Dechra Pharmaceuticals' strong Q1 momentum carries over into Q2
Veterinary drugs group Dechra Pharmaceuticals said on Thursday that the stronger than expected trading performance seen in the first quarter had continued throughout the tail end of the half.
Dechra said the outlook for its full financial year was currently ahead of management expectations despite continuing macro uncertainty, with results likely to continue to benefit from strong market fundamentals and lower than expected costs as a result of Covid-19.
However, the FTSE 250-listed firm cautioned that it expects that a strong pre-Brexit inventory build by customers, which led to an increase of roughly £7.0m to net revenue, will unwind in the second half, meaning the balance of trading will be first half weighted.
Group net revenues increased 21% at constant exchange rates during the half.
Chief executive Ian Page said: "Our progress in the first half has been excellent despite the uncertainties arising as a result of Covid-19 and Brexit.
"With our continuing belief in the capability of our people during these difficult times and our ability to execute our strategy we remain confident in our prospects for the future."
As of 0820 GMT, Dechra shares were up 1.20% at 3,554.0p.