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LONDON (Alliance News) - Animalcare Group PLC on Wednesday reported a fall in profit in the first half of its financial year, as although revenue increased it was largely driven by sales of lower-margin categories.
The veterinary medicines supplier said its pretax profit in the six months ended December 31 decreased by 13% to GBP1.5 million from GBP1.8 million, even though revenue rose by 2.7% to GBP7.1 million from GBP6.9 million.
Animalcare said revenue was boosted by increased export sales from the Licensed Veterinary Medicines group, which grew by 4.2% to GBP4.6 million from GBP4.4 million, but these sales generally attract a lower margin than UK-based sales, leading to a decline in gross margin and ultimately profit.
Meanwhile, revenue in Companion Animal Identification fell 5.2% to GBP1.2 million from GBP1.3 million due to increased competition in the microchipping sector, while revenue in Animal Welfare Products rose by 5.0% to GBP1.34 million from GBP1.27 million, driven by increased sales of its Infusion Accessories range.
Animalcare will pay an interim dividend of 1.8 pence, which is flat year-on-year.
"Given the top line growth during the period and increased levels of investment for the future success of Animalcare, your board remains confident about the prospects and outcome for the full year and beyond," Chairman James Lambert said in a statement.
Shares in Animalcare were trading down 3.1% at 202.13 pence on Wednesday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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