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Dechra Pharmaceuticals revenue growth slows slightly in second half

In the 12 months to end-June, the FTSE 250-listed firm's revenues were up by around 17% on the previous year, which was slower than the 19.1% growth seen in the first six months
Dechra's North American Pharmaceuticals business faced more competition in the second half

Veterinary drug maker Dechra Pharmaceuticals PLC (LON:DPH) said a mix of organic growth and acquisitions led to revenues growing 18% in the past 12 months.

In a brief trading update on Tuesday, the FTSE 250-listed firm said group revenue at constant currency rates in the year to end-June were by up around 17% on the £407.1mln reported in the previous year, albeit slower than the 19.1% growth seen in the first six months of the year.

READ: JP Morgan kicks off Dechra Pharmaceutical coverage with bullish ‘overweight’ note

The companys said its strongest growth came from its European Pharmaceuticals business, up roughly 18%, helped by the acquisition of Netherlands-based Le Vet halfway through the prior year and the further purchases of antipodes-based Caledonian and Brazil’s Venco in the latest year.

Excluding third party contract manufacturing, treating previous year’s acquisitions on a like-for-like basis, and excluding the latest purchases, Dechra said its full-year revenues increased by around 7%.

In North America Pharmaceuticals revenue growth was around 15%, driven by the companion animal portfolio, which was a strong outperformance of the market, the company noted, even though it was down on the 19.3% seen in the first half of the financial year when a key competitor product was absent from the market. 

“We are pleased to have delivered another year of strong revenue growth,” said Dechra chief executive Ian Page. “This has been driven from our core portfolio, good market penetration and realisation of significant Le Vet revenue synergies.”

He added that the newly acquired Caledonian and Venco businesses have “performed well”.

Shares in Dechra, which will publish its full results in early September, were up 1% to 2,786p in early trading on Tuesday. 

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