Virbac : Virbac : sales growth of 9.4% in the second quarter

         Virbac : Virbac : sales growth of 9.4% in the second quarter

Public release - July 18th, 2013                             NET SALES
                                                           First Half 2013
Virbac consolidated sales in the second quarter reached        372.0 M€
189.2 M€, a +9.4% growth compared to the same period of
2012 or +11.7% excluding still unfavourable exchange
rates. At constant rates and scope, i.e. excluding OTC
businesses divested as well as acquisitions realized in
2012, sales increased by +1.3% this quarter, a rebound
after the low start of the year but yet a moderate
This is partly due to market dynamics which remained
rather low during this quarter, still impacted by the        TOTAL GROWTH
difficult economic environment in Europe and by weather         +6.5%
conditions remaining unfavourable in many regions,
leading to less pathology. In addition, one specific
factor is affecting Virbac's growth like in the first
quarter: the decrease of sales of the CaniLeish vaccine
in Southern Europe due to the built-in impact of the
vaccination protocol, which needs one repeat injection
from the second year after three injections in the
first year.
In the USA, as announced early April, stocks of the       GROWTH AT CONSTANT
internal parasiticide Iverhart Plus have been               EXCHANGE RATES
voluntarily withdrawn from distributors due to                  +8.6%
stability reasons and sales of the product have been
stopped temporarily. The vast majority of distributors
and clinics have rapidly switched to the alternative
specialty product offered by Virbac, Iverhart Max,
which provides a wider protection to dogs and is being
currently sold at the price of Iverhart Plus. Overall,
sales in the US during this quarter were slightly up.

Year-to-date, first half sales amount to 372.0 M€       EVOLUTIONAT CONSTANT
compared to 349.4 M€ in 2012, a +6.5% nominal growth or         SCOPE
+8.6% at constant exchange rates. This performance is           -0.5%
coming from recent acquisitions while organically,
sales decreased slightly by -0.5%, due to the addition
of both market factors (economic slow down, pathology)
and more specific factors, especially the high
comparison basis set last year by the launch of
CaniLeish in major European markets and the strong
growth of Iverhart in the US following the absence of a
competitor from the market. The impact of the decline
of these two brands on the organic growth in the first        Of which :
half is around -1.5% each.                                COMPANION ANIMALS
In addition, the divestments of OTC businesses                  -0.5%
generated a -1.5% decrease.
Lastly, the contribution of 2012 acquisitions is in
line with expectations. In particular sales of
Centrovet in Chile reached 35.5 M€ and have grown by
+6% on a pro-forma basis as compared to the first half
of 2012.

From a regional perspective, emerging markets (Latin
America, India, Asia) enjoyed a significant growth,     FOOD PRODUCING ANIMALS
compensating for the slow down recorded in Europe and           +0.5%
other developed countries (Japon, Australia). In the
US, sales during this first half remained stable
despite the negative impact of the Iverhart Plus
withdrawal, thanks to a good substitution with Iverhart
Max and the growth of other product ranges, including
products recently launched.

In terms of species, sales in the companion animals segment decreased
slightly, -0.5%, essentially due to CaniLeish and low market trends in Europe
and to the Iverhart situation in the US. Sales in the food producing animals
segment increased slightly, +0.5%: the growth in the emerging countries is
offset by the negative performance in Europe and in Australia. Globally, sales
are progressing in the bovine sector (+1.8%) but decrease in the swine and
poultry sector (-4.4%), essentially in Europe.

                                                           Evolution Evolution
Consolidated                                                  at        at
numbers     2013  2012     %    constant  constant
Unaudited - in million Euros                       change  exchange  scope and
                                                             rates   exchange
Net sales - 1^st quarter               182.8 176.4  +3.6%    +5.6%     -2.3%
Net sales - 2^nd quarter               189.2 173.1  +9.4%   +11.7%     +1.3%
Net sales - 1^st half                 372.0 349.4  +6.5%    +8.6%     -0.5%

Virbac sales H1 2013


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Source: Virbac via Thomson Reuters ONE