Trading Update and Notice of Half Year Results

RNS Number : 6276L

Dechra Pharmaceuticals PLC

14 January 2021

 

Thursday, 14 January 2021

Dechra^® Pharmaceuticals PLC

(Dechra, Group, Company)

Trading Update

The Board of Dechra issues the following unaudited Trading Update covering the half year reporting period from 1 July to 31 December 2020 (the Period).

Overview

The Board is pleased to report that the stronger than expected trading performance in quarter one continued throughout the first half delivering excellent growth in the Period.

The outlook for the full financial year is currently ahead of management expectations despite the continuing macro uncertainty. The Group results should continue to benefit from strong market fundamentals as well as lower than expected Underlying Selling, General and Administration (SG&A) costs as a result of COVID-19. However, we expect that a strong pre Brexit inventory build by customers, leading to an estimated £7 million increase in net revenue in the period, will unwind in the second half. Accordingly, we expect the balance of trading will be first half weighted.

Highlights

·     Group net revenue for the Period increased by c.21% at constant exchange rates (CER) (c.20% at actual   exchange rates (AER)).

· European Pharmaceuticals net revenue growth was c.21% at CER in the Period (AER c.22%).

· North American Pharmaceuticals net revenue growth was c.21% at CER in the Period (AER c.17%).

· Osurnia and Mirataz acquisitions performing strongly and ahead of expectations.

· Good progress continues to be made with the supply chain which adversely affected trading in the   comparator period.

Operational Review

European Pharmaceuticals

In the Period, our total European Pharmaceuticals segment net revenue increased by c.21% at CER (AER c.22%), including the acquisition of Osurnia (acquired 28 July 2020).

Existing net revenues, excluding third party contract manufacturing (non-animal health which Dechra is strategically exiting) increased by c.18% at CER (AER c.19%).

North American Pharmaceuticals

In the Period, our total North American segment net revenue increased by c.21% at CER (AER c.17%), including the acquisitions of Ampharmco (acquired 29 August 2019), Mirataz (acquired 16 April 2020) and Osurnia.

Excluding acquisitions existing net revenues increased by c.14% at CER (AER c.10%). This performance should be considered against a soft comparator period which was adversely impacted by supply issues.

Acquisition

The product acquisitions of Osurnia and Mirataz are performing ahead of expectations with integration of both now complete and the European launch of Mirataz imminent.  

Ian Page, Chief Executive Officer, commented:

"Our progress in the first half has been excellent despite the uncertainties arising as a result of COVID-19 and Brexit. Trading globally has been strong as the business benefitted from favourable market conditions, further good progress on supply chain and excellent customer engagement through our motivated commercial teams. We are delighted with the performance of our recent product acquisitions, Osurnia and Mirataz. With our continuing belief in the capability of our people during these difficult times and our ability to execute our strategy we remain confident in our prospects for the future."

Notice of Results

Dechra will announce its Interim Results for the Period on 22 February 2021.

Enquiries:
Dechra Pharmaceuticals PLC
Ian Page, Chief Executive Officer	Office:  [phone]
Paul Sandland, Chief Financial Officer e-mail: [e-mail]	Office:  [phone]
TooleyStreet Communications Ltd
Fiona Tooley, Director e-mail: [e-mail]	Mobile: [phone] Office:  [phone]

Notes:

1) Foreign Exchange Rates:

FY2021 H1 Average: EUR 1.1060: GBP 1.0; USD 1.3060: GBP 1.0

FY2021 H1 Closing: EUR 1.1123: GBP 1.0; USD 1.3649: GBP 1.0

FY2020 H1 Average: EUR 1.1352: GBP 1.0; USD 1.2593: GBP 1.0

FY2020 H1 Closing: EUR 1.1754: GBP 1.0; USD 1.3204: GBP 1.0

FY2020 Average: EUR 1.1396: GBP 1.0; USD 1.2601: GBP 1.0

About Dechra

Dechra is  a global specialist veterinary pharmaceuticals and related products business.  Our expertise is in the development, manufacture marketing and sales 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

Stock Code: Full Listing (Pharmaceuticals): DPH

LEI: 213800J4UVB5OWG8VX82

Trademarks

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

Forward Looking Statement

This document may contain certain forward-looking statements. The forward-looking statements reflect the knowledge and information available to the Company during the preparation and up to the publication of this document.  By their very nature, these statements depend upon circumstances and relate to events that may occur in the future thereby involve a degree of uncertainty. Therefore, nothing in this document should be construed as a profit forecast by the Company.

Market Abuse Regulation (MAR)

The information contained within this announcement may constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014.  Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

 

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