VIRBAC: 2021 operating profit from ordinary activities showed very
strong growth, reflecting the excellent dynamism of our business in
a rapidly growing market
CONSOLIDATED FIGURES AS OF DECEMBER 31in millions of € |
|
2021 |
2020 adjusted 6 |
2021/2020 Change |
|
Revenue |
1,064.0 |
934.2 |
+13.9% |
|
Change at constant exchange rates |
|
|
+14.9% |
|
Change at constant exchange rates and scope 1 |
|
|
+18.4% |
|
Current operating profit, before depreciation of assets arising
from acquisitions 2 |
173.2 |
127.0 |
+36.4% |
|
as a % of revenueas a % of revenue at constant rates |
16.3%15.9% |
13.6% |
|
|
Depreciation of intangible assets from acquisitions |
4.3 |
8.4 |
|
|
Operating profit from ordinary activities |
168.9 |
118.6 |
+42.4% |
|
Non-recurring income and (expenses) |
-1.20 |
65.2 |
|
|
Operating profit |
167.6 |
183.7 |
-8.8% |
|
Current net profit 3 |
117.8 |
76.9 |
+53.3% |
|
Consolidated net profit |
115.7 |
140.3 |
-17.6% |
|
Including net profit - Group share |
113.2 |
136.0 |
|
|
Shareholders’ equity - Group Share |
724.9 |
621.0 |
+16.7% |
|
Net debt 4 |
-73.8 |
-63.4 |
-16.4% |
|
Operating cash flow before interest and taxes 5 |
210.1 |
169.4 |
+24.0% |
|
1 Change at constant exchange rates and scope
corresponds to organic growth of sales, excluding exchange rate
variations, calculating the indicator for the financial year in
question and the indicator for the previous financial year on the
basis of identical exchange rates (the exchange rate used is the
previous financial year’s), and excluding change in scope,
calculating the indicator for the financial year in question on the
basis of the scope of consolidation for the previous year, and
excluding sales of Sentinel, a product divested on July 1, 2020,
over the two financial years in question.2 Current operating
profit, before depreciation of assets arising from acquisitions,
reflects current profit adjusted for the impact of allowance for
depreciation of intangible assets resulting from acquisition
transactions.3 Current net profit corresponds to consolidated net
profit adjusted for non-recurring expenses and income (- €1.2
million), and for non-current tax (- €0.9 million).4 Net debt
corresponds to current (€46.5 million) and non-current (€14.0
million) financial liabilities as well as a lease obligation
related to the application of IFRS 16 (€38.5 million), less the
cash position and cash equivalents (€172.8 million) as published in
the statement of financial position.5 Operating cash flow
corresponds to operating profit (€167.6 million) adjusted for items
having no impact on the cash position and impacts related to
divestments. The following items are adjusted: fixed asset
impairment (€41.7 million), provision for risks and charges (- €1.7
million), provisions related to employee benefits (- €1.1 million),
and the other expenses and income without any impact on cash
position (€0.6 million), and the impacts related to divestments (+
€3.0 million).6 Including the impacts of the final decision of the
IFRS IC of March 2021 on the configuration and customization costs
of software used as part of an SaaS-type contract as described in
the accounting principles and methods (net impact - €1.4
million).
The accounts were audited by the statutory
auditors and examined by the board of directors on March 18, 2022.
The report of the statutory auditors is in the process of being
issued. The statements and detailed presentation of annual profits
are available on the corporate site at corporate.virbac.com.
Thanks to the constant mobilization of
the Virbac teams
for animal health, in a particularly dynamic market, we posted
annual revenue of €1.064 billion, an increase of +17.4%
over 2020 excluding Sentinel (+13.9% at real scope) compared to the
same period in 2020. Excluding the negative effect of exchange
rates, revenue rose by +18.4% excluding Sentinel (+14.9% at real
scope). All areas had double-digit organic growth, reflecting both
the sector’s momentum and the successful execution of our strategic
plan. In Europe, the main contributors to this performance were
France, area Export activities, the United Kingdom, Germany,
Benelux, Italy and Spain, driven by strong growth in the companion
animal range. In Asia-Pacific, India continues to drive the area’s
growth, accounting for approximately 45% of it; Australia, New
Zealand, South Africa, Vietnam, and China also contribute to the
area’s very strong growth. The United States benefited from
sustained growth across all product lines, including specialty
products, the dental and dermatology ranges, recently launched
products (Clomicalm, Itrafungol, Senergy and Stelfonta) and,
lastly, the manufacturing of Sentinel Spectrum for Merck. In Latin
America, Brazil and Mexico drove growth. Lastly, in Chile, the
strong second half-year performance helped us achieve organic
growth over the year. In terms of species, the companion animal
business was essentially driven by the remarkable double-digit
growth of the specialty ranges (including Clomicalm, Movoflex,
Stelfonta), petfood, parasiticides, dermatology and dental
products, and by the rebound of the vaccine range for dogs and
cats, compared to the same period in 2020. It should be noted that
sales of Clomicalm and Itrafungol, products acquired in March 2021,
and the US petfood range iVet, acquired in July 2021, represented
approximately €14 million in sales (or 1.6 percentage points of
revenue growth) over the period. The food producing animals segment
also showed significant growth due in particular to the ruminant
sector.
The current operating profit before
depreciation of assets arising from
acquisitions amounts to €173.2 million, up significantly
from 2020 (€127.0 million). This improvement in performance is
mainly due to the exceptional growth in our revenue, driven by a
very strong performance in all areas and good market dynamics. It
is partially offset by a rebound in our expenses, in particular the
staff expenses related to the high activity, the commercial
expenses in anticipation of product launches, and the acceleration
of our R&D investments. Note also, that this annual profit
benefits from the recognition of exceptional items in the amount of
€5.1 million (€2.4 million in compensation net of costs incurred in
2021, for the continuation of R&D projects acquired in the 1st
quarter of 2021 from Elanco, and the additional margin on the
transferred inventories of the Clomicalm and Itrafungol products
that have benefited from a zero cost of sales as part of the
acquisition, and €2.7 million for the reversal of provision for
disputes, which have become irrelevant). All of these items
represent a positive impact of 0.5 percentage point on the “current
operating profit, before depreciation of assets arising from
acquisitions” to “revenue” for the period.
Current net profit (net consolidated
profit adjusted for non-recurring expenses and
income and for non-current taxes) totaled €117.8 million,
up 53.3% from 2020. This very strong improvement in our current net
profit is explained by the reasons given above, in particular the
excellent growth of our business and the very strong control of our
costs, despite the rebound observed in 2021. It should be noted
that our financial result corresponds to a charge of €8.5 million,
which is significantly down from the same period in 2020 (charge of
€10.4 million). This is explained by the decrease in the cost of
net debt of €5.1 million resulting from the repayment of our bank
financing following divestment of the Sentinel range; the latter is
offset by the decrease in foreign exchange profit of €3.1 million
due to the impairment of the Chilean peso against the euro and the
US dollar in 2021 compared to the same period in 2020.
Net profit - Group Share
amounted to €113.2 million, down from the previous year (€136.0
million), which is explained by the divestment of Sentinel in July
2020.
On the financial side, our net
debt amounts to - €73.8 million at the end of December 2021,
compared to - €63.4 million at the end of December 2020. This
positive change in our cash position over the year is mainly due to
strong cash generation, which enabled the financing of more
sustained capital expenditures (current and acquisitions including
the redemption of minority shares of Centrovet), higher working
capital requirements in 2021 given the strong increase in our
revenue, and finally the payment of dividends with respect to the
2020 profit.
OutlookIn line with our strategic
plan, and in a more standardized market, in 2022 we anticipate
revenue growth of between 5% and 8% at constant rates and scope.
While the ratio of “current operating profit before depreciation of
assets arising from acquisitions” to “revenue”, as previously
announced, should consolidate around 15% at constant exchange rates
(with a voluntary over-investment in R&D of approximately 1
percentage point of revenue compared to 2021). Our debt relief
should be around €60 million, excluding dividends, at constant
scope and exchange rates. In addition, the distribution of a net
dividend of €1.25 per share for the 2021 financial year will be
proposed to the next general meeting of shareholders.
Covid-19 Health CrisisWe continue to face
significant production, logistical and supply constraints with
regard to certain intermediaries, and more recently, the impact of
inflation on our costs.
Conflict between Ukraine and RussiaWe are deeply
touched and saddened by what is currently happening in Ukraine, and
the humanitarian disaster generated by this war, and we would like
to express our support for all the victims. In terms of our
business, any direct exposure to this crisis situation is minimal,
as our sales to Russia and Ukraine account for less than 0.5% of
our total revenue. It should also be noted that we do not have a
subsidiary in these two countries, instead we work with
distributors. However, we remain vigilant and have formed an
internal team to monitor the situation closely, and the possible
indirect consequences for our Group, in particular with regard to
energy costs (sharply increasing), and certain raw materials.
PRÉSENTATION ANALYSTES – VIRBAC
Nous tiendrons une
réunion analystes le mercredi 23 mars 2022 à 14h30 (heure de Paris
- CET) dans l’Auditorium l'Edouard VII Business Center, 23 square
Edouard VII - 75 009 Paris (France).
Les participants
pourront arriver 15 minutes avant le début de la réunion. L’accès à
la réunion sera soumis à la réglementation sanitaire en vigueur à
cette date.
Un webcast
(audio+slides) est également disponible pour assister à la réunion
via le lien ci-dessous.
Informations pour les
participants:
Lien d’accès au
webcast :https://bit.ly/3JNOPVn
Ce lien d’accès est
disponible sur le site corporate.virbac.com, rubrique « communiqués
financiers ». Il permet aux participants d’accéder au webcast en
direct et/ou en archive.
Vous pourrez poser vos
questions au format chat (texte) directement lors du webcast, ou
après visionnage du replay à l’adresse courriel :
finances@virbac.com.
Virbac: NYSE Euronext - compartment A – ISIN
code: FR0000031577 / TICKER: VIRP
Financial Affairs Department: tel. 04 92 08 71
32 - email: finances@virbac.com - Website: corporate.virbac.com
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