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Dechra roars through first half of growth
Dechra reported strong trading in line with management expectations in its half-yearly report on Monday, with reported group revenue improving 11.2% year-on-year at constant exchange rates and 12.5% at actual exchange rates, to £194.1m.
The FTSE 250 company said European pharmaceuticals revenue growth was 5.8% at constant currencies, while North American pharmaceuticals revenue growth was 20.7%.
It saw underlying operating profit growth of 22.3% at constant exchange rates and 22.6% at actual exchange rates, with an operating margin expansion of 220 basis points to 24.6%.
The board said it saw "strong" cash conversion of 96.2%, which included pre-product launch stock builds.
Operating profit improved 22.3% to £47.4m and EBITDA was up 22% to £51m, both at constant exchange rates on an underlying basis.
During the period, a small bolt-on acquisition of RxVet in New Zealand was completed, with the major acquisition of AST Farma and Le Vet announced post period end.
Underlying diluted earnings per share grew 19.8% to 37.58p, the board highlighted, confirming the interim dividend would increase 20.0% to 7.33p.
"The group has delivered a strong performance during the period," said chief executive Ian Page.
"The board remains confident that we can continue to implement our strategy and meet our expectations for the current financial year, and deliver further growth in the future."