Dechra® Pharmaceuticals PLC (LSE symbol DPH) Releases its 2017 Half-yearly Financial Report
LONDON, February 27, 2017 /PRNewswire/ --
Ian Page, Chief Executive Officer: "Our core portfolio continues to grow, the enhanced product pipeline is delivering new products and good progress has been made on the rationalisation and integration of our recent acquisitions."
Introduction
The Group has performed strongly throughout the first six months of the financial year ending 30 June 2017 (the Period). This result has been driven by a solid revenue performance in our core businesses, good market penetration from recently launched pipeline products and a strong performance from our recent acquisitions. The operating profit performance has been enhanced by the successful rationalisation and integration of these acquisitions, prudent cost control in our core businesses and a significant favourable foreign exchange tail wind.
2017 HY Highlights
- Total Group revenue of £172.6 million, a growth of 34.7% at Constant Exchange Rate (CER) (55.9% at Actual Exchange Rate (AER)).
- Core (excluding acquisitions) European Pharmaceuticals (EU Pharmaceuticals) Segment revenue growth of 5.9% at CER (20.0% at AER).
- Core North American Pharmaceuticals (NA Pharmaceuticals) Segment revenue growth of 10.2% at CER (31.7% at AER).
- Sales growth across all product groups; Companion Animal Products (CAP), Food producing Animal Products (FAP), Equine and Diets.
- Strong performance from recently acquired businesses, exceeding our expectations.
- Underlying operating profit increased by 28.6% at CER (47.1% at AER).
- Net cash inflow from underlying operating activities of £43.9 million with a cash conversion of 124.0%.
Financial Summary
Restated
Six months Six months Growth at Growth at
ended ended actual constant
31.12.16 31.12.15 exchange exchange
GBPm GBPm rate rate
Revenue 172.6 110.7 55.9% 34.7%
Underlying
Gross profit 92.2 63.5 45.2% 27.2%
Gross profit % 53.4% 57.4%
Operating profit 38.6 26.3 47.1% 28.6%
EBITDA 41.6 28.7 45.0% 27.7%
Diluted EPS 31.25p 21.99p 42.1% 24.5%
Reported
Gross profit 88.2 62.5 41.2% 24.0%
Gross profit % 51.1% 56.4%
Operating profit 17.6 15.9 10.7%
Diluted EPS 13.65p 12.74p 7.1%
Outlook
The Group continues to perform well with current trading meeting management expectations. Our core portfolio continues to grow, the enhanced product pipeline is delivering new products and good progress has been made on the rationalisation and integration of our recent acquisitions. The Board therefore remains confident in our strategy, our future prospects and our expectations for full year performance.
To read the 2017 Half Yearly Report in full please visit http://www.dechra.com
Notes
All growth rates for both underlying and reported financial results included in the Dechra report are at CER, unless otherwise stated. This shows the year on year growth rates as if exchange rates had remained the same as in the previous year. The Group presents a number of non-GAAP Alternative Performance Measures (APM's). This allows investors to understand better the underlying performance of the Group, by excluding amortisation of acquired intangibles and impairment (if any) of acquired intangibles, acquisition expenses, fair value of uplift of inventory acquired through business combinations, rationalisation costs, loss on extinguishment of debt, and fair value and other movements on deferred and contingent consideration. EBITDA is defined as underlying earnings before interest, tax, depreciation and amortisation.
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