Pet vaccine company Dechra reveals ‘strong’ trading as revenues rise
Veterinary drugmaker Dechra Pharmaceuticals today credited "strong" trading for an 18 per cent rise in revenue in the six months to 31 December.
Both European and North American pharma sales grew by 18 per cent over the period, the firm said in the update.
The FTSE 250 company added that it expected its Brexit contingency preparations to be completed in line with projected costs ahead of the UK’s scheduled exit from the bloc on 29 March.
Read more: Dechra shares fall as it reveals plan for ‘hard’ Brexit
Chief executive Ian Page said: "We are pleased with the group's trading in the period. Dechra continues to deliver above market revenue growth in our existing business and in our acquisitions, in line with the board's expectations."
The company’s share price rose by 0.8 per cent following the announcement to hit 2,300p, but failed to recover much in lost value after experiencing its biggest ever single day drop in value in late 2018.
Shares slumped by more than 20 per cent in September after Dechra informed the market that it was preparing for a no-deal Brexit at an estimated cost of around £2m, plummeting from 3,120p to 2,452p, before declining further in subsequent months.
The company, which has a market value of around £2.3bn, warned that Brexit posed a risk to its supply chain by introducing more complexity to the transfer of goods.
Read more: Dechra buys wisely as acquisitions boost revenues
Dechra also announced that it has started integrating Venco, the Brazilian business it acquired in December, and expects the South American business to contribute to the group’s revenue in the second half of its financial year.
Following the acquisition, Dechra said it would invest significantly in the next two to three years to develop its presence in South America. The company already had European and North American divisions prior to the Venco deal.