Dechra Pharmaceuticals plc (LON: DPH) ended roughly 10% down on Monday after the veterinary products company cited higher expenses and reported lower-than-expected profit for its fiscal 2022.
Dechra Pharmaceuticals’ full-year results
Profit (before tax) was £77.6 million versus the year-ago £74 millionRevenue jumped 13% on a year-over-year basis to £681.8 millionSG&A expenses climbed from £69.1 million to £178.6 millionConsensus was £90.5 million profit on £677.8 million in revenueDeclared 44.89 pence a share of dividend – up from 40.50 a share
Despite profit coming in weaker than the experts’ forecast, Dechra Pharmaceuticals is convinced it’ll outperform in fiscal 2023. “DPH” currently trades at a price-to-earnings multiple of 47.
CEO Page’s remarks
Other notable figures in the audited preliminary full-year results include a 9.4% YoY increase in underlying operating profit. Dechra Pharmaceuticals generated £163.3 million in the recently ended year. Commenting on the financial performance, CEO Ian Page said:
We’ve continued to progress on all aspects of our strategy; the product development pipeline was strengthened, material acquisitions were completed post year-end, and a new subsidiary was established in South Korea as we continue our geographical expansion.
The report arrives almost a week after the Northwich-headquartered firm said it was buying Med-Pharmex Inc for £225.81 million ($260 million) to expand its footprint in the United States. Shares are now down 35% versus the start of 2022.
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