11th Jul 2022 07:54
(Alliance News) - Dechra Pharmaceuticals PLC on Monday reported annual revenue progress, though it cautioned that growth rates are normalising as pandemic tailwinds ease.
The veterinary products firm saw a surge in demand due to larger pet care spending during the Covid-19 lockdowns. Revenue growth is slowing, however, as the effects of the pandemic unwind.
For the year ended June 30, revenue increased by 14% at constant exchange rates and 12% at actual exchange rates. In financial 2021, revenue grew 20% at constant currency and 18% on a reported basis to GBP608.0 million.
European Pharmaceuticals revenue growth was 8% at constant currency and 5% at actual exchange rates, while North American Pharmaceuticals revenue growth was 24% at constant currency and 25% at actual exchange rates, Dechra added on Monday.
Chief Executive Officer Ian Page said: "We are delighted that the financial year just ended was another record year for Dechra and in line with expectations, with group revenue growth slowing to more normal levels as expected in H2 as the impact of the pandemic on our markets unwinds. Whilst we expect current macroeconomic uncertainties to continue, the veterinary pharmaceutical market remains resilient and in growth. Our global trading continues to be strong and we continue to outperform the market, particularly in North America.
"The complementary product acquisitions we made during the period strengthen our existing portfolio and are performing in line with initial expectations; there are a number of acquisition opportunities that we are assessing. We continue to believe in the ability of our people to execute our strategy and remain confident in our future prospects."
The company also said its supply chain "remains robust". Its cost base has "normalised" as Covid curbs eased, and it has seen a "further increase" in costs due to global inflationary pressures. It is "well placed to proactively manage" inflation, however.
The company reports annual results on September 5.
By Eric Cunha; [email protected]
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