Dechra revenue and profit surges as acquisitions are integrated

Veterinary pharmaceutical business Dechra Pharmaceuticals posted a 45.1% improvement in revenue for its year to 30 June on Monday at £359.3m, or 28.3% growth at constant exchange rates.

The FTSE 250 company’s underlying operating profit was up 53.7%, or 36.9% at constant currencies at £81.3m, with the board reporting a 120 basis point rise in underlying EBIT margin to 22.6%, or 140 basis points at constant exchange rates.

Its underlying profit before tax rose 54.9% to £77m, or 38.4% at constant currencies, with net cash generated from operations ahead 66.9% at £94.3m.

Underlying diluted earnings per share were 50.8% higher at 64.33p, or 35.1% higher at constant currencies, with the board confirming a dividend per share of 21.44p, up 16.1% year-on-year.

“As we complete our 20th year since inception of the company, we are pleased to report that the group has delivered another strong financial performance,” said chief executive officer Ian Page.

On the strategic front, the board said its core portfolio growth was “solid” in the EU and “excellent” in North America, with its major therapeutic sectors continuing to grow.

It saw “strong performance” from prior year acquisitions, with Apex in Australia now integrated, and a 33% share of Medical Ethics acquired.

The company’s new geographical territories were said to be performing “well”, with a new Dechra Veterinary Products International team formed to “create greater focus”.

Dechra’s board also reported “significant” pipeline delivery with two new FAP EU registrations and “numerous” international approvals, with management saying the company was also exploring several new pipeline opportunities.