Revenue surge for Dechra

VETERINARY products supplier Dechra Pharmaceuticals has experienced a surge in revenues across its divisions.

In a trading statement ahead of the publication of its preliminary eesults for the year ended June 30, Dechra revealed group revenue was approximately 9.3% ahead of the equivalent period last year.

Excluding the impact of Eurovet Animal Health  – the Dutch drugs firm Dechra bought for £113m in May – group revenue was 7.5% ahead of last year.

Revenue was up 16% in its European pharmaceuticals arm (9% excluding Eurovet).

Dechra operates Skipton-based Dales Pharmaceuticals.

“The acquisition of Eurovet has significantly strengthened our European pharmaceutical business. Revenue since completion is in line with our expectations and the integration is proceeding to plan,” it said.

In its US pharmaceuticals division, revenue was approximately 24.7% higher than last year.

“Our key products Vetoryl, Felimazole and the DermaPet range showed good growth but the overall revenue perfromance was again impacted by continued supply issues with our ophthalmic and otic range,” Dechra said.

The firm said cash flow in the second half of the financial year was strong with a substantial improvement in net borrowings being achieved.

“Economic conditions remain challenging in a number of territories in which we trade, however, our pharmaceutical segments continue to grow, our product pipeline remains strong, our international expansion continues and margins have stabilised in our services segment,” it said.
“The addition of Eurovet will also bring significant synergies.
“The group has delivered strong growth throughout the financial year and continues to progress its strategic objectives of building a high margin, cash generative veterinary pharmaceutical business.”