Dechra H1 revenue tops £248m as it warns on virus

Northwich, Chesire-based veterinary drugs giant Dechra Pharmaceuticals Plc said on Monday its revenue rose 7.1% to £248.5 million and profit before tax more than doubled to £19.5 million in the six months to December 31 as the international firm was boosted by recent acquisitions.

Interim dividend increased 8.3% to 10.29p.

Dechra addressed the coronavirus situtation by saying it has “no direct or indirect revenues in China” but that a prolonged period of interruption to its Chinese sourced materials “would lead to out of stocks.”

Dechra said: “The team is assessing the potential impact on the group of the Covid-19 Virus, if any.

“We have no direct or indirect revenues in China and we have sufficient inventory of Chinese sourced materials to deal with near term supply, however a prolonged period of interruption would lead to out of stocks.”

In its outlook, Dechra said: “Overall the outlook for the full year remains in line with management expectations, although performance in North America will remain challenging until all supply issues are remedied.

“Our strategy remains robust and we are creating more opportunities than at any time in our history.

“New development opportunities have been secured creating a pipeline with significant potential future value, acquisition opportunities continue to be assessed and delivered, our international business is increasing in materiality and we continue to get growth from our existing portfolio of products.

“The board therefore remain confident in our strategy and the future prospects for the group.”

Dechra CEO Ian Page said: “Our strategy remains robust and we are creating more opportunities than at any time in our history.

“New development opportunities have been secured creating a pipeline with significant potential future value, acquisition opportunities continue to be assessed and delivered, our international business is increasing in materiality and we continue to get growth from our existing portfolio of products.”

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