Dechra delivers 'above market' revenue growth in first half

Dechra Pharmaceuticals updated the market for the half year ended 31 December on Monday, reporting that trading was “strong” and in line with management expectations.

The FTSE 250 company said reported group net revenue for the period increased 18% at both constant exchange rates and actual exchange rates.

European pharmaceuticals net revenue growth was around 18% at constant currency, and 17% at actual exchange rates, while North American pharmaceuticals saw net revenue growth was of 18% at constant exchange rates and 20% at actual exchange rates.

In European pharmaceuticals, existing net revenues, excluding third party contract manufacturing - non-animal health which Dechra was strategically exiting - increased 4% at constant exchange rates and 3% at actual rates.

Over in North American pharmaceuticals, the board said its net revenue growth was driven primarily by the expansion of its US direct sales force in 2018, which was continuing to generate “significant” sales growth, and was further helped by the temporary absence from the market of a competitor product to Zycortal.

The company completed the acquisition of Laboratorios Vencofarma do Brasil during the period, and the board said the acquired businesses of AST Farma/Le Vet, RX Vet and Caledonian were performing “strongly” and in line with expectations, creating material synergies across the group.

For the Venco acquisition in Brazil, which completed on 17 December , Dechra said the planned revenue and EBIT contribution would feature in the second half of the year, with the integration plan underway.

Brexit contingency preparations were said to be progressing well towards completion ahead of 29 March, and in line with the board’s existing scope and cost expectations.

“We are pleased with the group's trading in the period,” said chief executive officer Ian Page.

“Dechra continues to deliver above market revenue growth in our existing business and in our acquisitions, in line with the board's expectations.”