Dechra Pharmaceuticals PLC Annual Report and Accounts for the year ended 30 June 2021
Our purpose is the sustainable improvement of animal health and welfare globally.
We are a global specialist veterinary pharmaceuticals and related products business. Our expertise is in the development, manufacture, marketing and sales of high quality products exclusively for veterinarians worldwide.
A Snapshot of our Year
Revenue Growth
- Increase of 21.0% to £608.0 million
- Existing revenue growth of 16.2%
Underlying EBIT Growth
- Increase of 29.2% to £162.2 million
- COVID-19 related cost savings
Portfolio Focus
- All product categories delivering growth, CAP and Equine performance exceptional
- Strong organic growth in all key markets
Our Purpose and Strategy
We believe that our success is based upon providing our stakeholders with a clear strategic plan that is aligned to our Purpose.
We believe this alignment drives improved focus, innovation, collaboration and efficiencies towards delivering our objectives.
Read more hereWe believe that our success is based upon providing our stakeholders with a clear strategic plan that is aligned to our purpose.
We believe this alignment drives improved focus, innovation, collaboration and efficiencies towards delivering our objectives.
Read more here
Performance
Our Year in Review
Ian Page | Chief Executive Officer
“Dechra has continued to outperform a robust market throughout the COVID-19 pandemic affected financial year. As we start the new financial year trading remains strong with the momentum and market penetration seen in the second half of the prior financial year continuing.”
Paul Sandland | Chief Financial Officer
“The Group delivered excellent year on year organic revenue and profit growth supplemented by the product acquisitions of Mirataz and Osurnia.”
Highlights
Total Revenue
£608.0m
AER: +18.0%% CER: +21.0%
Underlying Operating Profit
£162.2m
AER: +26.4% CER: +29.2%
Underlying Diluted Earnings Per Share
108.14p
AER: +17.3% CER: +19.4%
Dividend Per Share
40.50p
AER: +18.1% CER: +18.1%
Reported Operating Profit
£84.0m
AER: +60.9% CER: +63.0%
Reported Diluted Earnings Per Share
51.03p
AER: +55.8% CER: +56.1%
- Revenue growth of 21.0% to £608.0 million.
- Underlying operating profit increased by 29.2% to £162.2 million.
- Underlying EBIT margin increased by 170 bps to 26.7%.
- Underlying diluted EPS increased by 19.4% to 108.14 pence.
- Reported operating profit growth of 63.0%.
- Full year dividend increased by 18.1% to 40.50 pence.
- All product categories delivering growth, CAP and Equine performance exceptional.
- Strong organic growth in all key markets.
- Good progress continues to be made on product pipeline.
- Mirataz® and Osurnia® both performing well.
COVID-19 Update
“We are pleased to report that the business has continued to perform strongly and remained fully operational throughout the COVID-19 pandemic influenced financial year. We reported in our 2020 Annual Report the governance structures we put in place to mitigate the impact of COVID-19 on our people and our business.”
Ian Page | Chief Executive Officer
We are pleased to report that we have:
- not furloughed any of our employees;
- not taken advantage of, or utilised, any government assistance in any country; and
- not undertaken any redundancy programmes related to the pandemic.
Once the consequences of COVID-19 on the global economy began to be understood, we introduced various measures that preserved cash which gave us all security in the financial strength of the business. We decided to delay the annual pay review process, normally effective from 1 September, until 1 January 2021. This allowed us to measure the ongoing impact of the pandemic, which along with other measures, were acts of caution to preserve cash until we got a better understanding of what the new ‘normal’ business would look like. We have now conducted a full review of our global remuneration policies and from 1 January 2021 no individual within Dechra will work below their respective nationally recognised living wage or equivalent. This was a year ahead of when we originally planned in the UK and even earlier in the rest of the world.
Our Approach
I would like to thank all our employees for their hard work, dedication and innovation throughout the year. Our employees have responded positively during the pandemic and have adapted to new ways of working demonstrating the agility that is a core part of our culture.
The measures that were put in place to enable all front line employees to operate safely in our 2020 financial year have remained; this has allowed all manufacturing and logistic sites and laboratories to remain open and continue to function effectively. All employees who can work from home have done so successfully. Our employees are now slowly returning, where it is safe to do so, to our offices, initially on a cohort basis, and in the field.
We have paid all of our site based employees (majority of our lowest paid staff work in manufacturing or logistics) a bonus to reward their commitment during the COVID-19 period. In March 2021, we were pleased to be accredited as a Living Wage Employer in the UK.
We have also benchmarked individuals within all levels of the Group, and have implemented above inflationary salary increases to numerous employees, to continue to provide a competitive and fair level of remuneration throughout the whole organisation, in line with our commitment to the remuneration policies we adopted in 2019.
For the last 10 years we have operated a Group Donations scheme, whereby we encourage all employees to nominate a charity or non-commercial organisation for a charitable donation. We decided that we would give the 2021 financial year’s donation to charities related to the effects of COVID-19. All the money this year was allocated to each country in which we have a manufacturing organisation in memory of Simon Francis, Group Manufacturing and Supply Director, who sadly passed away from COVID-19 last year.
Read more in Corporate Social ResponsibilityCorporate Social Responsibility
Making a difference
through the sustainable improvement in global animal health and welfare
Our ESG Strategy
Our ESG strategy is based around four pillars: Business; Community; Environment; and People. During the 2021 financial year we have set targets for each of the pillars. We have committed to a long term target to reach net zero emissions by no later than 2050, backed by science based targets across the entire value chain. We will:
- continue the effort to understand and disclose the climate change risks and opportunities by transforming to a low carbon economy; and
- refine our environmental targets by setting verifiable science based targets through the Science Based Targets initiative (SBTi).
Strategy in Action
Acquisition and Launch of Mirataz: Transitioning a Product into the Dechra Operation
Read more hereLaunching Dechra’s endocrinology range into Brazil and Mexico
Read more hereNutrition Returns to Growth
Read more hereCreating a Global HR Platform
Read more here