Statement re Trading update

RNS Number : 2630H

Dechra Pharmaceuticals PLC

10 July 2012

 

Issued by TooleyStreet Communications

Date: Tuesday, 10 July 2012

Dechra^® Pharmaceuticals PLC

("Dechra" or the "Group")

Trading Update

The Board of Dechra issues the following update ahead of the publication of the Group's Preliminary Results for the year ended 30 June 2012 which will be announced on Tuesday 4 September 2012.

Group revenue for the year ended 30 June 2012 was approximately 9.3% ahead of the equivalent period last year.  Excluding the impact of Eurovet Animal Health ("Eurovet") acquired on 23 May 2012, Group revenue was 7.5% ahead of last year.

European Pharmaceuticals

Revenue from this division increased by approximately 16.9% compared to last year.  Excluding the impact of Eurovet revenue was 9.0% ahead of last year.  Pharmaceuticals performed strongly, with growth seen in all territories, and Specific^® Pet Diets achieved modest growth at constant currency in the financial year.

The acquisition of Eurovet has significantly strengthened our European pharmaceutical business.  Revenue since completion is in line with our expectations and the integration is proceeding to plan; cost and revenue synergies are being implemented in line with the Eurovet acquisition Prospectus, which was published on 25 April 2012.

US Pharmaceuticals

Revenue was approximately 24.7% higher than last year.  Our key products Vetoryl^®, Felimazole^® and the DermaPet^® range showed good growth but the overall revenue performance was again impacted by continued supply issues with our ophthalmic and otic range.

Services

Revenue grew by approximately 6.5% compared to last year.  Operating margin showed a modest improvement in the second half of the financial year compared to that achieved in the first half.

Net Borrowings

As expected, cash flow in the second half of the financial year was strong with a substantial improvement in net borrowings being achieved compared to the pro-forma position shown in the Eurovet acquisition Prospectus.

Summary

Economic conditions remain challenging in a number of territories in which we trade, however, our Pharmaceutical segments continue to grow, our product pipeline remains strong, our international expansion continues and margins have stabilised in our Services segment. The addition of Eurovet will also bring significant synergies.  The Group has delivered strong growth throughout the financial year and continues to progress its strategic objectives of building a high margin, cash generative veterinary pharmaceutical business.  The Board is confident it will report full year results in line with expectations.

Enquiries:
Ian Page, Chief Executive	Fiona Tooley, Director
Simon Evans, Group Finance Director	TooleyStreet Communications
Dechra Pharmaceuticals PLC	Telephone: [phone]
Telephone: + 44 (0) 1782 771100	Mobile: [phone] (FT)
Mobile: [phone] (IP)
Mobile: [phone] (SE)
www.dechra.com	Ticker: Full Listing (Pharmaceuticals): DPH

Trademarks appear throughout this release in italics.  Dechra and the Dechra 'D' logo are registered Trademarks of Dechra Pharmaceuticals PLC.

 

END

 

 

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