Vet products group says overall figures will be first-half weighted

Ian Page
X The Business Desk

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Dechra Pharmaceuticals, the vet products group, released strong first half figures today.

The group, which is based in Northwhich, Cheshire, and has a manufacturing site in Skipton, North Yorkshire, saw revenues and pre-tax profits for the six months to December 31, 2020, both improve.

But it warned its full-year performance will be first-half weighted due to pre-Brexit stockbuilding.

Turnover for the period jumped by almost 22% to £299.8m, while pre-tax profits of £35.4m compared with £19.5m for the same period in 2019.

The half year dividend has also been increased, from 10.29p per share last year to 11.11p this time.

Chief executive, Ian Page, said: “Despite 2020 being one of the most challenging years in Dechra’s history, it is pleasing to report that the calendar year ended strongly resulting in an excellent performance in the first half of our financial year.”

Revenue growth in both its European and North American markets showed strong improvements, at 21.7%, and 21.9%, respectively, on constant exchange rates.

The group said this was due to pet ownership and welfare becoming more important to people as the COVID-19 pandemic changed peoples’ way of living, and a pre-Brexit inventory build.

The product acquisitions of Osurnia and Mirataz are performing ahead of expectations, today’s report showed, while, post the period end, the group announced on February 8, the acquisition of the Australian and New Zealand marketing rights for Tri-Solfen from Animal Ethics Pty.

Looking ahead for the rest of the current fiscal year, Dechra said trading in the second half remains robust, although it is starting to see the pre-Brexit inventory build unwind and, therefore, expects the balance of trading to be first half weighted.

Overall the outlook for the full year remains positive and in line with the group’s January trading update.

It added: “We expect the strong favourable market conditions to remain, our recent acquisitions to perform well and our supply chain improvement to continue.

“We continue to demonstrate our ability to execute our strategy so, despite the ongoing challenges of the COVID-19 pandemic, we remain confident in our future prospects.”

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