Revenues and profits rise at vet products group

Vet products group Dechra Pharmaceuticals announced improved annual results for the year to June 30, today, and confirmed the strong momentum has continued into the current financial year.

Annual revenues were £608m, compared with £515.1m the previous year. Pre-tax profits of £74m were up from £40.9m in 2020.

The dividend has been increased 18.1% from 34.29p per share to 40.50p per share.

Dechra, which is based in Northwich, Cheshire, and has a manufacturing site in Skipton, North Yorkshire, said all product categories are delivering growth, with the CAP (Companion Animal Products) and Equine performance described as “exceptional”.

There is strong organic growth in all key markets and good progress continues to be made on the group’s product pipeline.

The acquisitions of Mirataz and Osurnia are both performing well, particularly Osurnia which is performing above expectations.

Chief executive, Ian Page, said: “Dechra has continued to outperform a robust market throughout the COVID-19 pandemic affected financial year.

“As we start the new financial year trading remains strong with the momentum and market penetration seen in the second half of the prior financial year continuing.”

He said the reasons for the market growth seen during the reporting period are not yet fully defined.

In the UK there have been reports of an increased number of dogs, however, he said, recent information from the United States indicates that veterinary practice visits by pet owners have marginally declined.

“What is clear is that people have been spending more time with their pets and have, therefore, been more cognitive of their welfare, and with disposable income being higher than normal due to lockdown, expenditure per pet has increased,” Mr Page added.

The group’s pharmaceutical development laboratories in the UK, Croatia and Netherlands remained operational during the pandemic by adopting staggered schedules. The laboratories increased formulation capacity with additional people and new equipment.

Tony Rice

Mr Page revealed that chairman Tony Rice has indicated that he will step down to devote more time to his family and his other business and charitable activities after five years in the role.

A search for his replacement has commenced, but Rice will remain as chairman of the group until a successor has been appointed.

He added: “As we start the new financial year trading remains strong with the momentum and market penetration seen in the second half of the prior financial year continuing.

“We have made significant operational improvements by strengthening our infrastructure and by investment in our greatest resource, our people.

“Although COVID-19-related travel restrictions have limited acquisition activity, we have still been able to identify and progress numerous strategic opportunities to strengthen our product portfolio and development pipeline. We, therefore, remain confident in our ability to successfully execute our strategy and in our future prospects.”