Virbac Sa · EURONEXT:VIRP
Virbac Sa — FY2022 Earnings Presentation
37 slides from Virbac Sa's earnings presentation, Mar 24, 2023
Slide 1: 2022 results & perspectives
2022 results & perspectives March 24, 2023 Shaping the future of animal health 1
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements with respect to Virbac’s profitability and financial condition, business operations, projects and outlook. Although Virbac’s management believes that such forward-looking statements are based on reasonable assumptions, as made as of th
Slide 3: Agenda
AGENDA 2022 financial highlights Strategy execution & perspectives Appendix : 2023 agenda 3
Slide 4: Financials – Summary (1/5)
FINANCIALS – SUMMARY (1/5) 2022 Strong sales organic growth of 9.6% @ constant rates • Driven by very solid performance in all areas except Chile • Strong momentum in key ranges growing double-digit (petfood, specialities, dentals, bovine parasiticides and nutritionals) offsetting aquaculture decrea
Slide 5: Financials – Summary (2/5)
FINANCIALS – SUMMARY (2/5) 2022 5
Slide 6: Financials – Summary (3/5)
FINANCIALS – SUMMARY (3/5) 2022 • Net profit : 121.3 M€ (vs. 115.7 M€ in 2021) @ real rates essentially impacted by: + Higher level of sales and related Ebit Adjusted increase - Higher non recurring expenses due to one-off depreciation of trademarks no longer used (-3.3 M€) + Lower financial expense
Slide 7: 2022 Financials – Summary (4/5): Guidance vs actuals
2022 FINANCIALS – SUMMARY (4/5) Guidance 2022 Actuals 2022 • Sales growth @constant rates and scope 6% - 9% +9.6% √ • Ebit Adj.1 ratio to revenue @ constant rates ~15.0% 15.4 % √ • Net Debt evolution @ constant rates & scope excluding dividends ~-35 M€ -30.5 M€ √ 1 Ebit Adj.: current operating profi
Slide 8: Consolidated Sales (5/5)
CONSOLIDATED SALES (5/5) 2022 8
Slide 9: Sales evolution
Me A 2021 5.9% 26.4 49.9 11.5% 56.3 15.7% 19.6 152.2 ME (14.3%) at actual rates 102.4 M€ (9.6%) at constant rates Europe North America ROW Exchange rates A 2022
Slide 10: Sales growth by region
SALES GROWTH BY REGION 2022 At constant rates Europe North America 475.6 M€ Asia 143.8 M€ +5.9% 209.3 M€ +15.7% +10.4% Pacific 113.7 M€ +20.9% Africa & Middle Latin America East 176.5 M€ 47.5 M€ +5.6% +19.5% 10
Slide 11: Sales growth by segment - Companion animals
SALES GROWTH BY SEGMENT - COMPANION ANIMALS 2022 At constant rates M€ 11
Slide 12: Sales growth by segment - Farm animals
SALES GROWTH BY SEGMENT - FARM ANIMALS 2022 At constant rates M€ Bovine, Swine & Poultry 12
Slide 13: Sales breakdown by region and business
SALES BREAKDOWN BY REGION AND BUSINESS 2022 29.7% (XX%) 9.6% (XX%) ( ) : 2021 * Australia, New Zealand, Japan, Korea 13
Slide 14: Profit & loss statement at real rates
PROFIT & LOSS STATEMENT AT REAL RATES1 2022 1 In order to improve the reading of the financial statements, the production subcontracting expenses have been reclassified from “External 14 expenses” to “ Cost of good sold”. The impact for 2021 amounts to 8.0 M€.
Slide 15: Breakdown of Ebit adjusted evolution
BREAKDOWN OF EBIT ADJUSTED1 EVOLUTION 2022 M€ 1 Ebit adjusted : current operating profit before depreciation of assets arising from acquisitions 2 RDL : Research, Development & Licensing 15
Slide 16: Evolution of cash flow
EVOLUTION OF CASH FLOW 2022 M€ 16
Slide 17: Evolution of free cash-flow
EVOLUTION OF FREE CASH-FLOW 2022 M€ 2022.12 2021.12 17
Slide 18: Evolution of net debt
EVOLUTION OF NET DEBT 2022 M€ Closing net debt @ constant rate & scope –93.8 M€ (-19.9M€ vs. 12/2021) 1 1 Includes non cash IFRS 16 variations (+11.3 M€) 18
Slide 19: Balance sheet analysis
BALANCE SHEET ANALYSIS 2022 M€ 708.3 812.0 708.3 812.0 19
Slide 20: Balance sheet – Financial ratios
BALANCE SHEET – FINANCIAL RATIOS 2020.12 2021.12 2022.12 Restated 20
Slide 21: Shareholding as of December 31, 2022
SHAREHOLDING AS OF DECEMBER 31, 2022 Number of shares: 8 458 000 21
Slide 22: Agenda
AGENDA 2022 financial highlights Strategy execution & perspectives Appendix : 2023 agenda 22
Slide 23: Key projects to support Virbac 2030
KEY PROJECTS TO SUPPORT VIRBAC 2030 ● Culture, purpose EHS Employees ● ● CSR/ESG ● Great Place to Work ● Company compliance (anti-corruption program,...) Innovation Acquisition Competitiveness How t o win ● R&D acceleration & ● Programmatic M&A and ● Industrial strategy and “Busters” programs (more
Slide 24: Virbac keeps over-performing the market (1/2)
VIRBAC KEEPS OVER-PERFORMING THE MARKET (1/2) WITH +8.7% vs. +4.3% MAT Q3 2022 24 Source : internal estimates at constant exchange rates using Q3 2022 FX rates as reference (Petfood not reported in Virbac performance)
Slide 25: Virbac keeps over-performing the market/business (2/2)
VIRBAC KEEPS OVER-PERFORMING THE MARKET/ BUSINESS (2/2) 25 Source : internal estimates at constant exchange rates using Q3 2022 FX rates as reference (Petfood not reported in Virbac performance)
Slide 26: Main 2022 achievements (1/2)
MAIN 2022 ACHIEVEMENTS (1/2) Main achievements Top AH organic growth* for a second • Mix geographies performance ○ excellent performance of Australia, Brazil, India consecutive year (2021 & 2022) ○ poor performance of Chile +9.6% at constant rates and scope + 14.3% at real scope & rates • Virbac 203
Slide 27: Main 2022 achievements (2/2)
MAIN 2022 ACHIEVEMENTS (2/2) Geographies MAIN 2020 COMMERCIAL ACHIEVEMENTS (2/2) ➢ Sustained growth in most countries, especially USA, India, Australia, UK, Mexico, Brazil... Product ranges ➢ Busters commercial programs keep delivering double digit growth yoy: ○ Petfood (+26%) / Veggiedent (+37%) /
Slide 28: Geographies: Focus USA (1/4)
GEOGRAPHIES: FOCUS USA (1/4) ➢ Strong 2022 annual performance: +15.7% @ constant rate : US $170.3 million in 2022 vs. US $147.2 million in 2021 (highest level of sales ever despite Sentinel divestment) ➢ Major dynamics within our U.S. portfolio: ■ Among existing products, dentals with the Veggiedent
Slide 29: Geographies: Focus China (2/4)
GEOGRAPHIES: FOCUS CHINA (2/4) ➢ 2022 results & strategy roll-out impacted by Covid-19 related lockdown ■ Revenue at +1.0% at constant exchange rate vs. 12/2021 essentially linked to Covid-19 ■ Increase proportion of our online sales (24% in 2022 vs. 22% in 2021). ■ Main launches and deployment of n
Slide 30: Geographies: Focus Australia & India (3/4)
GEOGRAPHIES: FOCUS AUSTRALIA & INDIA (3/4) AUSTRALIA INDIA ➢ Growth of +17.7 M€ (+24.7%) at ➢ Growth of +15.0 M€ (+14.6%) constant rates at constant rates ▪ Strong strategic relationships ▪ Commercial excellence with key customers (in a and good mastery of consolidated market). Virbac supply chain p
Slide 31: Geographies: Focus Chile (4/4)
GEOGRAPHIES: FOCUS CHILE (4/4) ➢ Declining revenues vs. last year : -15.3% at constant rates ➢ Loss of Formalin sales since July 2022 ➢ Significant market share loss in vaccines ➢ Decline in antibiotics sales ➢ Continuous R&D investments, especially in vaccines ➢ Perspectives for 2023 : Complex year
Slide 32: Estimated sales potential of main R&D projects
ESTIMATED SALES POTENTIAL1 OF MAIN R&D PROJECTS (March, 2023) Launch Companion Animals M€ Food Producing Animals M€ Year • Biologicals • Petfood/Pet Care • Parasiticides 2023 • Specialties 44 • Anti-infectives 8 • Miscellaneous • Biologicals • Anti-infectives • Petfood/Pet Care 2024 • Parasiticides
Slide 33: 2023 Perspectives (1/2)
2023 PERSPECTIVES (1/2) ➢ Geopolitical situation and inflation impacts ○ Limited exposure of Virbac sales to Russia and Ukraine < 0.5% of total revenue ○ Significant inflationary impacts on salaries, energy costs and others: ○ Salaries up overall at group level (impact of ~6%) ○ Electricity up by ar
Slide 34: 2023 Perspectives (2/2)
2023 PERSPECTIVES (2/2) 2023 Guidance Notes assumption of a normalized market growth (around 5%) with no major supply Total revenue between 4% to 6% @ cst rates and scope disruption and no major event (geopolitical included)… including a strategical Ebit adjusted1 between 13% to 14% @ cst rates over
Slide 35: Agenda
AGENDA 2022 financial highlights Strategy execution & perspectives Appendix : 2023 agenda 35
Slide 36: 2023 Agenda
2023 AGENDA April 17* Q1 sales June 20 Annual shareholders’ meeting July 18* Q2 - H1 sales September 14* Half-year financial results September 15 SFAF meeting - 1st half 2023 financial & strategic information October 23* Q3 sales January 17, 2024* Q4 - Full year sales * After market close 36
Slide 37: Shaping the future of animal health
Shaping the future of animal health 7