Dechra profits double as pharma firm remains on track to hit targets
Veterinary products firm Dechra Pharmaceuticals today revealed it doubled its profit in the six months to the end of 2019.
Profit before tax jumped 117 per cent to £19.5m for the first half of Dechra’s financial year, up from £9m in the corresponding period of 2018. Meanwhile, operating profit was £23.3m, up from £17m in 2018. Dechra credited a fall in amortisation charges on intangible assets for the rises.
Meanwhile, group revenue increased 7.4 per cent year on year to £248.5m despite a 2.5 per cent sales slump in its North American pharma division on a constant currency basis.
Revenue rose strongly in Europe, growing 13 per cent in constant currency.
The company also attributed its performance to growth in overseas markets such as Brazil.
Diluted earnings per share sank 15 per cent year on year to 12.8p however, as Dechra booked higher underlying tax charges. But it hiked its dividend 8.3 per cent to 10.29p per share.
“Our strategy remains robust and we are creating more opportunities than at any time in our history,” boss Ian Page said.
“New development opportunities have been secured creating a pipeline with significant potential future value, acquisition opportunities continue to be assessed and delivered, our international business is increasing in materiality and we continue to get growth from our existing portfolio of products.”
Dechra said it was on track to meet its financial targets for the rest of the year. And the company said it was weighing up the impact of the coronavirus, “if any”.
“We have no direct or indirect revenues in China and we have sufficient inventory of Chinese sourced materials to deal with near term supply, however a prolonged period of interruption would lead to out of stocks,” the firm said.
However, Dechra has warned that issues experienced with the supply chain in the second half of last year could affect the company’s performance for the second half of this year.
“The manufacturing and supply problems resulting in delays to deliveries will be partly reversed in the second half with the exception of two minor products and our sterile ophthalmic range, which are not expected to be back in supply until the next financial year,” the company said.
The firm’s shares slipped 1.4 per cent to 2,760p following its results.