Virbac : Very strong growth in revenue in the first quarter of 2022 of +16.2% at comparable exchange rates (+19.3% at real rates), driven by good performance in all areas
April 14 2022 - 12:02PM
Virbac : Very strong growth in revenue in the first quarter of 2022
of +16.2% at comparable exchange rates (+19.3% at real rates),
driven by good performance in all areas
KEY FIGURES |
Revenue1st quarter 2022 €318.0
million |
Growth at constant exchange rates and scope
1 +16.2% including
companion animals +19.5%
food-producing animals +13.3% |
Growth at constant exchange
rates +16.2% |
Overall
change +19.3% |
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), 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 first-quarter revenue reached €318.0 million,
or a 19.3% increase with respect to the same period in 2021. At
constant exchange rates, growth was +16.2%, driven by very good
performance in the companion animal segment. This growth benefited
in part from a favorable baseline effect representing 2 points of
growth in revenue, attributable to new products acquired starting
in the second quarter of 2021. This growth was also supported in
some countries by increases in distributor inventories. It should
be noted that our actual performance was favorably impacted by the
appreciation of certain currencies, in particular the US dollar,
the Indian rupee, and the Brazilian real.
Our growth in the first quarter was driven
mainly by the performance of Asia-Pacific, Europe and Latin
America. In Asia-Pacific, the real-rates growth was +25.9% (+22.5%
at constant exchange rates). Australia and India were the main
drivers of this growth in the area, generating nearly 80% of it,
offsetting the decline in China, impacted by Covid-19 and a very
challenging baseline effect compared to the first quarter of 2021.
In Europe, revenue grew by 11.2% at real rates (+10.4% at constant
rates). The main contributors to this performance were France,
Italy, the United Kingdom, the Export and OTC areas
activities, and Germany, driven by strong momentum in the companion
animal ranges (in particular petfood, specialty products, and
vaccines), which offset the decline in ranges for food-producing
animals. In Latin America, excluding Chile, the Group had an
excellent start of the year. Revenue grew by 35.6% at real rates
(+27,2 % at constant exchange rates), due to double-digit growth in
all subsidiaries, particularly thanks to strong contributions of
Brazil and Mexico. Chile posted growth of 9.5% at real rates (+6.0%
at constant exchange rates), driven by sales in the companion
animal and salmon ranges. Lastly, in the United States,
first-quarter revenue increased by 26.2% (+17.5% at constant
exchange rates). It benefited from strong sales of new products
launched in 2021, as well as external parasiticides.
In terms of species, revenue in
the companion animal segment grew overall by 22.3% at real rates
(+19.5% at constant exchange rates), mainly driven by very good
double-digit growth in the petfood, specialty, dermatology and
hygiene ranges, as well as vaccines for dogs and cats. The
food-producing animals segment also showed strong growth of 16.9%
at real rates (+13.3% at constant exchange rates), mainly driven by
the ruminant sector (+17.1% at constant exchange rates); and the
aquaculture segment (+6.9% at constant rates) compared to the same
period in 2021.
OutlookBased on first-quarter
performance, while also taking into account the uncertainties of
the coming months as well as the market’s expected return to
normal, we are expanding our revenue growth outlook at constant
rates and scope to a range of between 5% and 10%. The ratio of
“current operating profit before depreciation of assets arising
from acquisitions” to “revenue” should be around 15% at constant
exchange rates (with a deliberate overinvestment in R&D of
approximately 1 percentage point of revenue compared to 2021).
Furthermore, debt relief should be around €60 million, excluding
dividends, at constant scope and exchange rates.
Covid-19 health crisis and the war in UkraineWe
continue to face significant production, logistical and supply
constraints with regard to certain intermediaries, and more
recently, the impact of inflation on our costs (energy, raw
materials, etc.).
A lifelong commitment to animal
health
At 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
- Virbac_Q1_2022_Sales
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