‘Excellent growth’ at vet products group, but markets now returning to normal
Increased spending on pets as a result of COVID-19 restrictions helped drive up interim results for Northwich-based vet products group Dechra Pharmaceuticals.
In the six months to December 31, 2021, the group achieved sales of £332.4m, up from £299.8m, generating pre-tax profits of £53.4m compared with £35.4m the previous year.
European Pharmaceuticals revenue growth was 10.5% at constant exchange rates, and North American Pharmaceuticals revenue growth was 26.1%, which was ahead of management expectations.
The interim dividend has been increased by eight per cent to 12.00p per share.
The group reported “excellent growth” saying it outperformed a market that has seen strong growth as it continued to benefit, in its major international markets, from increased spending on pets as a result of COVID-19 restrictions.
Strategic progress was also made through the acquisition of a number of complementary products and through progress in the group’s product development pipeline.
However, it said that, towards the end of the reporting period, and at the start of the second half, it has seen markets returning to more normalised, robust levels of historic growth.
A capital investment programme is under way at the group’s Skipton site which will create additional space to support the aim of increasing the amount of products manufactured in-house.
Dechra chief executive, Ian Page, said trading at the start of the second half remains strong, especially in major markets which are returning to historic levels of growth as they normalise following the diminishing influence of COVID-19.
He said: “Future prospects remain excellent as we strengthen the group’s infrastructure, continue to outperform markets and identify and deliver new strategic growth opportunities.”
With effect from January 1, 2022, Alison Platt was appointed chair of the board, and chair of the Nomination Committee, following the retirement of Tony Rice.
In Australia, the group appointed Gunter Schuele as general manager following the retirement of Peter Clarke.