Virbac: Exceptional increase in revenue in the first half of 2021,
with +21.3% at comparable exchange rates and scope (+14% at
constant exchange rates and actual scope), driven by very solid
performance in all areas and good market dynamics
KEY FIGURES |
Revenue in first half of 2021 -
Provisional€529.4 M |
At constant exchange rates and
scope1+21.3% where
companion animals +24.3%
food producing animals
+17.7% |
Growth at constant exchange
rates+14.0% |
Overall
change+10.7%+17.9%
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 only the sales of
Sentinel, a product transferred on July 1,2020, for the two
financial years in question.
Quarterly consolidated
revenueOur second-quarter revenue hit €262.9 million, a
steep +18.3% increase, excluding Sentinel (+14% at actual scope),
from the same period in 2020. At constant exchange rates and scope,
growth rose to +20%, propelled by the execution of our strategy,
our excellent performance in all the geographical areas in which we
operate, and outstanding momentum in the first months of 2021 in
the animal health sector (visits to veterinarians, number of
companion animal adoptions, rebound of the food producing animal
segment, etc.). Our growth over the period was mainly driven by the
performance of Europe and the Asia-Pacific area, which benefited
from a favorable base effect over the quarter and contributed to
approximately 80% of the quarter’s growth. In Europe, all countries
supported our growth, particularly France, the United Kingdom,
Germany, the Scandinavian countries, Spain, and Italy, which had
exceptional performances in the companion animal segment (vaccines,
petfood, and specialty products). In Asia-Pacific, India alone
drove more than half of the quarter’s growth, thanks to products
for ruminants (food supplements and parasiticides). Latin America
benefited from strong momentum in Brazil and Mexico, broadly
compensating for the withdrawal of aquaculture activities in Chile.
Finally, the United States grew over the quarter, excluding
Sentinel, thanks to Iverhart and specialty products.
Cumulative consolidated revenue at the
end of JuneFor the first half of the year overall, our
revenues were €529.4 million, compared with €478.3 million,
representing an overall increase of +17.9% excluding Sentinel
(+10.7% at actual scope) compared with the same period in 2020.
Excluding the unfavorable impact of exchange rates, revenues rose
by +21.3% excluding Sentinel (+14% at actual scope).
All areas had double-digit organic growth at the
end of June, reflecting both the sector’s momentum and the
successful execution of our strategic plan — thanks largely to the
ongoing commitment of our teams. In Europe, revenue grew by +18.4%
at real rates (+18.7% at constant exchange rates). The main
contributors to this performance were France, the United Kingdom,
Export activities, Italy, Benelux, Spain, and Germany, driven by
strong momentum in the companion animal ranges (particularly the
specialty ranges, petfood, and the rebound in vaccines). In
Asia-Pacific, real-rate growth was up +23.5% (+26% at constant
exchange rates). India continues to drive the area’s growth, alone
accounting for over half; Australia, New Zealand, Vietnam, and
China also had a hand in the area’s very strong growth. In the
United States, first-half activity excluding Sentinel grew by
+24.3% (+36.4% at constant exchange rates). The U.S. had sustained
growth over all ranges and particularly specialty products,
Iverhart, the dental range, which, in addition to the sales to the
clinics, benefited from the strong development of its online sales;
and recently launched products (Clomicalm, Senergy, Itrafungol and
Stelfonta). In Latin America, apart from Chile, business grew by
+19.8% at real rates (+31.5% at constant exchange rates),
reflecting strong contributions from Brazil and Mexico. Finally, in
Chile, activity in the first half was down by -19.1% at real rates
(-15.1% at constant exchange rates), due to the drop in salmon
smolts put in the water last year as a result of the health crisis
and restaurant closings.
In terms of species, companion
animal activities grew by +24.3% overall at constant exchange rates
excluding Sentinel (8.7% at constant exchange rates and actual
scope, and +5.8% at actual exchange rates and scope), essentially
driven by the remarkable double-digit growth of the specialty
ranges (including Clomicalm, Movoflex, Stelfonta), internal
parasiticides, petfood, dermatology, dental, and by the rebound of
the vaccine range for dogs and cats from the first half of 2020,
which had been strongly impacted by our production and shortage
problems. It should be noted that sales of Itrafungol and
Clomicalm, products acquired in March 2021, represented around €4
million in sales over the period from March to June. The food
producing animal segment also showed strong growth, at +17.7% at
constant exchange rates (+14.2% at actual exchange rates), mainly
driven by the ruminants sector (up +25.9% at constant exchange
rates) and the swine-poultry sector (+10.0% at constant exchange
rates), while the aquaculture sector is, as explained above,
significantly down (by -11.6% at constant exchange rates) compared
to the same period in 2020.
OutlookWe currently anticipate
like-for-like revenue growth (excluding the impact of Sentinel’s
sale) of 10% to 14% (7% to 11% at constant exchange rates and real
scope), and a ratio of “current operating profit before
depreciation of assets arising from acquisitions” over “revenue” of
around 15% at constant exchange rates. We also anticipate an
unfavorable impact of exchange rates on revenue of approximately
€13 million associated with currency depreciation.
So far, the health crisis has not had an overly
negative impact on the animal health sector, but, as explained
above, we have implemented a set of measures and day-to-day
oversight to prevent and limit its potential impacts. In addition,
our extensive presence in terms of geographic areas and species,
our highly diversified product portfolio, our varied distribution
channels, the very strong responsiveness and adaptability of the
teams throughout our organizational model, and the robustness of
our financial situation are the perfect assets for us to ride out
the pandemic. However, we are remaining vigilant to new
developments in the coming months and are well placed to address
them.
CONSOLIDATED FIGURESNon-audited figures in millions of euros |
2021 |
2020 |
Growth |
Growth at constant exchange rates 1 |
Growth at constant exchange rates and scope 1 |
Revenue for 1st quarter |
266.5 |
247.7 |
+7.6% |
+12.3% |
+22.6% |
Revenue for 2nd quarter |
262.9 |
230.6 |
+14.0% |
+15.8% |
+20.0% |
Revenue for first half year |
529.4 |
478.3 |
+10.7% |
+14.0% |
+21.3% |
Revenue excluding Sentinel |
521.9 |
442.6 |
+17.9% |
+21.3% |
+21.3% |
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/SYMBOL: VIRPFinancial Affairs Department: tel.
04 92 08 71 32 - email: finances@virbac.com - Website:
corporate.virbac.com
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