Revenues prove a pet subject for Dechra

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PET drugs firm Dechra said half-year revenues rose 9.1 per cent as it shrugs off the downturn.

Dechra has its Dales Pharmaceuticals factory in Skipton where it makes drugs for pets and humans.

Its European drugs division grew turnover by 10.5 per cent, or 7.8 per cent at constant currency, in the six months to the end of December. Sales of branded drugs increased 13.8 per cent and were boosted by marketing of its Vetoryl treatment for Cushings disease and an acquisition in 2010. Sales of pet food were flat due to falling export sales, but this was offset by higher sales in its core markets.

The group’s US pharmaceuticals division hiked revenues by 40.9 per cent, or 44.6 per cent at constant currency.

Dechra’s services division grew revenues by 7.4 per cent but gross margin was squeezed by changing product mix and increased discounting in an “increasingly competitive” market.

The company said: “Trading within our veterinary products segments, the main area of our strategic focus, continues to perform robustly. Overall the group has performed to management’s expectation within the period.”

FinnCap analyst Keith Redpath said the revenue hike suggests turnover of more than £209m.

Dr Redpath said: “We continue to believe that Dechra is a quality business which is riding out recessionary pressures and continuing to deliver profitable growth.”