UTi Worldwide reports gains in pharmaceutical volumes
Fourth quarter revenues at UTi increased slightly year-on-year and it singled out pharmaceuticals as a growth area. The gains were most significant in certain geographies, notably emerging markets.
Lawrence Samuels, chief financial officer at UTi, said: “Volumes were higher than the same period last year due to new business wins and increased customer activity primarily in pharmaceuticals…in our Asia-Pacific and Africa regions.”
UTi is strengthening in Africa with the construction of a new pharmaceutical distribution centre in Johannesburg. A contractor is handling the South Africa project and UTi will buy the building upon completion for the total cost of the project, subject to the meeting of certain conditions.
Adding the facility will strengthen UTi in one of its major markets. In the first nine months of 2011 UTi generated almost one-fifth of its total revenues in South Africa, making it the second biggest market after the US. Eric Kirchner, CEO of UTi, said the company intends to build on this position.
“We are mindful of competition coming into the market but we're more on the offence down there I think than being defensive. I am optimistic that we will continue the growth and progress that we've seen”, Kirchner said.
Optimism stems from the confidence Kirchner has in the South African business. “If we could bottle [what we have in South Africa] and have it everywhere else it would accelerate our progress”, Kirchner said.
