Dechra Pharmaceuticals posts rise in quarterly revenues

Dechra Pharmaceuticals reported an increase in revenue in the first three months of the year as a rise in Europe sales offset a fall in the US.

Dechra Pharmaceuticals reported an increase in revenue in the first three months of the year as a rise in Europe sales offset a fall in the US.

Group revenue for its third quarter was up 14.6% ahead of last year, according to a trading update Wednesday.

For the nine months ended March 31st, group revenue increased 18.4% compared to the previous year.

A 69.8% jump in quarterly revenues in the European Pharmaceuticals segment drove results. The division climbed 69.7% in the nine-month period.

The acquisition of Eurovet Animal Health last May boosted revenues.

Companion animal products for the nine months to the end of March grew by 11.0% on a like-for-like basis.

Farm animal products, which continued to be affected by a focus on the reduction of antibiotics in Europe, rose by 1.0%. Pet diet jumped 2.0%.

In the US, revenue declined 14.4% in the quarter and were broadly flat in the nine month period, reflecting supply problems from a third party manufacturer. Customer back orders exceeded $1.0m.

Services segment revenues dropped 2.5% in the quarter, due to a weak performance in the UK veterinary market. Poor weather resulted in significantly reduced footfall through veterinary practices.

Revenue for the nine months was, however, was 2.7% ahead of the previous year.

"The strong performance reported in the first half of thefinancial year has been partly offset by a weaker than expected third quarter which was affected by poor weather in Northern Europe and third party supply problems within the US," the company said.

The company said it does not anticipate that the third quarter's performance will materially impact its expectations for the full year as trading picked up in April.

Shares fell 2.25% to 696p at 09:40 Wednesday.

RD

Recommended

Too embarrassed to ask: what is short selling?
Too embarrassed to ask

Too embarrassed to ask: what is short selling?

Short sellers are often accused of unfairly driving share prices down to make a quick buck. But short selling is a perfectly legitimate – if risky – t…
26 Jan 2021
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
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
Do you own shares in Sirius Minerals? Here’s what you need to do now
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

Most Popular

The FTSE 100 is set for a makeover with an influx of new tech stocks
UK stockmarkets

The FTSE 100 is set for a makeover with an influx of new tech stocks

The FTSE 100 – the dullest index in the world – is about to reinvent itself as a host of new firms list on the market. The change is long overdue, say…
24 Jan 2021
Think Tesla is a bubble? This might be the best way to bet on it bursting
Oil

Think Tesla is a bubble? This might be the best way to bet on it bursting

The huge rise in Tesla’s share price means that, by market value, it’s now the sixth-largest company in the US and and the world’s biggest car-maker. …
25 Jan 2021
Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021