Dechra Pharmaceuticals FY revenue jumps 17%

Dechra Pharmaceuticals reported a jump in full-year revenue on Tuesday, driven in part by its core portfolio.

In an update for the year to 30 June 2019, the company said trading was "strong" and in line with management expectations, with group revenue up around 17% at constant exchange rates.

In the European pharmaceuticals business, revenue was up around 18%, while the North American division saw revenue growth of about 15%.

During the year, Dechra completed the acquisitions of Caledonian in New Zealand and Australia and Laboratorios Vencofarma in Brazil. The group also upped its investment in Medical Ethics from 33% to 48% post year end.

Chief executive officer Ian Page said: "We are pleased to have delivered another year of strong revenue growth. This has been driven from our core portfolio, good market penetration and realisation of significant Le Vet revenue synergies. In addition the newly acquired Caledonian and Venco businesses have performed well."

At 0840 BST, the shares were up 2% at 2,816p.

RBC Capital Markets said: "This morning's trading statement shows a solid performance from Dechra for FY19, which we think is captured in the current share price, although we note that the company has considerable facilities to potentially make acquisitions from here that could drive upside to our estimates.

"Both the EU and North America performed better than our expectations with good growth seen in both territories thanks to a healthy mix of organic and acquisitions."