United Drug said it expects earnings to be ahead of last year as it reported a strong start to the financial year.

In the quarter to December 31st 2010, the company said group revenues and profits beat those of a year earlier, with its US divisions experiencing particularly strong growth.

More than 60 per cent of United Drug's profits are generated outside Ireland.

Strong trading was reported in the contract sales and marketing services (CSMS) division, as revenue and profits surged ahead of last year. This includes the boost provided by the acquisition of healthcare communications services firm Informed, which United Drug bought in the last quarter of the 2010 financial year.

United Drug said its acquisition, which has been integrated into the CSMS division, has traded ahead of expectations.

A second purchase, World Events Group, is currently being combined with United Drug's existing events management business.

In the packaging and speciality division, revenues and profits are ahead of last year, United Drug said.

The US packaging business put in a good performance, reporting a "strong pipeline" of further business opportunities. The European division benefited from a new management structure, it said.

Meanwhile, the group's UK homecare joint venture with Medco Health Solutions saw the addition of the Careology business, which brings additional patient numbers and business development to the venture.

Regulatory changes in the past 12 months affected revenues and profits in the healthcare supply division, United Drug said, dragging them lower, but the firm made considerable market share gains in its core wholesale business, with results beating expectations.

The medical and scientific business is suffering "challenging" market conditions, with capital spending in hospitals low both in the UK and Ireland.

United Drug said group earnings per share for the year to September 30th will be ahead of last year.