Vet product maker Dechra Pharmaceuticals sees profits rise during global expansion

Veterinary product manufacturer Dechra Pharmaceuticals has achieved double-digit growth in its profits and expanded in Europe and North America over its last financial year.

Gross profits during the 12 months ending June 30, when considered at constant exchange rates, rose by 13.6%, from £107.7m to £116.1m. Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA), meanwhile, increased from £46.2m to £48m.

The Cheshire-based firm’s CEO, Ian Page, said: “During the financial year, we focused on the execution of our strategic priorities.

“As a result we consolidated our position within the market, invested in the launch of new products and expanded geographically, delivering underlying operating profit growth of 11.6% at constant exchange rates.”

Ian added: “Our strong balance sheet gives us the flexibility to pursue strategic opportunities as they arise in the future.”

The 12-month period saw Dechra Pharmaceuticals expand its dermatology portfolio, launching Sporimune, an in-licensed product, across seven European markets, and injectable horse medicine Osphos in the UK. In the new financial year, the company plans to release the latter in Europe.

Dechra Pharmaceuticals expanded into a number of new territories during the year, strengthening its European presence with new bases in Poland and Italy and growing its operations across the Atlantic with a new subsidiary in Canada.

The latter was established after bosses at the firm decided to expand its US Pharmaceutical Segment, renaming it the North American Pharmaceuticals Segment.

Together, the three new territories contributed 16% of the company’s total revenue growth.

Company chairman Michael Redmond commented: “The Board believes that our focus on our key therapy areas, the continued rate of adoption of Osphos and sales in our new territories will drive progress in the short term.

“Current trading is in line with management expectations; however, the business continues to be exposed to exchange rate volatility.”

He continued: “In the long term the delivery of further new products and the integration of potential acquisitions give the Board confidence in the Group’s future prospects.”

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