Sales: €256m (-5.4% as reported) Essentials products
sales: €151m (59% of Group sales) Net income - Group share:
€32m (12.6% of sales) EBITDA*: €54m (20.9% of sales)
Cash-flow generation: €31m
Regulatory News:
Matthieu Frechin, Chairman and CEO of the Vetoquinol
(Paris:VETO) laboratory, commented: "In a global animal health
market driven by prices, our first half of 2023 is marked on the
one hand by a decline in our business and on the other hand by the
continuation of a sound level of profitability and good cash
generation. The agility and mobilization of our teams and the
evolution of our product mix over the last 10 years, at a time when
our Vetoquinol laboratory is celebrating its 90th anniversary,
enable us to anticipate a better 2nd half of 2023. The solidity of
our business model reinforces our determination to pursue hybrid,
sustainable and profitable growth."
The Board of Directors of Vetoquinol SA met on September 6, 2023
to review business activity and approve the financial statements
for the first half of 2023. The auditors have released their first
half limited review report
Vetoquinol reported sales of €256 million for the first 6 months
of FY 2023, down -5.4% on a reported basis and -4.6% at constant
exchange rates. For the 1st half of FY 2023, Vetoquinol recorded a
negative currency impact of -€2 million, mainly related to the
Asia/Pacific region. The overstocking effect recorded in the 1st
quarter 2023 of around €10 million, to ensure continuity of service
while a new ERP system is put in place, is fully smoothed out by
the end of June 2023.
Sales of Essential products totaled €151 million, down slightly
by -1.1% at constant exchange rates. They benefited from the
existing portfolio and the recent launches of Felpreva®, an
antiparasitic solution for cats, and Simplera®, a drug indicated
for the treatment of otitis in dogs, and were impacted by the
downturn in the livestock antibiotics segment. Sales of Essentials
products accounted for 59% of the laboratory's sales in the first
half of 2023, compared with 57% of sales in the first half of
2022.
At June 30, 2023, the Americas territory grew by +2.3% at
constant exchange rates, driven by growth in the US market and the
recent launch of Simplera®. The Europe and Asia/Pacific/Rest of
World territories were down by -5.4% and -16.3% respectively at
constant exchange rates. Sales in Europe were notably impacted by a
downturn in the livestock antibiotics market. On the other hand,
Vetoquinol benefited from the launch of Felpreva® and continued to
strengthen its position in the pet market with this drug, which
combines ease of use with a 3-month duration of effect.
Sales of companion animals products (€181 million) were stable
on a like-for-like basis (-0.4%), and accounted for 70.7% of the
laboratory's total sales. Sales of farm animal products came to €75
million, down 13.3% on a like-for-like basis.
Gross margin on purchases was 72.1%, identical to that
for the H1 2022 and up 1.5 point on the FY 2022 figure (70.6%).
This trend is linked to the product mix, and in particular to new
Essentials launches, as well as to higher selling prices.
Other purchases and external charges fell by -7.9% (-€4.2
million), mainly as a result of tight cost control in a period of
inflation. Personnel costs rose by +2.9% in line with salary
increases.
Depreciation and amortization charges linked to IFRS 16
generated a depreciation charge of €2.9 million, compared with €2.7
million at end June 2022.
EBIT before amortization of intangible assets acquired
amounted to €45 million for the year ended June 30,
2023. This represents 17.7% of consolidated sales.
Group operating income recurring came to €39 million (15.1%
of sales), compared with €44 million for the first 6 months of
2022.
Other operating income and expenses amounted to €2.6 million,
compared with -€9.3 million at end June 2022. They reflect the
outcome of the renegotiation of the final acquisition price of
Clarion in Brazil, with a gain of +€6.1 million, and a still
uncertain situation in this country generating an impairment of
intangible assets for €3.5 million. In the first half of 2022,
Vetoquinol recorded a non-recurring impairment charge of -€9.3
million on its Brazilian goodwill.
The apparent tax rate was 24.4% (vs. 38.0% at end June 2022).
Restated for the impairment of Brazilian goodwill, the apparent tax
rate for the 1st half 2022 was 30.0%.
EBITDA stood at €60 million at June 30, 2023, or 23.3% of sales.
Restated for non-recurring items in Brazil, EBITDA for the first
half of 2023 came to €54 million, or 20.9% of sales.
Net income for the Vetoquinol laboratory came to €32 million,
or 12.6% of H1 2023 sales, up +50.6% on net income at end-June
2022.
At June 30, 2023, the Vetoquinol Group had an overall
positive net cash position of €84 million (after taking into
account an IFRS 16 liability of €13 million), up +€7 million
vs. end-2022. The laboratory benefited from solid free cash
flow generation compared with H1 2022.
The successful structural transformations with the deployment of
a new ERP in the laboratory's main subsidiaries and the
modernization of the sterile injectables production unit located in
Lure enable Vetoquinol to approach future developments with
confidence.
The Vetoquinol Group has sound fundamentals (strong operating
profitability, cash flow generation, no debt) to pursue its
development strategy, and the means to finance its external growth
ambitions.
The replay of the video conference and the presentation of the
2023 Half-Year Results are available on the laboratory's website:
https://vetoquinol.com/en/investors
Next update: Q3 2023 Sales, October 26, 2023 after market
close
ABOUT VETOQUINOL Vetoquinol is a leading global animal health
company that supplies drugs and non-medicinal products for the farm
animals (cattle and pigs) and pet (dogs and cats) markets. As an
independent pure player, Vetoquinol designs, develops and sells
veterinary drugs and non-medicinal products in Europe, the Americas
and the Asia Pacific region. Since its foundation in 1933,
Vetoquinol has pursued a strategy combining innovation with
geographical diversification. The Group’s hybrid growth is driven
by the reinforcement of its product portfolio coupled with
acquisitions in high potential growth markets. Vetoquinol employed
2,497 people as of June 30, 2023.
Vetoquinol has been listed on Euronext Paris since 2006 (symbol:
VETO). The Vetoquinol share is eligible for the French PEA and
PEA-PME personal equity plans.
ANNEX
SALES
€m
2023
2022
Change (reported data)
Change (constant exchange
rates)
Q1 Sales
145.4
135.0
+7.7%
+7.2%
Q2 Sales
110.8
135.8
-18.3%
-16.3%
First semester Sales
256.2
270.8
-5.4%
-4.6%
SUMMARY INCOME STATEMENT
€m
06/30/2023
06/30/2022
Change
Total sales
of which Essentials
256.2
151.0
270.8
153.9
-5.4%
-1.9%
EBIT before depreciation of acquired
assets
% of total sales
45.4
17.7
51.5
19.0
-11.9%
Net income Group share
% of total sales
32.2
12.6
21.4
7.9
+50.6%
EBITDA
% of total sales
59.7
23.3
62.0
22.9
-3.7%
CALCULATION OF EBITDA
€m
06/30/2023
06/30/2022
Net income before equity method
32.2
21.4
Income tax expense
10.4
13.1
Net financial income/expense
(1.3)
0.6
Provisions recorded under non-recurring
operating income and expenses
3.5
9.1
Provisions and write-backs
(0.7)
1.8
Depreciation and amortization (including
IFRS 16)
15.5
15.9
EBITDA
59.7
62.0
ALTERNATIVE PERFORMANCE INDICATORS Vetoquinol Group
management considers that these indicators, which are not defined
by IFRS, provide additional information that is relevant for
shareholders seeking to analyze underlying trends and Group
performance and financial position. They are used by management for
performance analysis.
Essentials products: The products referred to as
“Essentials” comprise veterinary drugs and non-medical products
sold by the Vetoquinol Group. They are existing or potential
market-leading products designed to meet the daily requirements of
vets in the companion animal or livestock sector. They are intended
for sale worldwide and their scale effect improves their economic
performance.
Constant exchange rates: Application of the previous
period’s exchange rates to the current financial year, all other
things remaining equal.
Like-for-like (LFL) growth: Year-on-year sales growth in
terms of volume and/or price at constant consolidation scope and
exchange rates.
EBIT before amortization of acquired assets: This KPI
isolates the non-cash impact of depreciation charges on intangible
assets arising from mergers and acquisitions.
Net cash: Cash and cash equivalents less bank overdrafts
and borrowings, (IFRS 16 compliant)
* Restated for non-recurring items in Brazil
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230907174705/en/
FOR MORE INFORMATION, CONTACT:
VETOQUINOL
Investor Relations Fanny Toillon Tel.: +33 (0)3 84
62 59 88 relations.investisseurs@vetoquinol.com
KEIMA COMMUNICATION
Investor & Media Relations Emmanuel Dovergne
Tel.: +33 (0)1 56 43 44 63 emmanuel.dovergne@keima.fr
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