German pharmaceutical group Celesio has reported strong sales growth at its wholesale and retail Irish sectors for the first half of the year.

The firm, which operates through the Cahill May Roberts and Unicare brands, said Irish wholesale revenues had climbed by 12.3 per cent to €162.4 million. Pharmacy revenues in the Republic were ahead by 7.3 per cent at €62 million.

The company did not break out profits for its Irish operations but said group pretax profits had increased from €291 million to €308 million.

Group sales were up 5.5 per cent at €11.2 billion. Celesio is Europe's largest drug distributor.

In an interim statement, the group said its wholesale Irish business had "outperformed the market". Celesio added, however, that price cuts in the Republic had dampened business development over the first half.

Celesio also highlighted price cuts in its Irish pharmacies division, noting that lower prices for generic products had again "dampened development".

The overall performance of Irish pharmacies was positive against this backdrop, with Celesio noting "a sharp increase" in sales across all product categories.

The group said it was "convinced that the European pharmaceutical market will remain a growth market" but was cautious on forecasts for the coming months.

"The management board expects Celesio Wholesale to grow in line with the comparable market in 2007," the firm said in its statement.

It went on to note that "two effects in particular will be a burden": the reaction of German customers to the group's purchase of a mail-order pharmacy company and the loss of a piece of distribution business in Britain.

In pharmacies, the firm said acquisitions and new openings would deliver growth.

"For the 2007 fiscal year, the Celesio management board expects revenue growth to be generally ahead of market growth after government measures, without taking into account the mentioned special items in the wholesale business," the group said.