Revenues remain healthy for drugs firm Dechra

STAFFORDSHIRE-based pharmaceuticals group Dechra has announced a near 10% increase in first quarter revenue compared with last year.

The actual figure for the first three months was 9.9%, while for the nine months to March 31, 2012, group revenue increased by 9.3% over the corresponding period in 2011.

In the third quarter, the group said its European products business revenue grew by 12.8% compared to the same period last year.  The growth rate was flattered slightly by pre-price rise purchasing in France. 

For the nine months to March 31, 2012 revenue was ahead of last year by 11.3%. 

Pharmaceuticals revenue growth was again strong at 19.8% for the quarter, standing at 17.8% for the nine months to March 31, 2012.

Its diets operation saw revenue grow 6.9% in the quarter and 4.3% for the nine months ended March 31, 2012.

Revenue from its US Pharmaceuticals was ahead of last year by 26.8% in the third quarter and by 36.2% for the first nine months. The nine month figures include the full period benefit of DermaPet® Inc, acquired in a £45m deal in October 2010.

The group’s Services segment increased revenue in the third quarter by 8% while revenue for the nine months period was 7.6% ahead of the equivalent period last year. 

Operating margin in the third quarter stabilised at the levels achieved in the six months ended December 31, 2011.

During the first quarter the group has acquired the worldwide rights (excluding Canada) to HY-50®, an equine lameness product.  The total consideration was £5.1m (8.03m Canadian dollars) which was paid in cash on completion.

Since the end of Q1, the group has also announced the proposed acquisition of Eurovet Animal Health in a deal worth €135m.  The acquisition is to be funded by a rights issue to raise £60m and a new £120m bank facility.  The transaction is expected to complete towards the end of May.

In a Q1 trading update, Dechra said: “Current trading remains in line with the board’s expectations and the directors remain confident that the group will continue to make good strategic progress throughout the remainder of the financial year.”
 

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