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Virbac: Quarterly financial information_Sept 2020.pdf – Insurance for Pets


Virbac: quarterly financial information as of September 30, 2020

This report is drawn up in narrative form in accordance with the terms of implementation of the provisions of article L451-1-2 of the Monetary and Financial Code issued by the Autorité des marchés financiers (AMF).

1. Major events of the quarter

On July 1, 2020, Virbac sold its Sentinel antiparasitics for dogs to MSD Santé Animale for an amount of US $ 400 million. Under the terms of the agreement, Virbac ceded a set of rights and titles for the United States on Sentinel Spectrum and Sentinel Flavor Tabs. The consideration received for the transaction includes price supplements for the acquisition of stocks of finished products and raw materials.

It was also agreed that the US subsidiary will continue to manufacture Sentinel Spectrum at its site in Bridgeton, Missouri for the next ten years.

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2. Major post-closing events

No major event has occurred after the closing of September 30, 2020.

3. General description of the financial situation of the issuer

3.1 Activity

Quarterly consolidated sales

Revenue for the third quarter amounted to € 235.6 million, up + 0.9% compared to the same period in 2019. At constant exchange rates, the quarter posted a solid performance at +6, 8% (+ 11.1% excluding Sentinel), the sharp depreciation of certain currencies, in particular the Brazilian real, the Mexican peso, the South African rand and the rupee, having strongly weighed on the performance for the quarter.

Excluding the impact of the sale of Sentinel in the United States, all regions are growing compared to the same period in 2019. The Asia-Pacific and Europe regions are driving growth thanks to the excellent performances of India and France. China, which posted robust double-digit growth over the period, France, Benelux, Spain and Italy, which thus made up part of the delay observed in the first half of the year. The United States posted double-digit growth excluding Sentinel, thanks in particular to the contribution of products in the specialty range. Latin America posted growth over the quarter, mainly driven by Mexico and Brazil, while Chile was down.

CONSOLIDATED FIGURES

in millions of €

3e trimester

2019 turnover

233,5

Provisional 2020 turnover

235,6

Evolution

+0,9%

Evolution at constant exchange rates

+6,8%

Change at constant exchange rates and perimeter 1

+11,1%

  • The change at constant exchange rates and perimeter corresponds to the organic growth in sales excluding changes in exchange rates by calculating the indicator for the year under review and that of the previous year on the basis of identical exchange rates (the exchange rate used is that of the previous year), and excluding changes in scope by calculating the indicator for the year under review on the basis of the consolidation scope of the previous year, and excluding Sentinel sales on two exercises considered.

Virbac : NYSE Euronext – compartiment A – code ISIN : FR0000031577 / MNEMO : VIRP

Financial department: tel. 04 92 08 71 32 – finances@virbac.com – corporate.virbac.com

Cumulative turnover at the end of September

CONSOLIDATED FIGURES

in millions of €

Nine months

2019 turnover

697,3

Provisional 2020 turnover

713,9

Evolution

+2,4%

Evolution at constant exchange rates

+5,6%

Change at constant exchange rates and perimeter 1

+6,8%

Evolution by segment

Pets

The companion animal business grew overall by + 2.2% at actual rates (+ 3.6% at constant rates and + 6.1% excluding Sentinel), mainly driven by growth in the specialties, petfood, dermatology and hygiene ranges which offset the withdrawal of the vaccine and antibiotic ranges.

Production animals

The production animals segment also posted very good growth of + 2.5% (+ 8.2% at constant rates), driven by the ruminants sector (+ 11.2% at constant rates) and the ‘industrial breeding (+ 3.0% at constant rates); while the aquaculture sector is slightly down (-0.3% at constant rates) compared to the same period of 2019.

3.2 Debt

The group’s net debt at the end of September 2020 amounted to -46.1 million €, which represents a decrease of 414.5 million € compared to the end of 2019. This financial surplus is explained by the sale of Sentinel products for 410 million US $ in July at MSD Animal Health. Excluding the impact of the sale of Sentinel and at constant 2019 exchange rates, the debt reduction amounted to € 56 million and was mainly due to the favorable evolution of our turnover over the period and the decrease in expenses related to the health crisis.

4. Perspectives

The animal health sector has shown strong resilience in recent months, which helped limit the impact at the end of September on our activity, and leads us to raise our annual outlook. We are now anticipating sales that could be in a range of between 0% and 3% over the year 2020 at actual scope (post sale of Sentinel) and at constant rates. In addition, we anticipate an unfavorable impact of foreign exchange rates on sales of around € 30 million linked to the sharp depreciation of currencies in the Latin America and Asia-Pacific region. The ratio of “current operating income before amortization of assets resulting from acquisitions” to “sales” should, for its part, benefit from the favorable impact of the activity mentioned above as well as the non-recurring impact. linked to the sharp decrease in expenses, and be in a range of between 13% and 15% for the year 2020 on a real basis and at constant rates.

  • Note that the sale of the Sentinel brands at the beginning of July, for which we will continue to manufacture the Sentinel Spectrum presentation on our American site in Bridgeton, should result in a decrease of approximately US $ 55 million in sales and approximately 3 points of the Ebita ratio2 on sales on a pro forma basis for a full year. In 2020, the impact on the Ebita to revenue ratio should be limited to around 1 point, given the good sales level of Sentinel, which represented revenue of US 39 million. $ in the first semester.

2Ebita: Current operating profit before depreciations of assets arising from acquisitions.

Virbac : NYSE Euronext – compartiment A – code ISIN : FR0000031577 / MNEMO : VIRP

Financial department: tel. 04 92 08 71 32 – finances@virbac.com – corporate.virbac.com

Always working for animal health

Virbac offers veterinarians, breeders and owners in more than 100 countries a practical range of products and services to diagnose, prevent and treat the majority of pathologies while improving the quality of life of animals. Thanks to these innovative solutions covering more than 50 species, Virbac contributes day after day to the evolution of animal health.

Virbac : NYSE Euronext – compartiment A – code ISIN : FR0000031577 / MNEMO : VIRP

Financial department: tel. 04 92 08 71 32 – finances@virbac.com – corporate.virbac.com

To read the rest of this noodl, you can check out the original version here.

The company Virbac SA posted this content on October 19, 2020, and is solely responsible for the information contained therein.
The contents were released by Public unedited and unedited, onOctober 19, 2020 07:38:03 UTC.

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