Virbac : Virbac : a 15,8% net profit increase in 2012
Public release -March 11, 2013
CURRENT OPERATING PROFIT
Sales growth of +11.6% in 2012. Primarily generated by an 8.2% organic growth,
this performance was driven by both segments: companion animals (+10.4%) with
in particular the launch of CaniLeish - vaccine against canine Leishmaniosis -
in Europe and the expansion of Virbac ranges in the US market; food producing
animals (+5.1%) thanks to the continued development of emerging markets.
Growth has been further increased by two factors: a significant exchange rate
impact of around 2.7% and the integration of acquisitions - Stockguard in New
Zealand as from July and Centrovet in Chile as from December - altogether
adding 8.6 M€ of sales.
Strong increase of consolidated results. Current operating profit and net
profit also increased strongly, +14.4% and +15.8% respectively. This very
positive evolution has been due on one side to the improvement of gross
margin, leveraged by a favourable mix of higher margin business and countries
(companion animals; USA). On the other side, operating expenses have been
controlled and as a whole increased less than sales with the exception of R&D
expenses. Commercial investments have been further increased in a selective
set of countries, in particular in the United States and Brazil.
As previously announced, human and financial resources allocated to innovation
continued to be reinforced. The outcome is a new increase of Research and
Development expense, more than 22% in 2012 or 0.6 point as a percentage of
sales, after an increase of 15% and 0.3 point in 2011.
This investment for the long term competitiveness could be offset by the
significant improvement of profitability before R&D. As a result, the current
operating profit increased by +14.4% and reached 14.1% of sales, a 0.3 point
improvement versus 2011. Stockguard and Centrovet contribution to the current
operating profit are in line with expectations and represented 2.7 M€.
After deduction of interest and tax, net profit - Group share amounts to 66.6
M€, a +15.8% increase compared to 2011.
High generation of cash and sound financial structure. This good economic
performance produced a substantial cash-flow increase. Combined with a tight
control of working capital needs, it resulted in an increased cash generation
and a debt reduction of around 40 million Euros excluding acquisitions. Cash
payments on acquisitions - essentially Stockguard and Centrovet - represented
92 million Euros. Altogether the consolidated debt increased moderately and
Virbac's financial structure remains very sound, with a rather low level of
net debt, 39% of shareholders equity.
2013 will be a year of consolidation of recent products in companion animals
and sustained growth in emerging markets in food producing animals. This
should lead to a 5 to 7% organic growth; in addition, Virbac will benefit from
the full year impact of the recent acquisitions, primarily Centrovet which
accounted for only one month in 2012. Overall at current exchange rates, sales
should come close to 800 Million Euros in 2013 and Virbac's ambition is a
further 0.5 point improvement of operating profitability. The net profit
should also increase, but to a lesser extent given minority interests in
Centrovet and the interest expense on acquisitions.
A dividend of 1.90 euro per share, as compared to 1.75 euro last year, shall
be proposed at the next Annual Shareholders Meeting and payable on June 26,
Consolidated numbers as of December 31 2012 2011 % change
in millions € 2012 / 2011
Revenue from ordinary activities 695.2 623.1 +11.6%
Growth at constant exchange rates +8.9%
Pro-forma growth at constant exchange rates +8.2%
Current operating profit 98.1 85.7 +14.4%
As a % of sales 14.1% 13.8%
Other non operating income and expenses 0.1 0.5
Operating profit 98.2 86.2 +13.9%
Profit before tax 95.5 83.5 +14.3%
Net profit - Group share 66.6 57.5 +15.8%
Shareholders' equity 346.2 311.4 +11.2%
Net financial debt 133.9 69.7 +92%
Operating cash flow before interest and tax 123.5 107.2 +15.2%
The financial statements have been audited; issuance of the auditors' report
Financial statements are available on www.virbac.com
Virbac : a 15,8% net profit increase in 2012
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information contained therein.
Source: Virbac via Thomson Reuters ONE
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