DAVY VIEW

Uniphar has delivered another year of exceptionally strong growth, with like-for-like EPS +33%. The group’s increasingly diversified model delivered 8.5% organic gross profit growth in FY 21 following 7% in 2019 and 6% in 2020. This is a particularly strong achievement given continued COVID-19-related disruption across European healthcare systems last year and is evidence of the quality of Uniphar’s offer versus peers. With FY 21 leverage at just 0.7x, we also expect Uniphar to remain active on acquisitions across each of its three divisions. The recent market pullback puts the stock on just 17.0x FY 22 and 15.6x FY 23 P/E.