Dechra Pharmaceuticals PLC (LSE:DPH) has reported solid full-year results as it highlighted a spend of nearly £400mln on US acquisitions this summer and revealed it has set up a new subsidiary in South Korea.
The FTSE 100-listed veterinary pharma group posted a near 14% jump in revenue to £681.8mln for the year to June 30, 2022, up from £608mln a year earlier, while its underlying operating profits were up 9.4% at £174.3mln and underlying earnings were 9.2% stronger at £190.6mln.
The company's underlying diluted earnings per share rose by 14% to 120.8p and Dechra also hiked its full-year dividend by 10.8% to 44.89p.
The firm cited "strong organic growth" in all its key markets and across all therapeutic segments as fuelling its improved performance.
“We have continued to progress on all aspects of our strategy; the product development pipeline was strengthened, material acquisitions were completed post-year-end and a new subsidiary was established in South Korea as we continue our geographical expansion,” Dechra CEO Ian Page said in the results statement.
Last week, Dechra completed its second significant acquisition of the year, acquiring US medicine manufacturer Med-Pharmexfor £220mln.
The acquisition of the Californian-based firm is expected to bolster Dechra’s manufacturing facilities in North America. The US is currently the world’s largest animal health market.
In July, Dechra also completed the acquisition of US healthcare firm Piedmont for £175mln, bringing in two products which are expected to launch between 2024 and 2025, with expected peak sales potential of at least £34mln.
Looking at the company's outlook, CEO Page commented: "As the market returns to normal levels of trading post the impact of COVID-19 and as current macroeconomic uncertainties are expected to continue, the veterinary pharmaceutical market, particularly in the CAP sector, is resilient and in growth.
"We remain confident in our ability to outperform the markets in which we operate and in the prospects for the current financial year," Page concluded.