23rd Feb 2015 07:42
LONDON (Alliance News) - Veterinary pharmaceutical business Dechra Pharmaceuticals PLC Monday raised its interim dividend as it posted a rise in pretax profit for its first half.
Dechra proposed an interim dividend of 5.12 pence, up from 4.75 pence a year before.
In the half year to end December 2013, the company posted a pretax profit of GBP12.6 million, up from GBP10.3 million a year before, as revenue rose 5.2% to GBP100.9 million from GBP95.9 million. At constant currency, revenue would have been up 11%, Dechra said.
The company said that currency exchange-rate headwinds hit its performance as it has a significant portion of its operations overseas, and said that given the current economic and political climate in Europe, this will remain "an uncertainty for the rest of the financial year".
Revenue growth was boosted by a strong performance from Dechra's companion animal products and equine portfolio in Europe and the US, and improvement for its vetoryl treatment for Cushings syndrome in dogs. This helped to offset a decline in food producing animal products, which were hit by the continued decline of the use of antibiotics in the EU.
Selling, general and administrative costs were up to GBP39.6 million from GBP36.7 million, as Dechra focused on product launches and establishing new subsidiaries.
"Despite the continued focus on reducing antibiotic prescribing in Europe and ongoing global financial uncertainty, the Group is meeting its constant currency earnings expectations through the execution of its strategy," Dechra said in a statement. "Our core portfolio demonstrates growth, our product pipeline is delivering results and global expansion is progressing. Management remain confident that the group will continue to deliver value to shareholders."
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
DPH.L