VIRBAC: Revenue grew +6.8% at constant exchange rates and scope at the end of September 2020 (+5.6% at constant rates) thanks...
15 October 2020 - 2:45AM
VIRBAC: Revenue grew +6.8% at constant exchange rates and scope at
the end of September 2020 (+5.6% at constant rates) thanks to solid
third quarter performance
KEY FIGURES |
RevenueYear-to-date September 2020€713.9
million |
Total growth+2.4%(+3.3% excl. Sentinel) |
Growth at constant exchange rates+5.6% |
Growth at constant exchange rates and scope
1+6.8% including companion animals
+3.6% (+6.1% excluding
Sentinel) food-producing animals
+8.2% |
1 Growth at constant exchange rates and scope is
the organic growth of sales, excluding the impact of exchange rate
changes, by calculating the indicator for the financial year in
question and that for the previous financial year on the basis of
identical exchange rates (the exchange rate used is that in effect
for the previous financial year), and excluding the impact of
changes 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, and by excluding sales of Sentinel for the
two financial years in question.
Quarterly consolidated
revenue
Revenue reached €235.6 million in the third
quarter, an increase of +0.9% compared to the same period in 2019.
At constant exchange rates, the third quarter registered a solid
performance of +6.8% (+11.1% excluding Sentinel), as the strong
depreciation of certain currencies, particularly the Brazilian
real, Mexican peso, South African rand and the rupee, weighed
heavily on performance.
Excluding the impact of the divestment of
Sentinel in the United States, all regions are experiencing growth
against the same period in 2019. This growth was led by the
Asia-Pacific region and Europe, thanks to excellent performances by
India and China, which posted strong double-digit growth over the
period. France, Benelux, Spain and Italy thus reabsorbed some of
the lag observed in the first half of the year. The United States
posted double-digit growth excluding Sentinel, thanks in particular
to products from the specialty range. Latin America achieved
quarterly growth mainly driven by Mexico and Brazil, while Chile
was down. In terms of species, the food-producing animals segment
saw double-digit growth, driven in particular by the ruminant
business and the industrial sector (swine and poultry). The
companion animals segment is also growing sharply, despite lower
vaccine sales following supply disruptions related to the shutdown
of our global dog and cat vaccine production site in Carros,
France.
Cumulative consolidated revenue at the
end of SeptemberOver the first half of the year as a
whole, revenue amounted to €713.9 million compared to €697.3
million for the same period in 2019, representing an overall
increase of +2.4% (+3.3% excluding Sentinel). Revenue increased by
+5.6% (+6.8% excluding Sentinel) excluding the unfavorable impact
of exchange rates.
This very good third quarter performance
reinforces the growth observed in the first half of the year,
reflecting the resilience of the sector, and the constant
mobilization of Virbac teams. These have allowed us to achieve
growth in all regions (excluding the impact of the divestment of
Sentinel), despite vaccine shortages. Europe and the Asia-Pacific
region led the growth up until the end of September at +5.7% (+5.6%
at constant exchange rates) and +4.0% (+7.8% at constant exchange
rates) respectively, although some countries were more affected by
the health crisis (United Kingdom and Italy). Latin America evolved
by -1.8% (+9.3% at constant rates), carried by the dynamism of
Brazil and Mexico over the period. Lastly, the United States
achieved an evolution of -2.1% (-2.6% at constant rates and +4.5%
excluding Sentinel), thanks in particular to sales of the
dermatology and nutraceutical ranges, which compensated for the
withdrawal of the dental and antibiotic ranges.
In terms of species, the
companion animals business grew generally by +2.2% at actual rates
(+3.6% at constant rates and +6.1% excluding Sentinel), essentially
driven by growth in the specialty, pet food, dermatology and
hygiene ranges, which compensated for the withdrawal of the
vaccines and antibiotics ranges. The food-producing animals segment
also recorded strong growth of +2.5% (+8.2% at constant rates),
driven by the ruminant sector (+11.2% at constant rates) and the
industrial farming sector (+3.0% at constant rates), while
aquaculture fell slightly (-0.3% at constant rates) compared to the
same period in 2019.
OutlookThe animal health sector
has demonstrated strong resilience in recent months, which helped
to limit the impact on our business at the end of September, and
leads us to raise our outlook for the year. We are now anticipating
revenue that might range between 0% and 3% for the year 2020 at
actual scope (after the disposal of Sentinel) and at constant
rates. Furthermore, we anticipate an unfavorable exchange rate
impact on revenue of approximately €30 million related to the sharp
depreciation of currencies in the Latin America and Asia-Pacific
regions. The ‘current operating profit before depreciation of
assets arising from acquisitions’ to ‘revenue’ ratio should benefit
from the favorable impact of the activity mentioned above as well
as the non-recurring impact related to the sharp reduction in
expenditure. This means it should fall between 13% and 15% at
actual scope and at constant rates for the year 2020.
Finally, the early July divestment of the
Sentinel brands (for which we will continue to manufacture the
Sentinel Spectrum formulation at our US site in Bridgeton), is
expected to result in revenue decrease of approximately US$55
million and a decrease in the EBITA2 to revenue ratio of
approximately 3 points on a pro forma full-year basis. Across 2020,
the impact on the EBITA to revenue ratio should be limited to
around 1 point, given good Sentinel sales, which represented
revenue of US$39 million in the first half of the year.
From a financial standpoint, the divestment of
Sentinel for a total of US$410 million resulted in negative net
debt. Lines of credit drawn in US dollars were repaid, and most of
our financing, which essentially matures in 2022, was retained to
cover potential working capital requirements, external growth
operations or other projects.
CONSOLIDATED DATAUnaudited figures - in millions of euros |
2020 |
2019 |
Growth |
Growth at constant exchange rates1 |
Growth at constant exchange rates and scope1 |
Revenue for 1st quarter |
247.7 |
217.5 |
+13.9% |
+14.3% |
+14.3% |
Revenue for 2nd quarter |
230.6 |
246.2 |
-6.4% |
-3.3% |
-3.3% |
Revenue for 3rd quarter |
235.6 |
233.5 |
+0.9% |
+6.8% |
+11.1% |
Revenue at the end of September |
713.9 |
697.3 |
+2.4% |
+5,6% |
+6.8% |
Revenue excluding Sentinel |
676.6 |
654.8 |
+3.3% |
+6.8% |
+6.8% |
2EBITA: Current operating profit before
depreciations of assets arising from acquisitions.
A lifelong commitment to animal
health
Virbac offers veterinarians, farmers and pet
owners in more than 100 countries a practical range of products and
services for diagnosing, preventing and treating the majority of
diseases while improving quality of life for animals. With these
innovative solutions covering more than 50 species, Virbac
contributes day after day to shaping the future of animal
health.
Virbac : NYSE Euronext - compartiment A - code
ISIN : FR0000031577 / MNEMO : VIRPDirection financière : tél. +33 4
92 08 71 32 - finances@virbac.com - corporate.virbac.com
Virbac (EU:VIRP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Virbac (EU:VIRP)
Historical Stock Chart
From Jul 2023 to Jul 2024