Thursday 16 January 2020 9:41 am

Shares in Dechra Pharmaceuticals slump after slow first half

Shares in Dechra Pharmaceuticals plummeted today, after it warned that full-year results would be more heavily weighted to its second half.

The veterinary pharmaceuticals company published a note this morning to say its outlook for the year is in line with expectations, but that “the balance of trading will be more second half weighted than is typical for Dechra”.

Dechra said it had been affected by supply problems in the first half, particularly in the first quarter, leading to a 8.5 per cent drop in shares to 2936p.

The firm also announced it would release its first-half results on 24 February.

Group net revenue is expected to come in at seven per cent at constant exchange rates for the period.

This is underpinned by an expected European pharmaceutical net revenue growth of 12 per cent at constant exchange rates.

This will be offset by an expected decline of two per cent from its North American sector.

Dechra said: “This decline was attributable to the supply issues outlined above and is also due to a strong comparable Period last year that benefited from exceptional sales of Zycortal as a result of a competitor being out of stock.”

Chief executive Ian Page labelled progress in the first half as “satisfactory”.

“Trading in Europe was good while North American growth, as expected was constrained but should now resume as we return to normal supply chain inventory levels,” he said.

“Our recent acquisitions are integrating well, and we were pleased to reach agreement to acquire Osurnia.

‘We therefore remain confident in our prospects for the second half and for the year as a whole.”

The Norwich-based company sells mostly dog, cat and equine pharmaceuticals.

It had net income of £36.1m in 2018.