Vet pharmaceuticals firm’s strong first half

INTERNATIONAL veterinary products company Dechra is trumpeting a strong first-half performance in the six months to December 31.

Revenue including its October 2015 Croatian acquisition Genera was up 14% to £110.7m at constant exchange rate (CER) (2015: 100.9m) while EBITDA was also up 24.6% to £28.7m (2015: £24.8m) at CER.

The growth for the Northwich, Cheshire-based company was helped by growth in EU Pharmaceuticals, including Genera, was encouraging at 8.1% (CER), but it continues to be adversely impacted by exchange rate headwinds with 0.9% growth at actual exchange rate (AER).

Meanwhile North America’s excellent momentum continues with revenue growth of 51.9% at CER (59.1% at AER).

Zycortal, a novel canine endocrine product for the treatment of Addison’s disease, has received regulatory approvals. Two food producing animal products ) antibiotics, Phenocillin and Solamocta, have also been approved in the EU.

Underlying diluted EPS increased by 17.6% at CER (7.2% at AER) to 21.99p per share.

Following the Genera acquisition and the investment in the US expansion, Dechra’s reported net debt is £17.8 million as at 31 December 2015 (2014: net cash £3m).

Dechra’s interim dividend increased to 5.55p an increase of 8.4% compared to the prior year.

Chief executive Ian Page said:  “We are pleased to report a strong performance in the first half.

“All our business units are performing well, we are in the process of launching several new products, our international expansion plans are progressing as expected and we have made two strategic acquisitions.

“We remain in a strong position to continue to grow the business and deliver returns to our shareholders.”