Shares of Chesire-based international veterinary drugs giant Dechra Pharmaceuticals fell about 15% after it reported “unpredictable” trading patterns and said it expects full year underlying operating profit to be at the lower end of analyst expectations.

Northwich-based Dechra said revenue rose to £377.4 million for the six months ended December 31 2022, up from £332.4 million a year ago, but pre-tax profit fell from £53.4 million to £29.7 million.

Interim dividend increased by 4.2% to 12.50p.

In its outlook, Dechra said: “Trading patterns at the start of 2023 have been unpredictable in the US, where wholesalers have been reducing inventory levels.

“In the second half, we have re-commenced sales in South Korea, we expect an improving contribution from Med-Pharmex and will see the benefit of two recent new product launches, Zenalpha and Zycosan.

“Based on the recent US de-stocking and current exchange rates, the board now expects full year underlying operating profit to be at the lower end of analyst expectations.

“The nature of the Dechra product portfolio, with a weighting towards CAP and non-discretionary prescription only medicines, means that we remain well positioned to outperform the markets in which we operate.

“Furthermore, the increased investment being made in R&D will underpin operating margin expansion over the medium term as delivery of our pipeline, which is stronger than ever, adds further scale and breadth to our portfolio.”