Dechra Pharmaceuticals Reports Growth in Revenue Despite Pretax Loss
Dechra Pharmaceuticals reports a pretax loss but sees growth in revenue driven by its EU pharmaceuticals business. Pending takeover affects dividend declaration.
Dechra Pharmaceuticals, a leading U.K. veterinary pharmaceuticals company, recently announced its financial results for the year ended June 30. Although the company experienced a pretax loss of £36.1 million ($44.5 million), primarily due to higher net finance costs, it saw a notable increase in revenue driven by its EU pharmaceuticals business.
In the previous year, Dechra Pharmaceuticals had achieved a pretax profit of £77.6 million. However, this year's results were negatively impacted by an uptick in net finance costs, including the unwinding of the discount associated with contingent consideration liabilities.
Despite the loss, the company's revenue still managed to grow to £761.5 million from £681.8 million in the previous year. This increase was mainly attributed to the strong performance of its EU pharmaceuticals business, which saw a 4.3% revenue growth. On the other hand, Dechra Pharmaceuticals faced challenges in its North America pharmaceuticals unit due to de-stocking activities by U.S. wholesalers.
Due to the impending completion of the £4.46 billion takeover of Dechra Pharmaceuticals by EQT's Freya Bidco, the company did not declare a dividend in this period.
Despite the challenging period, Chief Executive Ian Page expressed optimism regarding the company's future prospects. He stated, "Despite a challenging period, we ended the last financial year strongly and have started the new one on a secure footing. I look forward to the challenges ahead as a private company and remain confident in our people, strategy, and future prospects."