The Group has three reportable segments, as discussed below, which are based on information provided to the Board of Directors, which is deemed to be the Group's chief operating decision maker. Several operating segments which have similar economic characteristics have been aggregated into the reporting segments. In undertaking this aggregation the assessment determined that the aggregated segments have similar products, production processes, customers and overall regulatory environments.
The European Pharmaceuticals Segment comprises Dechra Veterinary Products EU, Dechra Veterinary Products International and Dechra Pharmaceuticals Manufacturing. This Segment operates internationally and manufactures and markets Companion Animal, Equine, Food producing Animal Products and Nutrition. This Segment also includes third party manufacturing and other revenues from non-core activities.
The North American Pharmaceuticals Segment consists of Dechra Veterinary Products US, Putney, Dechra Veterinary Products Canada, and Dechra-Brovel, which sells Companion Animal, Equine Products and Food producing Animal Products in those territories. The Segment also includes our manufacturing unit based in Melbourne, Florida and was further expanded during the period with the acquisition of Ampharmco LLC.
The Pharmaceuticals Research and Development Segment includes all of the Group's pharmaceutical research and development activities. From a Board perspective, this Segment has no revenue.
Reconciliation of reportable segment revenues, profit or loss and liabilities and other material items:
| 2020 £m |
Restated* 2019 £m |
|
| Revenue by segment | ||
| European Pharmaceuticals | 323.5 | 304.0 |
| NA Pharmaceuticals | 191.6 | 177.8 |
| 515.1 | 481.8 | |
| Operating profit/(loss) by segment | ||
| European Pharmaceuticals | 100.0 | 100.3 |
| NA Pharmaceuticals | 63.7 | 59.2 |
| Pharmaceuticals Research and Development | (28.4) | (25.1) |
| Segment operating profit | 135.3 | 134.4 |
| Corporate and other unallocated costs | (7.0) | (7.0) |
| Underlying operating profit | 128.3 | 127.4 |
| Amortisation of acquired intangibles | (69.6) | (76.8) |
| Remeasurement of contingent consideration | – | 0.1 |
| Expenses relating to Brexit | – | (0.9) |
| Fair value uplift of inventory acquired through business combinations | – | (5.1) |
| Rationalisation of manufacturing organisation | (2.2) | (2.0) |
| Expenses relating to acquisitions and subsequent integration activities | (4.3) | (3.7) |
| Total operating profit | 52.2 | 39.0 |
| Finance income | 3.0 | 0.7 |
| Finance expense | (14.0) | (11.5) |
| Share of losses in investment accounted for using the equity method | (0.3) | (0.4) |
| Profit before taxation | 40.9 | 27.8 |
| Total liabilities by segment | ||
| European Pharmaceuticals | (110.3) | (80.9) |
| NA Pharmaceuticals | (53.1) | (44.0) |
| Pharmaceuticals Research and Development | (5.1) | (2.1) |
| Segment liabilities | (168.5) | (127.0) |
| Corporate loans and revolving credit facility | (340.0) | (308.1) |
| Corporate accruals and other payables | (3.4) | (6.5) |
| Current and deferred tax liabilities * | (88.2) | (90.8) |
| (600.1) | (532.4) | |
| Revenue by product category | ||
| CAP | 361.6 | 340.2 |
| Equine | 36.4 | 34.4 |
| FAP | 74.8 | 57.3 |
| Nutrition | 28.6 | 29.1 |
| Other | 13.7 | 20.8 |
| 515.1 | 481.8 | |
| Additions to intangible non-current assets by segment (including through business combinations) | ||
| European Pharmaceuticals * | 22.3 | 42.2 |
| NA Pharmaceuticals | 47.5 | – |
| Pharmaceuticals Research and Development | 0.4 | 0.3 |
| Corporate and central costs | 1.5 | 0.5 |
| 71.7 | 43.0 |
* Restated as detailed in note 31 Acquisitions.
| 2020 £m |
2019 £m |
|
| Additions to Property, Plant and Equipment by segment (including through business combinations) |
||
| European Pharmaceuticals | 12.1 | 17.4 |
| NA Pharmaceuticals | 4.3 | 0.3 |
| Pharmaceuticals Research and Development | 0.7 | 0.4 |
| Corporate and central costs | 0.2 | 0.1 |
| 17.3 | 18.2 | |
| Depreciation and amortisation by segment | ||
| European Pharmaceuticals | 64.1 | 68.1 |
| NA Pharmaceuticals | 18.5 | 17.8 |
| Pharmaceuticals Research and Development | 0.5 | 0.3 |
| Corporate and central costs | 0.7 | 0.4 |
| 83.8 | 86.6 | |
| The total depreciation and amortisation charge is made up of the following: | ||
| Non-underlying | ||
| Amortisation – selling, general and administrative expenses | 63.9 | 70.0 |
| Amortisation – research and development expenditure | 5.7 | 6.8 |
| 69.6 | 76.8 | |
| Underlying | ||
| Amortisation | 4.3 | 4.1 |
| Depreciation | 9.9 | 5.7 |
| 14.2 | 9.8 |
The following table shows revenue based on the geographical location of customers and non-current assets based on the country of domicile of the entity holding the asset:
| 2020 Revenue £m |
2020 Non- current assets £m |
2019 Revenue £m |
Restated* 2019 Non- current assets £m |
|
| UK | 45.0 | 30.4 | 56.4 | 20.1 |
| Germany | 53.9 | 2.8 | 48.2 | 3.7 |
| Rest of Europe | 173.8 | 419.8 | 163.5 | 443.8 |
| USA | 181.9 | 213.2 | 169.1 | 175.8 |
| Rest of World | 60.5 | 122.5 | 44.6 | 106.6 |
| 515.1 | 788.7 | 481.8 | 750.0 |
* Restated as detailed in note 31 Acquisitions.