Dechra Pharmaceuticals PLC (LSE:DPH) boosted earnings and its dividend in the first half of its financial year as it hailed a soaring pet market during the pandemic.
The FTSE 100-listed pet pharmaceutical group said trading at the start of the second half remains "strong", especially in its major markets where they are reported to be "returning to historic levels of growth as they normalise following the diminishing influence of COVID-19".
Group revenue came to £332.40mln in the first half of 2021, up 15.9% compared to the same period a year earlier.
Growth was strongest in the US, up 26.1% in constant exchange rate terms, compared to growth in the EU market at 10.5%, while UK revenues were flat due to a pre-Brexit inventory build of £7mln.
"Future prospects remain excellent as we strengthen the group's infrastructure, continue to outperform markets and identify and deliver new strategic growth opportunities", said Dechra chief executive officer Ian Page.
Underlying operating profit rose 22% to £93.9mln, with operating profit margins up 1.2 percentage points (ppts).
Diluted earnings per share for the group, at 37.38p, grew 84.6% in constant exchange rate terms.
The group proposed a dividend of 12p per share for the period, an 8% increase.
Dechra carried out several acquisitions in the period to increase its foothold in the US market, with deals focused on the company’s equine and companion animal products.
The group said its growth in the US was above management expectations on the back of those acquisitions and the return to face-to-face sales visits following the relaxing of COVID-19 restrictions.