Trading Update and Notice of Results

RNS Number : 4609M

Dechra Pharmaceuticals PLC

12 January 2023

 

Thursday, 12 January 2023

Dechra^® Pharmaceuticals PLC

(Dechra, Group, Company)

Trading Update

Dechra issues the following unaudited Trading Update covering the half year reporting period from 1 July to 31 December 2022 (the Period).

The Board is pleased to report strong trading in the second quarter of the Period, resulting in overall revenue growth for the first half of the financial year, against a very tough comparator.

	Existing revenue		Total revenue
	Growth at AER	Growth at CER	Growth at AER	Growth at CER
Total Group	9%	1%	14%	5%
EU Pharmaceuticals1	1%	(2%)	1%	(2%)
NA Pharmaceuticals	21%	5%	35%	16%

1 .	EU Pharmaceuticals includes the International division and revenue from third party manufacturing AER is defined as Actual Exchange Rate CER is defined as Constant Exchange Rate

The European business, excluding the International division and third party manufacturing, delivered growth of c.3% at AER and c.2% at CER. The International division was impacted by the establishment of a new sales and marketing business unit in South Korea to replace a distribution partner and consequently no revenue was recognised in that territory during the Period. At our forthcoming Interim Results, we will separately disclose the International division for the first time.

Integration of both acquisitions made at the start of the current financial year, Piedmont Animal Health and Med-Pharmex, is progressing well.  

The outlook for the full financial year remains positive and the Board continues to be confident in achieving current market expectations². As previously outlined on 20 October 2022, the balance of both revenue and profit will be more second half weighted. Longer term, the Board is confident in the historical resilience of the animal healthcare market and the positioning of Dechra within it.

Ian Page, Chief Executive Officer, commented:

"I am pleased with how the Group has delivered revenue growth in the first half of our financial year, with our core markets of Europe and North America both having performed well. Although revenue growth has, as expected, slowed from the extraordinary levels of the past two years, we continue to remain agile in responding to market conditions and our product portfolio is resilient in times of global economic uncertainty. 

We remain confident in our future prospects given our recently expanded pipeline, which is stronger than ever, the synergies expected to be realised from the integration of Med-Pharmex, and the benefits from increased pet ownership seen during the COVID-19 pandemic."

Notice of Results

Dechra will announce its Interim Results for the Period on 27 February 2023.

2.	The Company-compiled consensus estimate for FY23 Group underlying EBIT is £191 million and is based upon the average of 11 analyst estimates, all of which have been updated since announcing FY22 Preliminary results on 5 September 2022 .

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

Notes:

1) Foreign Exchange Rates:

FY23 H1 Average: EUR 1.1593: GBP 1.0; USD 1.175: GBP 1.0

FY23 H1 Closing: EUR 1.1275: GBP 1.0; USD 1.2026: GBP 1.0

FY22 H1 Average: EUR 1.1744: GBP 1.0; USD 1.3635: GBP 1.0

FY22 H1 Closing: EUR 1.1901: GBP 1.0; USD 1.3479: GBP 1.0

FY22 Average: EUR 1.1807: GBP 1.0; USD 1.3316: GBP 1.0

FY22 Closing : EUR 1.1652 : GBP 1.0 ; USD 1.2103: 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.  

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.

 

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