Virbac : Revenue up about 2% during the second quarter and stable at the end of June despite two unfavorable one-off effects throughout the semester
19 July 2023 - 1:45AM
Virbac : Revenue up about 2% during the second quarter and stable
at the end of June despite two unfavorable one-off effects
throughout the semester
KEY FIGURES |
Revenue in first half of 2023
-Provisional1€609.9M |
Growth at constant exchange rates and
scope2+0.2%
including companion animals
~-1.0%
farm
animals
~+0.0% |
Growth at constant exchange
rates+0.2% |
Overall
change-1.0% |
1provisional unaudited revenue that may be
adjusted due to the temporary downtime of some of our information
systems following the cyberattack that occurred on June 19. We
consider, however, that such possible adjustments should be
immaterial.2growth 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), and excluding material 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 second quarter revenue reached €295.2 million,
up +1.9% at constant exchange rates compared to the same period of
2022. The good momentum in Europe (+7.0%) and Asia-Pacific (+4.5%)
fully offset the weak performance of the Latin America zone (-11%)
penalized mainly by Chile. In Europe, our growth for the quarter
was notably driven by France, where activity rebounded strongly
(+21.6%) after a first quarter in decline. To a lesser extent, the
region's growth was also driven by the United Kingdom, Southern
Europe and benefited from the impact of the acquisition of our
distributor in the Czech Republic (around €1 million). In
Asia-Pacific, all of the sub-zones are progressing, excluding India
and China, which performance remains stable compared to 2022.
Finally, the activity of our subsidiary in North America is
slightly growing by +0.4%. It should be noted that the quarter was
marked by temporary and larger than expected production capacity
limitations for dogs and cats vaccines, as well as by the
consequences of the cyberattack that occurred in June 2023.
Cumulative consolidated revenue at the
end of JuneOver the first half, our turnover amounted to
€609.9 million compared to €616.4 million in 2022, an overall
change of -1.0%. Excluding currency effects, sales remained stable
at +0.2%, favorably impacted by price increases (estimated effect
of around +5%) which offset the drop in volumes already observed in
the first quarter.
Across geographies, dynamics are contrasted with
first of all Europe where activity increased by +2.8% at constant
exchange rates, mainly thanks to the contribution of France as well
as South Europe’s countries and despite declining sales of dogs and
cats vaccines. In Asia-Pacific (+1.9% at constant rates), our
products for farm animals continue to fuel our growth in Australia
and New Zealand, while our activity in India remains relatively
stable compared to 2022. Sales in China were down, penalized by
weak sales in the first quarter. The Latin America zone is
declining (-6.8% at constant rates), penalized by the significant
drop in activity of our subsidiary in Chile (-32% at constant
rates) in particular on the antibiotic and parasiticide ranges.
Excluding Chile and at constant exchange rates, the change in
activity is positive at +3.5%, supported by Mexico, Brazil and the
countries of Central America, despite the decline in dogs and cats
vaccines’ sales. Finally, the activity of our subsidiary in North
America is down slightly over the period, mainly explained by a
base effect and distributors’ destocking in the first half of
2023.
In terms of species, the
companion animal business is down very slightly, around -1% at
constant exchange rates, good momentum in the petfood range
offsetting our temporary difficulties in the immunology range for
dogs and cats. The farm animal segment remains stable at around 0%,
mainly driven by the ruminant sector offsetting the aquaculture
segment’s decline.
Outlook 2023In line with our press
release of July 3, 2023, we confirm our revised forecasts with
revenue growth at constant rates and scope expected within a range
between 0% and 4% and an adjusted Ebit ratio3 that should
consolidate between 12% and 13% at constant exchange rates.
3“current operating profit before amortization
of assets resulting from acquisitions” to “revenue” ratio
CONSOLIDATED FIGURES1Non-audited figures in millions of euros |
2023 |
2022 |
Growth |
Growth at constant exchange rates2 |
Growth at constant exchange rates and scope2 |
First quarter revenue |
314.7 |
318.1 |
-1.0% |
-1.3% |
-1.3% |
Second quarter revenue |
295.2 |
298.3 |
-1.0% |
+1.9% |
+1.9% |
Revenue for first half year |
609.9 |
616.4 |
-1.0% |
+0.2% |
+0.2% |
1provisional unaudited 2023 revenue that may be
adjusted due to the temporary downtime of some of our information
systems following the cyberattack that occurred on June 19. We
consider, however, that such possible adjustments should be
immaterial.
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
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