Dechra sees rise in half year revenues

PHARMACEUTICALS group Dechra has announced half-year revenues up more than 9% on the corresponding period in 2010.

The Staffordshire-based group said the period had seen growth across both its European and US operations.

Combined, group revenue for the six months ended December 31, 2011 rose 9.1% compared with the equivalent period a year ago.

European Pharmaceuticals achieved revenue growth of approximately 10.5% (7.8% at constant currency) compared to the same period in the previous 12 months.

Branded pharmaceutical revenue increased by 13.8% at constant currency compared to the equivalent period last year. The group said underlying growth had benefited from the in-house marketing of Vetoryl® and the Genitrix acquisition completed in December 2010.  
Specialist pet diets revenue was flat at constant currency due to a reduction in export sales, however, this was offset by an increase in sales in core markets.

Revenue from US Pharmaceuticals was ahead of the corresponding period last year by 40.9% (44.6% at constant currency), with strong growth from DermaPet, the Florida-based operation acquired in 2010, and increased sales of Vetoryl and Felimazole®.  

It said previous supply issues with ophthalmic and otic products had continued.

In its services operation, half-year revenues were up 7.4% up on the equivalent period in 2010. Gross margin remained under pressure and was reduced in the period due to product mix and increased discounting.

In summary, the group said: “Trading within our veterinary products segments, the main area of our strategic focus, continues to perform robustly.  Revenues in our services segment remain resilient; however, our revenue increase in this area has been offset by a decrease in margin.  Overall the group has performed to management’s expectation within the period.”

Half-year results for the six months ended December 31, 2011 are due on February 21, 2012.