Virbac: excellent revenue growth of 21.2% at the end of September
at comparable exchange rates and scope (+16.4% at constant rates
and real scope), driven by a very solid third-quarter performance
again in all areas
KEY FIGURES |
RevenueYear-to-date September 30,
2021€817.7 million |
At constant exchange rates and
scope1+21.2% including
companion animals +24.3%
food producing animals
+15.0% |
Growth adjusted at constant exchange
rates+16.4% |
Overall
change+14.5%+19.3%
excl. Sentinel |
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 that was sold on July 1,
2020, over the first two half-years in question.
Quarterly consolidated
revenueOur third-quarter revenue reached €288.2 million,
or a steep 22.4% increase with respect to the same period in 2020.
At constant exchange rates, growth was +21%, mainly driven by the
remarkable performance of Europe and the United States and the good
performance of other areas, particularly Chile, which experienced a
rebound and growth during the quarter. In Europe, all countries
contributed to our growth, particularly the United Kingdom, France,
the area’s export activity, Germany and Benelux, which performed
exceptionally well in the companion animal segment (vaccines,
petfood, and specialty products). The United States saw very strong
growth during the quarter, particularly thanks to dental,
specialties and parasiticides ranges and to the contribution of
recently launched products (Clomicalm, Itrafungol, iVet petfood,
Milbehart, etc.). Latin America benefited from Chile’s performance,
which contributed half of the area’s growth during the quarter, and
from the strong momentum in Brazil and Mexico. Finally, in
Asia-Pacific, Australia drives most of the quarter’s growth, thanks
to products for ruminants (vaccines, parasiticides and food
supplements). India, China and Japan are down during the period
after very strong growth during the first half of the year, and
there is a very unfavorable baseline effect for India, compared to
the third quarter of 2020.
Cumulative consolidated revenue at the
end of SeptemberOur revenue through to the end of
September was €817.7 million, compared with €713.9 million,
representing an overall increase of 19.3% excluding Sentinel
(+14.5% at real scope) compared with the same period in 2020.
Excluding the unfavorable impact of exchange rates, revenue rose by
21.2% excluding Sentinel (+16.4% at real scope).
All areas had double-digit organic growth at the
end of September, reflecting both the sector’s momentum and the
very successful execution of our strategic plan—thanks largely to
the ongoing commitment of our teams. In Europe, revenue grew 19.2%
at real rates (+19.2% at constant rates). The main contributors to
this performance were France, the United Kingdom, Export
activities, Benelux, Germany, Italy and Spain, driven by a strong
momentum in the companion animal ranges (particularly the specialty
ranges, petfood, and the rebound in vaccines). In Asia-Pacific,
real-rate growth was 17.4% (+18.1% at constant exchange rates).
India continues to drive the area’s growth, alone accounting for
over half; Australia, New Zealand and South Africa also had a hand
in the area’s strong growth. In the United States, business
excluding Sentinel grew by 36.5% (+46.2% at constant exchange
rates). It benefited from sustained sales across all product lines,
including Sentinel Spectrum contract manufacturing for Merck,
specialty products, parasiticides, the dental range and, finally
recently launched products (Clomicalm, Senergy, Itrafungol and
Stelfonta). In Latin America, apart from Chile, business grew by
20.9% at real rates (+26.5% at constant exchange rates), thanks in
particular to strong contributions from Brazil and Mexico. Finally,
in Chile, the good third-quarter performance helped to reduce the
drop in revenue, which is now only -4.5% at real rates (-0.7% at
constant rates).
In terms of species, the
companion animal business grew by 24.3% overall at constant
exchange rates excluding Sentinel (+12.0% at real exchange rates
and scope), 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 with the same period in 2020. It should be noted
that Clomicalm and Itrafungol, which were acquired in March 2021,
and the iVet US petfood range, acquired in July 2021, represented
approximately €10 million in sales during the period. The food
producing animals segment also posted significant growth of 15.0%
at constant rates (+13.5% at real exchange rates), thanks to the
ruminant sector (+19.7% at constant rates), the swine-poultry
products (+5.7% at constant rates), and the aquaculture sector,
which posted slight growth thanks to its performance in the last
quarter (+1.6% at constant rates), when compared to the same period
in 2020.
OutlookWe are now anticipating
like-for-like revenue growth (excluding the impact of the Sentinel
sale) of 16% to 18% (or 13% to 15% at constant exchange rates and
real scope), and a ratio of “current operating profit before
depreciation of assets arising from acquisitions” over “revenue” of
around 16% at constant exchange rates. For the record, we estimate
that the impact of products acquired from Elanco (Clomicalm and
Itrafungol) and from iVet (US petfood) could represent
approximately 1.5 percentage points of revenue growth. We also
anticipate an unfavorable impact of exchange rates on revenue of
approximately €10 million associated with currency depreciation.
Debt relief should be around €60 million for the year at constant
scope and exchange rates.
So far, the health crisis has not had an overly
negative impact on the animal health sector, but, as explained in
our previous releases, we have implemented a set of measures and
day-to-day monitoring to prevent and limit its potential impact. In
addition, our overall presence in terms of geographical areas and
species, our highly diversified product portfolio, our varied
distribution channels, the high responsiveness and adaptability of
our teams, and the robustness of our financial situation are key
assets to face the consequences of this pandemic. However, we are
remaining vigilant to changes in logistics and sourcing costs in
the coming months and are well placed to address them.
CONSOLIDATED FIGURESNon-audited figures in millions of euros |
2021 |
2020 |
Growth |
Growth at constant exchange rates 1 |
Growth at constant exchange rates and scope of consolidation 1 |
First-quarter revenue |
266.5 |
247.7 |
+7.6% |
+12.3% |
+22.6% |
Second-quarter revenue |
262.9 |
230.6 |
+14.0% |
+15.8% |
+20.0% |
Third-quarter revenue |
288.2 |
235.6 |
+22.4% |
+21.0% |
+21.0% |
Revenue at the end of September |
817.7 |
713.9 |
+14.5% |
+16.4% |
+21.2% |
Revenue excluding Sentinel |
810.1 |
678.8 |
+19.3% |
+21.2% |
+21.2% |
A lifelong commitment to animal
healthAt Virbac, we make innovative solutions available to
veterinarians, farmers and animal owners in more than 100 countries
around the world. Covering more than 50 species, our range of
products and services can diagnose, prevent and treat the majority
of pathologies. Every day, we are committed to improving the
quality of life of animals and to shaping the future of animal
health together.
Virbac: NYSE Euronext - compartment A – ISIN
code: FR0000031577 / MNEMO: VIRPFinancial Affairs Department: tel.
04 92 08 71 32 - email: finances@virbac.com - Website:
corporate.virbac.com
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