Strong growth for vet products group Dechra
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Strong growth across its existing portfolio has enabled veterinary products supplier Dechra Pharmaceuticals to deliver a positive set of full year results.
In the year to June 30, 2017, revenue rose 28.3% at constant exchange rates to £359.3m (2016: £247.6m), underlying pre-tax profit was up 38% to £77m (2016: £49.7m). Underlying earnings per share rose 35% to 64.33p (2016: 42.65p) and the board has recommended a final dividend of 21.44p (2016: 18.46p), a rise of 16%.
It said both the core business and new acquisitions were performing well and the enlarged group continued to outperform the majority of markets in which it trades.
While it continues to identify new growth opportunities and operational efficiencies, it said current trading was in line with the board’s expectations and its anticipated delivering its strategic objectives in the current financial year.
The group is based in Northwich in Cheshire and has a large operation in Shrewsbury.
Ian Page, Chief Executive Officer, Dechra, said: “As we complete our 20th year since the inception of the company, we are pleased to report that the group has delivered another strong financial performance.
“This has been driven by growth from our existing portfolio, good market penetration from recent pipeline launches and the pleasing performance of the acquisitions made in the preceding financial year.
“This has resulted in strong cash generation and deleveraging of our balance sheet. Furthermore, we have completed two acquisitions within the 2017 financial year, the first of which extends our geographical footprint into Australia and New Zealand and the second is a minority stake together with the global marketing rights in a business that may transform our Food producing Animal Product (FAP) business in the long term through the development of a novel approach to farm animal pain relief.
During the 2017 financial year the group’s EU Pharmaceuticals segment increased its total reported revenues by 7.9% at CER. The existing EU Pharmaceuticals business, excluding third party contract manufacturing and acquisitions, increased by 5.3%. Third party contract manufacturing revenues declined by 9.7% but it said this was a conscious strategic move as it implemented an efficiency improvement plan across its manufacturing sites.
Total North American revenues increased by 93.7%. Existing business sales increased by 16.5% with both its US and Canadian businesses performing well.
Overall the segment benefited from an exceptional performance by its Putney acquisition. It said the business had integrated extremely well and significant cost savings had been achieved.