Dechra Pharmaceuticals' (DPH) good run in the US shows no sign of slowing down. Sales of the veterinary group's products shot up nearly 60 per cent in North America in the year to June 2015 thanks to product launches, the acquisition of PSPC - owner of a patented joint-health drug called Phycox - and the opening of a Canadian subsidiary office in January.
Europe was another story. Sales rose 4 per cent at constant currencies, but a weak euro and declining sales of its products for food-producing animals (FAP) continue to be a drag. Chief executive Ian Page said FAP sales had steadied in Denmark and Holland, but competitive pressures had made the problem worse in Germany.
After the year-end, the group made an offer to buy 63.3 per cent of Croatian business Genera, triggering a mandatory takeover of the remaining shares. The deal, which valued the target at €51m (£37m), won't receive the regulatory green light before November.
Analysts have yet to update their numbers in light of the Genera deal, but prior to these results brokerage Numis expected pre-tax profits of £49.6m for the current financial year, giving EPS of 44.5p, compared with £45.1m and 39.9p in the year to June 2015.
| DECHRA PHARMACEUTICALS (DPH) | ||||
|---|---|---|---|---|
| ORD PRICE: | 936p | MARKET VALUE: | £823m | |
| TOUCH: | 931-935p | 12-MONTH HIGH: | 1,068p | LOW: 703p |
| DIVIDEND YIELD: | 1.8% | PE RATIO: | 42 | |
| NET ASSET VALUE: | 221p* | NET CASH: | £13.4m | |
| Year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 389 | 18.5 | 19.5 | 11.1 |
| 2012 | 124 | 6.1 | 5.2 | 12.2 |
| 2013 | 189 | 12.5 | 12.5 | 14.0 |
| 2014 | 194 | 21.4 | 22.2 | 15.4 |
| 2015 | 203 | 25.8 | 22.1 | 16.9 |
| % change | +5 | +20 | - | +10 |
Ex-div: 29 Oct Payment: 20 Nov *Includes intangible assets of £167m, or 189p a share | ||||
