Dechra Pharma profits up as pet care rises during lockdown

Veterinary drug maker Dechra Pharmaceuticals reported a surge in profits and lifted its dividend as people spent more on pet welfare during Covid-19 lockdowns.

The company on Monday said underlying operating profit increased by 29.2% to £162.2m on the back of revenue growth of 21.0% to £608.0m. The full-year dividend rose 18.1% to 40.50p a share.

On a pre-tax basis profit for the year through to June 30 almost doubled to £74m, up from £40.9m.

“We have benefited from above average market growth in the majority of our key companion animal product markets. The reasons for this market growth are not yet fully defined,” said chief executive Ian Page.

“In the UK there have been reports of an increased number of dogs; however, recent information from the United States indicates that veterinary practice visits by pet owners have marginally declined.”

“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.”