Sales Growth
Year-on-year sales growth including new products and excluding revenue from acquired businesses.
Performance
9.0%
Commentary
Dechra's existing business in EU Pharmaceuticals grew by 4.4%, excluding third party contract manufacturing, and in NA Pharmaceuticals by 18.2%.
Relevance to Strategy
A key driver of our strategy is to deliver sustainable sales growth through delivering our pipeline, maximising our existing portfolio and expanding geographically.
Underlying Diluted EPS Growth
Underlying profit after tax divided by the diluted average number of shares, calculated on the same basis as note 11 to the Accounts.
Performance
20.9%
Commentary
This includes a 24.0% increase in underlying operating profit offset by an increase in finance charges from the increase in debt and equity issuance to fund acquisitions.
Relevance to Strategy
Underlying EPS is a key indicator of our performance and the return we generate for our stakeholders. It is one of the performance conditions of the LTIP.
Return on Capital Employed
Underlying operating profit expressed as a percentage of the average of the opening and closing operating assets (excluding cash/debt and net tax liabilities).
Performance
230bps
Commentary
The decline is largely due to the inclusion of 100% of the assets acquired from AST Farma and Le Vet in February in the Capital employed element, but only 4.5 months' profit in the Return element.
Relevance to Strategy
As we look to grow the business, it is important that we use our capital efficiently to generate returns superior to our cost of capital in the medium to long term. It underpins the performance conditions of the LTIP.
Underlying Cash Conversion
Cash generated from underlying operations before tax and interest payments as a percentage of underlying operating profit.
Performance
3,400bps
Commentary
Underlying cash conversion was weaker in the year due to the planned temporary increase in inventory to support the shutdown of production lines at our Bladel facility during the site upgrade, and to increase customer service levels in North America.
Relevance to Strategy
Our stated aim is to be a cash generative business. Cash generation supports investment in the pipeline, acquisition and people.
New Product Revenue
Revenue from new products as a percentage of total Group revenue. A new product is defined as any molecule launched in the last five financial years.
Performance
720bps
Commentary
New product revenues reflect the strong market penetration of products launched in the current and previous four years.
Relevance to Strategy
This measure shows the delivery of revenue in each year from new products launched in the prior five years, on a rolling basis. It shows the performance of our R&D and sales and marketing organisations when launching newly developed or in-licensed products.
Lost Time Accident Frequency Rate (LTAFR)
All accidents resulting in the absence or inability of employees to conduct the full range of their normal working activities for a period of more than three working days after the day when the incident occurred, normalised per 100,000 hours worked.
Performance
100%
Commentary
There have been no lost time accidents during the year. None of the previous year's incidents resulted in a work-related fatality or disability.
Relevance to Strategy
The safety of our employees is core to everything we do. We are committed to a strong culture of safety in all our workplaces.
Read about Corporate Social Responsibility
Employee Turnover
Number of leavers during the period as a percentage of the average total number of employees in the period.
Performance
20bps
* excludes Apex, Brovel, Genera and Putney
** excludes RxVet, AST Farma and Le Vet
Commentary
The increase relates to the restructuring of our manufacturing business.
Relevance to Strategy
Attracting and retaining the best employees is critical to the successful execution of our strategy.
Key to Strategic Growth Drivers:
Geographical Expansion
Key to Strategic Enablers:
Key: