VIRBAC: 2022 current operating income on the rise at +8.3%,
reflecting the momentum of our business over the year in a slowing
market
CONSOLIDATED FIGURES AS OF DECEMBER 31in millions of
€ |
|
2022 |
2021 |
2022/2021 Change |
|
Revenue |
1,216.2 |
1,064.0 |
+14.3% |
|
Change at constant exchange rates |
|
|
+9.6% |
|
Change at constant exchange rates and scope 1 |
|
|
+9.6% |
|
Current operating profit, before depreciation of assets
arising from acquisitions 2 |
186.6 |
173.2 |
+7.7% |
|
as a % of revenueas a % of revenue at constant rates |
15.3%15.4% |
|
|
|
Depreciation of intangible assets from acquisitions |
3.7 |
4.3 |
|
|
Current operating income |
182.8 |
168.9 |
+8.3% |
|
Non-recurring (expenses) and income |
-3.3 |
-1.20 |
|
|
Operating income |
179.5 |
167.6 |
+7.1% |
|
Consolidated net income |
121.3 |
115.7 |
+4.9% |
|
Including net income - Group share |
122.0 |
113.2 |
|
|
Shareholders’ equity - Group share |
839.3 |
724.9 |
+15.8% |
|
Net financial cash 3 |
79.4 |
73.8 |
+7.6% |
|
Operating cash flow before interest and taxes
4 |
229.9 |
210.1 |
+9.4% |
|
1 Change at constant exchange rates and scope
corresponds to the 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
one from 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.2 Current operating income, before
depreciation of assets arising from acquisitions, reflects current
income adjusted for the impact of allowances for depreciation of
intangible assets resulting from acquisition transactions.3 Net
financial cash corresponds to current (€43.2 million) and
non-current (€18.0 million) financial liabilities as well as a
lease obligation related to the application of IFRS 16 (€36.8
million), less the cash position and cash equivalents (€177.4
million) as published in the statement of financial position.4
Operating cash flow corresponds to operating income (€179.5
million) restated for items having no impact on the cash position
and impacts related to disposals. The following items are adjusted:
fixed asset depreciation and impairments (€49.5 million),
provisions for risks and charges (€-0.3 million), provisions
related to employee benefits (-€0.1 million), and other expenses
and income without any impact on the cash position (€0.9 million),
and impacts related to disposals (+€0.4 million).
The accounts were audited by the statutory
auditors and examined by the board of directors on March 21, 2023.
The report of the statutory auditors is in the process of being
issued. The statements and detailed presentation of annual income
are available on the corporate site at corporate.virbac.com.
Thanks to the
Virbac teams’ constant dedication to
animal health, we posted revenue for the year of €1,216.2
million, an increase of +14.3% compared to 2021. Adjusted
for the favorable impact of exchange rates, revenue shows growth of
+9.6%, despite the slowdown in the market. Excellent execution of
our strategic plan allowed us to reinforce our annual organic
growth in all geographic areas. In Asia-Pacific, growth at real
exchange rates came to +18.5% (+13.8% at constant exchange rates);
India and Australia continue to drive growth in the area, thanks to
products for cattle, representing approximately 80% of this growth.
In Europe, revenue is growing at +6.3% at real rates (+5.9% at
constant rates). The main contributors to this performance are the
United Kingdom, France, Italy, and Spain. The area is supported by
the strong dynamism of the companion animal ranges (in particular
petfood, specialties, and vaccines), which compensated for the
decline in the antibiotic ranges for farm animals. In the United
States, business grew by +30.2% (+15.7% at constant exchange
rates). It benefited from sustained sales for new products launched
in 2021 (Clomicalm and Itrafungol) and those launched in early 2022
(petfood, and Tulissin for the farm animals segment), as well as
good performance in the dental, specialties (Movoflex, Stelfonta),
and dermatology ranges. Finally, in Latin America, business grew by
+17.1% at real rates (+5.6% at constant exchange rates), thanks in
particular to the contribution of Mexico and Brazil, which offset
the downturn in Chile. It should be noted that the effect of the
increase in average prices recorded in 2022 compared to 2021
represents approximately five percentage points of growth.
The current operating income before
depreciation of assets arising from acquisitions amounts
to €186.6 million, significantly up compared to 2021 (€173.2
million). This improvement in performance is mainly due to the
growth in our revenue, driven by strong performance in all areas
despite a market slowdown. This was partially offset by a relative
deterioration in the margin due to the impacts of inflation on raw
material costs and operating expenses such as transport and energy.
Our commercial expenses have increased (travel expenses, seminars,
etc.), post Covid-19 period. Similarly, our R&D expenses are up
significantly, following our desire to increase the number of
projects in our portfolio. After normalizing R&D (+1 percentage
point at constant exchange rates), our ratio of “current operating
income, before depreciation of assets arising from acquisitions” to
“revenue” at the end of December 2022 is slightly increased
compared to the same period for 2021 (16.4% in 2022 vs. 16.3% in
2021) at constant rates.
Consolidated net income was
€121.3 million, up 4.9% compared to the same period for 2021. This
improvement in our net income is explained by the reasons given
above, especially the growth of our business and good control of
our operating expenses, which remain relatively contained as a
proportion of our revenue, despite the inflationary pressure
observed in 2022. The consolidated net income is also impacted by a
non-current and non-cash charge of €3.3 million corresponding to an
impairment loss for brands that are no longer used. Lastly, it
should be noted that our operating income includes a charge of €3.1
million, which is significantly down compared to the end of
December 2021 (charge of €8.5 million). This is due to the decrease
in the cost of gross financial debt of €2.3 million mainly related
to the maturity of rate derivatives, and the sharp increase in cash
instruments (+€2.5 million), following the increase in our
investments and remuneration rates from June 2022.
Net income - Group
share amounted to €122.0 million in 2022, an
increase compared to the previous year (€113.2 million), which is
explained by the elements detailed above.
From a financial standpoint,
our net financial cash amounts to €79.4 million at the end of
December 2022, compared to €73.8 million at the end of December
2021. This positive change in our cash position over the year is
mainly due to strong cash generation, which enabled the financing
of more sustained capital expenditures (Capex), higher working
capital requirements in 2022 given the strong increase in our
revenue, and finally the payment of dividends with respect to the
2021 profit.
OutlookIn 2023, we expect a ratio
of “current operating income before depreciation of assets
resulting from acquisitions” to “revenue” that should be between
13% and 14% at constant exchange rates, with growth in revenue at
constant rates and scope estimated at this stage to be between 4%
and 6%. This deterioration in our adjusted EBIT ratio is primarily
the result of our deliberate acceleration in R&D investment to
revenue since early 2022 (~+2 percentage points in 2023 compared to
2021 and +~1 point compared to 2022), and the expected effects of
inflation in 2023.
In addition, our cash position is expected to
remain constant at the end of 2023 compared to the end of 2022,
given the expected investments over the period, estimated to be
around €100 million, from the acceleration of R&D, and
excluding any acquisitions.
Ultimately, at the next general meeting of
shareholders, a net dividend of €1.32 per share will be recommended
for distribution for the 2022 fiscal year, in evolution compared to
€1.25 in 2021.
ANALYSTS’ PRESENTATION
– VIRBAC
We will hold an
analysts meeting on Friday, March 24, 2023 at 2:30 p.m. (Paris time
- CET) in the Edouard VII Business Center’s auditorium, 23 square
Edouard VII - 75 009 Paris (France).
Participants may
arrive 15 minutes before the start of the meeting.
You may also attend
the meeting using the webcast (audio + slides) available via the
link below.
Information for
participants:
Webcast access
link:https://bit.ly/3Zqm5Lg
This access link is
available on the corporate.virbac.com site, under the heading
“Public releases.” This link allows participants to access the live
and/or archived version of the webcast.
You will be able to
ask questions via chat (text) directly during the webcast or after
watching the replay via the following email address:
finances@virbac.com.
A lifelong commitment to animal
healthAt 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: Euronext Paris - subfund A –ISIN code:
FR0000031577 / MNEMO: VIRPFinancial Affairs Department: tel. 04 92
08 71 32 - email: finances@virbac.com - Website:
corporate.virbac.com
- 2022_Annual_financial_report
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