2014/10/16 - Financial public releases

2014 third quarter consolidated sales

Confirmation of the rebound of growth in the third quarter

PR-14Q3-01.gifVirbac consolidated sales in the third quarter amounted to 202.7 M€, a +10.5% growth compared to the same period of 2013. Contrary to the first half, exchange rates have not been penalizing during the last months; growth at constant parities has reached +10.1% in this quarter, of which +9.3% organically (excluding Santa Elena in Uruguay).
The positive evolution of Virbac product ranges observed in most countries in Europe during the first half continued, reinforced by the launch of Milpro, internal parasiticide for companion animals, in France and in Northern Europe. In the United States, as anticipated, the activity enjoyed a strong growth thanks to the re-introduction last July of Virbac’s internal parasiticide Iverhart Plus and to the restocking of this product by the distributors. In the rest of the world Group sales continued to record good levels of growth.

Year-to-date sales amount to 569.0 M€ compared to 555.4 M€ last year, a nine months global increase of +2.4% which remains heavily impacted by the foreign exchange rates situation that prevailed in the first half. At constant parities, growth would have reached +6.0%, of which +5.1% organically. All geographies have contributed positively to this evolution with the exception of the US, while the significant decrease in this market during the first half is already largely offset by the good performance generated in the third quarter thanks to the re-introduction of Iverhart Plus.

In terms of species, growth at constant scope in the companion animals segment has become slightly positive again, +1.3% while such evolution is still negatively impacted by the absence of Iverhart Plus in the US during the first half. This positive trend should strengthen until year-end, benefiting from the ongoing launches of new products in Europe and from the expected rebound in the US driven by the relaunch of Iverhart Plus.
In the food producing animals segment, organic growth remains steady, +11.7%, thanks to the dynamics in emerging countries -notably India, South Africa, Mexico and Brazil- and to a good performance in Australia and New Zealand as well as in Europe, where Virbac has been performing very well in both the ruminants and the industrial sectors (swine and poultry).
As for the aquaculture sector, the activity has been progressing slightly to-date after a slow-down in the first half due to the regulation by authorities of the “stock” of fish transferred in sea water by salmon farmers in Chile.