Virbac : Virbac : sales growth of 3.6% in the first quarter

         Virbac : Virbac : sales growth of 3.6% in the first quarter

Public release - April 16th, 2013                            NET SALES
                                                          First quarter 2013
Virbac consolidated sales in the first quarter amounted        182.8 M€
to 182.8 M€, a +3.6% growth compared to the same period
of last year and +5.6% excluding the unfavourable
impact of exchange rates.
At constant scope the evolution is slightly negative,
-2.3%. Such low start this year is due in particular to
a bad performance in March and has been observed on
both the companion animal and the food producing animal

In the companion animal sector, sales decreased by
-2.2% at constant exchange rates and perimeter but such
evolution is mostly explained by the high basis for
comparison set early 2012 in Europe and in the United
States.                                                      TOTAL GROWTH
In Europe, a major event in 2012 had been the launch of         +3.6%
the CaniLeish vaccine in Southern Europe. This year,
sales of CaniLeish are decreasing due to the built-in
impact of the vaccination protocol, which needs three
injections in the first year and then one repeat
injection as from the second year. Concurrently,
adoption of the vaccine by new dog owners is slow due
to the difficult economic situation prevailing in the
countries around the Mediterranean Sea, main markets
for this product. Lastly and from a more general
standpoint business in Europe is suffering from the
weakness of consumption - in particular in Southern
Europe and in France - and from unfavourable weather
In the US, sales are stable compared to 2012 as Virbac    GROWTH AT CONSTANT
had benefited last year from a strong growth of the         EXCHANGE RATES
internal parasiticide Iverhart linked to the withdrawal         +5.6%
of a competitor from the market.
In the rest of the world Virbac sales growth has been

In the food producing animal segment sales decreased by
-3.2% at constant scope.
As markets remain sluggish in Europe, Group revenues
have been decreasing slightly in the bovine sector but
more significantly in the industrial sector (swine and
poultry) which suffers from the competition of emerging
In the other regions trends have been contrasted:
growth remains high in Brazil and India, although a bit   GROWTH AT CONSTANT
lower than these past years; conversely large markets           SCOPE
such as Australia, South Africa or Mexico recorded a            -2.3%
decrease for more temporary reasons, partially due to
the weather conditions.

The contribution of businesses acquired in 2012 is in
line with Group's plans. In particular Centrovet sales,
in Chile, amounted to 16.2 million Euros during the
first quarter.

Recent event and 2013 perspectives
Beginning of April Virbac's US affiliate announced to
its distributors that the supplying of its internal
parasiticide Iverhart Plus is being stopped
temporarily, due to the fact that certain lots                Of which :
manufactured recently were or might be below              COMPANION ANIMALS
specification in the potency level of one of the                -2.2%
actives before the expiry date of the product. Lots in
stock have been voluntarily withdrawn from distributors
and for some of them, recalled from veterinary
To overcome this interruption of supply and replace the
products withdrawn, Virbac US is offering Iverhart Max
to its customers, for a period of 6 months, at the
current price of Iverhart Plus. Iverhart Max, which is
not affected by this situation, combines a third active
ingredient to those contained in Iverhart Plus, which
provides a wider protection to dogs as it is active
against tapeworm in addition to protecting against
heartworm.                                              FOOD PRODUCING ANIMALS
This event and the low activity of the first quarter            -3.2%
will make it more difficult to achieve the ambition,
announced with the Group's 2012 financials, of a 5 to
7% organic growth and an increase by half a point of
operating profitability. Yet with the acquisitions made
in 2012, the growth potential of products recently
launched and of emerging countries, the Group remains
confident in its capacity to deliver an overall double
digit growth of its revenues and operating profit.

Virbac : sales growth of 3.6% in the first quarter


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Source: Virbac via Thomson Reuters ONE
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