Shares in global veterinary pharmaceuticals company Dechra Pharm (DPH) hit new a new 52 week high on Monday, gaining 1.2% to £46.26 after the company said stronger than expected trading had continued through June.

Unaudited full year revenues to 30 June 2021 increased by around 21% in constant currencies and 18% in actual exchange rates, which is above consensus expectations according to Refinitiv data.

Revenue growth was boosted by the product acquisitions of Osurnia, which made an eleven month sales contribution, and Mirataz, which launched in February across Europe and globally and was said to be performing strongly and ‘ahead of expectations’.

Excluding acquisitions, revenues grew around 16% at current exchange rates and 9% at actual exchange rates.

PANDEMIC BONUS

While the firm admitted it had benefitted from a ‘robust market’ throughout the pandemic, it said the reasons for the growth are not fully clear and evidence of increased companion numbers remain unconfirmed at this point.

Chief executive Ian Page commented: ‘What is clear is that people have been spending more time with their pets and have therefore been more cognitive of their welfare’.

Dechra has a consistent track record of outperforming underlying market growth which Numis believes is sustainable, delivering mid-to-high single digit revenue growth.

Meanwhile the market remains fragmented with the top five players holding around a 40% share, providing further scope for increased consolidation. Dechra has made 17 acquisitions over the last decade.

The company will announce preliminary results on 6 September.

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Issue Date: 12 Jul 2021