Virbac: very strong growth in revenue in the first quarter of 2021 at +22.6% at comparable exchange rates and scope (+12.3% a...
16 April 2021 - 1:45AM
Virbac: very strong growth in revenue in the first quarter of 2021
at +22.6% at comparable exchange rates and scope (+12.3% at
constant rates), driven by very solid performance in all areas
KEY FIGURES |
Revenue1st quarter 2021 €266.5
million |
Growth at constant exchange rates and scope
1 +22.6% of which
companion animals +25.1% food-producing
animals +19.2% |
Growth at constant exchange
rates +12.3%
|
Total
growth +7.6%+17.5%
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
revenueOur revenue in the first quarter amounted to €266.5
million, with a substantial increase of +17.5% excluding Sentinel
(+7.6% in real terms) compared to the same period in 2020, despite
an unfavorable base effect linked to advance purchases recorded in
the first quarter of 2020 before the various lockdowns. At constant
exchange rates and scope, growth was +22.6%, driven by the dynamism
of the animal health market (increase in visits to veterinarians),
except for Chile, and the successful execution of our strategy in
all geographical areas. Our actual performance was significantly
impacted by the impairment of certain currencies, particularly the
US dollar, the Indian rupee, the Brazilian real and finally, the
Mexican peso.
Our growth in the first quarter was driven
mainly by the performance of Asia-Pacific, Europe and the United
States (excluding Sentinel). In Asia-Pacific, real-rate growth is
+29.3% (+32.8% at constant exchange rates). India continues to
drive growth in the area, accounting for more than half of it;
Australia, China, Thailand and Vietnam also contribute to strong
area growth. In Europe, revenue grew +12.4% at real rates (+13.0%
at constant rates). The main contributors to this performance were
France, Italy, Spain, Benelux and the area’s Export and OTC
activities, driven by strong momentum in the companion animal
ranges (in particular specialty ranges, internal parasiticides and
petfood) as well as products for ruminants. In the United States,
first-quarter activity excluding Sentinel showed a marked increase
of +67.9% (+84.7% at constant exchange rates). It benefited from
sustained sales across all ranges, with a rebound in the dental
range in particular, which had been severely impacted at the same
time last year by the health situation, which led to a drop in
clinic visits. It should also be noted that this range benefited,
in addition to sales in clinics, from strong growth in online
sales. Specialty products, dermatology and recently launched
products (Senergy and Stelfonta) are also supporting American
growth. In Latin America, excluding Chile, the Group had an
excellent start to the year. Activity grew by +9.8% at real rates
(+30.2% at constant exchange rates), due in particular to
contributions by Brazil and Mexico. Finally, in Chile, activity in
the first quarter is down, as anticipated, by -20.7% at real rates
(-15.9% at constant rates), due to the drop in salmon smolts placed
in the water last year following the health crisis and the closure
of restaurants.
In terms of species, companion
animal activity grew overall by +4.3% at constant exchange rates
and +25.1% excluding Sentinel (+0.7% at actual exchange rates and
scope), mainly driven by very good double-digit growth in the
specialty, dental, parasiticide, dermatology and petfood ranges.
The cat and dog vaccine range is slightly down compared to the
first quarter of 2020, due to our production and stock-out problems
in the second half of 2020. The return to normal in terms of supply
for this range is taking place gradually and should continue over
the year. The food-producing animals segment also showed strong
growth of +19.2% at constant rates (+13.2% at actual exchange rates
and scope), mainly driven by the ruminants sector (+29.5% at
constant rates); whereas the aquaculture sector is, as previously
explained, significantly down (-15.9% at constant exchange rates)
compared to the same period in 2020.
OutlookThe animal health sector
has shown very good resilience in 2020 and very good momentum in
the first quarter of 2021. A number of indicators, such as visits
to veterinarians, companion animal adoptions, etc., seem to be
trending very positively and should support the growth of the
animal health market in 2021 at a much higher level than initially
anticipated.
In this context, we are revising our annual
outlook. We currently anticipate revenue growth at constant rates
and scope of between 6% and 10% (i.e. between 3% and 7% at constant
rates and real perimeter), as well as a ratio of “current operating
profit, before depreciation of assets arising from acquisitions”
over “revenue” which should be between 12% and 14% at constant
exchange rates. Furthermore, we anticipate an unfavorable impact of
exchange rates on revenue of approximately €15 million linked to
the strong impairment of currencies.
For the coming months, and although the
fundamentals of our industry remain solid, depending on the
duration, geographical expansion and the resulting economic and
social consequences, the health crisis could impact our business,
particularly in terms of supplies (supply of certain consumables
for the production of vaccines, etc.). As explained previously, we
have implemented a set of measures and daily monitoring to prevent
and limit potential impacts (crisis management system, supply chain
and inventory management policies, readjustment of the targets of
our safety stocks, business continuity plans for industrial sites,
sourcing diversification policies and strengthening relationships
with our strategic suppliers, etc.). In addition, our global
presence in terms of geographic areas and species, our highly
diversified product portfolio, our different distribution channels,
the very strong responsiveness and adaptability of our teams
through our organizational model, as well as the robustness of our
financial situation are assets that will enable us to face the
financial consequences of this pandemic. However, we remain
vigilant to developments in the situation in the coming months, and
are mobilized to address them.
Focusing on animal health, from the
beginningAt 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 to diagnose, prevent and treat the
majority of pathologies. Every day, we are committed to improving
animals’ quality of life and to shaping together the future of
animal health.
Virbac: NYSE Euronext - compartment A – ISIN
code: FR0000031577/SYMBOL: VIRPFinancial Affairs Department: tel.
04 92 08 71 32 - email: finances@virbac.com - Website:
corporate.virbac.com
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