Uniphar’s 2025 interims: 21% adjusted EPS growth and clear momentum
Uniphar plc has posted a solid first half. Adjusted EPS jumped 21% to 9.8 cent, organic gross profit rose 8.1%, and each division delivered growth in line with plan. There are a few pressure points – notably cash conversion and Supply Chain & Retail margins – but the strategic investment story is progressing and guidance is confident for the full year.
Headline numbers investors need to know
| Metric | H1 2025 | H1 2024 | Change/Comment |
|---|---|---|---|
| Revenue | €1,485.492 million | €1,367.578 million | +8.6% |
| Gross profit | €219.651 million | €206.697 million | +6.3% (organic +8.1%) |
| Group gross margin | 14.8% | 15.1% | Down 30 bps |
| EBITDA | €57.495 million | €55.901 million | +2.9% (organic +4.9%) |
| Operating profit (pre-exceptional) | €38.472 million | €36.447 million | +5.6% |
| Profit before tax (pre-exceptional) | €28.704 million | €23.430 million | +22.5% |
| Adjusted EPS | 9.8 cent | 8.1 cent | +21.0% |
| Basic EPS | 6.6 cent | 5.6 cent | +17.9% |
| Net bank debt | €197.535 million | €143.609 million (Jun-24) | Leverage 1.90x |
| Free cash flow conversion | 35.3% | 121.5% | Working capital unwind |
| Interim dividend | €0.0071 per share | €0.0067 per share | +6% |
| Share buyback | €35 million completed (13.4m shares) | — | Added 0.3 cent to adjusted EPS |
What drove the performance in each division
Pharma: Global Sourcing powers double-digit growth
Uniphar Pharma was the standout. Organic gross profit rose 17.6%, with reported gross profit up 10.6% to €64.042 million after the 2024 disposal of Inspired Health. Gross margin stepped up to 18.6% from 16.8%, reflecting a shift into higher-margin activities. EBITDA climbed 32.5% to €13.456 million as the division scales.
The renamed Global Sourcing unit (formerly On Demand) saw robust demand for difficult-to-source medicines, including clinical trial supply. The division now generates gross profit in similar proportions across Ireland, Europe and the Rest of World – a healthy spread.
Medtech: steady growth, investing for scale
Medtech delivered 7.5% gross profit growth to €57.505 million and lifted gross margin to 41.0% (from 40.4%). EBITDA edged up 2.4% to €21.657 million, with the margin dipping to 15.4% as Uniphar invested in business development ahead of expected H2 activity.
Operationally, the team expanded organically into Austria and added two new specialisms in the Nordics, while helping existing manufacturers launch products in new geographies. It is classic platform execution: more markets, more specialisms, deeper manufacturer relationships.
Supply Chain & Retail: volume-led, margin-squeezed
Revenue jumped 12.3% to €1,000.243 million and gross profit rose 3.0% to €98.104 million, but EBITDA fell 9.0% to €22.382 million. The EBITDA margin of 2.2% (from 2.8%) reflects investment in management ahead of the 2026 distribution facility go-live, higher cybersecurity and IT costs, and statutory wage increases. Gross margin eased to 9.8% as the faster-growing Supply Chain mix diluted the percentage.
The retail network grew by 10 to 455 pharmacies across Hickey’s, McCauley, Allcare and Life Pharmacy. There was some softness in discretionary front-of-shop demand, but the division continues to deliver low single-digit organic gross profit growth as guided.
Cash, debt and dividends: the balance sheet check
Free cash flow conversion fell to 35.3% from 121.5%, driven by a partial unwind of prior-year working capital benefits in Pharma Services and timing on EAP prepayments. Net bank debt increased to €197.5 million from €147.7 million at December 2024, taking leverage to 1.90x. The step-up reflects strategic capex and the €35 million buyback.
Financing headroom looks sound. In August 2025, Uniphar extended its revolving credit facility to August 2029 and placed a €150 million five-year term loan with the existing syndicate. ROCE sits at 15.5%, above the 12%-15% target range, which supports the case for continued disciplined investment.
Shareholders also get a 6% uplift in the interim dividend to €0.0071 per share.
Strategy, capex and outlook: building for 2026 and beyond
The strategic capital projects are central to the investment case. In Ireland, the state-of-the-art distribution facility build is complete; focus now shifts to technology integration, testing and deployment ahead of commissioning in 2026. Management expects this to more than double capacity in Supply Chain & Retail and help scale the global Pharma platform.
The Netherlands hub is progressing to plan for 2026, and a new Derby facility provides a scalable UK base. Sustainability credentials remain strong (MSCI AAA, Sustainalytics healthcare industry risk rating in the second percentile, CDP ‘B’).
Guidance is upbeat: Uniphar expects organic gross profit growth across all divisions in line with medium-term targets and is “well positioned” to deliver market expectations of double-digit adjusted EPS growth for the full year. The longer-term ambition remains €200 million of EBITDA by 2028, with at least 80% organic.
My take: why this update matters
- Quality of growth is improving. Pharma’s margin moved from 16.8% to 18.6% and EBITDA rose 32.5% – that mix shift and operating leverage are exactly what you want to see.
- Execution in Medtech is consistent. Expansion into Austria and new Nordic specialisms should underpin future gross profit, even if near-term margins reflect investment.
- Supply Chain & Retail is doing the heavy lifting on revenue, but investment and wage costs have pinched margins. The 2026 facility is the catalyst to watch for efficiency and capacity.
- Cash conversion is the weak spot at 35.3%. Management flags working capital timing in Pharma Services; I’ll look for a meaningful recovery in H2.
- Balance sheet risk is controlled. Leverage at 1.90x is reasonable given extended facilities to 2029 and the term loan. ROCE at 15.5% suggests capital is being put to work effectively.
Net-net, these are solid interims with momentum where it counts and a credible pipeline of self-help from capex. The combination of organic growth, a completed buyback, and a rising dividend is supportive for equity holders. The watch list for the second half: cash conversion normalising, Supply Chain & Retail margin stabilising, and continued double-digit organic gross profit in Pharma.
Quick jargon buster
- Adjusted EPS: earnings per share after stripping out exceptional items, acquisition-related amortisation and share-based payments – a cleaner view of underlying performance.
- EBITDA: earnings before interest, tax, depreciation and amortisation – a proxy for operating cash generation from the business model.
- Organic growth: growth from the existing business, excluding acquisitions and disposals, so you’re comparing like-for-like.
- Leverage: net bank debt divided by adjusted EBITDA – a measure of debt relative to earnings used by lenders and investors.
Key divisional medium-term targets reiterated
- Uniphar Pharma: double-digit organic gross profit growth.
- Uniphar Medtech: high single-digit organic gross profit growth.
- Uniphar Supply Chain & Retail: low single-digit organic gross profit growth.
Management’s consistency against these targets, alongside the 2026 capacity step-ups, will be central to hitting the €200 million EBITDA ambition by 2028.
