VIRBAC: growth in revenue in the first half of 2022 of +12.0% at comparable exchange rates (+16.4% at real rates), driven by good performance in all areas
July 19 2022 - 11:45AM
VIRBAC: growth in revenue in the first half of 2022 of +12.0% at
comparable exchange rates (+16.4% at real rates), driven by good
performance in all areas
KEY FIGURES |
Revenue in first half of 2022
-Provisional €616.4 million |
Growth at constant exchange rates and scope
1 +12.0% including
companion animals +14.2%
food-producing animals +9.9% |
Growth at constant exchange
rates +12.0% |
Overall
change +16.4% |
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 second-quarter revenue reached €298.3 million,
or a +13.5% increase compared to the same period in 2021. At
constant exchange rates, growth was +7.8%, driven by good
performance in both the companion animals and food producing
animals segments, in a context of market slowdown. It should be
noted that our actual performance for the quarter was favorably
impacted by the appreciation of certain currencies, such as the US
dollar, the Indian rupee, the Brazilian real, and the Mexican peso.
At area level, our growth is mainly driven by the performance of
the United States, particularly in the dental and dermatology
ranges and recently launched products range (Clomicalm, Itrafungol,
the petfood and the food producing animals range), by that of the
Asia-Pacific zone, where India and Australia continue to benefit
from a favorable momentum, and finally Latin America, driven by
double-digit growth in Brazil and Mexico.
Cumulative consolidated revenue at
the end of JuneFor the first half of the
year overall, our revenues were €616.4 million, compared with
€529.4 million, representing an overall increase of +16.4% compared
with the same period in 2021. Adjusted for the favorable impact of
exchange rates, revenue shows growth of +12.0%. This growth
benefited in part from a favorable baseline effect representing 1
point of growth in revenue, attributable to new products acquired
starting in the second quarter of 2021.
All areas are growing organically at the end of
June. It should be noted, however, that double-digit growth in
Europe has stalled in the last quarter, due to the slowdown in the
market as anticipated in our annual outlook. Thus, the sales in
this area increased by +6.8% at real rates (+6.2% at constant
rates), thanks mainly to the contribution of the United Kingdom,
France and Italy. The area is supported by the strong dynamism of
companion animals ranges (in particular petfood, specialties, and
vaccines), which compensate for the withdrawal of ranges intended
for food producing animals. In Asia-Pacific, the development at
real rates is +19.8% (+15% at constant exchange rates). Australia
and India are driving growth in the region, generating more than
85% of the latter, in particular on products destined for cattle,
which makes it possible to largely compensate for the withdrawal of
China, which was heavily impacted by lockdowns at the beginning of
the year and which, despite a rebound since May, remains down at
the end of June. In Latin America, activity grew by +25.1% at real
rates (+14.6% at constant exchange rates), thanks in particular to
contributions from Brazil and Mexico. Finally, in the United
States, activity increased by +32.2% (+19.9% 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 performance on the dental and dermatology ranges.
In terms of species, revenue in
the companion animal segment grew overall by +17.9% at real rates
(+14.2% 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 +15.0% at
real rates (+9.9% at constant exchange rates), mainly driven by the
ruminant sector (+14.2% at constant exchange rates); and the
aquaculture segment (+5.1% at constant rates) compared to the same
period in 2021.
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, significant inflationary impacts on our costs (energy,
raw materials, transportation, etc.).
OutlookThe activity in the first
half of the year reinforces our perspective. Revenue growth at
constant rates and scope should be in the range of 5% to 10%. The
ratio of “current operating profit before depreciation of assets
arising from acquisitions” to “revenue” should be around 15% at
constant exchange rates, despite the inflationary impacts (with a
deliberate overinvestment in R&D of approximately 1 percentage
point of revenue compared to 2021). Finally, our debt relief should
be around €60 million, excluding dividends, at constant scope and
exchange rates.
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% |
Revenue for first half year |
616.4 |
529.4 |
+16.4% |
+12.0% |
+12.0% |
A lifelong commitment to animal health
At 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 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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