Dechra Pharmaceuticals (DPH) achieved full-year revenue growth of 7 per cent for the year to June – in line with bosses’ expectations, but slightly below the estimate of 9 per cent projected by brokers Jefferies and Stifel. The latter has reduced its sales estimates by 2.3 per cent and 2.5 per cent for the 2020 and 2021 respectively, to £513m and £559m. Still, analysts here have left their earnings per share forecasts unchanged – citing improving margins.
As outlined in an early-June update, the veterinary pharma specialist saw a record performance in the quarter to March after vets stocked up on essential medicines pre-lockdown. However, this was followed up by a “softening” in the subsequent three-month period. Overall, European pharmaceutical sales climbed by 8 per cent at constant currencies – bolstered by contributions from two acquisitions made in 2018, Caledonian and Venco. North American pharma sales increased by 5 per cent, or by 7 per cent on a reported basis.
Dechra had previously pointed to temporary supply-chain issues in the first half, pertaining to companion animal products – but these were largely resolved by the beginning of last month.
