VIRBAC:2020 annual revenue shows strong growth of +5.7% at constant
exchange rates and scope (+3.2% at constant rates)
KEY FIGURES |
Revenue in 2020provisional
€934.2 million |
Growth at constant exchange rates and scope 1
+5.7% of which
companion animals +5.5% food-producing
animals +6.6% |
Growth at constant exchange rates
+3.2%
|
Total growth
-0.4%+1.8% excl.
Sentinel |
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
revenueFourth-quarter revenue amounted to €220.3 million,
representing growth at constant exchange rates and scope of +2.6%
excluding Sentinel, (-8.6% at actual exchange rates and scope)
compared to the same period in 2019. The strong depreciation of
certain currencies, particularly the Brazilian real, Mexican peso,
South African rand and rupee, weighed heavily on the quarter's
performance.
All areas, with the exception of the United
States, are growing at constant exchange rates compared with the
same period in 2019. Growth for the quarter was led by Europe and
Asia-Pacific, thanks to excellent performances by India, Australia,
OTC Europe, Benelux, Germany, Italy, Spain and the United Kingdom,
which has benefitted from the effect of a Brexit-related
anticipation of purchases. Latin America grew slightly over the
quarter mainly driven by the performance of Colombia and Mexico,
which has offset the significant decline in Chile, especially in
the antibiotics and parasiticides ranges after a sustained first
semester. The United States posted a slight drop, excluding
Sentinel, primarily linked to the decline in the dental range over
the period. In terms of species, growth at constant exchange rates
and scope of the food producing animal segment is driven by the
range of products intended for cattle; while that of companion
animals is carried in particular by the petfood and parasiticides
ranges for dogs and cats.
Annual consolidated revenueOver
the year as a whole, revenue amounted to €934.2 million compared to
€938.3 million for the same period in 2019, representing an overall
increase of +1.8%, excluding Sentinel, (-0.4% at actual exchange
rates and scope). Excluding the negative effect of exchange rates,
revenue increased by +5.7%, excluding Sentinel, (+3.2% at constant
rates and actual scope).
Fourth-quarter growth, excluding the impact of
exchanges rates and scope, has provided a positive end to the year
thanks to the resilience of the sector, the correct execution of
our strategy, and the constant mobilization of Virbac teams.
Overall, contributions at constant exchange rates are positive
across the entire business, except for the United States, which has
fallen slightly, excluding Sentinel, and the impact of the
disruptions to dog and cat vaccines which generated a loss over the
year. Europe and the Asia-Pacific region drove annual growth at
+5.8% (+5.9% at constant rates), and +2.7% (+6.9% at constant
rates) respectively, although one country was more affected by the
health crisis (United Kingdom), whose under-performance is largely
offset by the strong contributions of India, France, Benelux and
China. Latin America grew -4.7% (+7.1% at constant rates), driven
by the dynamism of Brazil, Mexico and Colombia over the period.
Lastly, the United States grew by -15.1% (-14.3% at constant rates)
mainly due to the divestment of the Sentinel ranges. Excluding
Sentinel, growth at constant rates is -0.8%, mainly impacted by the
withdrawal of the dental and antibiotics ranges.
In terms of species, the
companion animals business grew overall by +0.4% at constant rates
and +5.5%, excluding Sentinel (-1.6% at actual exchange rates and
scope), essentially driven by double-digit growth in the petfood,
specialty, dermatology and hygiene ranges, which compensated for
the decline in vaccines, antibiotics and dental ranges. The food
producing animals segment also recorded strong growth of +6.6% at
constant rates (+0.4% at actual exchange rates and scope), mainly
driven by the ruminant sector (+10.1% at constant rates); while
aquaculture fell (-5.0% at constant rates) compared to the same
period in 2019.
OutlookAs anticipated and in
line with our roadmap, the “current operating profit before
depreciation of assets arising from acquisitions” to “revenue”
ratio should benefit from the favorable impact of the activity in
the past year, as well as the non-recurring impact related to the
very sharp reduction in expenditure (in connection with the health
restrictions linked to Covid-19), and should be around 14% at
constant exchange rates and at actual scope in 2020 (the exchange
rates should have a negative impact on this ratio estimated at
around -0.7 pt).
It should be noted that the July 1 divestment of
the Sentinel brands, for which we will continue to manufacture the
Sentinel Spectrum product at our US site in Bridgeton, is expected
to result in revenue decrease of approximately $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 $39 million in
the first half of the year.
From a financial standpoint, the divestment of
Sentinel for a total of $410 million resulted in a positive net
cash position. 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.
In line with the execution of our strategic
plan, we anticipate, in 2021, a revenue growth at constant rates
and scope of between 3% and 5% (i.e. between 0% and 2% at constant
rates and actual scope), as well as a ratio of “current operating
profit before depreciation of assets arising from acquisitions” to
“revenue” which should be between 10% and 12% at constant exchange
rates. Finally, as indicated in September 2020, we are
entering a transition phase over the period 2021-2022. Our Capex
level could be around €60 million per year over these two financial
years. However, we remain vigilant to the evolution of the pandemic
in the coming months and the impacts on our business.
CONSOLIDATED DATAUnaudited figures - in millions of euros |
2020 |
2019 |
Growth |
Growth at constant exchange rates 1 |
Growth at constant exchange rates and scope 1 |
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 for 4th quarter |
220.3 |
241.1 |
-8,6% |
-3.5% |
+2.6% |
Annual revenue |
934.2 |
938.3 |
-0.4% |
+3.2% |
+5.7% |
Revenue excluding Sentinel |
894.5 |
878.5 |
+1.8% |
+5.7% |
+5.7% |
2EBITA: Current operating profit before
depreciations of assets arising from acquisitions.
A lifelong commitment to animal
healthVirbac 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.
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