LONDON, February 27, 2017 /PRNewswire/ --
Ian Page, Chief Executive
Officer: "Our core portfolio continues to grow, the enhanced
product pipeline is delivering new products and good progress has
been made on the rationalisation and integration of our recent
acquisitions."
Introduction
The Group has performed strongly throughout the first six months
of the financial year ending 30 June
2017 (the Period). This result has been driven by a solid
revenue performance in our core businesses, good market penetration
from recently launched pipeline products and a strong performance
from our recent acquisitions. The operating profit performance has
been enhanced by the successful rationalisation and integration of
these acquisitions, prudent cost control in our core businesses and
a significant favourable foreign exchange tail wind.
2017 HY Highlights
- Total Group revenue of £172.6 million, a growth of 34.7%
at Constant Exchange Rate (CER) (55.9% at Actual Exchange Rate
(AER)).
- Core (excluding acquisitions) European Pharmaceuticals
(EU Pharmaceuticals) Segment revenue growth of 5.9% at CER (20.0%
at AER).
- Core North American Pharmaceuticals (NA Pharmaceuticals)
Segment revenue growth of 10.2% at CER (31.7% at AER).
- Sales growth across all product groups; Companion Animal
Products (CAP), Food producing Animal Products (FAP), Equine and
Diets.
- Strong performance from recently acquired businesses,
exceeding our expectations.
- Underlying operating profit increased by 28.6% at CER
(47.1% at AER).
- Net cash inflow from underlying operating activities of
£43.9 million with a cash conversion of 124.0%.
Financial Summary
Restated
Six months Six months Growth at Growth at
ended ended actual constant
31.12.16 31.12.15 exchange exchange
GBPm GBPm rate rate
Revenue 172.6 110.7 55.9% 34.7%
Underlying
Gross profit 92.2 63.5 45.2% 27.2%
Gross profit % 53.4% 57.4%
Operating profit 38.6 26.3 47.1% 28.6%
EBITDA 41.6 28.7 45.0% 27.7%
Diluted EPS 31.25p 21.99p 42.1% 24.5%
Reported
Gross profit 88.2 62.5 41.2% 24.0%
Gross profit % 51.1% 56.4%
Operating profit 17.6 15.9 10.7%
Diluted EPS 13.65p 12.74p 7.1%
Outlook
The Group continues to perform well with current trading meeting
management expectations. Our core portfolio continues to grow, the
enhanced product pipeline is delivering new products and good
progress has been made on the rationalisation and integration of
our recent acquisitions. The Board therefore remains confident in
our strategy, our future prospects and our expectations for full
year performance.
To read the 2017 Half Yearly Report in full please visit
http://www.dechra.com
Or at
http://www.londonstockexchange.com/exchange/prices-and-markets/stocks/exchange-insight/company-news.html?fourWayKey=GB0009633180GBGBXSTMM
Notes
All growth rates for both underlying and reported financial
results included in the Dechra report are at CER, unless otherwise
stated. This shows the year on year growth rates as if exchange
rates had remained the same as in the previous year. The Group
presents a number of non-GAAP Alternative Performance Measures
(APM's). This allows investors to understand better the underlying
performance of the Group, by excluding amortisation of acquired
intangibles and impairment (if any) of acquired intangibles,
acquisition expenses, fair value of uplift of inventory acquired
through business combinations, rationalisation costs, loss on
extinguishment of debt, and fair value and other movements on
deferred and contingent consideration. EBITDA is defined as
underlying earnings before interest, tax, depreciation and
amortisation.