VIRBAC: Annual revenue growth of +9.6% at comparable exchange rates and scope (+14.3% at real rates), driven by exceptional business activity in the fourth quarter
January 18 2023 - 11:51AM
VIRBAC: Annual revenue growth of +9.6% at comparable exchange rates
and scope (+14.3% at real rates), driven by exceptional business
activity in the fourth quarter
KEY FIGURES |
AnnualRevenue
2022€1,216.1M |
Growth at constant exchange rates and
scope 1+9.6% of which
companion animals +11.9%
food-producing animals +6.9% |
Growth at constant exchange
rates+9.6% |
Overall
change+14.3% |
1 Growth at constant exchange rates and scope
corresponds to organic growth of sales, excluding exchange rate
variations, by 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, by
calculating the indicator for the financial year in question on the
basis of the scope of consolidation for the previous financial
year.
Quarterly consolidated
revenueOur revenue in the fourth quarter amounted to
€294.9 million, up +19.7% compared to the same period in 2021. At
constant exchange rates, revenue growth was +15.9%. All areas
except Latin America, penalized by the downturn in Chile, saw very
good double-digit growth over the period. It should be noted that
the quarter has a very favorable base effect compared to the same
period in 2021, as well as inventory effects linked on the one hand
to anticipated price increases, which may have an impact on the
first quarter 2023, and on the other hand to the launch of the new
ranges, particularly in the USA. Europe (+13.4% at constant rates),
Asia Pacific (+19.9% at constant rates), and the United States
(+38.6% at constant rates) were the biggest contributors in the
quarter. Performance in these regions is driven in particular by
five countries (the United States, Australia, the United Kingdom,
France and India) which generate 75% of quarterly growth. Finally,
Latin America (+1.8% at constant exchange rates) was strongly
impacted by Chile, which saw a sharp slowdown in sales in the
quarter due to the decline in sales on antibiotic and parasiticide
products for salmon, following the suspension by the Chilean
maritime authority of the marketing authorization of a parasiticide
product for its distribution.
In terms of species, the companion animals
segment was the main driver of growth (+17.7% at constant rates),
particularly in sales of petfood, specialties, the dental range and
vaccines, thanks to the reduction in out-of-stock levels and late
deliveries in December. The food-producing animals segment is also
growing (+9.1% at constant rates), driven by sales of parasiticide
and nutritional products for cattle.
Annual consolidated revenueOur
annual revenue amounted to €1,216.1 million, compared with €1,064
million, representing an overall increase of +14.3% compared with
the same period in 2021. Adjusted for the favorable impact of
exchange rates, revenue shows growth of +9.6%. This growth
benefited, in part, from a favorable baseline effect representing
0.4 point of growth in revenue, attributable to new products
acquired starting in the second quarter of 2021.
The successful execution of our strategic plan,
supported by the constant commitment of our teams, has enabled us
to consolidate our annual organic growth in all areas, despite the
slowdown in the market. In Asia Pacific, growth at real exchange
rates came to +18.5% (+13.9% at constant exchange rates), India and
Australia continue to drive growth from the area, thanks to
products for cattle, representing approximately 80% of the area’s
growth. In Europe, revenue is growing at +6.2% at real rates (+5.8%
at constant rates). The main contributors to this performance are
the United Kingdom, France, Turkey, Italy, and Spain. The area is
supported by the strong dynamism of the companion animals ranges
(in particular petfood, specialties, and vaccines), which
compensated for the decline in the antibiotic ranges for
food-producing animals. In the United States, business grew by
+30.2% (+15.7% at constant exchange rates). It benefits from
sustained sales on new products launched in 2021 (Clomicalm and
Itrafungol) and those launched in early 2022 (petfood, and Tulissin
for the food-producing animals segment), as well as good
performances in the dental, specialties (Movoflex, Stelfonta), and
dermatology ranges. Finally, in Latin America, business grew by
+17.1% at real rates (+5.6% at constant exchange rates), thanks in
particular to the contribution of Mexico and Brazil, which offset
the downturn in Chile.
In terms of species, revenue in
the companion animals segment grew overall by +15.9% at real rates
(+11.9% at constant rates), mainly driven by very good double-digit
growth in the petfood, specialties and dental ranges, as well as a
significant contribution from vaccines. The food-producing animals
segment also posted growth of +12.3% at real rates (+6.9% at
constant exchange rates), driven by the ruminant sector (+12.5% at
constant rates), which compensates for the decline in the
swine-poultry (-2.7% at constant rates) and aquaculture (-16.0% at
constant rates) segments compared to the same period of 2021. This
was mainly due to lower sales of vaccines and the suspension of the
marketing of the parasiticide product mentioned above.
OutlookThe exceptional performance
of the last quarter, which was unexpected in a market experiencing
a sharp downturn, allows us to slightly exceed the top of our
revenue range in 2022. We now anticipate a ratio of “current
operating income before depreciation of assets from acquisitions”
to "revenues" that should be around 15% at constant exchange rates,
and our debt relief should be around €35 million excluding
dividends, at constant scope and exchange rates.
For 2023, we can confirm the content of our
press release of last December, namely a ratio of “current
operating income before depreciation of assets from acquisitions”
to “revenues” that should be between 13% and 14% at constant
exchange rates, with growth in revenue at constant rates and scope
expected to be between 4% and 6%. This deterioration in our
adjusted EBIT ratio is primarily the result of our voluntary
acceleration of R&D investments to revenue since early 2022,
representing in 2023 ~+2 percentage points compared to 2021
and +~1 percentage point compared to 2022, and the expected effects
of inflation in 2023. In addition, our cash position is expected to
remain constant at the end of 2023 compared to the end of 2022,
taking into account the capital expenditure planned over the
period, estimated at around 100 million euros, the acceleration of
R&D, and excluding any acquisitions.
CONSOLIDATED FIGURESNon-audited figures in millions of euros |
2022 |
2021 |
Growth |
Growth at constant exchange rates 1 |
Growth at constant exchange rates and scope 1 |
First-quarter revenue |
318.1 |
266.5 |
+19.3% |
+16.2% |
+16.2% |
Second-quarter revenue |
298.3 |
262.9 |
+13.5% |
+7.8% |
+7.8% |
Third-quarter revenue |
304.8 |
288.2 |
+5.8% |
-0.2% |
-0.2% |
Fourth-quarter revenue |
294.9 |
246.4 |
+19.7% |
+15.9% |
+15.9% |
Annual revenue |
1,216.1 |
1,064.0 |
+14.3% |
+9.6% |
+9.6% |
A lifelong commitment to the health of
animalsAt Virbac, we provide innovative solutions 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 enables us to 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 for the
health of animals together.
Virbac: Euronext Paris - subfund A –ISIN code:
FR0000031577 /MNEMO: VIRPFinancial Affairs department: tel. 04 92
08 71 32 - finances@virbac.com - corporate.virbac.com
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