Veterinary group to continue global expansion after sales growth
INTERNATIONAL veterinary pharmaceutical specialist Dechra is set to continue its global expansion after celebrating growth in revenue to £203.5m and an 11.6% increase in underlying operating profits, despite exchange rate volatility.
Profits reached £44.4m, a rise of 5.2%, but 11.6% increase at constant exchange rates (CER). Turnover at the group, which has an operation in Skipton, was also up 10% at CER from £193.6m in 2014.
Chief executive Ian Page said: “During the financial year, we focused on the execution of our strategic priorities.
“As a result we consolidated our position within the market, invested in the launch of new products and expanded geographically, delivering underlying operating profit growth of 11.6% at constant exchange rates.
“Our strong balance sheet gives us the flexibility to pursue strategic opportunities as they arise in the future.”
The company grew its EU Pharmaceuticals revenue by 3.9% at CER with a strong performance in Companion Animal Products, partly offset by a decline in Food producing Animal Producs.
Dechra also enjoyed an excellent performance in North America Pharmaceuticals with a revenue increase at 59.9% at (CER), driven by the growth of its core brands and the launch of acquired product Phycox.
Meanwhile, the company has made a conditional offer of €51.4 million for Croatian company Genera D D announced to enable it to enter the poultry vaccines market.
Chairman Michael Redmond said: “The board believes that our focus on our key therapy areas, the continued rate of adoption of Osphos and sales in our new territories will drive progress in the short term.
“Current trading is in line with management expectations; however, the business continues to be exposed to exchange rate volatility.
“In the long term the delivery of further new products and the integration of potential acquisitions give the board confidence in the group’s future prospects.”
