Group Sales €396.0M, up 6.1% at Constant
Exchange Rates
Net Income Group Share: €28.6M (7.2% of
Sales)
Regulatory News:
At its meeting on March 24, 2020, the Vetoquinol S.A.
(Paris:VETO) Board of Directors reviewed the Group results and
approved the 2019 financial statements. The auditors have completed
their audit of the financial statements and will shortly issue
their report thereon.
The Vetoquinol Group posted 2019 sales of €396.0m, up
7.6% as reported and up 6.1% at constant exchange rates.
2019 KEY FIGURES Total
sales €396.0m +6.1% at constant exchange rates Essentials
sales €190.6m +5.1% at constant exchange rates EBIT before
depreciation of assets arising from acquisitions €48.9m (12.3% of
sales) Net income Group share €28.6m (-€7.7m) incl. €5m
non-recurring expense Net cash €72.4m
2019 sales of Essential products totaled €190.6m, up 5.1% at
constant exchange rates. Essential products accounted for 48.1%
of Group sales in 2019.
Sales of companion animal products (€226.3m) accounted for 57.1%
of total Vetoquinol sales, up 8.4% at constant exchange rates.
Sales of livestock products came to €169.7m, up 3.2% at constant
exchange rates; sales of recently acquired Clarion (Brazil) offset
the decline in sales of reproduction products.
All Vetoquinol Group strategic territories posted growth in
2019, with the Americas up 11.3%, Europe up 3.8% and Asia Pacific
up 2.0% at constant exchange rates. Growth in the Americas was
boosted by Clarion sales in Brazil from April 2019.
The gross margin on purchases amounted to 68.6%, down
0.7% due to several factors including the first-time consolidation
of Clarion, product write-offs, a delay with the restart of
production activities in the Lure plant in the first semester, and
a reduction of inventories.
External expenses rose 10.3% excluding the impact of first
application of IFRS 16; nearly half of this increase was due to
currency impact and acquisitions (Clarion and FarmVet Systems Ltd);
R&D costs and sales support costs also had a major impact:
staff costs were up 6.5% largely due to salary rise, an increase in
total headcount and a perimeter effect (over €4m) due to the
first-time consolidation of Clarion and FarmVet Systems Ltd;
R&D costs amounted to €30.0m or 7.6% of sales (2018: 7.2%).
2019 EBIT before depreciation of assets arising from
acquisitions, a new Group performance indicator, came in at
€48.9m (2018: €51.2m).
Depreciation of acquired assets amounted to €3.0m (2018: €2.7m),
which includes a €0.4m depreciation charge related to the
acquisition of FarmVet Systems Ltd.
Vetoquinol Group’s EBIT dropped 5.2% to €45.9m from
€48.4m in 2018.
In 2019, the Group incurred €5.0m non-recurring expenses linked
to the discontinuation of a R&D project and the reorganization
of the Group’s European production facilities (closing of the
Italian plant).
The 2019 effective tax rate amounted to 30.6% (2018: 25.1%) due
to the following factors: the Group was hit by an additional tax
charge following a tax audit in France (completed in December
2019), a tax reform in India and an adverse combination of taxable
income and unbooked deferred tax assets among the Group’s
subsidiaries.
Group EBITDA rose €5.0m year-on-year to €65.4m, of which
4.8m resulted from the implementation of IFRS 16.
After €5.0m non-recurring expenses, Group net income amounted
to €28.2m (2018 €36.2m).
Total Group net cash stood at €72.4m at December 31, 2019.
Vetoquinol is backed by a sound financial structure to further
its growth strategy and has the funds to pursue its targets for
acquisitions and development as well as to face the impact of the
Covid-19 crisis. The Group was free of financial debt as of
December 31, 2019.
The Board will submit a draft dividend amounting to €0.48 per
share to the May 26, 2020 shareholders meeting; the Board of
Directors may however opt to modify this dividend prior to the
annual shareholders’ meeting under the Covid-19 context.
Covid-19 The Group’s top priority is to ensure its staff
stay healthy and safe, while delivering on its production,
distribution and service commitments. The Group has introduced a
number of measures as issued by the World Health Organization and
governments in countries where it operates.
Group management is currently reviewing scenarios to measure how
the pandemic may impact Group production and sales in the short and
medium term. In view of the sharp increase in the pandemic as of
the date hereto, combined with confinement rules that may last
longer than one month, Group management consider that second
quarter 2020 sales and results will be negatively impacted. As
previously mentioned, the Group’s financial structure is sound; the
net cash available will be sufficient to weather this crisis.
The Group will continue to keep its stakeholders regularly
informed of how Covid-19 developments impact its business.
Vetoquinol CEO Matthieu Frechin said: “2019 featured growth in
our Essentials products throughout our strategic regions and our
Brazilian acquisition opened the door for us to build a big
presence in the world’s third largest animal health market. We also
made great strides in R&D that included launching or extending
new products. That said, we took on board non-recurring costs that
hit our bottom line. Our February 2020 announcement that we will
acquire* a leading parasiticide product family opens up new
opportunities. Lastly, regarding the current health crisis, I would
like to salute the great work of our people who have all met their
public health and ongoing care duties.”
Vetoquinol has confirmed its eligibility for the French PEA-PME
personal equity plan, in accordance with Decree no. 2014-283 of
March 4, 2014 implementing Article 70 of the 2014 Finance Act no.
2013-1278 of December 29, 2013, which established the conditions
for companies’ eligibility for the plan.
The analysts’ presentation scheduled March 26, 2020 as well as
the recording shall be available on the company website.
Next update: Q1 2020 sales, Thursday, April 16, 2020
after market close
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 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. At December 31 2019 Vetoquinol employs 2,372 people.
Vetoquinol has been listed on Euronext Paris since 2006 (symbol:
VETO).
For further information, go to: www.vetoquinol.com.
--------------------- * Subject to the transaction’s approval by
competent authorities and release of usual pre-conditional
clauses
ANNEX
Summary income statement
€m
2019
2018
Change
Total sales
396.0
367.9
+7.6%
of which Essentials
190.6
179.4
+6.2%
EBIT before depreciation of assets arising
from acquisitions
48.9
51.2
-4.5%
% of total sales
12.3%
13,9%
Net income Group share
28.6
36.3
-21.2%
% of total sales
7.2%
9.9%
EBITDA
65.4
60.4
+8.4%
% of total sales
16.5%
16.4%
Calculation of EBITDA
€m
2019
2018
Net income before equity method
28.2
36.5
Income tax expense
12.5
12.2
Net financial items
0.2
(0.4)
Provisions recorded under non-recurring
operating income and expenses
4.4
(0.8)
Provisions and write-backs
0.9
0.1
Depreciation
19.3
12.8
EBITDA
65.4
60.4
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 growth: Year-on-year sales growth in terms
of volume and/or price at constant exchange rates.
EBIT before depreciation of assets arising from
acquisitions: This KPI isolates the non-cash impact of
amortization charges which result from merger and acquisitions
operations.
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/20200326005074/en/
VETOQUINOL Investor
Relations Fanny Toillon +33 (0)3 84 62 59 88
relations.investisseurs@vetoquinol.com
KEIMA Communication Investor and
Media Relations Emmanuel Dovergne +33 (0)1 56 43 44 63
emmanuel.dovergne@keima.fr
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