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Dechra Pharmaceuticals banking on rest of year after first half struggles
16th Jan 2020 09:07
(Sharecast News) - Dechra Pharmaceuticals updated the market on its trading for the half-year ended 31 December on Thursday, reporting that its outlook for the full year was in line with management expectations.
The FTSE 250 company said the balance of trading would be more second-half weighted than was typical.
As it outlined in its preliminary results in September and at the time of its annual general meeting, Dechra noted that trading was adversely affected by supply problems, predominantly in the first quarter.
It said "significant progress" had been made, and those supply issues had been largely mitigated.
Dechra said group net revenue for the period rose around 7% at constant exchange rates and by 7% at actual exchange rates.
Its net revenue growth in European pharmaceuticals was 13% at constant exchange rates, and 12% at actual exchange rates, while North American pharmaceuticals net revenue declined by 2% at constant currency, and was flat at actual rates.
The board said the Venco and Caledonian acquisitions were performing ahead of expectations, and noted that an asset purchase agreement had been signed post-period end for the acquisition of a "major" otic product, Osurnia.
"Overall, our progress in the first half has been satisfactory and demand for our products remains strong," said chief executive officer Ian Page.
"Trading in Europe was good while North American growth, as expected was constrained but should now resume as we return to normal supply chain inventory levels."
Page added that the recent acquisitions were integrating well, with the board also "pleased" to reach an agreement to acquire Osurnia.
"We therefore remain confident in our prospects for the second half and for the year as a whole."
Dechra said it would announce its interim results for the period on 24 February.
At 0911 GMT, shares in Dechra Pharmaceuticals were down 3.52% at 2,960p.
The FTSE 250 company said the balance of trading would be more second-half weighted than was typical.
As it outlined in its preliminary results in September and at the time of its annual general meeting, Dechra noted that trading was adversely affected by supply problems, predominantly in the first quarter.
It said "significant progress" had been made, and those supply issues had been largely mitigated.
Dechra said group net revenue for the period rose around 7% at constant exchange rates and by 7% at actual exchange rates.
Its net revenue growth in European pharmaceuticals was 13% at constant exchange rates, and 12% at actual exchange rates, while North American pharmaceuticals net revenue declined by 2% at constant currency, and was flat at actual rates.
The board said the Venco and Caledonian acquisitions were performing ahead of expectations, and noted that an asset purchase agreement had been signed post-period end for the acquisition of a "major" otic product, Osurnia.
"Overall, our progress in the first half has been satisfactory and demand for our products remains strong," said chief executive officer Ian Page.
"Trading in Europe was good while North American growth, as expected was constrained but should now resume as we return to normal supply chain inventory levels."
Page added that the recent acquisitions were integrating well, with the board also "pleased" to reach an agreement to acquire Osurnia.
"We therefore remain confident in our prospects for the second half and for the year as a whole."
Dechra said it would announce its interim results for the period on 24 February.
At 0911 GMT, shares in Dechra Pharmaceuticals were down 3.52% at 2,960p.