Quarterly consolidated revenue
Our third-quarter revenue reached €304.9 million, or a steep +5.8% increase with respect to the same period in 2021. At constant parities, the revenue growth was -0.2%, in a context of anticipated slowing market growth, compared to a third quarter 2021 that had been exceptional. Asia Pacific (+6.8% at constant rates) and Africa/Middle East (+18.3% at constant rates) regions are growing in the quarter due particularly to performance in India, Australia and Turkey. All other areas are behind over the period impacted by a high comparison base for the European area (-1.8% at constant rates), and the United States (-6.6% at a constant rate) which had experienced remarkable growth in the third quarter of 2021 due to new product launches (Clomicalm, Itrafungol, petfood iVet, Milbehart…). Lastly, Latin America (-6.8% at constant exchange rates) is strongly impacted by Chile, which is down over the quarter due to an unfavorable base effect, following the rebound observed in the third quarter of 2021, as well as the decline in sales of antibiotic and parasiticide products for salmon, following the suspension by the Chilean maritime authority of the marketing authorization for a parasiticide product in distribution.

Cumulative consolidated revenue at the end of September
Our revenue through to the end of September was €921.2 million, compared with €817.7 million, representing an overall increase of +12.7%  compared with the same period in 2021. Adjusted for the favorable impact of exchange rates, revenue shows growth of +7.7%. This growth benefited, in part, from a favorable baseline effect representing 0.5 point of growth in revenue, attributable to new products acquired starting in the second quarter of 2021. All areas are growing organically at the end of September, despite a slowdown in the market.  In Asia Pacific, the growth at real rates is +17.9% (+12.1% at constant exchange rates), India and Australia continue to derive growth from the area, thanks to products for cattle, representing approximately 80% of the area’s growth. In Europe, revenue grew by +4% at real rates (+3.5% at constant rates). The main countries contributing to this performance are the United Kingdom, France, Italy, Germany and Spain, carried by the strong dynamism of the ranges for companion animals (in particular the ranges of petfood, specialties, and the vaccines), which offset the withdrawal of antibiotic ranges for food producing animals. In the United States, business grew by +23.2% (+9.5% at constant exchange rates). It benefited from strong sales of new products launched in 2021 (Clomicalm and Itrafungol) and those launched in early 2022 (petfood, and for the production animals segment,Tulissin), as well as good performance on the dental and dermatology range. Finally, in Latin America, business grew by +18.1% at actual rates (+6.8% at constant exchange rates), thanks in particular to the contribution of Mexico and Brazil, which offset the decline in Chile.

In terms of species, revenue in the companion animal segment grew overall by +14.4% at real rates (+10.1% at constant exchange rates), mainly driven by very good double-digit growth in the petfood, specialty, and dental ranges. The food producing animal segment also posted growth of +12.0% at real rates (+6.2% at constant exchange rates), driven by the ruminant sector (+11.2% at constant rates), which compensates for the decline in the pig-poultry (-5.1% at constant rates) and aquaculture (-10.8% at constant rates) segments compared to the same period of 2021, and this mainly due to the decline in sales of vaccines as well as the suspension of the marketing of the aforementioned parasiticide  product.

Outlook
Revenue growth at constant rates and perimeter is now expected to be in a range of between 6% and 9%. The ratio of “current operating income before depreciation of assets from acquisitions” to “revenue” should be in a range of between 14% and 15% at constant exchange rates. Finally, our deleveraging should be around 30 million € excluding dividends, at constant scope and exchange rates.

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