2020 sales: €427.5m (up 8.0% as reported)
EBIT before depreciation of assets arising from acquisitions:
€65.3m (up 33.5%)
Net income - Group share: €19.2m (4.5% of sales)
Cash flow: €92.2m
Regulatory News:
Vetoquinol (Paris:VETO):
Vetoquinol CEO Matthieu Frechin said: “These excellent
results for 2020 are a direct outcome of the strategic
repositioning decided in 2011 and implemented by our teams through
the last two strategic plans. The strategy refocused our veterinary
business on higher value-added products and within the decade
transformed us from a European leader in anti-infectives to a
global Group offering a diversified portfolio of Essentials
products to focused international markets. This growth trend is set
to continue and intensify over the coming years.”
In a resilient animal health world market that grew by around
4% in 2020, Vetoquinol posted 2020 revenue of €427.5 million, up
8.0% as reported and 10.9% at constant exchange rates.
In 2020, sales of Essentials products totaled €220.6 million,
up 17.3% at constant exchange rates. The continued strong
momentum of Essentials product sales was driven by the existing
portfolio (+8.1%) as well as the contribution of the Drontal® and
Profender® products acquired on August 1st, 2020. This confirms the
strength and performance of Vetoquinol’s business model in a
complex environment. Essentials products accounted for 51.6% of
Vetoquinol sales in 2020, up from 48.1% in 2019.
Sales of companion animal products totaled €256.7 million,
accounting for 60% of Vetoquinol sales. Sales of livestock products
came to €170.8 million.
All strategic territories posted growth in 2020 at constant
exchange rates: +13.2% in Europe, +5.0% in the Americas and +17.4%
in Asia Pacific.
Changes in exchange rates had a negative impact of €11.6 million
(-2.9%) in 2020, reflecting the 33% slump in the Brazilian real and
less dramatic falls in the Indian rupee and US and Canadian
dollars.
Gross margin on purchases was 70.0%, up 1.4 percentage
points year-on-year. This reflected a €6.8 million negative
exchange effect, sustained levels of production, and the
contribution of the acquisition of Drontal® and Profender® products
on August 1st 2020.
EBIT before depreciation of intangible assets arising from
acquisitions, a leading performance indicator for the
Vetoquinol Group, was €65.3 million, up 33.5% from €48.9
million in 2019. While this strong growth was helped by reductions
in some expenses due to the health crisis, it was mainly directly
driven by the increased share of Essentials in the sales mix, now
contributing over 50% of sales. This means Vetoquinol has now
reached the turning point mapped out in its 2011 strategy of
refocusing on value-added products, which set the target of
equaling or exceeding market growth rates and pushing structural
margins above their historical average.
Depreciation of intangible assets arising from acquisitions
amounted to €9.1 million (2019: €3.0 million), in connection with
the Clarion and Drontal® and Profender® acquisitions.
EBIT rose 22.4% to €56.2 million versus €45.9 million in
2019.
Non-recurring expenses in 2020 amounted to €19.1 million,
including a €15 million impairment charge against part of the
Brazilian goodwill. Vetoquinol is growing its sales in Brazil, the
world’s third-biggest market for animal health products, but slower
than expected. The lag basically reflects timeframes for bringing
new products onto the Brazilian market. As a result, costs are
excessive in proportion to sales. Steps have been taken to remedy
the situation since 2020, notably on the production front (one
industrial site closed) and by speeding up the launch of new
ranges. Vetoquinol has set a five-year milestone to hit critical
mass and bring Brazil’s performance in line with the rest of the
Group.
The apparent tax rate was 30.4% (restated for the goodwill
impairment charge).
EBITDA was €83.9 million, up €18.5 million.
Vetoquinol posted net income of €19.2 million, down from
€28.2 million in 2019 including €19.1 million of non-recurring
expenses.
Cash flow rose sharply in 2020 to €92.2 million from €52
million in 2019. Vetoquinol generated more cash in H2 2020 than
over the entire 2019 financial year. Gearing was -1.2% of equity
and the Group posted net cash of €4.6 million at 2020 year-end.
This robust cash flow, coupled with the experience the internal
teams now have in major M&A deals, gives Vetoquinol the
resources to actively pursue its hybrid growth strategy, blending
organic growth through its existing portfolio with new product
launches and external acquisitions.
The Board will propose a dividend of €0.50 per share to the May
27th, 2021 shareholders’ meeting.
A resilient business model in unprecedented times
Since the Covid-19 crisis broke, the mobilization of its teams
has given Vetoquinol the agility and flexibility required to
sustain high levels of business, pursue its projects for
development, and continue to serve its customers without
interruption throughout 2020 while keeping employees healthy and
safe.
Vetoquinol has come out of the crisis stronger and is continuing
its development as 2021 gets under way while maintaining protective
and social distancing measures at work. The Group will continue to
keep stakeholders regularly informed on how the evolving Covid-19
pandemic is impacting its business.
In 2021, assuming a gradual diminution of the Covid crisis,
Vetoquinol expects its business to grow, driven by the development
of the Essentials range and improved margins versus 2020.
Vetoquinol will continue to integrate Drontal® and Profender® in
Europe and in its Canadian and Australian businesses.
Next update: Q1 2021 sales, April 15th, 2021 after market
opening
ABOUT VETOQUINOL
Vetoquinol is a leading global animal health company that
supplies drugs and non-medicinal products for the livestock (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 been pursuing 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. At December 31st 2020, Vetoquinol employs
2,409 people.
Vetoquinol has been listed on Euronext Paris since 2006 (symbol:
VETO).
SUMMARY INCOME STATEMENT
€m
2020
2019
Change
Total sales
of which Essentials
427.5
220.6
396.0
190.6
+8.0%
+15.7%
EBIT before depreciation of acquired
assets
% of total sales
65.3
15.3
48.9
12.3
+33.5%
Net income Group share
% of total sales
19.2
4.5
28.6
7.2
-32.8%
EBITDA
% of total sales
83.9
19.6
65.4
16.5
+28.2%
The audit of the 2020 financial statements is currently being
finalized at the time this communication is released.
CALCULATION OF EBITDA
€m
2020
2019
Net income before equity method
18.9
28.2
Income tax expense
16.6
12.5
Net financial income
1.5
0.2
Provisions recorded under non-recurring
operating income and expenses
19.5
4.4
Provisions and write-backs
1.4
0.9
Depreciation
25.9
19.3
EBITDA
83.9
65.4
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 depreciation of intangible assets arising from
acquisitions: 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, pursuant to IFRS 16.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210331005909/en/
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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