VIRBAC: Annual revenue growth of +4.9% thanks to record fourth-quarter activity at +11.5%
17 Gennaio 2024 - 5:45PM
VIRBAC: Annual revenue growth of +4.9% thanks to record
fourth-quarter activity at +11.5%
KEY FIGURES |
AnnualRevenue
2023 €1,246.9 million |
Growth at constant exchange rates and
scope1 +4.9% of
whichcompanion animals +3.5%
farm animals +6.7% |
Growth at constant exchange
rates +4.9% |
Overall
change +2.5% |
1growth at constant exchange rates and scope
corresponds to organic growth of revenue, 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. It should be noted that the impact on
revenue growth resulting from the integration of GS Partners
(acquisition of our distributor in the Czech Republic closed in
May) and Globion (acquisition in India closed in November),
representing only 0.3 points of growth, is considered non-material
and therefore consolidation scope was not restated.
Quarterly consolidated
revenueOur fourth-quarter revenue amounted €321.7 million,
up +9.1% compared to the same period in 2022. Adjusted for the
unfavorable impact of exchange rates, our revenue reached a record
level of €329 million, in strong progression by +11.5%. It should
be noted that this increase includes a +0.9% impact related to the
integration of Globion (India), which acquisition was finalized in
November, such impact has not been restated for materiality
reasons. This growth reflects the Group's sustained business
momentum, driven by the outstanding commitment of our teams around
the world. All geographies contributed to this momentum, with
Europe and Latin America accounting for almost 75% of overall
organic growth achieved during the quarter. In Europe, growth of
+11.6% at constant rates was mainly driven by the performance of
the United Kingdom (+20.7% at constant rates), fuelled by strong
growth in our dog and cat parasiticides products, and Northern
Europe (+8.1% at constant rates), as well as by the double-digit
growth in our petfood range, particularly in Turkey and France.
Latin America closed the quarter with a growth of +24.0% at
constant rates, thanks to the remarkable performance of Brazil
(+35.6% at constant rates), where our companion animal products are
on the rise, and the contribution of Mexico and Central American
countries (+19% at constant rates), whereas Chile (+24.9% at
constant rates) benefited from a rebound linked to strong demand
for a parasiticide product for salmon. North America was also up by
+14.7%, benefiting from strong sales momentum in our companion
animal ranges, particularly dermatology products. Asia/Pacific
region grew by +2.3% at constant rates, with contrasting trends
over the quarter. India (+13.7% at constant rates) and South-East
Asia (+8.8% at constant rates) compensated for the drop in revenue
observed on the one hand in Australia (-18.1% at constant rates),
where 2023 had been so far marked by a very favorable agricultural
context (climate, prices and herd stock increases), and on the
other hand in China (-16.4% at constant rates) due to a base effect
subsequent to a very good last quarter in 2022.
This remarkable performance in the last quarter
of 2023 is reflected in both our business segments. Thanks to the
momentum of our petfood, specialties, dental and dermatology
ranges, which achieved double-digit growth, the companion animal
segment grew by +10.9% at constant rates. On the farm animal
segment, we achieved growth of +12.5% at constant rates, all our
ranges by species recorded significant progressions, particularly
in the aquaculture and ruminant segments.
Annual consolidated revenueAt
the end of December 2023, our annual revenue amounted €1,246.9
million compared with €1,216.2 million, representing an overall
change of +2.5% compared with the same period in 2022, and a +4.9%
growth at constant exchange rates. The impact on revenue growth
resulting from the integration of GS Partners (acquisition of our
distributor in the Czech Republic closed in May) and Globion
(acquisition in India closed in November) is only 0.3 points.
Excluding these two acquisitions, growth at constant rates would
have been +4.6%. Against a backdrop of normalizing market growth,
this performance demonstrates the resilience of our business model,
which was significantly challenged by two intrinsic and unfavorable
one-off effects during the year. As a reminder, these were a
temporary limitation of our production capacities for companion
animal vaccines, and a cyber attack on June 19 which forced us to
shut down plants for several weeks. Europe (+5.8% at constant
rates) and Asia/Pacific (+4.0% at constant rates) remain the main
areas driving our organic growth momentum over the year. Growth in
Europe was mainly driven by France (+6.9% at constant rates),
Northern Europe and Southern Europe (respectively +4.0% and +4.9%
at constant rates), as well as by Turkey, where business volume
more than doubled compared with 2022. In Asia/Pacific, the main
contributors were India (+6.1% at constant rates), followed by
Australia and New Zealand (respectively +4.9% and +6.7% at constant
rates), offsetting the drop observed in China (-10.8% at constant
rates), while business in Southeast Asia remained stable. In Latin
America (+4.9% at constant rates), we observed very good growth
dynamics in all our subsidiaries, with the exception of Chile
which, despite a rebound in the second semester, continues to be
penalized by the sharp slowdown in our aquaculture business
observed in the first semester, particularly in antibiotics and
vaccines. Our revenue in the United States rose by +3.5% at
constant rates, despite a year-long distributors’ destocking
effect.
In terms of species, despite a drop in sales on
dog and cat vaccine range (which was out of stock throughout the
year) and a decline in parasiticides, the companion animal segment
grew by +3.5% at constant rates, driven by the performance of our
petfood, specialties and dermatology ranges. The farm animal
segment posted a more pronounced growth of +6.7% at constant rates,
driven by both ruminants (+7.8% at constant rates) and pigs (+13.1%
at constant rates).
OutlookIn line with our press
release dated December 19, 2023, at constant rates, our ratio of
"current operating income before amortization of assets resulting
from acquisitions” (Ebit adjusted) to “revenue” is expected around
15%. Excluding acquisitions and the impact of the share buyback
plan, our net cash position should improve by around €50 million
compared with the end of December 2022. For the year 2024, we
confirm our revenue growth target between 4% and 6% at constant
rates and scope, as well as a ratio of "current operating income
before amortization of assets resulting from acquisitions” (Ebit
adjusted) to “revenue” around 15% at constant exchange rates. As
announced in our previous communications, this level of
profitability takes into account a deliberate further acceleration
in our R&D investments, representing almost +0.5 points as a
percentage of revenue compared with 2023. We reaffirm our ambition
to achieve an Ebit adjusted ratio of 20% by 2030: in this respect,
we plan over the next few years to gradually restore our R&D
investments to the Group's normative and historical level, with a
ratio of R&D investments to revenue around 2.0 percentage
points below 2024 level.
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 |
318.0 |
-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% |
Fourth-quarter revenue |
321.7 |
295.0 |
+9.1% |
+11.5% |
+10.6% |
Annual Revenue |
1 246.9 |
1 216.2 |
+2.5% |
+4.9% |
+4.6% |
1growth at constant exchange rates and scope
corresponds to organic growth of revenue, 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. It should be noted that the impact on
revenue growth resulting from the integration of GS Partners
(acquisition of our distributor in the Czech Republic closed in
May) and Globion (acquisition in India closed in November),
representing only 0.3 points of growth, is considered non-material
and therefore consolidation scope was not restated.
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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