Dechra beats expectations as Eurovet pushes profits

The veterinary pharmaceuticals firm Dechra has revealed growing sales across all its major brands and profits ahead of market forecasts for the full year to the end of June.

Group revenue to the end of June increased by 9.5% compared to 2011, from £389.2m to £426m. That figure is also ahead of market expectations of £420.2m. Dechra says 7.9% of this growth was organic whilst 1.8% was contributed by the acquisition of Dutch rival Eurovet. Currency movements had a negative impact of 0.2%.

Underlying profit before taxation increased by 9.6% from £30.1m to £33m, again better than the consensus forecast of £31.1m.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Underlying earnings per share increased from 31.53p to 32.37p, up 2.7%.

The full year dividend has been announced at 12.27 pence per share, a 10.3% increase on 2011.

In a separate announcement on Tuesday, Dechra also revealed it has signed an exclusive licence agreement with Scynexis for the development of a drug used to treat "dry eye" in dogs.

Commenting on the results, Dechra's Chairman, Michael Redmond said: "The year has proved very successful with strong underlying growth delivered and a significant strategic acquisition completed.

"The underlying growth has been generated from a solid performance by our licensed veterinary pharmaceuticals across all our major brands."

BS