Dechra Pharmaceuticals PLC: Annual Results

LONDON, September 5, 2016 /PRNewswire/ --

International veterinary pharmaceutical business, Dechra (Dechra or the Group) (Stock Code: Full Listing (Pharmaceuticals): DPH) issues audited preliminary results for the year ended 30 June 2016:

"Accelerating our global growth strategy" 

"With three acquisitions, pipeline product launches, successful trading in our new subsidiaries and solid growth in our focus portfolio, Dechra has delivered another strong performance in the 2016 financial year." 

Ian Page, Chief Executive Officer 

To read the news release in full please visit http://www.dechra.com

Highlights

Strong financial performance:

• Revenue growth in our existing EU Pharmaceuticals Segment was 5.7% (at CER) driven by solid performance in Companion Animal Products (CAP) and return to growth of Food producing Animal Products (FAP).
• Continued excellent performance in our existing NA Pharmaceuticals Segment, with revenue increased by 37.9% (at CER); all core therapeutic sectors performing well.
• Consolidated revenue increased by 21.7% (at CER)
• Underlying cash generation of 106.8% allowed us to absorb the costs associated with the acquisitions whilst maintaining a prudent cash position.

Strategic progress made:

• Three value added acquisitions completed.
• Product development pipeline continues to deliver results: recently launched products Osphos® and Zycortal® gaining good market penetration.
• Geographical expansion enhancing revenue growth with good performance in Poland and Canada and new start-up in Austria.

We are pleased to report that the Group has delivered a strong financial performance, has continued to implement its strategic objectives and has invested in its infrastructure, people, product development and acquisitions to further its future objectives. Progress has been made in all aspects of our key strategic growth drivers:

Portfolio Focus: we continue to outperform in the majority of therapeutic areas and markets in which we trade, significantly so within the US;

Pipeline Delivery: our product development pipeline has delivered two novel global products and several regional and national registrations in the period;

Geographical Expansion: we benefited from a solid performance in territories established in the previous financial year and have established positions in Austria, the Adriatic region and Mexico within the financial year;

Acquisitions: three acquisitions have been made in the year, providing critical mass and an enhanced product development pipeline in the US market, poultry vaccine development capabilities to broaden our EU Food producing Animal Products (FAP) business and a marketing and registration platform for Dechra's portfolio in Mexico.

Financial Summary 

   
                       2016        2016         2016

                   Existing Acquisition Consolidated  2015

    Underlying         GBPm        GBPm         GBPm  GBPm

    Revenue           225.9        21.7        247.6 203.5
    Gross profit      129.9         8.6        138.5 116.1

    Gross profit %    57.5%       39.6%        55.9% 57.1%
    Underlying
    Operating
    profit             51.6         1.3         52.9  44.4
    Underlying
    EBIT %            22.8%        6.0%        21.4% 21.8%
    Underlying
    EBITDA             55.9         2.1         58.0  48.0
    Underlying
    diluted EPS
    (p)                                        42.65 39.90
    Dividend per
    Share                                      18.46 16.94

Table continues…

   
                            Growth % at            Growth % at

    Underlying                  AER                    CER
                        Existing Consolidated Existing Consolidated
    Revenue                11.0%        21.7%    11.2%        21.7%
    Gross profit           11.9%        19.3%    12.7%        20.0%

    Gross profit %
    Underlying
    Operating profit       16.2%        19.1%    17.8%        20.9%

    Underlying EBIT %
    Underlying EBITDA      16.5%        20.8%    18.3%        22.7%
    Underlying diluted
    EPS (p)                              6.9%                  8.9%

    Dividend per Share                   9.0%                  9.0%

Outlook 

Although we anticipate a degree of uncertainty following Brexit, the business is naturally hedged by, its geographical spread and international sourcing. Any significant downturn in the UK economy may impinge on growth rates; however, we do not anticipate any material effect on the Group.

Good progress has been made on the integration of the acquisitions. Our pipeline has also been strengthened through both new internally generated ideas and the integration of acquired development programmes. We have continued to invest in people and the infrastructure to ensure we maximise revenues and execute our strategy successfully.

The Group continues to deliver growth and identify opportunities across all aspects of our strategy; we therefore continue to look forward to the future with confidence.

About Dechra 

Dechra is an international specialist veterinary pharmaceuticals and related products business.  Its expertise is in the development, manufacture and sales and marketing of high quality products exclusively for veterinarians worldwide.  Dechra's business is unique as the majority of its products are used to treat medical conditions for which, there is no other effective solution or have a clinical or dosing advantage over competitor products.  For more information, please visit: http://www.dechra.com

A copy of the 2016 Annual Report will shortly be available on the Company website.

Company's Registered Office: 24 Cheshire Avenue, Cheshire Business Park, Lostock Gralam, Northwich CW9 7UA.