VIRBAC: Slight decline in first-quarter revenue primarily due to a base effect as well as a context of market slowdown
18 April 2023 - 1:45AM
VIRBAC: Slight decline in first-quarter revenue primarily due to a
base effect as well as a context of market slowdown
KEY FIGURES |
Revenue1st quarter
2023€314.8M |
Growth at constant exchange rates and
scope 1-1.3% of
whichcompanion animals
-3.1%farm animals
-1.0% |
Growth at constant exchange
rates-1,3% |
Overall
change-1.0% |
1 Growth at constant exchange rates and scope
corresponds to 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
previous financial year’s), 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.
Quarterly consolidated
revenueOur revenue in the first quarter amounted to €314.8
million, down slightly by -1.0% at real rates and -1.3% at constant
exchange rates compared to the same period in 2022. This change is
mainly due to an unfavorable base effect in a context of market
slowdown. To a lesser extent, this quarter was also impacted by
inventory effects observed in distribution at the end of 2022 in
anticipation of price increases implemented at the beginning of
this year.
In Europe, business was down slightly by -1.4%
at real rates (-0.7% at constant exchange rates), mainly impacted
by France and the United Kingdom, which sales’ downturn was offset
by the good momentum observed in Northern and Southern Europe,
showing respective increases of +4.7% and +3.2% at constant
exchange rates. In Asia Pacific, decline at real rates is -3.3%
(-0.4% at constant exchange rates): strong sales in farm animals’
products were behind the solid growth in Australia and New Zealand
(+10.1% and +8.8% respectively at constant exchange rates), which
offset the decline in Asian countries. Business in the United
States remains stable at +0.2% at real exchange rates, and is down
-4.4% at constant exchange rates, primarily driven by a base effect
and to a lesser extent by a distribution inventory reduction in the
first quarter of 2023. Excluding Chile, Latin America recorded the
Group’s strongest growth at +21.9% at real rates (+13.0% at
constant exchange rates), driven in particular by the strong
contribution of Brazil and Mexico (+19.4% and +17.8% respectively
at constant exchange rates). Finally, business at our subsidiary in
Chile is down -38.3% at real rates (-41.1% at constant exchange
rates), due to the poor performance of the aquaculture segment with
no sales of a parasiticide product in distribution2 since July
2022, as well as the sharp drop in sales of antibiotic ranges and,
to a lesser extent, vaccines.
In terms of species, the
companion animals segment shows an overall decrease of -2.5% (-3.1%
at constant exchange rates), mainly due to the dermatology and
parasiticide ranges while the petfood range grew by +10%. The farm
animal segment recorded a slight decrease of -1.6% (-1.0% at
constant exchange rates), mainly due to the decrease in aquaculture
(-43.1% at constant exchange rates) and, to a lesser extent, to the
decrease in the swine segment (-4.8% at constant exchange rates),
which was largely offset by the ruminant sector, which increased by
+5.3% at constant exchange rates. On another note, our toll
manufacturing activity grew significantly with +44.2% at constant
exchange rates.
2023 OutlookTaking into account
the base effect, we confirm as of today our revenue growth
forecasts of between 4% and 6% at constant exchange rates and
scope. The 2023 ratio of “Current operating profit, before
depreciation of assets arising from acquisitions” to “revenue” is
also confirmed around 13%-14% at constant exchange rates. Finally,
excluding potential acquisitions, and at constant exchange rates,
our cash position is expected to remain constant compared to the
end of 2022.
2 Following the withdrawal by the Chilean
Maritime Authority of the market authorization for this product in
July of 2022
A lifelong commitment to the health of
animalsAt 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 the
health of animals 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
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