Tough European markets weigh on Dechra Pharm

13th Jan 2014 07:40

- Half-year revenue rises despite tough European markets- Netherlands hit by lower antimicrobial demand, increased competition - Strong growth of key products in US, supply issues at Animax Veterinary pharmaceuticals group Dechra Pharmaceuticals said revenue improved around four per cent from the same period last year after a resilient performance in key European markets.The group said operating profit is expected to be in line with management expectations despite an under-performance in the Netherlands and the impact of phasing of export orders."Despite the continuing challenging market conditions in Europe, trading within our own sales and marketing organisations delivered a resilient performance, with the exception of the Netherlands where sales have been affected by a reduction in antimicrobial usage and increased competitive pressure," the group explained in its company update.Otherwise supply issues at Animax overshadowed strong growth of key products in the US resulting in a 2% rise in total US revenue in the half-year ended December 31st 2013.After adjusting for the Animax supply issue, its key dermatology and endocrinology products saw first half revenues grow by approximately 12%.Anticipated operating profit for the six-month period ended December 31st 2013 is in line with management expectations, Dechra added."We remain in a strong financial position to continue to deliver our strategy of building an international specialist veterinary pharmaceuticals and related products business," it said.CJ