24th Feb 2020 09:13
(Alliance News) - Dechra Pharmaceuticals PLC on Monday said profit more than doubled in the first half of its financial year, boosted by two acquisitions, but its North American Pharmaceuticals unit struggled.
Shares in Dechra were down 3.3% at 2,708.00 pence in London in morning trading.
The veterinary pharmaceutical firm reported a GBP19.5 million pretax profit for the six months ended December 31, more than twice its GBP9.0 million profit the year before.
Revenue was 7.4% higher at GBP248.5 million versus GBP231.4 million the previous year as the firm's Caledonian Ltd and Laboratorios Vencofarma do Brasil Ltd acquisitions, in October and December 2018 respectively, added GBP9.3 million.
Moreover, Dechra's finance income rose year-on-year to GBP3.3 million from nothing.
However, the company's North American Pharmaceuticals segment suffered 2.5% net revenue decline at constant currency after supply issues with its Companion Animal Products as well as exceptional sales of its drug Zycortal recorded in the prior year as a competitor was out of stock.
Dechra said: "The manufacturing and supply problems resulting in delays to deliveries will be partly reversed in the second half with the exception of two minor products and our sterile ophthalmic range which are not expected to be back in supply until the next financial year."
The company hiked its dividend by 8.3% to 10.29p per share from 9.50p per share the prior year.
Chief Executive Ian Page said: "Our strategy remains robust and we are creating more opportunities than at any time in our history. New development opportunities have been secured creating a pipeline with significant potential future value, acquisition opportunities continue to be assessed and delivered, our International business is increasing in materiality and we continue to get growth from our existing portfolio of products."
By Anna Farley; [email protected]
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