16th Jan 2020 09:39
(Alliance News) - Dechra Pharmaceuticals PLC on Thursday expressed a confident outlook for the year ahead following mitigation of supply issues.
The FTSE 250-listed manufacturer of veterinary drugs confirmed its outlook for its current year to the end of June, but said the balance of trading will be more second-half weighted.
Dechra said performance was hurt by supply problems, especially in the first quarter. Since then, the company has made "significant" progress and the supply issues have been largely mitigated, it said.
For the six months to the end of 2019, the first half of financial 2020, Dechra said revenue increased by 7% year-on-year on a constant currency basis. In the first half of financial 2019, the company reported revenue of GBP231.4 million.
By division, European Pharmaceuticals grew revenue by 13% in the first half, thanks to the acquisitions of Caledonian and Venco.
Meanwhile, revenue in the North American Pharmaceuticals division declined by 2% due to the supply issues.
Dechra said it will report its half-year results on February 24.
"Overall, our progress in the first half has been satisfactory and demand for our products remains strong," said Chief Executive Ian Page.
He added: "We therefore remain confident in our prospects for the second half and for the year as a whole."
Dechra shares were trading 4.1% lower in London on Thursday at 2,944.00 pence each.
By Evelina Grecenko; [email protected]
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