Trading Update & Notice of Annual Results

RNS Number : 8732D

Dechra Pharmaceuticals PLC

12 July 2016

 

Tuesday 12 July 2016

Dechra^® Pharmaceuticals PLC

(Dechra or the Group)

Trading Update 

The Board of Dechra issues the following unaudited pre-close trading update for the Group's financial year ended 30 June 2016 ahead of its preliminary results which will be announced on Monday 5 September 2016.

Highlights

·   Trading in the full year was strong with revenue growth, including acquisitions, of 21% at CER (21% at AER). Excluding acquisitions, revenue growth was 11% at CER (11% at AER)

·   Revenue in EU, excluding Genera®, grew by 5% at CER but currency headwinds impacted actual reported growth (3% at AER).

·   The momentum in our North American business has been very pleasing with revenue increasing by 37% at CER (45% at AER), excluding Putney® and Brovel.

·   The integration of our three acquisitions has advanced in line with our expectations, providing a platform for future growth.

·   With the successful launch of Zycortal® in the EU and US, roll out of Osphos® into additional EU countries, approval of Avishield®ND, a Genera poultry vaccines, and four new Food producing Animal Products (FAP) products, the pipeline continues to provide good growth prospects for the future. 

Ian Page, Chief Executive Officer, said: "With three acquisitions, pipeline product launches, successful trading in our new subsidiaries and solid growth in our focus portfolio, Dechra has delivered another strong performance in the financial year 2016. We remain confident in our future prospects as we continue to execute our strategy; we believe that the growth opportunities available to us should not be affected by the current market volatility and uncertainty."

Operational review

European Pharmaceuticals

During the full year, revenue growth in EU Pharmaceuticals increased by 5% at CER (3% at AER). Including Genera, growth was 13% at CER (11% at AER). A solid performance in our Companion Animal Products (CAP) and Equine portfolios together with a recovery in FAP supported our revenue growth. Whilst we have seen momentum in some of our markets, Diets have not yet fully recovered to their previous sales level following our supply problems.

As previously reported, the growth in FAP was driven by our new subsidiary in Poland, a slowdown of the decline in Germany and market share gain in countries where we had a low market share and are now increasing our penetration. The launches of Osphos and Zycortal have also contributed to the EU performance.

North America Pharmaceuticals

North America continued to grow at a significant rate with revenue increase of 37% at CER (45% at AER).  The two months of trading at Putney added another 16% to the growth at CER.

The excellent results were driven by increased market penetration of our Endocrinology and Dermatology portfolios in the US and the full year effect of the Canadian subsidiary.

Pipeline Delivery

The pipeline progress has been in line with our plans. A number of approvals were achieved throughout the year, including Zycortal, our novel endocrine product, four FAP products including Solamocta® and Solupen®, and our first poultry vaccine Avishield ND. Additionally we received several registrations in emerging markets, which supports our strategic ambitions to expand our geographic footprint.

Geographical Expansion

Our geographical expansion is accelerating with the acquisitions of Brovel and Genera and our solid progress in our recently established subsidiaries in Poland and Austria. The results also include the full year effect of the establishment of the Canadian subsidiary which commenced trading in January 2015.

Acquisitions

As previously reported we have made three acquisitions in the financial year 2016:

-      Genera d.d. on 20 October 2015, a strategic entry into the poultry vaccines market as well as a broadening of our FAP portfolio;

-      Laboratorios Brovel SA on 13 January 2016, expanding our footprint in Mexico and Latin America; and

-      Putney Inc. 22 April 2016, creating economies of scale for Dechra Veterinary Products NA and offering an advanced pipeline of CAP generics products.

Integration activities are well under way: our reorganisation of Genera's business is completed, the restructuring of Putney was conducted in the first week of integration and the new management team at Brovel is in place. Our combined sales teams are now focused on maximising revenue, furthermore the development of the pipeline in the acquired entities is advancing in line with expectations. Trading in our acquired entities is progressing well.

Enquiries:
Dechra Pharmaceuticals PLC
Ian Page, Chief Executive Officer
Anne-Francoise Nesmes, Chief Financial Officer e-mail: [e-mail]	Office: [phone]
TooleyStreet Communications Ltd
Fiona Tooley, Director e-mail: [e-mail]	Office: [phone] Mobile: [phone]

About Dechra

Dechra is an international specialist veterinary pharmaceuticals and relates products business.  Our expertise is in the development, manufacture and sales and marketing of high quality products exclusively for veterinarians worldwide. Dechra's business is unique as the majority of its products are used to treat medical conditions for which there is no other effective solution or have a clinical or dosing advantage over competitor products. 

For more information please visit: www.dechra.com

Stock Code: Full Listing (Pharmaceuticals): DPH

Trademarks

Dechra and the Dechra "D" logo are registered trademarks of Dechra Pharmaceuticals PLC.

 

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