Dechra Pharmaceuticals expects year to be first-half weighted as pre-Brexit inventory build unwinds

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Dechra Pharmaceuticals PLC (LON:DPH) said it expects its financial year to be weighted in the first half.


The vet products developer said trading in the second half remains robust, although it is starting to see the pre-Brexit inventory build unwind.


READ: Dechra Pharmaceuticals to sell Tri-Solfen in all international markets after deal with Medical Ethics


It added that the impact of Brexit has been limited and it has shipped to and from the UK post-Brexit from all facilities.


The outlook for the full year remains positive, with “strong favourable” market conditions to remain and “good” progress in the pipeline.


The FTSE 250 firm expects to submit the final sections of a dossier for a new canine sedative for the US within the next few months, and it is delivering favourable results on the dog and cat proof of concept studies for the diabetes drugs developed in partnership with Akston, with a licensing and supply agreement signed earlier this month.


Certain minor new products have been approved, such as poultry vaccine range Avishield in South Africa.


Osurnia and Mirataz, which were acquired recently, are performing strongly and ahead of expectations.


In the six months ended December 31, revenue jumped 22% to GBP299mln, with underlying earnings (EBITDA) rising 31% to GBP88mln.


The interim dividend was hiked 8% to 11.11p per share and cash and cash equivalents at period-end were GBP139mln.


“Dechra is performing exceptionally well in the current market and will deliver double-digit earnings growth for the year,” analysts at house broker Liberum said.


Shares dipped 2% to 3,540p on Monday morning.


–Adds analyst comment, shares–

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