Dechra Pharmaceuticals’ annual operating profit jumps 33.6%

Dechra Pharmaceuticals’ annual operating profit jumps 33.6%
Written by:
Wajeeh Khan
7th September, 11:18
  • Dechra Pharmaceuticals’ annual operating profit jumps 33.6%.
  • The veterinary products maker's annual revenue comes in 6.8% higher.
  • Dechra says trading is robust in the new fiscal year to date.

Dechra Pharmaceuticals (LON: DPH) said on Monday that its full-year performance remained strong despite the Coronavirus pandemic that has so far infected more than 347 thousand people in the United Kingdom and caused over 41 thousand deaths.

Shares of the company were reported about 4% up in premarket trading on Monday. The stock continued its gain and jumped another 6% on market open. In comparison, Dechra Pharmaceuticals had tanked to as low as £21.68 per share in March when the impact of COVID-19 was at its peak. At the start of 2020, the stock was trading at £29.38 per share. Learn more about how do people make money on the stock market.

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Dechra Pharmaceuticals’ annual revenue comes in 6.8% higher

Dechra said that its annual operating profit saw a 33.6% year over year increase to £52.2 million. The animal medicine manufacturer also reported a 6.8% growth in its full-year revenue to £515.1 million.

On the back of its hawkish performance in the recently concluded fiscal year, Dechra Pharmaceutical’s board decided in favour of boosting the annual dividend to 34.29 pence a share that represents an increase of 8.5 pence. The company has returned 236% to its shareholders on their investments in the past five years.

According to CEO Ian Page, the veterinary products maker remained operational in recent months despite the ongoing health crisis. Dechra Pharmaceuticals, he further added, did not put part of its workforce on furlough in recent months to shore up finances, neither did the company approached the government for financial aid. As per Page:

“I am pleased to report that Dechra has remained resilient throughout a challenging year. This is a testament to our strategy, the strength of our product portfolio and through the innovation and dedication of our people.”

Dechra says trading is robust in the new fiscal year to date

The Northwich-based company also said on Monday that trading in the new fiscal year to date had shown resilience. But in the upcoming months, COVID-19 related uncertainty remains a factor. In separate news from the UK, miner Hochschild forecast lower annual production as COVID-19 disrupted operations at its mines in Peru and Argentina.

Dechra Pharmaceuticals performed fairly upbeat in the stock market last year with an annual gain of about 45%. At the time of writing, the company that develops and markets veterinary products is valued at £3.68 billion and has a price to earnings ratio of 122.59.

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