Statement re Trading Update

RNS Number : 9625I

Dechra Pharmaceuticals PLC

10 July 2013

 

Wednesday, 10 July 2013

Dechra Pharmaceuticals PLC

("Dechra" or the "Group")

Trading Update

The Board of Dechra issues the following unaudited trading update for its financial year ended 30 June 2013 and ahead of its Preliminary Results which will be announced on Tuesday 3 September 2013.

Highlights

·      Group revenue up by approximately 19% vs last year

·      Top 5 products revenue increased by approximately 13%

·      US trading performance impacted by third party supply issues, as referred to in the Q3 Interim Management Statement

·      Trading in Q4 was good and a marked improvement over Q3, but it did not offset the impact of adverse weather in Q3 and supply issues in the US

·      Eurovet®expected synergies realised

·      Investment in pharmaceutical pipeline increases as novel products reach maturity and new opportunities are identified

Note: All numbers at reported currency.

European Pharmaceuticals

Revenue from this segment increased by approximately 65% compared to last year.  On a like-for-like basis, revenue grew by approximately 5%.

Despite a very slow third quarter following the prolonged bad winter weather, pharmaceuticals sales for the full year increased by approximately 5% on a comparable basis.  The Diets performance also improved, benefitting from a redefined strategy.

Importantly, the Eurovet integration was completed successfully and has delivered the identified expected synergies on schedule.

US Pharmaceuticals

The US performance has been impacted by third party supply issues for the ophthalmic and dermatology ranges.  We are confident that these will be resolved during the current financial year.

Consequently, despite the strong performance of our own key products, Vetoryl^® and Felimazole^®, growing at approximately 11% and 16% respectively, this sector's revenue growth in year ended 2013 was modest at approximately 3%.

Services

Revenue grew by approximately 6% compared to last year. Important new contracts were secured in the year, including agreements with Internet pharmacies, a growing segment of the market.

Net Debt

As expected, cash flow in the second half of the financial year was strong which resulted in an improvement in our net borrowing position.

Summary

Summarising the Group's performance ahead of Preliminary Results in September, Ian Page, Chief Executive, commented:

"During 2013, we strengthened our position in the pharmaceutical segments and successfully integrated Eurovet into our business; a key aspect has been the strong performance of our branded lead pharmaceutical products.  Although trading in Q4 was good, it did not offset US supply issues and the effect of poor weather experienced in Q3.  We continue to increase our investment in our product development pipeline to support the delivery of our strategic objective of building a high margin, cash generative veterinary pharmaceutical business.  Whilst the current financial year will remain challenging, we look forward to reporting another year of progress."

Enquiries:
Ian Page, Chief Executive	Fiona Tooley, Director
Anne-Francoise Nesmes, Chief Financial Officer	TooleyStreet Communications
Dechra Pharmaceuticals PLC	Telephone: [phone]
Telephone: + 44 (0) 1606 814730	Mobile: [phone] (FT)
Mobile: [phone] (IP)
Mobile: [phone] (AFN)
www.dechra.com Ticker: LSE Full Listing (Pharmaceuticals): DPH

About Dechra

Dechra is an international veterinary pharmaceutical business.  Its expertise is in the development, manufacturing, distribution, 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

Trademarks

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

 

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