The Celesio Group's profits fell in the first half of its 2017 fiscal year – from April 1 to September 30, 2016, the German-based company said in a statement today (November 22).

The company's earnings (before interest and taxes) for "continuing operations" fell 36% to €146.3 million in the six months to September 2016, compared with the same period in 2015, it said. 

It also reported a revenue decrease of 2.8% compared to the first half of 2016's financial year. Between April and September 2016 revenue came to €10.4 billion, compared to €10.7bn a year earlier.

The Department of Health (DH) reduce category M payments by a total of £48 million between June and September 2016, and Celesio said it expects its 2017 earnings to fall "slightly below" last year's figures, as a result of the "UK government reimbursement cuts to prescription products".

Celesio also attributed the decline in earnings to the sale of its Norwegian and Swedish businesses to its US-based parent company McKesson, as well a "devaluation of the British pound" leading to "negative exchange rate effects".