Advertisement

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.

Advertisement - Article continues below

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

Advertisement
Advertisement

Recommended

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
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

How “support” and “resistance” can help you spot trading opportunities
Sponsored

How “support” and “resistance” can help you spot trading opportunities

Technical analysis can help traders manage risk and decide where to enter and exit a trade. One simple form of technical analysis is the concept of “s…
6 Jul 2020
House price crash: UK property prices are falling – so where next?
Property

House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020
A first-half home run for investment trusts
Sponsored

A first-half home run for investment trusts

The investment trust sector has seen some extraordinary performance in the first half of this year. Max King looks at what's behind it, and asks: is i…
7 Jul 2020