Acquisition costs dent full year performance for Dechra
THE cost of expansion has dented the full year performance of animal pharmaceuticals group, Dechra.
The business, which has a large operation in Shrewsbury, saw total revenue grow by 21.7% to £247.6m for the full year.
However, including non-underlying items, the group’s reported pre-tax profit of £12.5m decreased by 27.7% at constant exchange rates (35.9% at actual exchange rates), which the company has blamed on one-off acquisition cost.
On a positive note, it said growth in its sales force together with the launch of new products and sales from new operations in Canada and Poland led to revenue growth in the group’s existing business of 11.2%.
Ian Page, Dechra CEO, said: “With three acquisitions, pipeline product launches, successful trading in our new subsidiaries and solid growth in our focus portfolio, Dechra has delivered another strong performance in the 2016 financial year.”
Dechra’s existing business grew by 5.1% at CER (declined by 1.0% at AER), with reported post-tax profit of £19.3m, which was adversely impacted by foreign exchange losses of £0.8 m in the year compared to foreign exchange gains of £2.2m in 2015.
Revenue growth in the group’s existing EU Pharmaceuticals Segment was 5.7% (at CER) driven by the performance of its Companion Animal Products operation and a return to growth of Food producing Animal Products (FAP).
Looking ahead, the group is hoping the its new three new businesses – Genera, Brovel and Putney – will make solid contributions in the current financial year.
