25th Feb 2019 09:23
LONDON (Alliance News) - Dechra Pharmaceuticals PLC on Monday hiked its dividend but profit more than halved in the first half of its financial year due to increased expenses.
The company has declared an interim dividend per share of 9.50 pence, up 30% from 7.33p year-on-year.
Dechra, a veterinary pharmaceuticals business, posted a pretax profit of GBP9.0 million for the six months to December 31. This was less than half its GBP19.0 million pretax profit for the same period of 2017.
Selling, general and administrative expenses totalled GBP99.0 million for the half year, rising 43% from GBP69.4 million. Research and development expenses also increased, up 23% to GBP15.4 million from GBP12.5 million.
Revenue for the six months came to GBP231.4 million, up 19% from GBP194.1 million.
The company acquired AST Farma in December 2017 and Le Vet in February 2018, which are expected to contribute strongly to its second half.
"Trading across the group has commenced well in the second half, with particularly strong growth continuing in the USA. Material synergies from the AST Farma and Le Vet acquisition will increase in the second half and initial indications are that our recent acquisition, Venco, is performing to our expectations," said Chief Executive Ian Page.
Shares in Dechra were 0.2% lower at 2,492.00p on Monday.
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