2023/07/18 - Financial public releases

2023 second quarter consolidated sales

Revenue up about 2% during the second quarter and stable at the end of June despite two unfavorable one-off effects throughout the semester


Quarterly consolidated revenue
Our second quarter revenue reached €295.2 million, up +1.9% at constant exchange rates compared to the same period of 2022. The good momentum in Europe (+7.0%) and Asia-Pacific (+4.5%) fully offset the weak performance of the Latin America zone (-11%) penalized mainly by Chile. In Europe, our growth for the quarter was notably driven by France, where activity rebounded strongly (+21.6%) after a first quarter in decline. To a lesser extent, the region's growth was also driven by the United Kingdom, Southern Europe and benefited from the impact of the acquisition of our distributor in the Czech Republic (around €1 million). In Asia-Pacific, all of the sub-zones are progressing, excluding India and China, which performance remains stable compared to 2022. Finally, the activity of our subsidiary in North America is slightly growing by +0.4%. It should be noted that the quarter was marked by temporary and larger than expected production capacity limitations for dogs and cats vaccines, as well as by the consequences of the cyberattack that occurred in June 2023.

Cumulative consolidated revenue at the end of June
Over the first half, our turnover amounted to €609.9 million compared to €616.4 million in 2022, an overall change of -1.0%. Excluding currency effects, sales remained stable at +0.2%, favorably impacted by price increases (estimated effect of around +5%) which offset the drop in volumes already observed in the first quarter.

Across geographies, dynamics are contrasted with first of all Europe where activity increased by +2.8% at constant exchange rates, mainly thanks to the contribution of France as well as South Europe’s countries and despite declining sales of dogs and cats vaccines. In Asia-Pacific (+1.9% at constant rates), our products for farm animals continue to fuel our growth in Australia and New Zealand, while our activity in India remains relatively stable compared to 2022. Sales in China were down, penalized by weak sales in the first quarter. The Latin America zone is declining (-6.8% at constant rates), penalized by the significant drop in activity of our subsidiary in Chile (-32% at constant rates) in particular on the antibiotic and parasiticide ranges. Excluding Chile and at constant exchange rates, the change in activity is positive at +3.5%, supported by Mexico, Brazil and the countries of Central America, despite the decline in dogs and cats vaccines’ sales. Finally, the activity of our subsidiary in North America is down slightly over the period, mainly explained by a base effect and distributors’ destocking in the first half of 2023. 

In terms of species, the companion animal business is down very slightly, around -1% at constant exchange rates, good momentum in the petfood range offsetting our temporary difficulties in the immunology range for dogs and cats. The farm animal segment remains stable at around 0%, mainly driven by the ruminant sector offsetting the aquaculture segment’s decline.

Outlook 2023
In line with our press release of July 3, 2023, we confirm our revised forecasts with revenue growth at constant rates and scope expected within a range between 0% and 4% and an adjusted Ebit ratio3 that should consolidate between 12% and 13% at constant exchange rates.

3"current operating profit before amortization of assets resulting from acquisitions” to “revenue” ratio