Quarterly consolidated revenue
Our revenue in the fourth quarter amounted to €294.9 million, up +19.7% compared to the same period in 2021. At constant exchange rates, revenue growth was +15.9%. All areas except Latin America, penalized by the downturn in Chile, saw very good double-digit growth over the period. It should be noted that the quarter has a very favorable base effect compared to the same period in 2021, as well as inventory effects linked on the one hand to anticipated price increases, which may have an impact on the first quarter 2023, and on the other hand to the launch of the new ranges, particularly in the USA. Europe (+13.4% at constant rates), Asia Pacific (+19.9% at constant rates), and the United States (+38.6% at constant rates) were the biggest contributors in the quarter. Performance in these regions is driven in particular by five countries (the United States, Australia, the United Kingdom, France and India) which generate 75% of quarterly growth. Finally, Latin America (+1.8% at constant exchange rates) was strongly impacted by Chile, which saw a sharp slowdown in sales in the quarter due to the decline in sales on antibiotic and parasiticide products for salmon, following the suspension by the Chilean maritime authority of the marketing authorization of a parasiticide product for its distribution.

In terms of species, the companion animals segment was the main driver of growth (+17.7% at constant rates), particularly in sales of petfood, specialties, the dental range and vaccines, thanks to the reduction in out-of-stock levels and late deliveries in December. The food-producing animals segment is also growing (+9.1% at constant rates), driven by sales of parasiticide and nutritional products for cattle.

Annual consolidated revenue
Our annual revenue amounted to €1,216.1 million, compared with €1,064 million, representing an overall increase of +14.3% compared with the same period in 2021. Adjusted for the favorable impact of exchange rates, revenue shows growth of +9.6%. This growth benefited, in part, from a favorable baseline effect representing 0.4 point of growth in revenue, attributable to new products acquired starting in the second quarter of 2021.

The successful execution of our strategic plan, supported by the constant commitment of our teams, has enabled us to consolidate our annual organic growth in all areas, despite the slowdown in the market. In Asia Pacific, growth at real exchange rates came to +18.5% (+13.9% at constant exchange rates), India and Australia continue to drive growth from the area, thanks to products for cattle, representing approximately 80% of the area’s growth. In Europe, revenue is growing at +6.2% at real rates (+5.8% at constant rates). The main contributors to this performance are the United Kingdom, France, Turkey, Italy, and Spain. The area is supported by the strong dynamism of the companion animals ranges (in particular petfood, specialties, and vaccines), which compensated for the decline in the antibiotic ranges for food-producing animals. In the United States, business grew by +30.2% (+15.7% at constant exchange rates). It benefits from sustained sales on new products launched in 2021 (Clomicalm and Itrafungol) and those launched in early 2022 (petfood, and Tulissin for the food-producing animals segment), as well as good performances in the dental, specialties (Movoflex, Stelfonta), and dermatology ranges. Finally, in Latin America, business grew by +17.1% at real rates (+5.6% at constant exchange rates), thanks in particular to the contribution of Mexico and Brazil, which offset the downturn in Chile.

In terms of species, revenue in the companion animals segment grew overall by +15.9% at real rates (+11.9% at constant rates), mainly driven by very good double-digit growth in the petfood, specialties and dental ranges, as well as a significant contribution from vaccines. The food-producing animals segment also posted growth of +12.3% at real rates (+6.9% at constant exchange rates), driven by the ruminant sector (+12.5% at constant rates), which compensates for the decline in the swine-poultry (-2.7% at constant rates) and aquaculture (-16.0% at constant rates) segments compared to the same period of 2021. This was mainly due to lower sales of vaccines and the suspension of the marketing of the parasiticide product mentioned above.

Outlook
The exceptional performance of the last quarter, which was unexpected in a market experiencing a sharp downturn, allows us to slightly exceed the top of our revenue range in 2022. We now anticipate a ratio of “current operating income before depreciation of assets from acquisitions” to "revenues" that should be around 15% at constant exchange rates, and our debt relief should be around €35 million excluding dividends, at constant scope and exchange rates.
For 2023, we can confirm the content of our press release of last December, namely a ratio of “current operating income before depreciation of assets from acquisitions” to “revenues” that should be between 13% and 14% at constant exchange rates, with growth in revenue at constant rates and scope expected to be between 4% and 6%. This deterioration in our adjusted EBIT ratio is primarily the result of our voluntary acceleration of R&D investments to revenue since early 2022, representing in 2023 ~+2 percentage points compared to 2021 and +~1 percentage point compared to 2022, and the expected effects of inflation in 2023. In addition, our cash position is expected to remain constant at the end of 2023 compared to the end of 2022, taking into account the capital expenditure planned over the period, estimated at around 100 million euros, the acceleration of R&D, and excluding any acquisitions.

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