Statement re Trading Update and Notice of Results

RNS Number : 4432X

Dechra Pharmaceuticals PLC

13 January 2014

 



Monday 13 January 2014

Dechra Pharmaceuticals PLC

("Dechra" or the "Group")

Trading Update

The Board of Dechra is pleased to issue the following unaudited update ahead of the Group's half-year financial results for the period ended 31 December 2013, which will be announced on Tuesday 25 February 2014.  The Group completed the sale of its Services business in August 2013 and this statement relates solely to the Group's retained pharmaceuticals business.

Highlights

·     Group revenue up by approximately 4% vs the equivalent period last year (circa. 1% decline at
 constant currency)

·     Operating profit estimated to be in line with management expectations

·     Resilient performance in key European markets despite under-performance in the Netherlands and
 impact of phasing of Export orders

·     Strong growth of key products in the USA masked by previously announced Animax supply issues

European Pharmaceuticals

In the first half, our European Pharmaceuticals segment increased revenues by approximately 5% (approximately flat at constant currency).  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 (compared to the same period last year) and increased competitive pressure.  As previously highlighted in our Q1 IMS, Export revenues remain lower than in the prior year due to the phasing of our order book.  Pressure on the Food producing Animal Products (FAP) portfolio remains as veterinarians continue to reduce their antimicrobial usage, however our Companion Animal Products (CAP) business has shown growth in the majority of markets.  As a result, gross margins have benefited from this change in product mix.

US Pharmaceuticals

Total reported US revenue has declined approximately 2% on the first half last year (circa. 3% decline at constant currency).  After adjusting for the Animax supply issue previously reported, our key dermatology and endocrinology products performed strongly in the first half with revenues growing by approximately 12% (approximately 11% at constant currency).

Conclusion

The Group's anticipated operating profit for the six-month period ended 31 December 2013 is in line with management expectations and we remain in a strong financial position to continue to deliver our strategy of building an international specialist veterinary pharmaceuticals and related products business.

Enquiries:
Dechra Pharmaceuticals PLC
Ian Page, Chief Executive Officer	Mobile [phone]
Anne-Francoise Nesmes, Chief Financial Officer	Mobile [phone]
	Office: [phone]
TooleyStreet Communications
Fiona Tooley, Director	Office: [phone] Mobile: [phone] email: [e-mail]

About Dechra

Dechra is an international specialist veterinary pharmaceuticals business. Its expertise is in the development, manufacturing and sales and marketing of high quality products exclusively for veterinarians worldwide.  Dechra's business is unique as the majority of its products are used to treat medical conditions for which there is no other effective solution or have a clinical or dosing advantage over competitor products.  For more information please visit: www.dechra.com

Ticker: Full Listing (Pharmaceuticals): DPH

Trademarks

Dechra and the Dechra "D" logo are registered trademarks of Dechra Pharmaceuticals PLC.

 

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