Trading Update & Notice of Half-Year Results

RNS Number : 2872B

Dechra Pharmaceuticals PLC

09 January 2018

 

Tuesday, 9 January 2018

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 2017 (the Period).

Highlights

·     Trading in the Period was strong and in line with management expectations

·     Reported Group revenue for the Period increased by c.10.5% at constant exchange rate (CER) (c.11.5% at actual exchange rate (AER))

·     European Pharmaceuticals revenue growth was c.5.5% at CER (AER c.8.5%)

·     North America Pharmaceuticals revenue growth was c.20.0% at CER (AER c.17.5%)

·     Small bolt on acquisition of RxVet Limited, New Zealand, was completed.

Operational Review

European Pharmaceuticals

In the Period, our European Pharmaceuticals segment reported revenue increased by c.5.5% at CER (c.8.5% at AER). Excluding third party contract manufacturing, and treating Apex on a like for like basis¹, revenues increased by c.4.0% at CER (c.7.0% at AER).

¹ Apex was acquired in October 2016

North American Pharmaceuticals

In the Period, our North American segment reported revenue increased by c.20.0% at CER (c.17.5% at AER).

Pipeline Delivery

New product registrations were achieved in the Period. In European Pharmaceuticals, this included Avishield® IB H120, our second EU registered poultry vaccine.  A number of minor registrations were achieved in our International division following its formation in July 2017.

In North America we have now launched all the dosage sizes of Amoxi-Clav tablets in the US, and Vetoryl® and Osphos® in Mexico.

Acquisition 

In December 2017 we completed the acquisition of RxVet Limited, a small CAP business in New Zealand. RxVet have been Dechra's distributor since 2010, with revenue in the year to March 2017 of NZ$1.4 million; sales of Dechra products account for approximately half of this. The former owner managers will remain with the business and help to increase market share and build Dechra's presence in the region.

US tax

Following the passing into law of the Tax Cuts and Jobs Act (the Act) in USA, the Group is in the process of reviewing and quantifying the effect of the Act on Dechra. Overall, an initial provisional assessment indicates that the effect is expected to be modestly favourable on an ongoing underlying basis. A material one-off non-cash non-underlying credit will arise due to the revaluation of Deferred Tax balances. Further details will be provided with the announcement of the Interim Results.

Notice of Results

Dechra will announce its Interim Results for the Period on 26 February 2018.

Enquiries:
Dechra Pharmaceuticals PLC
Ian Page, Chief Executive Officer	Office:  [phone]
Richard Cotton, 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:

FY2018 H1 Average: EUR 1.1205: GBP 1.0; USD 1.3176: GBP 1.0

FY2018 H1 Closing: EUR 1.1271: GBP 1.0; USD 1.3517: GBP 1.0

FY2017 H1 Average: EUR 1.1698: GBP 1.0; USD 1.2886: GBP 1.0

FY2017 H1 Closing: EUR 1.1680: GBP 1.0; USD 1.2311: GBP 1.0

FY2017 Average: EUR 1.1681: GBP 1.0; USD 1.2735: GBP 1.0

About Dechra

Dechra is an international specialist veterinary pharmaceuticals and relates products business.  Our expertise is in the development, manufacture 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

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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