Veterinary drugs firm Dechra sees healthy increase in profits

For the year to June 30, the veterinary firm reported revenue growth of 13.9 per cent to £407.1 million – up from £359 million in the previous year.

Dechra, which has a key operation at Sansaw Business Park near Shrewsbury, saw underlying pre-tax profit increase by 23.6 per cent, from £77 million to £93.7 million.

The firm is an international specialist veterinary pharmaceuticals and related products business.

The acquisitions of New Zealand-based RxVet and Dutch firms AST Farma and Le Vet made a £18.1 million contribution to revenue and extended the group's product ranges.

Chief executive Ian Page said: "Dechra has delivered another successful year from both a financial and strategic perspective.

"The veterinary market is seeing faster change than at any time in its history. European practice corporate consolidation is increasing, especially in the UK and some Northern European countries.

" A recent significant move is the leading USA company taking a small presence in the UK and a significant presence in mainland Europe.

"Furthermore, veterinary distributors who operate in the majority of major countries in Western Europe and North America are changing and are beginning to increase focus on the sales and marketing of their own products, which is often in conflict with their core historic suppliers.

"We are also seeing ongoing consolidation of distributors, especially within the USA.

"The board of Dechra believes that we are well positioned to support the needs of the larger veterinary practice groups alongside independent practices and that we also have the flexibility to respond quickly to any ongoing changes within the distribution network."

New product registrations in Europe included Solycyl, an anti-inflammatory for turkeys; Diatrim, an antibiotic for the treatment of infections; poultry vaccines Avishield IBH120 and Avishield ND B1; and Tiasol, a treatment for infections such as swine dysentery and colitis in pigs.

The company also achieved more than 60 registrations for existing products in new European Union territories and more than 20 production registrations across Australia, Kazakhstan, Malaysia, New Zealand, Russia, South Korea and Thailand.

In North America, the group extended the range of Vetivex fluids for the treatment of dehydration and metabolic acidosis in cattle, horses, dogs and cats as well as launching the full range of Amoxi-Clav tablets for the treatment of bacterial infections.