Animal health products company Animalcare has reported a 10% increase in revenues from sales of its veterinary medicines.

The company’s board issued a trading update for the six months ending December 31, in advance of releasing its interim results on February 24.

It said revenue from sales of licensed veterinary medicines rose to £4.4m. The total for the equivalent period in 2013 was £3.98m.

This increase includes planned organic growth and a non-recurring benefit from sales of Buprecare as a result of supply problems of a competitor product.

This was balanced, however, by lower than expected sales of some older, lower margin pharmaceuticals.

Revenues across the Animalcare group were up by 7.2% to £6.93m (2013: £6.46m).

Sales in the companion animal identification sections continued to perform well, increasing to £1.26m (2013: £1.2m). Microchip revenues were up in the period and other products and services in this area also performed well following further marketing investment.

Revenues from the animal welfare elements of the business fell by 1.2% to £1.27m (2013: £1.29m), but the company still achieved a moderate increase in gross profitability following the rationalisation of the less profitable products.

In its statement, the board said the company’s sales and marketing teams were planning the UK launch of three pharmaceutical products on behalf of a European partner in the second half of the year.

“Following the solid trading performance in the first half, particularly across the licensed veterinary medicines and companion animal Identification product groups, the board remains confident about the prospects and outcome for the full year,” it said.

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