Advertisement

Dechra sees slowdown of growth in European sector

Dechra Pharmaceuticals said in a trading statement Tuesday that its first half has been in line with management expectations, but admitted its European Pharmaceuticals segment saw growth slow from 73.7 per cent to 61.4 per cent year-on-year.

Dechra Pharmaceuticals said in a trading statement Tuesday that its first half has been in line with management expectations, but admitted its European Pharmaceuticals segment saw growth slow from 73.7 per cent to 61.4 per cent year-on-year.

The reported divisional performance over the corresponding period last year, excluding Eurovet Animal Health, declined by 2.4% (an increase of 4.5% at constant currency), which the group said reflected an exceptional increase last year of £1.2m in the production of Vetoryl for the US market to ensure continuity of supply as it implemented manufacturing changes.

Advertisement - Article continues below

Planned changes to distribution arrangements in France and Germany also had an adverse effect on reported revenue, the firm said.

More positively, the integration of Eurovet continued to progress well and is delivering expected cost and revenue synergies.

In US Pharmaceuticals, revenue was ahead of the corresponding period last year by 10.0% (10.4% at constant currency), with strong growth seen in its DermaPet, Vetoryl and Felimazole products.

Revenues from the services division rose 5.1% compared to the prior year, while operating margin over the 12 months "demonstrated a modest improvement over the corresponding period last year".

The group commented that it made a "strong start to the financial year which is in line with the board's expectations".

The share price fell 2.8% to 625p on Tuesday morning.

NR

Advertisement
Advertisement

Recommended

Visit/investments/investment-strategy/601044/broker-safety-your-questions-answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
Visit/investments/investment-strategy/600861/how-demographics-affects-stock-valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Visit/investments/stocks-and-shares/600863/sirius-minerals-anglo-american-takeover
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Visit/investments/stockmarkets/600634/why-investors-should-be-cautiously-bullish-for-2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Visit/investments/commodities/gold/601444/these-seven-charts-show-exactly-why-you-must-own-gold-today
Gold

These seven charts show exactly why you must own gold today

Covid-19 is accelerating many trends that were already in existence. The rising gold price is one such trend. These seven charts, says Dominic Frisby,…
3 Jun 2020
Visit/investments/stockmarkets/601460/disease-rioting-and-mass-unemployment-so-why-are-markets-soaring
Stockmarkets

Disease, rioting and mass unemployment – so why are markets soaring?

Despite some pretty strong headwinds in the last year, America’s S&P 500 stock index is close to all-time highs. John Stepek explains why markets seem…
4 Jun 2020
Visit/economy/eu-economy/601463/why-a-stronger-euro-is-good-news-for-investors
EU Economy

Why a stronger euro is good news for investors

The fragile state of the eurozone has for a long time brought the threat of deflation. But the ECB’s latest moves have dampened those fears. John Step…
5 Jun 2020