Regulatory News:
Vetoquinol (Paris:VETO):
Annual sales: €529 million (stable at constant exchange
rates) Essentials sales: €313m (+4.5% at constant exchange
rates) Net income - Group share: €56m (10.5% of sales)
EBITDA: €113m (21.3% of sales) Free Cash flow: €89
m
Matthieu Frechin, Chairman and CEO of Vetoquinol,
commented: “In 2023, Essentials and the USA, our growth
engines, recorded a tenth consecutive year of progression, thanks
to a good 2nd half-year. This momentum has enabled us to deliver
again a solid operating profitability in 2023, and to improve our
cashflow generation. We intend to pursue this strategy with
determination, intensifying the development of our Essentials
portfolio and their territory extensions, particularly in the
United States."
The Board of Directors of Vetoquinol SA met on March 19, 2024 to
review business activity and approve the financial statements for
the year ended December 31, 2023. The audit procedures are
currently being finalized by the Statutory Auditors.
Vetoquinol sales for FY 2023 were €529 million, stable at
constant exchange rates and down -1.9% on a reported basis.
Foreign exchange had a negative impact of €10 million, linked to
the Americas and Asia-Pacific/Rest of World territories.
Rationalization of the complementary products had a negative impact
of around -11 M€ on annual sales. The good level of sales in 2023
2nd half-year, up +4.5% at constant exchange rates, offset a first
half disrupted by cyclical phenomena, notably the impact of the ERP
changeover in the second quarter.
Sales growth was driven by the performance of Essentials and the
USA which over the past 10 years grew in average by more than 10%
and today account for more than 70% of Vetoquinol Group sales.
At December 31, 2023, sales of Essentials totaled €313
million, up +4.5% at constant exchange rates and +2.9% on a
reported basis.
By the end of December 2023, sales of Essentials represented
over 59% of the laboratory's sales, compared with 56% for the same
period in 2022.
The second half of the year was particularly buoyant, with
organic growth of +10% for Essentials, which benefited from the
successful launches of Felpreva®, an anti-parasite for cats in
Europe, and Simplera®, a drug indicated for the treatment of otitis
in dogs in the United States.
The strong performance of Essentials in the United States in
2023 has enabled our total US sales to exceed €120M (2023 published
data), up over 10% (at constant exchange rate) on the previous
year, and consolidate its position as the Group's 1st market.
Developed as a strategic market by Vetoquinol since 2014, business
in the United States has more than doubled in 10 years.
Over the full 12 months of 2023 and at constant exchange rates,
the European territory was stable at -0.3% (vs. -5.5% in H1 2023),
the Americas territory grew by +5.1% (vs. +2.3% in H1 2023) and the
Asia-Pacific/Rest of World territory declined by -10.0% (vs. -16.3%
in H1 2023), mainly due to the distributor business.
Sales of products for companion animals (€372m) rose by +3.6% at
constant exchange rates (vs. -0.4% in H1 2023) and accounted for
70.2% of the laboratory's total sales; these sales were up by +7.5%
in the 2nd half-year. Sales to farm animals came to €157m, down
-7.6% at constant exchange rates (vs. -13.8% in H1 2023); these
sales were down slightly by -1.7% in the 2nd half-year.
The gross margin on purchases is stable at 70.6% compared with
the same period in fiscal year 2022, with significant disparities
recorded in fiscal year 2023; margin gains linked to currency
impacts for 7 M€ vs. a loss of 16 M€ in 2022, higher sales prices,
lower volumes and the positive impact of inventory reduction
resulting in a -10 M€ drop in inventoried production.
The results for the year 2023 are also impacted by a production
activity lower than the laboratory's so-called normal activity.
Also, the product mix by plant was different from 2022.
Other purchases and external charges were down slightly (-1.5%),
by €1.6 million, mainly due to lower sales despite the inflationary
context.
Personnel costs rose by +3.2%, or +4.9 M€ compared with 2022,
and represented 29.7% of 2023 sales. This increase is mainly due to
salary increases implemented by the Group in 2023.
Depreciation and amortization charges resulting from the
application of IFRS 16 generated a depreciation expense of €5.9m,
compared with €5.7m at the end of December 2022.
EBIT before amortization of intangible assets acquired
amounted to €85.0m, for the year ended December 31, 2023, or
16.1% of 2023 sales. (2022: €98.6M, 18.3% of sales)
Depreciation and amortization of assets acquired amounted to
+€13.4m, vs. +€14.1m at the end of December 2022. These mainly
comprise depreciation of assets linked to the Drontal® and
Profender® products.
Group EBIT stood at €71.6m (13.5% of sales),
compared with €84.6m for fiscal 2022.
Group operating income for 2023 was €74.3m (14.0%), compared
with €74m in 2022.
R&D expenditure recorded in 2023 amounted to €40.1m, or 7.6%
of sales vs. 6.0% in 2022. This increase reflects the Group's
determination to sustainably increase investment to support
innovation.
The apparent tax rate was 27.7% (vs. 34.0% at end December
2022). Adjusted for non-recurring items, the apparent tax rate was
28.7%.
EBITDA stood at €113.0 million at December 31, 2023, or
21.3% of sales. It takes into account the outcome of the
renegotiation of the final acquisition price of Clarion in Brazil,
with a gain of +€6.1 million (1.2pt).
Net income for the Vetoquinol laboratory came to €55.6
million, or 10.5% of 2023 sales, after taking into account
non-recurring items of €2.6 million and financial income of €2.6
million.
At the end of December 2023, the Vetoquinol Group had an
overall net cash position of €130.0 million (including IFRS 16), up
€53.6 million on the end of 2022.
Vetoquinol has a solid financial structure to pursue its growth
strategy, which is based on two pillars: the development of
Essential products (new product launches, ramp-ups and geographic
extensions) and the continued strengthening of the laboratory in
the United States. It also has the means to finance its external
growth ambitions.
The Board of Directors will propose a dividend of €0.85 per
share at the Annual General Meeting on May 28, 2024.
The 2023 Annual Results presentation is available on the
laboratory's website:
https://www.vetoquinol.com/en/investors
Next publication: sales 1st quarter 2024, April 29, 2024
after market close
ABOUT VETOQUINOL
Vetoquinol is a leading global animal health company that
supplies drugs and non-medicinal products for the farm animals
(cattle and pigs) and pet (dogs and cats) markets. As an
independent pure player, Vetoquinol designs, develops and sells
veterinary drugs and non-medicinal products in Europe, the Americas
and the Asia Pacific region. Since its foundation in 1933,
Vetoquinol has pursued a strategy combining innovation with
geographical diversification. The Group’s hybrid growth is driven
by the reinforcement of its product portfolio coupled with
acquisitions in high potential growth markets. At December 31,
2023, Vetoquinol employed 2,483 people.
Vetoquinol has been listed on Euronext Paris since 2006 (symbol:
VETO).
The Vetoquinol share is eligible for the French PEA and PEA-PME
personal equity plans.
APPENDIX
SALES
In millions of euros
2023
2022
Change on a reported
basis
Change at constant exchange
rates
Sales 1er quarter
145,4
135,0
+7,7%
+7,2%
Sales 2e quarter
110,8
135,8
-18,3%
-16,3%
Sales 3e quarter
135,8
134,1
+1,3%
+5,1%
Sales 4e quarter
137,3
134,9
+1,7%
+3,9%
Annual sales
529,3
539,8
-1,9%
-0,1%
SIMPLIFIED INCOME STATEMENT
In millions of euros
31/12/2023
31/12/2022
Variation
Total sales
of which Essentials
529,3
313,0
539,8
304,2
-1,9%
+2,9%
EBIT before amortization of acquired
assets
in % of total sales
85,0
16,1
98,6
18,3
-13,7%
Net income, Group share
in % of total sales
55,6
10,5
48,0
8,9
+15,7%
EBITDA
in % of total sales
113,0
21,3
118,0
21,9
-4,3%
EBITDA RECONCILIATION
In millions of euros
31/12/2023
31/12/2022
Net income before equity method
55,6
48,0
Income tax expense
21,6
24,7
Net financial income
(2,6)
1,3
Provisions recognized in other operating
income and expenses
3,6
10,4
Charges to and reversals of provisions
3,5
2,1
Depreciation and amortization (including
IFRS 16)
31,6
31,5
EBITDA
113,0
118,0
ALTERNATIVE PERFORMANCE INDICATORS
Vetoquinol Group management considers that these indicators,
which are not defined by IFRS, provide additional information that
is relevant for shareholders seeking to analyze underlying trends
and Group performance and financial position. They are used by
management for performance analysis.
Essentials products: The products referred to as
“Essentials” comprise veterinary drugs and non-medical products
sold by the Vetoquinol Group. They are existing or potential
market-leading products designed to meet the daily requirements of
vets in the companion animal or livestock sector. They are intended
for sale worldwide and their scale effect improves their economic
performance.
Constant exchange rates: Application of the previous
period’s exchange rates to the current financial year, all other
things remaining equal.
Like-for-like (LFL) growth: Year-on-year sales growth in
terms of volume and/or price at constant consolidation scope and
exchange rates.
EBIT before amortization of acquired assets: This KPI
isolates the non-cash impact of depreciation charges on intangible
assets arising from mergers and acquisitions.
Net cash: Cash and cash equivalents less bank overdrafts
and borrowings, pursuant to IFRS 16.
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FOR FURTHER INFORMATION PLEASE CONTACT :
VETOQUINOL
Investor Relations Fanny Toillon Tel: +33 (0)3 84
62 59 88 relations.investisseurs@vetoquinol.com
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