Dechra Pharmaceuticals PLC
Annual Report and Accounts for the year ended 30 June 2021
Company Number: 3369634
Improving Global Animal
Health and Welfare
Welcome to our 2021 Annual Report
About Dechra
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 to improve animal welfare, exclusively for veterinarians worldwide.
A Snapshot of Our Year
a b c
Revenue | Underlying |
Growth | EBIT Growth |
• Increase of 21.0% | • Increase of 29.2% to |
to £608.0 million | £162.2 million |
• Existing revenue | • COVID-19 related cost |
growth of 16.2% | savings |
Portfolio
Focus
- All product categories delivering growth, CAP and Equine performance exceptional
- Strong organic growth in all key markets
View our online
Annual Report at:
dechra.annualreport2021.com
Overview
Inside this report
Overview
Welcome to Dechra's 2021 Annual Report | IFC |
Highlights | 02 |
Our Key Strengths | 03 |
Our Purpose, Strategy, Values and Culture | 04 |
Dechra at a Glance | 06 |
Chairman's View | 08 |
COVID-19 Update | 09 |
Strategic Report | |
Our Marketplace | 12 |
Our Business Model | 16 |
Creating Value for Our Stakeholders | 19 |
Delivering Our Strategy | 20 |
Chief Executive Officer's Statement | 24 |
Financial Review | 28 |
Key Performance Indicators | 36 |
Strategy in Action | 38 |
Product Development | 42 |
Global Product Offering | 46 |
Section 172 Statement | 48 |
Non-Financial Information Statement | 51 |
Corporate Social Responsibility | 52 |
How the Business Manages Risk | 76 |
Understanding Our Key Risks | 79 |
Viability Statement | 83 |
Governance | |
Letter from the Chairman on Governance | 86 |
Board of Directors and Senior Executive Team | 88 |
Board Leadership and Company Purpose | 92 |
Division of Responsibilities | 99 |
Composition, Succession and Evaluation | 103 |
Audit, Risk and Internal Control | 112 |
Directors' Remuneration Report | 119 |
Directors' Report - Other Disclosures | 147 |
Statement of Directors' Responsibilities | 149 |
Financial Statements | |
Independent Auditors' Report | 152 |
Consolidated Income Statement | 161 |
Consolidated Statement of Comprehensive Income | 162 |
Consolidated Statement of Financial Position | 163 |
Consolidated Statement of Changes in Shareholders' Equity | 164 |
Consolidated Statement of Cash Flows | 165 |
Notes to the Consolidated Financial Statements | 166 |
Company Statement of Financial Position | 210 |
Company Statement of Changes in Shareholders' Equity | 211 |
Notes to the Company Financial Statements | 212 |
Financial History | 221 |
Additional Information | |
Glossary | 224 |
Shareholder Information | 226 |
Advisers | IBC |
Forward-Looking Statements
This document contains certain forward-looking statements. The forward- looking statements reflect the knowledge and information available to the Company during preparation and up to the publication of this document.
By their very nature, these statements depend upon circumstances and relate to events that may occur in the future and thereby involve a degree of uncertainty. Therefore, nothing in this document should be construed as a profit forecast by the Company.
Stock Code: DPH | 01 |
Overview
Highlights
Total Revenue | Underlying Operating Profit | |||||||||||||||||||||||||||||
£608.0m | £162.2m | |||||||||||||||||||||||||||||
AER: +18.0% CER: +21.0% | AER: +26.4% CER: +29.2% | |||||||||||||||||||||||||||||
2021 | £608.0m | 2021 | £162.2m | |||||||||||||||||||||||||||
2020 | £515.1m | 2020 | £128.3m | |||||||||||||||||||||||||||
2019 | £481.8m | 2019 | £127.4m | |||||||||||||||||||||||||||
2018 | £407.1m | 2018 | £99.2m | |||||||||||||||||||||||||||
2017 | £359.3m | 2017 | £81.3m | |||||||||||||||||||||||||||
Underlying Diluted Earnings Per Share | Dividend Per Share | |||||||||||||||||||||||||||||
108.14p | 40.50p | |||||||||||||||||||||||||||||
AER: +17.3% CER: +19.4% | AER: +18.1% CER: +18.1% | |||||||||||||||||||||||||||||
2021 | 108.14p | 2021 | 40.50p | |||||||||||||||||||||||||||
2020 | 92.19p | 2020 | 34.29p | |||||||||||||||||||||||||||
2019 | 90.01p | 2019 | 31.60p | |||||||||||||||||||||||||||
2018 | 76.45p | |||||||||||||||||||||||||||||
2018 | 25.50p | |||||||||||||||||||||||||||||
2017 | 64.33p | |||||||||||||||||||||||||||||
2017 | 21.44p | |||||||||||||||||||||||||||||
Reported Operating Profit | Reported Diluted Earnings Per Share | |||||||||||||||||||||||||||||
£84.0m | 51.03p | |||||||||||||||||||||||||||||
AER: +60.9% CER: +63.0% | AER: +55.8% CER: +56.1% | |||||||||||||||||||||||||||||
2021 | £84.0m | 2021 | 51.03p | |||||||||||||||||||||||||||
2020 | £52.2m | 2020 | 32.76p | |||||||||||||||||||||||||||
2019 | £39.0m | 2019 | 30.07p | |||||||||||||||||||||||||||
2018 | £34.1m | 2018 | 37.04p | |||||||||||||||||||||||||||
2017 | £33.2m | 2017 | 27.93p |
Strategic Progress
- 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
Financial Performance
- 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.
Our Product Pipeline
A key strategic priority for the Group is the delivery and strength of the pipeline. We currently have 33 projects in the product development process:
Read more about our | |||||
Feasibility | Research | Development | Registration | Product Development | |
12 | 3 | 13 | 5 | on pages 42 to 45. | |
02 | Dechra Pharmaceuticals PLC Annual Report and Accounts for the year ended 30 June 2021 | www.dechra.com |
Overview
Our Key Strengths
As well as our ability to improve the animal health and welfare industry globally with our breadth of products and strong and innovative product pipeline, we have a key set of strengths, summarised below:
1 | 2 | 3 | 4 | 5 |
Well
Recognised
Brand
We are recognised as a global animal healthcare company with a strong and growing reputation as a provider of high quality, specialist veterinary medicines and related products.
Balance Sheet Strength
The Group targets strong cash generation which allows us to pay down debt quickly, resulting in a robust balance sheet which enables us to fund internally many of our strategic opportunities.
Successful
Acquisition
History
In January 2008 we made our first major acquisition which, at the time, was transformational to our EU Pharmaceuticals business. We have successfully replicated the model since then on several occasions and have consistently delivered pre-acquisition strategic and financial expectations on significant transactions.
Manufacturing Capabilities
Our manufacturing sites offer a wide range of dosage forms and packaging capabilities which can be produced in small to large-scale production batches. This flexibility is a key requirement in producing our varied product portfolio.
Skilled
People
We have attracted and retained a qualified and skilled workforce throughout the organisation. This stable and motivated team has many years' experience within the markets we serve. Our people strategy is underpinned by our Dechra Values.
6 | 7 | 8 | 9 | 10 |
Our
Purpose
Dechra's purpose is the sustainable improvement of animal health and welfare globally and this is intrinsic in our Values, the way we do business and in the decisions we make when developing and implementing our Environmental, Social and Governance (ESG) framework.
Our Breadth
of Breadth of
Products
We are a global leader in veterinary endocrinology and topical dermatology, have a broad portfolio of analgesia, anaesthetics and products for the prevention and treatment of pain, and we are also recognised as innovators in other specialisations such as the treatment of equine lameness, nutrition and differentiated generics (generic plus).
Our Growing
Global
Footprint
Dechra's origins lie in the companion animal markets of Western Europe and North America. We have built on this platform, extending our footprint globally through greenfield sites and acquisitions.
Further international expansion is one of our four strategic growth drivers.
Our Strong
and Innovative
Product
Development
Pipeline
We have a strong pipeline of novel, generic and generic plus pharmaceuticals, vaccines and a specialist nutrition range. We have
a track record of pipeline delivery.
We are proactive and innovative in recognising new development opportunities to extend our portfolio.
Our High
Quality
Expertise
We support our customers in our key therapeutic areas with technical helplines, continuing education through online learning, webinars and lectures
by key opinion leaders.
Our sales approach relies on strong partnerships with practice groups and individual veterinarians, strengthened by key opinion leaders and distribution partners.
Stock Code: DPH | 03 |
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Dechra Pharmaceuticals plc published this content on 07 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 September 2021 15:51:03 UTC.