Dechra delivers 'resilient' year as EQT buyout nears completion

12th Oct 2023 07:52

(Sharecast News) - London-listed veterinary pharmaceuticals group Dechra, which will soon be taken private after a buyout by Sweden's EQT, said on Thursday it delivered a "resilient" performance in the year to 30 June.

Dechra generated £761.5m in revenues for the year, up 5.5% on the year before, with underlying growth across all product categories.

However, underlying operating profit fell by 10.8% to £165.1m, as growth in the EU division and cost savings were offset by declines in North America and International operations, along with higher R&D costs.

It was announced in June that Dechra had agreed a £4.5bn takeover offer by EQT, equal to 3,875p per share, which "represents a compelling opportunity for shareholders to realise, in cash and with certainty, Dechra's potential for future value creation", the company said at the time.

The buyout is expected to close sometime in late-2023 or early-2024.

Commenting on the results, long-serving boss Ian Page said: "It is with mixed feelings that I complete this, the last of my reports as the chief executive officer of a listed company." He said that being a public company since 2000 has "served Dechra well", having taken over as CEO in 2001.

"I am very grateful for the personal support and guidance provided to me by many stakeholders, not least shareholders, and would like to thank everyone who has contributed to Dechra's success over this time," he said.

"Despite a challenging period, we ended the last financial year strongly and have started the new one on a secure footing. I look forward to the challenges ahead as a private company and remain confident in our people, strategy and future prospects."