as required by law or by any appropriate regulatory authority, the Uniphar Group undertakes no obligation to update or revise (publicly or otherwise) any projection or forward-looking statement, whether as a result of new information, future events or other circumstances.
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Uniphar plc - 2024 Preliminary Results | 5 Overview Uniphar Group has delivered an excellent performance in 2024 achieving growth in gross profit and EBITDA. The Group grew gross profit by 9.6% which resulted in EBITDA growth of 6.4%. The majority of the gross profit growth was achieved organically at 8.2% with the remainder due to acquisitions completed in the prior year. Importantly, the growth was achieved right across the Group with each division delivering organic gross profit growth. 2024 represents one of our best performing years for organic gross profit growth. Uniphar Pharma delivered an excellent performance with gross profit growth of 17.8% with both the On Demand and Pharma Services business units contributing to that growth. Uniphar Supply Chain & Retail achieved another strong performance with 5.5% gross profit growth. Excluding the impact of the McCauley Pharmacy Group and a small number of Independent Community Pharmacy ( ‘ICP’) acquisitions, organic growth of 2.7% represents consistent growth across the division. Uniphar Medtech achieved 9.1% gross profit growth, all of which was delivered organically reflecting strong performances in all our markets with noteworthy growth in our UK and European markets. Gross profit margin increased to 15.4% (2023: 15.3%), with increases in both the Pharma and Medtech divisions and the Supply Chain & Retail division broadly unchanged. The overall increase is driven by a continued focus on operational excellence and growth into higher margin sectors and businesses. EBITDA has increased by 6. 4% (€7.5m) to € 123.5m (2023: € 116.0m) primarily reflecting the organic growth , partially offset with the continued investment in our teams, technology and new business opportunities which will support the delivery of the Group's €200m EBITDA target. Adjusted EPS of 20.5 cent is 11.8% (2.2 cent) ahead of 2023 driven by the increased operating profits and strong cash flow management is reflected in low leverage of 1.47x. Return on capital employed (ROCE) for the rolling 12 -month period closed at 15.2% (2023: 15.2%) which is at the upper end of the Group’s medium -term target of 12 -15%. The ROCE is expected to move to within the guided range as the Group completes it s strategic investment programme which will deliver improved growth and returns in the medium-term. The Group's Balance Sheet remains robust with net bank debt of €147.7m and leverage of 1.47x being well below the Group's medium -term target of not exceeding 2.5x. This strong cash performance reflects effective cash management and the benefit of favourable temporary cash flow timing movements arising from the growth in the Pharma Services business that has led to an increase in prepayments on certain EAP programmes. Free cash flow conversion for the year was 105.5%, the definition of which was updated during 2024 to include the principal and interest payments on leases . The Group's banking facility consists of a €400m revolving credit facility and €150m of an uncommitted accordion facility that supports a robust Balance Sheet to provide the Group with long-term strategic and financial flexibility to drive shareholder value over the long-term. Further to the recent sale of Inspired Health, the Group’s strong track record of generating free cash flow, and the Board’s confidence in the Group’s prospects, the Board considers the launch of a share buyback programme as timely and appropriate. The intention is that the share buyback programme will be for €35m and is expected to commence tomorrow 26th February 2025 subject to market conditions. Sustainability Sustainability remains a key focus for the Group and a core principle of how we operate day-to-day. The Group has identified five sustainability pillars that define our approach and we continue to make progress against each of the pillars. In April 2024 SBTi (Science Based Targets Initiative) validated the science -based greenhouse gas emissions reduction targets submitted by Uniphar plc to reduce absolute Scope 1 & 2 emissions by at least 50% by 2030. Furthermore, as part of our commitment to SBTi we have also submitted a target that over 73.5% of our suppliers (by emissions) covering purchased goods and services will have science-based targets for emissions by 2027. In order to achieve this, we have commenced an active supplier engagement programme in the year. The Group also continues to focus on maintaining strong ratings from external rating agencies with our most recent ratings
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Uniphar plc - 2024 Preliminary Results | 6 with CDP being “B” , MSCI being “AAA” and a first percentile risk rating in the healthcare industry from Sustainalytics. The Group's commitment to community is reflected in our ongoing support of the 100 Million Trees Project throughout Ireland, together with our Unity for Hope fundraising programme that raised €155,000 in 2024 and in excess of €1m since its inception five years ago. Acquisitions update Uniphar continues to evaluate potential acquisition opportunities and maintains an active pipeline of opportunities to further expand our capability and geographic reach. The Group maintains a disciplined approach to capital allocation and remains committed to ensuring capital is deployed in investments that deliver a Return on Capital Employed within our target range of 12% - 15% within three years. Strategic capital expenditure update Uniphar's track record of investment in technology has been a critical enabler of the Group's transformational growth journey to date. Investing in modern infrastructure in strategic locations has driven the Group’s ability to achieve growth at pace. We are mid -way through a multi -year strategic investment programme in an Irish -based distribution facility together with the technology platform to maximise the efficiency of the facility. This facility will incorporate the latest technologies to enable the business to drive operational efficiencies and provide the infrastructure to double current capacity levels in the Supply Chain & Retail division. The IT investment will provide the foundation to future proof this market-leading division whilst enabling us to scale our global Pharma platforms and is a key component in achieving our target of €200m EBITDA by 2028. The initial build of the facility is complete with the focus now moving to completing the technology infrastructure. Our new distribution hub in the US is now operational and presents an opportunity for Uniphar to expand the services we offer clients in the North American market. We have completed the first phase of our continental European hub in the Netherlands , with phase two due to complete in 2025 providing extra capacity to support our rapidly growing Pharma and Medtech divisions. Given the scale of the opportunity in the UK market, we are examining opportunities to expand our current footprint there. Current trading Uniphar has entered the year with strong trading momentum and is trading in-line with expectations. Outlook Uniphar remains well positioned to achieve continued organic Gross Profit growth in each division in line with our medium-term targets and is confident of delivering on current market expectations for the full year. The Group announced an ambitious target in 2023 to grow Group EBITDA to €200m over the medium -term which it now expects to deliver in 2028 . This target will be achieved through a combination of strong organic growth across each division , complemented by M&A. The Group now expects that at least 80% of the growth will be organic. Consistent with its medium -term targets, the Group is targeting organic gross profit growth in 2025 as follows: • Uniphar Pharma: Double-digit • Uniphar Medtech: High single-digit • Uniphar Supply Chain & Retail: Low single-digit M&A will continue to play an important role in Uniphar’s growth strategy, and the Group continues to have a disciplined approach to capital allocation while managing an active pipeline of acquisition opportunities to further enhance the Group’s growth potential.
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Uniphar plc - 2024 Preliminary Results | 7 Principal Risks & Uncertainties The Group’s Risk Management Policy provides the framework to identify, assess, monitor , and manage the risks associated with the Group’s business. It is designed to enable the Group to meet its business objectives by appropriately managing, rather than eliminating, these risks. 2024 Highlights The Group continues to ensure that the Risk Management Framework is integrated in the day-to-day activities across the business. During the year ended 31 December 2024, the Group carried out the following: • Reviewed the Group Risk Register, updating for all the key risks facing the Group at this time . • Performed a review of emerging and new risks, including considering economic and geopolitical risk. • Reviewed the relevance of existing risks and identified the current principal risks . • Continued to focus on Cybercrime related risks. The key principal risks and uncertainties faced by the Group for the year ended 31 December 202 4 are summarised as follows: Strategic Risks • Economic, geopolitical and external environment risk - The global macroeconomic, regulatory, political, and legal environment may impact the markets in which we operate and in turn our client and supplier base. This may adversely affect the financial and operational results of the Group. The Group closely monitors global political and economic conditions and responds quickly to any changes in circumstances or events. • Acquisitions - Growth through acquisitions continues to remain a key strategy for the Group. Failure to identify, complete and integrate acquisitions successfully may directly impact the Group’s projected growth. • Key personnel and succession planning - Failure to attract, retain and develop the skills and expertise of its people may adversely impact the Group's performance. • Market perception and reputational risk - Failure to deliver in line with market expectations may result in reputational damage, impacting the Group’s ability to achieve its strategic targets. • Loss of competitive position - Failure of the Group to respond to any changes in the environment in which it operates may result in loss of market share, which may put pressure on profitability and margins. • Environment and sustainability - The global focus on environmental and sustainability governance is recognised by the Group, and by its stakeholders. Failure to appropriately assess, monitor , report and manage the Group’s impact on the environment and the communities in which it operates may result in reputational damage, impacting the Group’s ability to deliver results. Furthermore, failure to comply with environmental and climate change regulations and legislation may negatively affect the Group. • Transformational project execution - The Group has embarked on several transformational projects that will provide the platform and capacity to grow over the coming years. Failure of the Group to effectively deliver such projects may result in cost overruns or reputational damage impacting the Group’s ability to d eliver strategic targets. Operational Risks • Cybercrime - Failure to protect against the ongoing threat of a cyber-attack could lead to a breach in security, impacting operations, financial transactions, and sensitive information. The knock-on impact from an attack on one of our business partners is also an area of risk for the Group. • IT systems - Digital capabilities are a specific strategic offering of Uniphar ; interruption or downtime may have a negative impact on the Group's operations, financial, and competitive positions. • Business interruption - External factors such as natural disasters, environmental hazard or industrial disputes may result in potential lost sales and loss of customer loyalty. • Health & safety - Failure to implement and follow proper health and safety procedures may have adverse effects on employees and patients. • Laws, regulations & compliance - Failure to operate under any of the stringent laws and regulations the Group is subject to could result in financial penalties, reputational damage, and a risk to business operations.
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Uniphar plc - 2024 Preliminary Results | 8 Financial Risks • Foreign currency - The Group's reporting currency is Euro. Exposure to foreign currency is present in the normal course of business, together with the Group operating in jurisdictions outside of the Eurozone. • Treasury - The Group is exposed to liquidity, interest rate and credit risks. The Group is exposed to increases in interest rates and credit risks from changes to economic conditions.
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Uniphar plc - 2024 Preliminary Results | 9 Financial Review Summary Financial Performance Growth Year ended 31 December 2024 €’000 2023 €’000 Reported Constant currency IFRS measures Revenue 2,770,429 2,553,062 8.5% 8.3% Gross profit 427,604 389,984 9.6% 9.4% Operating profit 81,989 67,708 21.1% 21.1% Basic EPS (cent) 23.5 16.4 43.3% Alternative performance measures Gross profit margin 15.4% 15.3% EBITDA 123,458 115,985 6.4% 6.4% EBITDA % 4.5% 4.5% Adjusted EPS (cent) 20.5 18.3 11.8% Net bank debt (147,676) (149,947) Return on capital employed 15.2% 15.2% Revenue Revenue in the year amounted to €2.8bn representing an increase of 8.5% (8.3% constant currency) on 2023. Revenue growth was achieved in all three divisions with the most significant increase being in Uniphar Supply Chain & Retail. This growth is driven by a strong performance in the year together with the full year impact of the McCauley pharmacy acquisition in early 2023. Gross Profit Gross profit growth of 9.6% (9.4% constant currency) with growth delivered across all three divisions. This growth is mainly reflective of revenue growth in addition to an increase in the Group’s gross margin to 15.4% (2023: 15.3%). Uniphar Pharma delivere d a standout performance with gross profit growth of 17.8% whilst Uniphar Medtech and Uniphar Supply Chain & Retail delivered growth of 9.1% and 5.5% respectively. Gross profit growth was predominantly organic with Supply Chain & Retail reflecting the full year benefit of the McCauley pharmacy group and a small number of ICP acquisitions in 2023. Divisional gross profit Growth Year ended 31 December 2024 €’000 2023 €’000 Reported Constant Currency Organic Uniphar Medtech 108,915 99,870 9.1% 8.6% 9.1% Uniphar Pharma 121,561 103,187 17.8% 17.3% 17.6% Uniphar Supply Chain & Retail 197,128 186,927 5.5% 5.5% 2.7% 427,604 389,984 9.6% 8.2% Administrative expenses Pre-exceptional administrative expenses have increased by €25.3m to €260.9m in 2024. This increase of 10.7% reflects the revenue growth of 8.5% together with an element of investment in new business streams primarily in the Uniphar Pharma division that are at an early stage of development. These investments are developing their revenue pipelines and are anticipated to be an important part of the growth of the Uniphar Pharma division in future years.
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Uniphar plc - 2024 Preliminary Results | 10 EBITDA EBITDA increased by €7.5m to €123.5m representing growth of 6.4% in the year (constant currency 6.4%) and a consistent year -on-year EBITDA margin of 4.5% . The growth is reflective of the organic gross profit growth and an element of incremental investment in the business to enable future growth. Cost management and return on capital remains a focus of management especially given the macroeconomic environmen t. Exceptional Items Exceptional items in the year amounted to a gain of €14.5m before tax (2023: charge of €0.4m). This comprises three elements of costs totalling €5.6m primarily relating to acquisition, redundancy and strategic business transformation costs. This is partly offset by a gain on the disposal of businesses and assets of €2.4m primarily relating to the sale of Inspired Insight, LLC. A net release was booked of deferred contingent consideration of €17.6m following a review of the expected performance against earn -out targets and contractual obligations. Further details can be found in Note 3 of the financial statements. Earnings per Share Basic earnings per share for the year at 23.5 cent is an increase of 7.1 cent on 2023 which reflects strong growth in operating profit and the impact of the exceptional gain relating to the net release of deferred contingent consideration. The weighted average number of shares remains the same as in 2023. Adjusted earnings per share is calculated after adjusting for amortisation of acquisition related intangibles, exceptional costs and share-based payment expenses. The Group’s adjusted earnings per share for 2024 was 20.5 cent (2023: 18.3 cent). Underlying adjusted earnings have increased by 11.8% from €50.0m in 2023 to €55.9m in 2024. Cash Flow and Net Bank Debt The Group delivered a strong cash performance during the year, with a free cash flow conversion of 105.5% and a net bank debt position of €147.7m (2023: €149.9m). Year ended 31 December 2024 €’000 2023 €’000 Net cash inflow from operating activities 124,268 52,511 Net cash outflow from investing activities (96,479) (90,428) Net cash (outflow)/inflow from financing activities (11,488) 19,630 Foreign currency translation movement 1,039 235 Increase/(decrease) in cash and cash equivalents in the year 17,340 (18,052) Movement in restricted cash 121 173 Non-cash movement in borrowings* (2,663) 577 Cash flow from movement in borrowings (12,527) (41,428) Movement in net bank debt 2,271 (58,730) *The Non-cash movement relates to foreign currency movement and amortisation of refinancing transaction fees. The Group continues to maintain a strong focus on working capital management, and this is reflected in the cash generated from operating activities of €1 24.3m. The main year -on-year movements reflect favourable working capital benefits from the growth in the Pharma Services division that have led to an increase in prepayments on certain programmes being partially offset by higher interest and tax paid in the year. The net cash outflow from investing activities of € 96.5m principally consisted of property, plant and equipment and intangible assets investment of €10 1.9m (including strategic capital invested) together with deferred and deferred contingent consideration payments of €16.3m. This is offset by the disposal of businesses of €21.9m, principally Inspired Insight, LLC (“Inspired Health”). The net cash outflow from financing activities of € 11.5m was primarily due to repayments of borrowings of €33.7m which included the repayment of a US Dollar loan following the disposal of Inspired Health, principal lease payments of €18.3m and dividends of €5.1m, offset by loan drawdowns from the revolver facility of €50.1m and a decrease in invoice discounting facilities of €3.9m.
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Uniphar plc - 2024 Preliminary Results | 11 Debt Facility The Group operates a revolving credit facility of €400 m with an additional uncommitted accordion facility of €150m. This facility which commenced in August 2022 runs for five years to August 2027 with an option to extend by one year and a further option to extend by an additional year up to August 2029 with repayment of all loans due on termination of the facility. There are seven international banks in the current banking syndicate. Net bank debt was €147.7m at 31 December 2024 (2023: 149.9m) and leverage marginally decreased to 1.47x (2023: 1.58x). The facility combined with modest leverage and strong free cash flow provides the Group with the platform to support future growth and investment. Taxation The Group’s total tax expense has increased by €3.6 m to €11.4m driven by the increase in pre -exceptional profits. The effective tax rate before exceptional items has increased from 16.6% to 18.4% reflective of the financial performance over multiple tax jurisdictions. The effective tax rate is calculated a s the pre-exceptional income tax expense for the year as a percentage of the profit before tax and exceptional items. Currency Exposure The Group continues to expand into new geographies which, together with the continued growth in existing geographies outside of the Eurozone, results in a foreign exchange exposure for the Group being the translation of local income statements and balance sheets into Euro for consolidation purposes. On a constant currency basis, revenue increased by 8.3% vs. 8.5% reported growth, gross profit increased 9.4% vs 9.6% reported growth and operating profit increased by 21.1% vs. 21.1% reported growth. 2024 2023 Average Average Great British Pound 0.847 0.870 US Dollar 1.082 1.081 Swedish Krona 11.431 11.473 Australian Dollar 1.639 1.628 Return on Capital Employed (ROCE) Group ROCE of 15.2% ( 2023: 15.2%) is consistent with the prior year and is marginally ahead of the Group’s target range of 12% -15%. This strong return is achieved notwithstanding the significant investment in 2024 in the Group’s new high-tech distribution facility in Ireland. Once complete, this investment will deliver significant efficiencies and capabilities and support the long -term growth of the Uniphar Supply Chain & Retail division. The ROCE metric is anticipated to trend to within the Gr oup’s target range of 12% -15% as the s trategic investment programme reaches completion. Details on the calculation of ROCE is included in the APMs section on pages 41 to 45. Dividends The Board remains committed to a progressive dividend policy as stated at the time of IPO. The Directors are proposing a final dividend of €3. 4m (€0.0125 per ordinary share), subject to approval at the Company’s AGM. It is proposed to pay the dividend on 16 May 2025 to ordinary shareholders on the Company’s register at 5 p.m. on 25 April 2025. Together with the interim dividend of €1.8m (€0.0067 per ordinary share) paid in October 2024 this brings the total dividend for the year to €5 .2m (€0.0192 per ordinary share) representing an increase of 4.9% on 2023 (€0.0183 per ordinary share).
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Uniphar plc - 2024 Preliminary Results | 12 Operational overview Uniphar Medtech Growth Year ended 31 December 2024 €’000 2023 €’000 Reported Constant currency Revenue 267,968 249,216 7.5% 7.1% Gross profit 108,915 99,870 9.1% 8.6% Gross margin % 40.6% 40.1% Performance highlights - Gross profit growth of 9.1% all of which is organic - Growth strategy delivering significant growth in the UK laying the foundation for further significant growth in both the UK and EU - Continued focus on operational excellence delivering increase in Gross margin to 40.6% - Number of specialities serviced in the UK market increased from two to six - Growth of our European offering by leveraging existing interventional specialities into new countries - 74 manufacturers represented in two or more countries Who we are Uniphar Medtech is the leading European medical device distributor offering end-to-end solutions and expertise across sales, marketing, quality, compliance, regulatory and market access to the world’s top medical device manufacturers. The division is a hig h-growth diversified healthcare services provider, offering best -in-class products and services across multiple specialities to both the public and private sectors. The business is headquartered in Ireland with a presence in 16 markets primarily across Eur ope in addition to a partnership network elsewhere. What we do Uniphar Medtech is an expert provider across a wide range of specialisms with market -leading positions in interventional cardiology/radiology, orthopaedics, ophthalmology, minimally invasive surgery, diagnostic imaging and critical care. We enable life changing innovation across each of our markets of operation and view our compliance offering as a competitive advantage . The division has established long -standing exclusive distribution agreements with some of the world’s leading manufacturers of medical devices and is one of only a few companies in Europe fully accredited with service license agreements for several global medical device brands. Our team excels at building strong partnerships between healthcare providers and world-class medical device manufacturers, ensuring that life -changing medical devices reach the healthcare professionals and the patients who need them. Relationships At Uniphar Medtech, people and the relationships they cultivate are at the heart of our business. Supplier expansion is a key pillar of our growth strategy, with long -standing partnerships with manufacturers driving our entry into new geographical regions. Our manufacturers trust us to represent their brands in daily interactions with healthcare professionals, making our relationships with the medical community crucial. The majority of our sales representatives in the Medtech division come from clinical bac kgrounds, allowing them to engage with customers in a peer-to-peer manner. As medtech solutions become more sophisticated, the purchasing decision is increasingly led by physicians with the specific knowledge of the individual patients’ case. Our strong relationships with these frontline professionals are a key asset to the division. Innovation The Medtech sector has been a leader in the healthcare industry, driving innovation to enhance the quality of patient care. Recent advancements in products and technologies have delivered significant operational and cost efficiencies for healthcare provide rs, while also improving clinical outcomes for patients. One area experiencing notable growth is the use of robotics in surgery, as physicians increasingly turn to technology to enhance their skills and achieve greater precision, particularly for routine procedures. Uniphar Medtech is proud to represent global robotic manufacturers in the orthopaedic and minimally invasive surgery specialties, playing a key role in accelerating the digital transformation of healthcare.
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Uniphar plc - 2024 Preliminary Results | 13 Performance in 2024 The division delivered a strong performance in 2024 growing gross profit by 9.1% all of which was achieved organically. This growth was delivered across all of our regions through excellent performance with existing suppliers in the market, in addition to bringing existing and new suppliers into new areas of partnership. In particular, the division achieved strong growth in Germany, the UK and the Nordics in 2024. Furthermore, in the UK, the division grew the number of specialities serviced from two to six in the year. An efficient central support function is essential to providing a world -class service to our clients. The current scale of the division enables it to optimise technical and clinical knowledge along with central support services to drive growth in new marke ts. The platform that the division has developed in recent years enables it to leverage these essential skills in building a sustainable and efficient platform to further expand. Outlook Uniphar Medtech has a strong team in place with the experience and tenure to understand its clients and provide solutions to the challenges they encounter. The business has delivered significant growth in recent years expanding both the range of specialities and the geographies it services. As the business moves forward, it has significant opportunities notably in the UK and mainland Europe in supporting existing and new clients grow their market share. Furthermore, the division has now established a presence in Switzerland and Austria to better support clients in those markets. The division has deep relationships in the Irish market which are expected to continue to drive growth there. Our growth strategy is driven by our dedication to deliver an outstanding performance for manufacturers and growing with them into a multiplicity of markets delivering the same success wherever we work with them. 2024 witnessed great strides in partnership across the EU and the UK setting a great foundational platform for future growth. The division has the market access, service platform, leadership team, expertise and track record to capitalise on the opportunities ahead of it.
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Uniphar plc - 2024 Preliminary Results | 14 Uniphar Pharma Growth Year ended 31 December 2024 €’000 2023 €’000 Reported Constant currency Revenue 658,814 592,226 11.2% 10.7% Gross profit 121,561 103,187 17.8% 17.3% Gross margin % 18.5% 17.4% Performance highlights - Gross profit growth of 17.8% achieved in 2024 of which 17.6% was achieved organically with growth in both the On Demand and Pharma Services business units - Continued growth in gross profit margin as the business expands into higher margin activities - Strong performance in the On Demand business solving market supply challenges and ensuring continued access to difficult-to-source medicines for customers - 17 new Expanded Access Programs (EAPs) onboarded in the year Who we are Uniphar Pharma’s goal is to provide access to innovative medicines and therapies and help manufacturers optimise value for their assets globally. The division operates on a global scale, delivering integrated, high-value services throughout the life cycle of a pharmaceutical product- from molecule to market. What we do We collaborate with pharmaceutical and biotech companies to address the challenges of today’s healthcare market, from bringing innovative medicines to global markets to ensuring healthcare professionals have access to medicines that are difficult to source through traditional channels. The division utilises our global network of facilities and locally -based clinical, regulatory and logistics experts to support our clients and to solve their unique challenges with customised solutions. The division offers tw o distinct service lines: On Demand and Pharma Services. On Demand Our On Demand business is a leading global provider of unlicenced and difficult to source medicines serving both primary and secondary care customers. Our procurement teams specialise in resolving supply challenges for medicines that are in short supply to ensure the continuity of supply to patients who rely on them around the globe. On Demand also supports clinical trials through the sourcing, labelling and supply of comparator medicines in addition to operating an Aid and Development business that supplie s much-needed products to governments and international organisations. Our unrivalled expertise in logistics, national and international regulatory affairs, reimbursement policies and quality procedures together with strong relationships with pharma manufacturers, make our team a leading partner in their field. The business sources medicines from in excess of 40 countries and supplies more than 160 countries. Pharma Services The Pharma Services business provides high -value services to pharma and biotech companies across the life cycle of a product supporting our clients in navigating the barriers to launch and commercialisation in their target markets. Our end -to-end suite of services remove barriers to launch and increase access to providers and patients. Uniphar is the only company worldwide to have provided global expanded access programs for cell and gene therapies and is the market leader for these complex treatments. Our capabilities in the market include Outsourced Product Development, Expanded Access Programs, Regulatory Affairs, Medical Affairs, Insight - Driven Sales & Marketing, Quality Assurance, and Supply Chain Management. Future of Pharma The pharmaceutical industry is undergoing significant changes that pose challenges for manufacturers, healthcare professionals, and patients alike. New complex treatments, growing regulatory burden and a focus on larger markets have disrupted the traditional balance of the healthcare sector. Consequently, pharma/biotech companies are seeking partners with the global expertise and reach to help them to supply and commercialise their specialist products in smaller markets. Simultaneously, healthcare professio nals are grappling with persistent medicine shortages needed for patient care.
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Uniphar plc - 2024 Preliminary Results | 15 Performance in 2024 Uniphar Pharma delivered an outstanding performance in 2024 with organic gross profit growth of 17.6%. The On Demand business continues to perform well by offering solutions and expertise to help our customers bring difficult-to-source medicines to those who need them in addition to serving markets where medicines may otherwise be unavailable. The On Demand business operates across Europe, Asia Pacific an d US markets . The recent acquisitions of BModesto and Orspec Group have enabled the Group to further leverage relationships in their respective markets for the benefit of the wider Group. BModesto announced the investment in a new state of the art distribution facility in the Netherlands during 2024 which will significantly expand their capacity and the services the business can offer our customers and the market and provide the Group with a sizable facility in mainland Europe. Pharma Services performed strongly in the year with continued growth in EAP programs. As our EAP offering becomes more established in the market , clients are increasingly looking to Uniphar to partner with them to provide additional services across the product life cycle. Uniphar is proud to have been the only company to have provided global expanded access for cell and gene therapies in 2024 making the business a market leader for bringing these treatments to market. Outlook Uniphar Pharma has strengthened its service offering considerably in recent years both through acquisition and the development of new capabilities. The business is now capable of supporting manufacturers from “molecule to market” across all stages of the product life cycle in addition to helping healthcare practitioners (HCPs) get access to difficult -to-source medicines . Uniphar Pharma’s target for organic gross profit growth is to deliver double digit growth over the medium -term. Our flexible and innovative approach to providing solutions, combined with our enhanced scale and reach, will allow us to take a leadership position in this market in the medium-term.
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Uniphar plc - 2024 Preliminary Results | 16 Uniphar Supply Chain & Retail Growth Year ended 31 December 2024 €’000 2023 €’000 Reported Constant currency Revenue 1,843,647 1,711,620 7.7% 7.7% Gross profit 197,128 186,927 5.5% 5.5% Gross margin % 10.7% 10.9% Performance highlights - 5.5% growth in gross profit of which 2.7% was achieved organically - Retail brands among the most trusted in Ireland with all four brands ranked in top 1 2 in CXi Customer Experience survey - Wholesale volumes increased by 7% ahead of the market growth of 5% - Multi-year investment in new distribution facility and IT infrastructure progressing to plan with property fitout completed during the year Who we are Uniphar Supply Chain & Retail is the vertically integrated pharmaceutical distribution and retail pharmacy division of the Group. The division comprises of Pre-wholesale, Wholesale and Retail pharmacy businesses that work together to supply medicines, consumer products and pharmacy services to our customers. Uniphar holds c.54% of the wholesale market and c.60% of the hospital supply market in Ireland. What we do Pre-wholesale The pre -wholesale business unit supports pharmaceutical manufacturers with tailored and innovative distribution solutions to bring their products to the Irish market. Pre -wholesale is a key element of the vertically integrated offering that Supply Chain & Retail brings to the market. The Pre -wholesale business performed strongly in 2024 and begins 2025 from a position of strength, having secured contract renewals with several long-established manufacturers whilst advancing new business opportunities with ke y client partners. The growing demand for specialist medicines requiring temperature -controlled storage and distribution, combined with the expertise of our team, places the Pre -wholesale business in an ideal position to meet the rising needs of its clients. Wholesale The Wholesale business efficiently, reliably, and securely supplies critical medicines to pharmacies and hospitals in Ireland, playing a vital role in improving patient health. At the heart of the business is the delivery of prescription and OTC (over -the-counter) products to community and hospital pharmacies across Ireland. Additionally, we offer a broad range of consumer products, which have become a key driver of growth in recent years. Our goal is to be the preferred partner for pharmacies by delivering world-class service levels alongside a comprehensive range of consumer products. The investment programme in the new distribution facility in Dublin continues to progress well while the business prepares for the extra capacity, efficiencies and capabilities that the new infrastructure will deliver for the Group. Retail Our Retail pharmacy business unit comprises 445 pharmacies that are owned, franchised or supported by the Group. The business operates across four brands – Hickey’s, McCauley, Allcare and Life Pharmacy – and together form one of the largest pharmacy groups in Ireland. Community pharmacy plays a prominent role as a trusted support to patients and is increasingly seen as a primary care destination for healthcare services. During 2024, all four of our brands featured in the top 1 2 brands in Ireland in the CXi Customer Experience annual survey with Life Pharmacy ranked number two overall and the number one brand for customer experience. Performance in 2024 The division achieved Gross profit growth of 5.5% of which 2.7% was achieved organically. This level of growth is delivered through relentless focus on operational excellence and a dedication to offering a high service level to customers. The Wholesale business grew at a higher rate than the market in 2024 increasing market share to c.54% . The Retail brands are among the most trusted in Ireland by consumers who look to us as their
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Uniphar plc - 2024 Preliminary Results | 17 healthcare partner. The division continues to focus on investing in the people and infrastructure to take the business forward. The multi -year investment in our new distribution facility and IT infrastructure in Dublin continues to progress to plan with the division substantially completing the fitout of the property during the year. Outlook The Supply Chain & Retail division’s success is defined by its commitment to operational excellence and service delivery for our customers. Our goal is to be the one -stop shop for community pharmacies, offering reliable solutions for not only their prescription and OTC (over-the-counter) needs but also their front -of-shop and consumer product requirements. Community pharmacy in Ireland is an important element of the healthcare system with 7 out of 8 Irish adults visiting a pharmacy every month and 42% of th e population living within one kilometre of a pharmacy. Our vertically integrated Supply Chain & Retail division is well positioned to capitalise on the growth of community pharmacy as one of Ireland’s largest pharmacy networks. The division continues to l ook forward to its new distribution facility which will significantly expand capacity and provide the infrastructure for the coming years to scale the division further in addition to supporting the next generation of digital pharmacy.
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Uniphar plc - 2024 Preliminary Results | 18 Group Income Statement for the year ended 31 December 2024 Notes 2024 Pre- exceptional €’000 2024 Exceptional (Note 3) €’000 2024 Total €’000 2023 Pre- exceptional €’000 2023 Exceptional (Note 3) €’000 2023 Total €’000 Revenue 2 2,770,429 - 2,770,429 2,553,062 - 2,553,062 Cost of sales (2,342,825) - (2,342,825) (2,163,078) - (2,163,078) Gross profit 427,604 - 427,604 389,984 - 389,984 Selling and distribution costs (82,018) - (82,018) (76,976) - (76,976) Administrative expenses (260,936) (5,556) (266,492) (235,648) (8,865) (244,513) Other operating income/(expense) 500 2,395 2,895 395 (1,182) (787) Operating profit 85,150 (3,161) 81,989 77,755 (10,047) 67,708 Finance cost 4 (25,917) 17,625 (8,292) (25,024) 9,624 (15,400) Finance income 4 1,897 - 1,897 590 - 590 Profit before tax 61,130 14,464 75,594 53,321 (423) 52,898 Income tax expense (11,239) (119) (11,358) (8,834) 1,084 (7,750) Profit for the financial year 49,891 14,345 64,236 44,487 661 45,148 Attributable to: Owners of the parent 64,203 44,815 Non-controlling interests 33 333 Profit for the financial year 64,236 45,148 Attributable to: Continuing operations 64,236 45,148 Profit for the financial year 64,236 45,148 Earnings per ordinary share (in cent): Continuing operations 23.5 16.4 Basic and diluted earnings per share (in cent) 5 23.5 16.4
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Uniphar plc - 2024 Preliminary Results | 19 Group Statement of Comprehensive Income for the year ended 31 December 2024 2024 €’000 2023 €’000 Profit for the financial year 64,236 45,148 Other comprehensive income/(expense) Items that may be reclassified to the Income Statement: Unrealised foreign currency translation adjustments 6,380 697 Cumulative exchange difference on translation recycled on disposal (223) - Total comprehensive income for the financial year 70,393 45,845 Attributable to: Owners of the parent 70,360 45,512 Non-controlling interests 33 333 Total comprehensive income for the financial year 70,393 45,845
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Uniphar plc - 2024 Preliminary Results | 20 Group Balance Sheet As at 31 December 2024 ASSETS Notes 2024 €’000 2023 €’000 Non-current assets Intangible assets - goodwill 7 507,607 517,087 Intangible assets - other assets 7 59,696 44,565 Property, plant and equipment, and right-of-use assets 8 284,796 206,700 Financial assets - Investments in equity instruments 25 25 Deferred tax asset 8,718 11,792 Other receivables 1,244 1,458 Total non-current assets 862,086 781,627 Current assets Inventory 201,582 184,549 Trade and other receivables 248,882 237,560 Cash and cash equivalents 102,992 85,652 Restricted cash 294 173 Total current assets 553,750 507,934 Total assets 1,415,836 1,289,561 EQUITY Capital and reserves Called up share capital presented as equity 9 21,841 21,841 Share premium 176,501 176,501 Share-based payment reserve 5,936 3,542 Other reserves 8,862 2,705 Retained earnings 188,615 128,213 Attributable to owners 401,755 332,802 Attributable to non-controlling interests 126 818 Total equity 401,881 333,620 LIABILITIES Non-current liabilities Borrowings 10 241,646 222,604 Deferred contingent consideration 11 7,157 31,538 Provisions 12 1,827 1,752 Lease obligations 13 132,612 126,083 Total non-current liabilities 383,242 381,977 Current liabilities Borrowings 10 9,316 13,168 Deferred contingent consideration 11 32,025 43,523 Lease obligations 13 22,580 20,134 Trade and other payables 562,969 490,283 Corporation tax 3,823 6,856 Total current liabilities 630,713 573,964 Total liabilities 1,013,955 955,941 Total equity and liabilities 1,415,836 1,289,561
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Uniphar plc - 2024 Preliminary Results | 21 Group Statement of Changes in Equity for the year ended 31 December 2024 Other Reserves Share capital Share premium Share- based payment reserve Foreign currency translation reserve Revaluation reserve Capital redemption reserve Retained earnings Attributable to non- controlling interests Total shareholders’ equity €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 At 1 January 2023 21,841 176,501 718 1,248 700 60 88,476 239 289,783 Profit for the financial year - - - - - - 44,815 333 45,148 Other comprehensive expense Movement in foreign currency translation reserve - - - 697 - - - - 697 Transactions recognised directly in equity: Movement in share-based payment reserve - - 2,824 - - - - - 2,824 Purchase of non-controlling interest - - - - - - (246) 246 - Dividends paid - - - - - - (4,832) - (4,832) At 31 December 2023 21,841 176,501 3,542 1,945 700 60 128,213 818 333,620 At 1 January 2024 21,841 176,501 3,542 1,945 700 60 128,213 818 333,620 Profit for the financial year - - - - - - 64,203 33 64,236 Other comprehensive income Movement in foreign currency translation reserve - - - 6,157 - - - - 6,157 Transactions recognised directly in equity: Movement in share-based payment reserve - - 2,944 - - - - - 2,944 Transfer on exercise, vesting or lapse of share- based payments - - (550) - - - 550 - - Purchase of non-controlling interest - - - - - - 725 (725) - Dividends paid - - - - - - (5,076) - (5,076) At 31 December 2024 21,841 176,501 5,936 8,102 700 60 188,615 126 401,881
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Uniphar plc - 2024 Preliminary Results | 22 Group Cash Flow Statement Year ended 31 December 2024 Notes 2024 €’000 2023 €’000 Operating activities Cash inflow from operating activities 15 162,816 82,149 Interest paid (22,080) (16,186) Interest received 1,897 590 Interest paid on lease liabilities 13 (7,235) (4,884) Corporation tax payments (11,130) (9,158) Net cash inflow from operating activities 124,268 52,511 Investing activities Payments to acquire property, plant and equipment - Maintenance (10,911) (7,192) Payments to acquire property, plant and equipment - Strategic projects (68,643) (14,066) (Payments)/Receipts from disposal of property, plant and equipment (net of disposal expenses) (180) 991 Receipts from disposal of businesses (net of cash disposed and disposal expenses) 21,934 718 Payments to acquire intangible assets - Maintenance (6,172) (3,771) Payments to acquire intangible assets - Strategic projects (16,182) (6,925) Receipts from disposal of assets held for sale - 1,600 Payments to acquire subsidiary undertakings (net of cash acquired) - (29,809) Repayment of debt acquired on acquisition of subsidiary undertakings - (22,664) Payments on prior year acquisitions (254) (842) Payment of deferred and deferred contingent consideration (16,071) (8,568) Receipt of deferred consideration receivable - 100 Net cash outflow from investing activities (96,479) (90,428) Financing activities Proceeds from borrowings 50,050 35,750 Repayments of borrowings (33,671) (1,600) (Decrease)/increase in invoice discounting facilities (3,852) 7,278 Movement in restricted cash (121) (173) Payment of dividends (5,076) (4,832) Acquisition of further equity in subsidiaries (483) (189) Principal element of lease payments (18,335) (16,604) Net cash (outflow)/inflow from financing activities (11,488) 19,630 Increase/(decrease) in cash and cash equivalents in the year 16,301 (18,287) Foreign currency translation on cash and cash equivalents 1,039 235 Opening balance cash and cash equivalents 85,652 103,704 Closing balance cash and cash equivalents 14 102,992 85,652
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Uniphar plc ACCOUNTING POLICIES Uniphar plc - 2024 Preliminary Results | 23 Notes to the Consolidated Financial Statements 1. General information Basis of preparation The 2024 financial statements have been audited, with an unqualified audit report and have been approved by the Board of Directors. The financial information set out in this document does not constitute full statutory financial statements but has been derived from the Group financial statements for the year ended 31 December 2024. In accordance with the AIM and Euronext Growth Rules the consolidated financial statements of Uniphar plc and its subsidiaries (the ‘Group’) have been prepared in accordance with Internat ional Financial Reporting Standards (IFRS) and interpretations issued by the IFRS Interpretations Committee (IFRS IC) applicable to companies reporting under IFRS, as adopted by the EU and as applied in accordance with the Companies Act 2014. The financial information in the consolidated financial statements has been prepared on a basis consistent with that adopted for the year ended 31 December 2023. The Group’s consolidated financial statements are prepared for the year ended 31 December 202 4. The consolidated financial statements incorporate the Company and all of its subsidiary undertakings. A subsidiary undertaking is consolidated by reference to whether the Group has control over the subsidiary undertaking. The Group controls an entity whe n the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Uniphar plc is incorporated in the Republic of Ireland under registration number 224324 with a registered office at 4045 Kingswood Road, Citywest Business Park, Co. Dublin, D24 V06K. The statutory financial statements will be filed with the Companies Registration Office in line with the Annual Return date. Going Concern The Directors have made appropriate enquiries and carried out a thorough review of the Group’s forecasts, projections and available banking facilities taking account of committed outflows including contingent consideration and committed capital expenditure. Consideration was also given to possible changes in trading performance and potential business risk s. The forecasts indicate significant liquidity headroom will be maintained above the Group’s borrowing facilities and applicable financial covenants will be met throughout the forecast period. The Group has a robust capital structure with strong liquidity, supported into the future by the banking facility , with a remaining term extending to August 2027 with an option to extend by one year and a further option to extend by an additional year up to August 2029 . At the 31 December 2024 , the headroom on the undrawn portion of the borrowing facilities (both committed and uncommitted facilities) was €308.4m (2023 €327.4m). Having regard to the factors outlined above , the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being a period of 12 months from the date of approval of these financial statements. As a result, the Directo rs consider that it is appropriate to continue to adopt the going concern basis, in preparing the financial statements. New Standards, Amendments, and Interpretations The Group has applied the following standards and amendments for the first time for its annual reporting period commencing 1 January 2024: New • Amendments to IAS 1 – Classification of Liabilities as Current or Non-current liabilities with covenants • Amendments to IAS 7 and IFRS 7 – Supplier finance arrangements • Amendments to IFRS 16 – Lease Liability in a Sale and Leaseback The amendments listed above did not have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.
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Uniphar plc ACCOUNTING POLICIES Uniphar plc - 2024 Preliminary Results | 24 New standards and interpretations not yet adopted The following accounting standards and interpretations have been published but are not mandatory for 31 December 2024 reporting periods and have not been early adopted by the Group: • Amendments to IAS 21 to clarify the accounting when there is a lack of exchangeability • Amendments to IFRS 9 and IFRS 7 – Amendments to the classification and measurement of Financial Instruments • IFRS 8 – Presentation and Disclosure in Financial Statements • IFRS 19 – Subsidiaries without Public Accountability: Disclosures These standards are not expected to have a material impact in the current or future reporting periods or on foreseeable future transactions.
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Uniphar plc NOTES TO THE FINANCIAL STATEMENTS Uniphar plc - 2024 Preliminary Results | 25 2. Revenue and Operating Segments 2024 €’000 2023 €’000 Revenue 2,770,429 2,553,062 2024 €’000 2023 €’000 Uniphar Medtech 267,968 249,216 Uniphar Pharma 658,814 592,226 Uniphar Supply Chain & Retail 1,843,647 1,711,620 Total Revenue 2,770,429 2,553,062 Segmental information Segmental information is presented in respect of the Group ’s geographical regions and operating segments. The operating segments are based on the Group’s management and internal reporting structures. Geographical analysis The Group operates in three principal geographical regions being the Republic of Ireland , the Netherlands and the UK. The Group also operates in several other European countries, the US and the Asia Pacific region which are not material for separate identification. The following is a geographical analysis presented in accordance with IFRS 8 ‘Operating Segments ’ which requires disclosure of information about the country of domicile (Ireland) and countries with material revenue. 2024 2023 €’000 €’000 Ireland 2,108,815 1,952,604 UK 206,896 186,820 The Netherlands 206,266 205,905 Rest of the World (ROW) 248,452 207,733 2,770,429 2,553,062 Operating segments IFRS 8 "Operating Segments" requires the reporting information for operating segments to reflect the Group's management structure and the way the financial information is regularly reviewed by the Group’s Chief Operating Decision Maker (CODM), which the Group has defined as the Board of Directors. The Group operates with three divisions: Uniphar Medtech, Uniphar Pharma and Uniphar Supply Chain & Retail. These divisions align to the Group’s operational and financial management structures: • Uniphar Medtech provides outsourced services, specifically sales, distribution and support services to medical device manufacturers. The business is headquartered in Ireland with a presence in 16 markets primarily across Europe in addition to a facility in the US to support clients seeking to access the North American market; • Uniphar Pharma operates a global business with high -value services across the life cycle of a pharmaceutical product. The business enables pharma and biotech companies to bring innovative medicines to global markets and provide healthcare professionals with access to medicines they cannot
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Uniphar plc NOTES TO THE FINANCIAL STATEMENTS Uniphar plc - 2024 Preliminary Results | 26 source through traditional channels. Our strategy is to build a leading platform to provide the specialist support and expertise needed to improve access to these medicines. The division operates through its On Demand and Pharma Services business units; and • Uniphar Supply Chain & Retail provides both pre -wholesale and wholesale distribution of pharmaceutical, healthcare and animal health products to pharmacies, hospitals and veterinary clinics in Ireland. Uniphar operates a network of pharmacies under the Life, Allcare, Hickey’s and McCauley brands. Additionally, through the extended Uniphar symbol group, the business provides services and supports that help independent community pharmacies to compete more effectively. Operating segments results The Group evaluates performance of the operational segments on the basis of gross profit from operations. 2024 Uniphar Medtech €’000 2024 Uniphar Pharma €’000 2024 Uniphar Supply Chain & Retail €’000 2024 Total €’000 Revenue 267,968 658,814 1,843,647 2,770,429 Gross profit 108,915 121,561 197,128 427,604 2023 Uniphar Medtech €’000 2023 Uniphar Pharma €’000 2023 Uniphar Supply Chain & Retail €’000 2023 Total €’000 Revenue 249,216 592,226 1,711,620 2,553,062 Gross profit 99,870 103,187 186,927 389,984 There are no material dependencies or concentrations on individual customers which would warrant disclosure under IFRS 8 ‘Operating Segments’. Assets and liabilities are reported to the Board at a Group level and are not reported on a segmental basis.
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Uniphar plc NOTES TO THE FINANCIAL STATEMENTS Uniphar plc - 2024 Preliminary Results | 27 3. Exceptional income/(charge) 2024 €’000 2023 €’000 Professional fees including acquisition costs (1,243) (2,206) Redundancy and restructuring costs (2,369) (2,679) Acquisition integration costs (488) (2,611) Strategic business transformation (1,320) (1,413) Gain/(loss) on disposals of businesses and assets 2,395 (1,182) Other exceptional (costs)/ income (136) 44 Exceptional charge recognised in operating profit (3,161) (10,047) Decrease in deferred contingent consideration 17,625 9,624 Exceptional credit recognised in finance cost 17,625 9,624 Exceptional (charge)/credit recognised in income tax (119) 1,084 Total exceptional income 14,345 661 Professional fees including acquisition costs: Professional fees including acquisition costs are primarily costs relating to transactions under consideration in the year. Redundancy and restructuring costs: Redundancy and restructuring costs include redundancy, ex gratia and termination costs and other costs arising on reorganisations and recent acquisitions. Acquisition integration costs: Acquisition integration costs primarily relate to costs incurred on the integration of recent acquisitions into the expanded Group. Such costs include those associated with winding -down and exiting facilities acquired in recent acquisitions in addition to professional fees incurred to optimise the integration of recent acquisitions. Strategic business transformation: Strategic business transformation are costs associated with establishing the strategic platform that will enable the next phase of growth. They include costs associated with the Group’s strategic capital expenditure programmes whilst in the initiation phas e together with the costs of establishing a strategic presence in new markets. The costs include setup costs, initiation costs and relocation costs in addition to the costs of a long - term incentive plan associated with building a strategically significant business in the US market. Deferred contingent consideration: Deferred contingent consideration of €17,625,000 relates to a net credit to the Group Income Statement following a review of the expected performance of a number of acquisitions completed in prior years against contractual earn-out targets. An additional provision of €21,622,000 was recognised in respect of acquisitions in the Uniphar Pharma division that have exceeded previous performance expectations. For these acquisitions, the expectation is that the maximum amount payable under the earn-out agreement will be payable. An amount of €39,247,000 was released in respect of acquisitions in the Uniphar Pharma and Uniphar Medtech divisions following a review of expected performance having reference to the application of the specific earn-out terms. This includes €22,219,000 in respect of acquisitions whose earn-outs concluded on 31 December 2024 and €13, 100,000 in respect of acquisitions whose earn -outs conclude in mid-2025. There were various factors involved in the performance outcomes and the ultimate paym ents are sensitive to relatively small movements in profitability. Further information is included in Note 11.
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Uniphar plc NOTES TO THE FINANCIAL STATEMENTS Uniphar plc - 2024 Preliminary Results | 28 In the prior year, deferred contingent consideration relates to a release of €6,768,000 following a review of expected performance against contractual earn out targets in relation to US -based acquisitions. A further amount of €2,856,000 was released in res pect of three other acquisitions that had reached the end of their contractual earn out periods. Gain on disposal of businesses and assets Notes Businesses 2024 Assets 2024 Total 2024 €’000 €’000 €’000 Property, plant and equipment, and right-of-use assets (1,505) (22,880) (24,385) Goodwill 7 (17,704) - (17,704) Deferred tax asset (5,420) - (5,420) Deferred contingent consideration 4,446 - 4,446 Cash disposed (846) - (846) Inventories, receivables and payables (653) 2,102 1,449 Other non-current liabilities 1,242 21,259 22,501 Net (assets)/liabilities disposed (20,440) 481 (19,959) Reclassification of currency translation effects on disposal 223 - 223 Total (20,217) 481 (19,736) Proceeds from disposals (net of disposal costs) 22,465 (334) 22,131 Gain on disposal of businesses and assets 2,248 147 2,395 Net cash inflow/(outflow) on disposal: Businesses 2024 €’000 Assets 2024 €’000 Total 2024 €’000 Cash received 24,307 - 24,307 Less: Cash disposed (846) - (846) Less: Disposal related costs paid (1,527) (303) (1,830) Net cash inflow/(outflow) on disposal 21,934 (303) 21,631 Gain on disposal of businesses and assets: The Group disposed of its investments in Inspired Insight, LLC and Duffy’s Medical Hall Limited during the year which resulted in a profit on the disposal of businesses of €2,248,000. Furthermore, the Group disposed of a number of non-current assets that resulted in a gain on disposal of €147,000. These non-current assets included the disposal of a lease for a building which the Group purchased pursuant to a call option executed at initiation of the lease agreement. Property, Plant and Equipment assets with a net book value of €2,454,000 were disposed of for nil consideration in conjunction with the lease disposal. No consideration was received for exiting this lease resulting in a profit on disposal.
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Uniphar plc NOTES TO THE FINANCIAL STATEMENTS Uniphar plc - 2024 Preliminary Results | 29 4. Finance cost and Finance income 2024 €’000 2023 €’000 Finance cost Interest on lease obligations (Note 13) (5,323) (4,884) Interest payable on borrowings and invoice discounting facilities (18,603) (17,199) Unwinding of discount applicable to deferred and deferred contingent consideration (1,540) (2,506) Unwinding of discount applicable to long term incentive programme (20) (4) Amortisation of refinancing transaction fees (431) (431) Finance cost before exceptional credit (25,917) (25,024) Decrease in fair value of deferred contingent consideration (Note 3) 17,625 9,624 Exceptional credit recognised in finance cost 17,625 9,624 Total Finance cost (8,292) (15,400) Finance costs do not include capitalised borrowing costs of € 2,697,000 (2023: €791,000) on qualifying assets (Notes 7 and 8). Interest is capitalised at the Group’s weighted average interest rate for the period of 5.5% (2023: 5.3%). 2024 €’000 2023 €’000 Finance income Interest income 1,897 590 Total Finance income 1,897 590 5. Earnings per share Basic and diluted earnings per share have been calculated by reference to the following: 2024 2023 Profit for the financial year attributable to owners (€’000) 64,203 44,815 Weighted average number of shares (‘000) 273,015 273,015 Earnings per ordinary share (in cent): - Basic 23.5 16.4 - Diluted 23.5 16.4 Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. Adjusted earnings per share is an Alternative Performance Measure (APM) and is presented below. Adjusted earnings per share supports the understanding of performance by excluding the impact of exceptional items and non-cash items that may not correlate to the underlying performance of the business.
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Uniphar plc NOTES TO THE FINANCIAL STATEMENTS Uniphar plc - 2024 Preliminary Results | 30 Adjusted earnings per share has been calculated by reference to the following: 2024 €’000 2023 €’000 Profit for the financial year attributable to owners 64,203 44,815 Exceptional credit recognised in Income Statement (Note 3) (14,345) (661) Share-based payments 2,944 2,824 Amortisation of acquisition related intangibles 3,428 3,341 Tax credit on acquisition related intangibles (380) (363) Profit after tax excluding exceptional items 55,850 49,956 Weighted average number of shares in issue in the year (000’s) 273,015 273,015 Adjusted basic and diluted earnings per ordinary share (in cent) 20.5 18.3 6. Dividends The Directors have proposed a final dividend of €3.4m (€0.0125 per ordinary share), subject to approval at the AGM. This results in a total shareholders dividend of €5.2m (€0.0192 per ordinary share) in respect of the year ended 31 December 202 4 as the Board declared and paid a 202 4 interim dividend of € 1.8m (€0.0 067 per ordinary share). If approved, the proposed dividend will be paid on 16 May 2025 to ordinary shareholders on the Company’s register on 25 April 2025. This dividend has not been provided for in the Balance Sheet at 31 December 2024, as there was no present obligation to pay the dividend at year end. A final dividend of €3.2m (€0.0119 per ordinary share) relating to 2023 was paid in May 2024.
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Uniphar plc NOTES TO THE FINANCIAL STATEMENTS Uniphar plc - 2024 Preliminary Results | 31 7. Intangible assets Goodwill €'000 Trademarks & licences €’000 Computer software €’000 Technology assets €’000 Brand names €’000 Customer relationships €’000 Total €'000 Cost At 1 January 2024 535,796 204 54,718 3,432 22,185 3,207 619,542 FX movement 8,224 (2) 82 153 - 186 8,643 Additions - - 21,070 - - - 21,070 Disposals/retirements - - (2,405) - - - (2,405) Divestment (17,704) - - - - - (17,704) At 31 December 2024 526,316 202 73,465 3,585 22,185 3,393 629,146 Accumulated amortisation At 1 January 2024 18,709 164 30,676 1,844 4,466 2,031 57,890 FX movement - (2) 25 83 - 142 248 Amortisation - 11 2,625 554 2,219 655 6,064 Disposals/retirements - - (2,359) - - - (2,359) At 31 December 2024 18,709 173 30,967 2,481 6,685 2,828 61,843 Net book amounts At 31 December 2023 517,087 40 24,042 1,588 17,719 1,176 561,652 At 31 December 2024 507,607 29 42,498 1,104 15,500 565 567,303 Intangible assets 507,607 29 42,498 1,104 15,500 565 567,303 Right-of-use assets - - - - - - - At 31 December 2024 507,607 29 42,498 1,104 15,500 565 567,303 Included in computer software are assets under construction with a net book value of €34,338,000. Amortisation has not commenced on these assets. Included in the cost of additions are borrowing costs and payroll costs capitalised into computer software amounting to €989,000 (2023: €194,000) and €3,452,000 (2023: €2,245,000) respectively.
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Uniphar plc NOTES TO THE FINANCIAL STATEMENTS Uniphar plc - 2024 Preliminary Results | 32 8. Property, plant and equipment, and right-of-use assets Land and buildings Leasehold improvements Plant and equipment Fixtures and fittings Computer equipment Motor vehicles Instruments Total €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 Cost At 1 January 2024 182,562 26,538 54,447 15,337 8,389 8,238 7,731 303,242 Foreign exchange movement 819 191 285 148 29 74 - 1,546 Additions 78,736 8,353 36,280 1,846 2,142 2,248 2,425 132,030 Disposals/retirements (35,087) (2,065) (2,999) (1,407) (2,169) (2,874) (801) (47,402) Divestments (1,514) (292) - (523) (55) - - (2,384) At 31 December 2024 225,516 32,725 88,013 15,401 8,336 7,686 9,355 387,032 Accumulated depreciation At 1 January 2024 48,358 7,782 20,121 6,924 4,990 3,464 4,903 96,542 Foreign exchange movement 311 37 103 113 (2) 31 - 593 Charge for the year 16,068 1,941 3,316 2,106 1,402 2,618 1,849 29,300 Disposals/retirements (13,897) (551) (2,464) (884) (2,174) (2,562) (788) (23,320) Divestments (97) (256) - (482) (44) - - (879) At 31 December 2024 50,743 8,953 21,076 7,777 4,172 3,551 5,964 102,236 Net book amounts At 31 December 2023 134,204 18,756 34,326 8,413 3,399 4,774 2,828 206,700 At 31 December 2024 174,773 23,772 66,937 7,624 4,164 4,135 3,391 284,796 Property, plant & equipment 36,456 23,772 65,970 7,624 4,164 381 3,391 141,758 Right-of-use assets 138,317 - 967 - - 3,754 - 143,038 Net book value at 31 December 2024 174,773 23,772 66,937 7,624 4,164 4,135 3,391 284,796 Included in property, plant and equipment are assets under construction with a net book value of €58,517,000 (2023: €23,703,000). Depreciation has not commenced on these assets. Included in the cost of additions is borrowing costs and payroll costs capitalised into assets amounting to €1,708,000 (2023: €597,000) and €352,000 (2023: €73,000) respectively.
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Uniphar plc NOTES TO THE FINANCIAL STATEMENTS Uniphar plc - 2024 Preliminary Results | 33 9. Called up share capital 2024 €'000 Authorised: 453,205,300 (2023: 453,205,300) ordinary shares of 8c each 36,256 16,000,000 (2023: 16,000,000) "A" ordinary shares of 8c each 1,280 37,536 Movement in the year in issued share capital presented as equity Allotted, called up and fully paid ordinary shares At 1 January - 273,015,254 ordinary shares of 8c each 21,841 At 31 December - 273,015,254 ordinary shares of 8c each 21,841 Total allotted share capital: At 31 December - 273,015,254 (2023: 273,015,254) ordinary shares 21,841 There have been no changes to the authorised or issued share capital in either 202 4 or 2023. 10. Borrowings Bank loans are repayable in the following periods after 31 December: 2024 €'000 2023 €'000 Amounts falling due within one year 9,316 13,168 Amounts falling due between one and five years 241,646 222,604 250,962 235,772 The Group’s total bank loans at 31 December 2024 were €250,962,000 (2023: €235,772,000). Borrowing under invoice discounting (recourse) as at the balance sheet date was €9,316,000 (2023: €13,168,000). The Group’s bank debt facility comprises a revolving credit facility of up to €400m with an additional uncommitted accordion facility of €150m. This facility runs for five years to August 2027 with an option to extend by one year and a further option to extend by an additional year up to August 2029 with repayment of all loans due on termination of the facility. At 31 December 2024, the Group’s revolving credit facility loans in use were at an interest margin of + 1.69% (2023: +1.90%) on inter-bank interest rates (EURIBOR, GBP SONIA and USD SOFR). Bank security Bank overdrafts (including invoice discounting) and bank loans of €250,962,000 (2023: € 235,772,000) are secured by cross guarantees and fixed and floating charges from the Company and certain subsidiary undertakings.
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Uniphar plc NOTES TO THE FINANCIAL STATEMENTS Uniphar plc - 2024 Preliminary Results | 34 11. Deferred contingent consideration 2024 €’000 2023 €’000 At 1 January 75,061 91,798 Unwinding of discount 1,540 2,506 Recognised during the year 21,622 - Utilised during the year (16,454) (8,234) Released during the year (39,247) (9,624) Divestment (4,446) - Foreign currency movement 1,106 (1,385) At 31 December 39,182 75,061 Current 32,025 43,523 Non-current 7,157 31,538 Total deferred contingent consideration 39,182 75,061 Deferred contingent consideration Deferred contingent consideration represents the present value of deferred contingent acquisition consideration which will become payable based on pre -defined performance thresholds being met. The deferred contingent consideration liability at 31 December 2024 was €39,182,000 (2023: €75,061,000). Significant estimation and judgement is exercised in determining the liability indicating that the final liability may be significantly different to the amount provided. In the event of the maximum earn -out being achieved, an additional provision of €6,435,000 (2023: €67,608,000) would be required at 31 December 2024. Equally, a significantly smaller liability than that estimated could arise. During the year payments of €16,454,000 (2023: €8,234,000) were made in respect of prior year acquisitions. Deferred contingent consideration of €39,24 7,000 (2023: €9,624,000) in respect of prior year acquisitions was released and €21,622,000 (2023: €nil) was recognised in the year following a review of expected performance against earn-out targets. An amount of €4,446,000 was released in respect of Inspired Insight, LLC following its disposal by the Group. Further details on the measurement of deferred con tingent consideration are provided in Note 16. 12. Provisions Lease dilapidation 2024 €’000 Warranty provision 2024 €’000 Other 2024 €’000 Total 2024 €’000 Total 2023 €’000 At 1 January 776 164 812 1,752 2,262 Recognised during the year 100 - - 100 28 Arising on acquisition - - - - 350 Utilised during the year - - - - (789) Released during the year (61) (19) - (80) (62) Foreign currency movement - 8 47 55 (37) At 31 December 815 153 859 1,827 1,752
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Uniphar plc NOTES TO THE FINANCIAL STATEMENTS Uniphar plc - 2024 Preliminary Results | 35 Lease dilapidation The lease dilapidation provision covers the cost of reinstating certain Group properties at the end of the lease term. This is based on the terms of the individual leases which set out the conditions relating to the return of property. The timing of the outflows will match the ending of the relevant leases with various dates up to 2049. Warranty provision The warranty provision relates to a product warranty provided to customers on certain medical devices. The estimated cost of the warranty is provided for upon recognition of the sale of the product. The costs are estimated based on actual historical experience of expenses incurred and on estimated future expenses related to current sales and are updated periodically. Actual warranty costs are charged against the warranty provision. Other Other provisions relate to a management retention bonus payable in relation to the acquisition of RRD International, LLC in 2020. 13. Leases (i) Amounts recognised in the Balance Sheet As at 31 December, the Balance Sheet shows the following amounts relating to leases: 2024 2023 €’000 €’000 Right-of-use assets: Buildings 138,317 126,899 Plant and equipment 967 139 Motor vehicles 3,754 4,280 Net book value of right-of-use assets 143,038 131,318 Lease liabilities: Current 22,580 20,134 Non-current 132,612 126,083 Total lease liabilities 155,192 146,217 Right-of-use assets are included in the line ‘Property, plant and equipment, and right -of-use assets’ on the Balance Sheet, and are presented in Note 8. Additions to the right -of-use assets during the year ended 31 December 202 4 were € 52,300,000 (2023: €16,498,000). Disposals to the right -of-use assets during the year ended 31 December 2024 were €21,480,000 (2023: €1,034,000). The principal disposal related to the purchase of a building in Dublin, Ireland that was formerly leased by the Group. Expenses of €270,000 (2023: €170,000) relating to short -term leases, leases of low-value assets and variable lease payments were recognised in the Consolidated Income Statement. Lease liabilities are presented separately on the face of the Balance Sheet.
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Uniphar plc NOTES TO THE FINANCIAL STATEMENTS Uniphar plc - 2024 Preliminary Results | 36 (ii) Amounts recognised in the Income Statement: The Income Statement shows the following amounts relating to leases: 2024 2023 €’000 €’000 Depreciation/amortisation charge on right-of-use assets: Buildings 15,462 14,893 Plant and equipment 235 191 Motor vehicles 2,472 2,452 Right-of-use assets depreciation charge 18,169 17,536 Computer software - 189 Right-of-use assets amortisation charge - 189 Interest expense on lease liabilities: Interest expense on lease liabilities (Note 4) 5,323 4,884 Total interest expense in respect of lease liabilities 5,323 4,884 (iii) Amounts recognised in the Cash Flow Statement The Cash Flow Statement shows the following amounts relating to leases: 2024 2023 €’000 €’000 Interest on lease obligations 7,235 4,884 Principal repayments 18,335 16,604 Total cash outflow in respect of leases 25,570 21,488 14. Analysis of net debt 2024 2023 €’000 €’000 Cash and cash equivalents 102,992 85,652 Restricted cash 294 173 Total cash 103,286 85,825 Bank loans repayable within one year (9,316) (13,168) Bank loans payable after one year (241,646) (222,604) Bank loans (250,962) (235,772) Net bank debt (147,676) (149,947) Lease obligations (155,192) (146,217) Net debt (302,868) (296,164)
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Uniphar plc NOTES TO THE FINANCIAL STATEMENTS Uniphar plc - 2024 Preliminary Results | 37 15. Reconciliation of operating profit to cash flow from operating activities 2024 2023 €’000 €’000 Operating profit before operating exceptional items 85,150 77,755 Cash related exceptional items (9,006) (17,784) 76,144 59,971 Add back non-cash and/or non-operating expenses: Depreciation 29,300 29,202 Amortisation 6,064 6,204 Changes in working capital: Increase in inventory (17,159) (16,868) Increase in receivables (18,378) (67,073) Increase in payables 84,423 67,717 Other: Share-based payment expense 2,944 2,824 Foreign currency translation adjustments (522) 172 Cash inflow from operating activities 162,816 82,149 16. Financial instruments Financial instruments by category The accounting policies for financial instruments have been applied to the line items below: Financial assets at FVOCI* Financial assets at amortised cost Total Fair value €’000 €’000 €’000 €’000 Financial assets 31 December 2024: Investments in equity instruments 25 - 25 25 Trade and other receivables ** - 232,574 232,574 232,588 Cash and cash equivalents - 102,992 102,992 102,992 Restricted cash - 294 294 294 25 335,860 335,885 335,899 * Fair value through other comprehensive income. ** Excluding prepayments and accrued income.
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Uniphar plc NOTES TO THE FINANCIAL STATEMENTS Uniphar plc - 2024 Preliminary Results | 38 Financial liabilities at FVTPL*** Financial liabilities at amortised cost Total Fair value €’000 €’000 €’000 €’000 Financial liabilities 31 December 2024: Borrowings - 250,962 250,962 250,962 Trade and other payables **** - 550,524 550,524 550,524 Deferred contingent consideration 39,182 - 39,182 39,182 Lease liabilities - 155,192 155,192 155,192 39,182 956,678 995,860 995,860 *** Fair value through profit and loss. **** Excluding non-financial liabilities. Measurement of fair values In the preparation of the financial statements, the Group finance department, which reports directly to the Chief Financial Officer (CFO), reviews and determines the major methods and assumptions used in estimating the fair values of the financial assets and liabilities which are set out below: Investments in equity instruments Investments in equity instruments are measured at fair value through other comprehensive income (FVOCI). Trade and other receivables/trade and other payables For receivables and payables with a remaining life of less than 12 months or demand balances, the carrying value less impairment provision where appropriate, is deemed to reflect fair value. Cash and cash equivalents, including short-term bank deposits For short-term bank deposits and cash and cash equivalents, all of which have a maturity of less than three months, the carrying amount is deemed to reflect fair value. Interest-bearing loans and borrowings For floating rate interest-bearing loans and borrowings with a contractual repricing date of less than 6 months, the nominal amount is deemed to reflect fair value. For loans with repricing dates of greater than 6 months, the fair value is calculated based on the present value of the expected future principal and interest cash flows discounted at appropriate market interest rates (level 2) effective at the Balance Sheet date and adjusted for movements in credit spreads. Deferred acquisition consideration Discounted cash flow method was used to capture the present value of the expected future economic benefits that will flow out of the Group arising from the deferred acquisition consideration. Deferred contingent consideration The fair value of the deferred contingent consideration is calculated by discounting the expected future payment to the present value. The expected future payment represents the deferred contingent consideration which would become payable based on pre -defined performance thresholds being met and is calculated based on management’s best estimates of the expected future cash outflows using current budget forecasts. The provision for deferred contingent consideration is principally in respect of acquisitions c ompleted from 2018 to 2022. The significant unobservable inputs are: • Expected future profit forecasts which have not been disclosed due to their commercial sensitivities; and • Risk adjusted discount rate of between 2.5% and 4.0% (2023: between 2.5% and 4.0%)
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Uniphar plc NOTES TO THE FINANCIAL STATEMENTS Uniphar plc - 2024 Preliminary Results | 39 For the fair value of deferred contingent consideration, a 1% increase in the risk adjusted discount rate at 31 December 202 4, holding the other inputs constant would reduce the fair value of the deferred contingent consideration by €0.3m. A 1% decrease in the risk adjusted discount rate would result in an increase of € 0.3m in the fair value of the deferred contingent consideration. Fair value hierarchy The following table sets out the fair value hierarchy for financial instruments which are measured at fair value. Level 1 Level 2 Level 3 Total €’000 €’000 €’000 €’000 Recurring fair value measurements At 31 December 2024 Investments in equity instruments - - 25 25 Deferred contingent consideration - - (39,182) (39,182) - - (39,157) (39,157) There were no transfers between the fair value levels for recurring fair value measurements during the year. The Group’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period. Level 1: The fair value of financial instruments traded in active markets is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in level 1. Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity - specific estimates. If all significant input s required to fair value an instrument are observable, the instrument is included in level 2. Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. Fair value measurements using significant unobservable inputs (level 3) The following table presents the changes in level 3 items for the year ended 31 December 202 4: Shares in unlisted companies Deferred contingent consideration Total €’000 €’000 €’000 At 1 January 2024 25 (75,061) (75,036) Utilised during the year - 16,454 16,454 Unwinding of discount* - (1,540) (1,540) Released during the year * - 39,247 39,247 Recognised during the year* - (21,622) (21,622) Divestment - 4,446 4,446 Foreign currency movement - (1,106) (1,106) At 31 December 2024 25 (39,182) (39,157) * These amounts have been credited/(charged) to the Income Statement in finance (income)/costs. Deferred contingent consideration is provided based on management’s assessment of the fair value of the liability taking into account the expected profitability of the acquisition. The maximum amount of additional
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Uniphar plc NOTES TO THE FINANCIAL STATEMENTS Uniphar plc - 2024 Preliminary Results | 40 deferred contingent consideration not provided for in the financial statements is €6,435,000 (2023: €67,608,000) assuming the acquisitions satisfy all performance conditions as set out in their acquisition. Financial risk management The Group’s operations expose it to various financial risks. The Group has a risk management framework in place which seeks to limit the impact of these risks on the financial performance of the Group and it is the Group’s policy to manage these risks in a non-speculative manner. The Group has exposure to the following risks from its use of financial instruments: credit risk, liquidity risk, currency risk, interest risk and price risk. These consolidated financial statements do not include all financial risk management information and disclosures required in the annual financial statements; they should be read in conjunction with the Group’s Annual Report. Under the terms of the invoice discounting non-recourse agreement, the Group has transferred substantially all credit risk and control of certain trade receivables. The balance of the facility as at 31 December 2024 is €111,765,000 (2023: €111,765,000). The Group has recognised an asset within trade and other receivables of €16,765,000 (2023: €16,765,000), being the fair value of the amount receivable from the financial institutions, representing 15% of the trade receivables transferred to the financial ins titutions in accordance with the terms of the receivables purchase arrangement. The total interest expense associated with this receivables purchase agreement during the year ended 31 December 2024 was €5,156,000 (2023: €4,765,000). 17. Business Combinations 2023 Acquisitions The initial assessment of the fair values of the major classes of assets acquired and liabilities assumed in respect of the acquisitions which were completed in 202 3 were performed on a provisional basis (with the exception of McCauley Pharmacy Group which was finalised in 2023). The fair values attributable to the assets and liabilities of these acquisitions have now been finalised. There were no fair value adjustments made to the comparative figures during the subsequent reporting window within the measur ement period imposed by IFRS 3. 18. Post balance sheet events The Board has approved to commence , but not yet contracted, the launch of a share buyback programme subject to market conditions. There were no other material events subsequent to 31 December 2024 that would require adjustment to or disclosure in this report. 19. Approval by the Board of Directors The preliminary results announcement was approved by the Board of Directors on 24 February 2025.
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Uniphar plc Uniphar plc - 2024 Preliminary Results | 41 Additional Information ALTERNATIVE PERFORMANCE MEASURES The Group reports certain financial measurements that are not required under IFRS. These key alternative performance measures (APMs) represent additional measures in assessing performance and for reporting both internally, and to shareholders and other external users. The Group bel ieves that the presentation of these APMs provides useful supplemental information which, when viewed in conjunction with IFRS financial information, provides stakeholders with a more meaningful understanding of the underlying financial and operating performance of the Group and its divisions. These measurements are also used internally to evaluate the historical and planned future performance of the Group’s operations. None of these APMs should be considered as an alternative to financial measurements derived in accordance with IFRS. The APMs can have limitations as analytical tools and should not be considered in isolation or as a substitute for an analysis of results as reported under IFRS. During 2024, the Group amended the definition of the Free cash flow conversion to include the principal and interest payments on leases as a deduction to EBTIDA. This change enhances the understanding and comparability of the financial statements. The principal APMs used by the Group, together with reconciliations where the APMs are not readily identifiable from the financial statements, are as follows: Definition Why we measure it EBITDA & Adjusted EBITDA Earnings before exceptional items, net finance expense, income tax expense, depreciation, intangible assets amortisation and share-based payment expense. Earnings before exceptional items, net finance expense, income tax expense, depreciation, intangible assets amortisation and share-based payment expense, adjusted for the impact of IFRS 16 and the pro-forma EBITDA of acquisitions. EBITDA provides management with an assessment of the underlying trading performance of the Group and excludes transactions that are not reflective of the ongoing operations of the business, allowing comparison of the trading performance of the business across periods and/or with other businesses. Adjusted EBITDA is used for leverage calculations. Net bank debt Net bank debt represents the net total of current and non-current borrowings, cash and cash equivalents, and restricted cash as presented in the Group Balance Sheet. Net bank debt is used by management as an input into the Group’s current leverage calculation which management will consider when evaluating investment opportunities, potential acquisitions, and internal resource allocation. Net debt Net debt represents the total of net bank debt, plus current and non-current lease obligations as presented in the Group Balance Sheet. Net debt is used by management as it gives a complete picture of the Group’s debt including the impact of lease liabilities recognised under IFRS 16. Leverage Net bank debt divided by adjusted EBITDA for the period. Leverage is used by management to evaluate the Group’s ability to cover its debts. This allows management to assess the ability of the Company to use debt as a mechanism to facilitate growth.
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Uniphar plc Uniphar plc - 2024 Preliminary Results | 42 Adjusted Operating Profit This comprises operating profit as reported in the Group Income Statement before amortisation of acquired intangible assets and exceptional items (if any). Adjusted operating profit is used to assess the underlying operating performance excluding the impact of non-operational items. This is a key measure used by management to evaluate the businesses’ operating performance. Adjusted earnings per share & Like-for-Like adjusted earnings per share This comprises profit for the financial period attributable to owners of the parent as reported in the Group Income Statement before exceptional items (if any), amortisation of acquisition related intangibles (and related tax thereon) and share-based payment expense, divided by the weighted average number of shares in issue in the period. Like-for-like adjusted earnings per share is calculated for both the current and prior period by dividing the profit of the relevant period attributable to owners of the parent as reported in the Group Income Statement before exceptional items (if any), amortisation of acquisition related intangibles and share-based payment expense, by the weighted average number of shares in issue in the current period. Adjusted EPS is used to assess the after-tax underlying performance of the business in combination with the impact of capital structure actions on the share base. This is a key measure used by management to evaluate the businesses operating performance, generate future operating plans, and make strategic decisions. Like-for-like adjusted EPS is used to assess the after-tax underlying performance of the business assuming a constant share base. Free cash flow conversion Free cash flow conversion is calculated as EBITDA, less investment in working capital, less maintenance capital expenditure, less principal and interest payments on leases, and foreign currency translation adjustments, divided by EBITDA. Free cash flow represents the funds generated from the Group’s ongoing operations. These funds are available for reinvestment, and for future acquisitions as part of the Group’s growth strategy. A high level of free cash flow conversion is key to maintaining a strong, liquid balance sheet. Return on capital employed (ROCE) ROCE is calculated as the 12 months rolling operating profit before the impact of exceptional costs and amortisation of acquisition related intangibles, expressed as a percentage of the adjusted average capital employed for the same period. The average capital employed is adjusted to ensure the capital employed of acquisitions and divestments completed during the period is appropriately time apportioned. This measure allows management to monitor business performance, review potential investment opportunities and the allocation of internal resources.
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Uniphar plc Uniphar plc - 2024 Preliminary Results | 43 EBITDA 2024 €’000 2023 €’000 Operating profit Income Statement 81,989 67,708 Exceptional charge recognised in operating profit Note 3 3,161 10,047 Amortisation Note 7 6,064 6,204 Depreciation Note 8 29,300 29,202 Share-based payment expense 2,944 2,824 EBITDA 123,458 115,985 Adjust for the impact of IFRS 16 (22,977) (21,666) Pro-forma EBITDA of acquisitions - 543 Adjusted EBITDA 100,481 94,862 Net bank debt 2024 €’000 2023 €’000 Cash and cash equivalents Balance Sheet 102,992 85,652 Restricted cash Balance Sheet 294 173 Bank loans repayable within one year Balance Sheet (9,316) (13,168) Bank loans payable after one year Balance Sheet (241,646) (222,604) Net bank debt (147,676) (149,947) Net debt 2024 €’000 2023 €’000 Net bank debt Alternative Performance Measures (147,676) (149,947) Current lease obligations Balance Sheet (22,580) (20,134) Non-current lease obligations Balance Sheet (132,612) (126,083) Net debt (302,868) (296,164) Leverage 2024 €’000 2023 €’000 Net bank debt Alternative Performance Measures (147,676) (149,947) Adjusted EBITDA Alternative Performance Measures 100,481 94,862 Leverage (times) 1.47 1.58
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Uniphar plc Uniphar plc - 2024 Preliminary Results | 44 Adjusted operating profit 2024 2023 €’000 €’000 Operating profit Income Statement 81,989 67,708 Amortisation of acquisition related intangibles 3,428 3,341 Exceptional charge recognised in operating profit Note 3 3,161 10,047 Adjusted operating profit 88,578 81,096 Adjusted earnings per share 2024 €’000 2023 €’000 Adjusted earnings per share has been calculated by reference to the following: Profit for the financial year attributable to owners 64,203 44,815 Exceptional credit recognised in Income Statement (Note 3) (14,345) (661) Amortisation of acquisition related intangibles 3,428 3,341 Tax credit on acquisition related intangibles (380) (363) Share-based payments expense 2,944 2,824 Profit after tax excluding exceptional items 55,850 49,956 Weighted average number of shares in issue in the year (000’s) 273,015 273,015 Adjusted basic and diluted earnings per ordinary share (in cent) 20.5 18.3 Like-for-like weighted average number of shares (000’s) 273,015 273,015 Like-for-like adjusted earnings per ordinary share (in cent) 20.5 18.3 Free cash flow conversion 2024 €’000 2023 €’000 EBITDA Alternative Performance Measures 123,458 115,985 Increase in inventory Note 15 (17,159) (16,868) Increase in receivables Note 15 (18,378) (67,073) Increase in payables Note 15 84,423 67,717 Foreign currency translation adjustments Note 15 (522) 172 Payments to acquire property, plant and equipment – Maintenance Cash Flow Statement (10,911) (7,192) Payments to acquire intangible assets – Maintenance Cash Flow Statement (6,172) (3,771) Payments on leases – principal and interest (25,570) (21,488) Free cash flow 129,169 67,482 Adjustment for settlement of acquired financial liabilities* 1,120 2,068 130,289 69,550 EBITDA 123,458 115,985 Free cash flow conversion 105.5% 60.0%
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Uniphar plc Uniphar plc - 2024 Preliminary Results | 45 *The adjustment to free cash flow ensures that payments made after an acquisition to settle loans with former shareholders of acquired companies, or other similar financial liabilities, are excluded from the movement in payables in the free cash flow conversion calculation. Return on capital employed 2024 €’000 2023 €’000 2022 €’000 Rolling 12 months operating profit 81,989 67,708 53,155 Adjustment for exceptional costs 3,161 10,047 16,415 Amortisation of acquisition related intangibles 3,428 3,341 2,708 Adjusted 12 months rolling operating profit 88,578 81,096 72,278 Total equity 401,881 333,620 289,783 Net bank debt 147,676 149,947 91,217 Deferred contingent consideration (Note 11) 39,182 75,061 91,798 Deferred consideration payable - 100 523 Total capital employed 588,739 558,728 473,321 Average capital employed 573,734 516,025 Adjustment for acquisitions and divestments (Note A / B below) 10,883 18,556 Adjusted average capital employed 584,617 534,581 Return on capital employed 15.2% 15.2% Note A: Adjustment for divestments (2024) Capital employed €’000 Completion Date Adjustment €’000 Inspired Insight, LLC 21,834 December 2024 10,917 Duffy’s Medical Hall Limited 100 March 2024 (34) Adjustment for divestments during 2024 10,883 Note B: Adjustment for acquisitions (2023) Capital employed €’000 Completion Date Adjustment €’000 McCauley Pharmacy Group 49,407 February 2023 20,586 Other acquisitions completed during 2023 6,564 Various (2,030) Adjustment for acquisitions during 2023 18,556 The adjustment ensures that the capital employed of acquisitions and divestments completed during the period are appropriately time apportioned to align with the corresponding periods for adjusted operating profit. These adjustments include cash consideration, deferred and deferred contingent consideration, debt acquired/disposed, cash acquired/disposed, and any cash impact of shareholder loans or other similar financial liabilities repaid post-acquisition.