Dechra confident in face of challenge

PET drugs firm Dechra Pharmaceuticals said economic conditions remain challenging in a number of its territories, but its product pipeline is strong and the group is confident full-year results will be in line with expectations.
By The Newsroom
Published 11th Jul 2012, 07:00 BST

The group, which owns Skipton-based Dales Pharmaceuticals, said its pharmaceutical business continues to grow, its international expansion continues and margins have stabilised in its services segment.

It added that the acquisition of Eurovet Animal Health in May for £109m will bring significant synergies.

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Dechra said Dutch-owned Eurovet will strengthen its presence in Europe, increase its product portfolio and improve its manufacturing. Eurovet operates in the pet and farm animal pharmaceuticals markets.

Dechra chief executive Ian Page said: “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.”

The group’s revenue for the year to June 30 was nine per cent ahead of last year. Excluding the impact of Eurovet, group revenue was 7.5 per cent ahead of last year.

Revenue from European Pharmaceuticals rose by 17 per cent compared with last year. Dechra said that the pharmaceuticals business performed strongly, with growth seen in all territories.

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“The acquisition of Eurovet has significantly strengthened our European pharmaceutical business,” said Mr Page.

Services revenue grew rose 6.5 per cent on last year. Operating margins showed a modest improvement in the second half.

Analyst Keith Redpath at FinnCap said: “Despite market concerns that the economy would adversely affect consumer spending on their pets, services revenues grew 6.5 per cent.”