(Alliance News) - Dechra Pharmaceuticals PLC on Monday said it outperformed a "robust" market as profit jumped in its recent financial year.
However, shares in Dechra fell 8.1% to 4,670.00 pence each in London on Monday morning as the company warned of a drop in vet visits in the US.
The FTSE 250-listed veterinary pharmaceutical company saw its pretax profit jump to GBP74.0 million in the 12 months ended June 30, up 81% from GBP40.9 million a year prior and more than double the GBP27.8 million registered two years earlier.
Revenue climbed to GBP608.0 million in the company's recent financial year, up 18% from GBP515.1 million the year prior. Income remained 26% above the GBP481.8 million reported in financial 2019.
The company said growth in its key Companion Animal Products markets outpaced the market average in financial 2021. Sales of Companion Animal Products - which represent 73% of Dechra's revenue - increased by 26% at constant exchange rates in the recent financial year.
Sales in the company's North American and European pharmaceuticals segment grew by 22% and 20% respectively at constant rates.
"The reasons for this market growth are not yet fully defined," said Chief Executive Ian Page, adding that while there have been reports of higher dog ownership in the UK, the US has seen slightly lower numbers of vet visits.
"What is clear is that people have been spending more time with their pets and have therefore been more cognitive of their welfare and with disposable income being higher than normal due to lockdown, expenditure per pet has increased," Page added.
With revenue and profit rising, Dechra lifted its annual payout by 18% to 40.50 pence per share from 34.29p a year earlier.
Acquisition activity has been limited by travel restrictions, the company said.
However, looking ahead, the company said it has been able to "identify and progress numerous strategic opportunities to strengthen our product portfolio and development pipeline."
The company's product pipeline continues to progress, Dechra noted. The company said it has submitted the final sections of a dossier for a new canine sedative in the US, while development of diabetes drugs for cats and dogs continues in its partnership with Akston Biosciences.
With regard to outlook, Page said: "As we start the new financial year trading remains strong with the momentum and market penetration seen in the second half of the prior financial year continuing."
Alongside its results, the company noted the upcoming departure of its chair Tony Rice, who plans to step down at an unspecified date after five years in the role.
The company said Rice will step down as chair once a successor has been appointed. The search for a replacement has begun, Dechra added.
By Scarlett Butler; scarlettbutler@alliancenews.com
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