Turnover grows at Dechra
Investment in new products and profitable acquisitions have boosted Dechra Pharmaceuticals' year-end revenue to £389.2m, the company said this morning.
Stoke-on-Trent-based Dechra said it was well positioned to grow despite a decline in veterinary footfall.
Revenue increased 5.4 per cent on the company's year-end results in 2010. Operating profit also rose 9.3 per cent to £21.7m.
Dechra said that over the year, it had experienced strong growth in its branded veterinary products division along with a high cash inflow in the second half.
Michael Redmond, chairman of Dechra, said: "Although footfall through veterinary practices has declined and the general economic climate remains uncertain we are continuing to demonstrate solid growth in markets in which we trade. Our branded product range, the focus of our key strategic objective, continues to grow strongly."
Two acquisitions, DermaPet and Genitrix, were both earnings enhancing over the period, said Dechra.
The company attributed a boost in underlying operating margin from 7.6 per cent to 8.2 per cent in part to the growth of its high-margin pharmaceutical business, particularly in the USA.
Redmond said: "To sustain this growth we have increased investment in product development, extended the geographies in which we operate, acquired complementary businesses and increased the number of people within sales and marketing.
"We believe, therefore, that we are well positioned to ensure future solid growth is maintained and shareholder value enhanced."
