VIRBAC: revenue growth at the end of September at +2.8% at constant exchange rates and scope thanks to a strong activity rebound in the third quarter (+7.8% at constant exchange rates and scope)
24 October 2023 - 2:45AM
VIRBAC: revenue growth at the end of September at +2.8% at constant
exchange rates and scope thanks to a strong activity rebound in the
third quarter (+7.8% at constant exchange rates and scope)
KEY FIGURES |
RevenueNine months, 2023
€925.3 million |
Growth at constant exchange rates and
scope1 +2.8% of
whichcompanion animals +1.1%
farm animals +5.0% |
Growth at constant exchange rates
+2.8% |
Overall change
+0.4% |
1growth 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
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.
Quarterly consolidated
revenueDuring the third quarter, our revenue reached
€314.8 million, sharply on the rise by +7.8% at constant exchange
rates. At real exchange rates, our activity grew by +3.3% compared
to the same period of 2022. All geographies contributed to this
momentum: Europe's revenue increased by +6.4% at constant rates,
driven by the Benelux countries (+14.9% at constant rates) and
France (+4.6% at constant rates) where our petfood range recorded
double digits growth, as well as the countries of Southern Europe,
particularly Spain (+23.9% at constant rates) where ruminant
vaccines sales grew strongly. In Asia Pacific, the evolution at
constant rates of +9.2% is mainly explained by the success of our
farm animal ranges, both in Australia and India (respectively
+19.6% and +10.8% at constant rates). Latin America (+11.2% at
constant rates) benefits from the contribution of Mexico (+11.4% at
constant rates) and the remarkable performance of Colombia (+39.5%
at constant rates) while Chile returned to growth (+13.1% at
constant rates) mainly thanks to the sales of a single parasiticide
product for which demand has recently been growing considerably.
Finally, the North America zone grew by +3.8% at constant rates,
notably thanks to the companion animals segment and the dermatology
range.
Cumulative consolidated revenue at the
end of SeptemberAt the end of September, our turnover
amounted to €925.3 million compared to €921.2 million, an overall
increase at real rates of +0.4% compared to the same period of 2022
and +2.8% at constant exchange rates. In a context of market growth
normalization observed for several quarters now and despite two
adverse intrinsic one-off effects - temporary limitation of our
production capacities for companion animal vaccines and cyber
attack which occurred on June 19 - excluding unfavorable exchange
rates impact, our growth of +2.8% demonstrates the resilience of
our business model driven by the relentless engagement of our
teams. Europe (+3.9% at constant rates) and Asia Pacific (+4.5% at
constant rates) remain the main geographies driving this organic
growth dynamic. In Europe, the main contributors to this
performance are firstly France (+7.4% at constant rates), then the
countries of the Northern Europe zone (+2.5% at constant rates) led
by Germany, as well as the countries of the Southern Europe zone
where more than half of the growth is achieved in Spain. In Asia
Pacific, the good momentum of our farm animal range continues to
fuel our growth in Australia (+11.7% at constant rates) and India
(+4.2% at constant rates). Marked by a base effect coupled with
distributors’ destocking and sustained sales of our products
towards veterinary clinics, our activity in the United States
(-0.4% at constant rates) is relatively stable. Notwithstanding the
very good growth dynamics observed in Mexico, Colombia and Brazil,
the Latin America zone (-1.1% at constant rates) was penalized by
the sharp decline of the aquaculture segment observed in Chile
during the first half of the year.
In terms of species, the
companion animal segment grew overall by +1.1% at constant rates
(-0.2% at actual rates), strongly impacted by a drop in companion
animal vaccine sales offset by good momentum of petfood and
specialty ranges. The farm animal segment posted a +5.0% growth at
constant exchange rates (+1.0% at actual rates), driven by both the
ruminant (+8.5% at constant rates) and pigs sectors (+7.0% at
constant rates) which are performing well.
OutlookGiven the significant
rebound in sales observed in the third quarter, a margin on
production costs higher than expected as well as the confirmed
delay in certain expenses, particularly R&D, revenue growth at
constant rates and scope is now expected in a range between 2% and
4% while the ratio of “current operating income before amortization
of assets resulting from acquisitions” to “revenue” should now
consolidate in a range between 13.5 % and 14.5% at constant
exchange rates. Finally, at constant exchange rates, our net cash
position at the end of December 2023 should improve by €30m
compared to the same position at the end of December 2022,
excluding acquisitions and impact of the share buyback plan.
CONSOLIDATED FIGURESNon-audited figures in millions of euros |
2023 |
2022 |
Growth |
Growth at constant exchange rates 1 |
Growth at constant exchange rates and scope 1 |
First quarter revenue |
314.8 |
318.1 |
-1.0% |
-1.3% |
-1.3% |
Second-quarter revenue |
295.7 |
298.3 |
-0.9% |
+2.1% |
+2.1% |
Third-quarter revenue |
314.8 |
304.9 |
+3.3% |
+7.8% |
+7.8% |
Revenue at the end of September |
925.3 |
921.2 |
+0.4% |
+2.8% |
+2.8% |
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. +33 4 92
08 71 32 - email: finances@virbac.com - Website:
corporate.virbac.com
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