Exchange rate headwinds neuter vet products group’s growth

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

Dechra,  has a large operation in Shrewsbury, increased its revenues by 14% to £110.7m, at a constant exchange rate (CER) basis, while EBITDA – a measure of profitability, was up by one-quarter to £28.7m.

The growth for the company was helped by growth in EU pharmaceuticals, including its October acquisition of Croation firm 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).

Dechra’s chief executive Ian Page said: “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.”

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 £17.8m as at December 2015.

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