Strong first quarter for Dechra

PHARMACEUTICALS group Dechra has announced a 5% increase in first quarter revenues with the company set to capitalise on business opportunities.

In a trading statement covering the period from July 1 to current, the firm said trading had been in line with management expectations and it was in a strong financial position to deliver a strategy of maximising existing business, building and delivering its specialist veterinary pharmaceutical pipeline, and expanding geographically.

Group revenue on continuing operations for the first quarter ended September 30, 2013 was approximately 5% ahead of last year. Robust growth in its core products in the EU and USA was offset by the phasing of export sales and by the impact of the US supply issues.

The period also saw the disposal of its Services Segment, which was completed in August, generating £87.5m, of which £81.1m was used to pay down debt.

In the first quarter its European Pharmaceuticals Segment increased revenues by approximately 6%.

“Trading within our own sales and marketing organisations has been robust with growth of approximately 4% at constant currency compared to the prior year.  However, this was more than offset by export revenues being lower than in the prior year due to the phasing of orders,” it said.  

Total reported US revenue was approximately 5% down on the same period last year. After adjusting for the adverse impact of the Animax supply issue, the remainder of its portfolio performed strongly in the first quarter with reported revenues growing by approximately 12%.

In addition, Neil Warner, Senior Independent Non-Executive Director and Chairman of the Audit Committee, steps down from the business after today’s AGM.

Ishbel Macpherson will be appointed as the Senior Independent Non-Executive Director and Julian Heslop as the Audit Committee Chair.