Chesire-based international veterinary drugs giant Dechra Pharmaceuticals announced its revenue grew 13.8% to £681.8 million and underlying operating profit increased 9.4% to £174.3 million in the year to June 30, 2022.

Full year dividend will increase 10.8% to 44.89p.

However, Dechra shares fell as much as 9% as investors worried about the challenges of inflation and the risk of recession.

Dechra said it completed two “material” company acquisitions post year-end — buying Piedmont and Med-Pharmex.

Victoria Scholar, Head of Investment, Interactive Investor said: “Dechra was an outperformer during the pandemic thanks to strong demand for pets and pet related services.

“However like many listed companies, 2022 has been significantly more challenging with the stock shedding over a third of its value since the peak.

“The fundamentals of the business remain robust with no sell recommendations on the stock from the analyst community.

“But the macroeconomic challenges of inflation and the risk of recession combined with the backdrop of volatile financial markets suggest the path ahead continues to look bumpy.”

Dechra CEO Ian Page said: “We have continued to progress on all aspects of our strategy; the product development pipeline was strengthened, material acquisitions were completed post year-end and a new subsidiary was established in South Korea as we continue our geographical expansion.”