8th Sep 2014 06:55
LONDON (Alliance News) - Veterinary pharmaceutical business Dechra Pharmaceuticals PLC Monday expressed confidence in its future prospects and hiked its total dividend for the year to end-June, as it saw pretax profit rise.
Dechra Pharmaceuticals proposed a total dividend of 15.40 pence, up 10% from 14.00 pence in the previous year.
The company posted a pretax profit of GBP21.4 million, up from GBP12.5 million, as it saw revenue rise to GBP193.6 million from GBP189.2 million. Dechra also cut its cost of sales to GBP85.9 million from GBP88.5 million, and it posted lower exceptional costs.
Revenue growth improved throughout the year, as the company pulled back from a 0.7% decline in the first half to 4.0% growth in the second. European pharmaceuticals saw revenues rise 1.0% as "disappointing sales" in the Netherlands caused by competitive pressure and reduced use of antibiotics offset a good performance across the rest of Europe.
US pharmaceuticals revenue rose 6.8% boosted by strong sales of key products, including Cushing's disease treatment Vetoryl, feline hyperthyroidism drug Felimazole and DermaPet, although supply issues meant there was no sales of Animax during the year, which hit overall US growth by around 9%.
The company continued to expand its geographical reach, establishing a new subsidiary in Italy in March, and progressing plans to begin trading in Canada to an advanced stage, it said.
In terms of the company's pipeline of the products, Dechra has submitted dossiers in the US and EU for a new canine endocrinology product, as well as a number of generic and range extension dossiers in the EU. It has started some new development projects, and is assessing further potential candidates to add to the pipeline.
The company said it was currently trading in line with expectations, and consistently with growth it saw in the second half of the previous year at constant exchange rates.
Dechra said its confidence is underpinned by the approaching launch of its new equine product Osphos, which is targeted for the first quarter of 2015 in the UK and US, and potential growth opportunities from its recent acquisition of PSPC Inc.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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