2nd Sep 2019 09:04
(Alliance News) - Dechra Pharmaceuticals PLC on Monday hiked its annual dividend amid double-digit growth in revenue due to a strong performance in the group's key markets.
For the year to the end of June, the veterinary pharmaceutical group said its reported pretax profit was GBP27.8 million, down 3.8% from GBP28.9 million the year before.
This was mainly the result of a GBP77.0 million hit from the amortisation of acquired intangibles, following acquisitions over Dechra's last two financial years.
During the period, Dechra acquired Laboratorios Vencofarma do Brasil Ltda for GBP37.8 million in December.
On an underlying basis, pretax profit rose more than fourfold to GBP117.4 million from GBP28.9 million.
Meanwhile, revenue for the group grew by 18% to GBP481.8 million from GBP407.1 million, driven by growth in Dechra's key markets.
Segmentally, European Pharmaceuticals revenue rose by 18% to GBP304.0 million, driven by strong performances of RxVet Ltd, AST Farma BV and Le Vet Beheer BV, all of which were acquired in the 2018 financial year.
Meanwhile, the North American Pharmaceuticals division saw 16% growth in revenue to GBP177.8 million, fostered by Dechra's Companion Animal Products portfolio and an overall outperformance of the market.
Dechra declared a final dividend of 22.10 pence per share, bringing the total payout to 31.60p, up 24% from 25.50p the year before.
Looking ahead, Dechra said that despite its supply chain issues, the group's expanding geographic reach has positioned it for continued growth in its current financial year and beyond.
"The group has delivered another strong performance throughout the financial year. We have continued to outperform in almost all markets in which we operate and strategically it has also been an excellent year," said Chief Executive Officer Ian Page.
Shares in Dechra Pharmaceuticals were up 1.5% at 3,044.00 pence on Monday morning.
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