Dechra Pharmaceuticals shares were down heavily on Monday after the specialist veterinary pharmaceutical group said wholesalers were going through a period of de-stocking which would hit profits this year.
De-stocking has caused volatile trading conditions for Dechra, who now see operating profits below the £186m guided for in February. Dechra noted stock management trends in the US were also evident in the UK.
Dechra made concerning comments about the health of trade in the rest of Europe: “The market appears to be slowing in response to the changing macro-economic environment and country specific dynamics.”
Despite wholesaler activity causing challenging conditions for Dechra between January and April, the company said end demand from veterinary practitioners remained strong.
Dechra Pharmaceuticals shares were trading down 9.8% at the time of writing.