Virbac Sa · EURONEXT:VIRP
Virbac Sa — H1 2024 Earnings Presentation
33 slides from Virbac Sa's earnings presentation, Sep 16, 2024
Slide 1: 2024 half-year results & perspectives
2024 half-year results & perspectives September 16, 2024 Shaping the future of animal health
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: 2024 half-year financial highlights
2024 half-year financial highlights Habib Ramdani chief financial officer Strategy execution & perspectives 2024 financial calendar Q&A session 2024 HALF-YEAR RESULTS & PERSPECTIVES
Slide 4: 2024 Half-Year Financials – Summary (1/3)
2024 HALF-YEAR FINANCIALS – SUMMARY (1/3) HY24 net sales HY24 Ebit adjusted¹ €703m €150m Strong organic growth of +11.3% at constant exchange Ebit adjusted¹ increase by €40.9m (+37%) at constant rates and scope, reflecting exceptional momentum in exchange rates enabling an all-time high 21.3% Ebit g
Slide 5: 2024 Half-Year Financials – Summary (2/3)
2024 HALF-YEAR FINANCIALS – SUMMARY (2/3) Forex impact in €m Unfavorable on sales Unfavorable on Ebita¹ - €6.0m - €0.5m EUROPE ASIA/PACIFIC EUROPE ASIA/PACIFIC - €0.9m - €8.1m - €0.8m - €2.8m NORTH AMERICA LATIN AMERICA NORTH AMERICA LATIN AMERICA Nil + €3.0m - €0.2m + €3.3m 1 Ebita: current operati
Slide 6: 2024 Half-Year Financials – Summary (3/3)
2024 HALF-YEAR FINANCIALS – SUMMARY (3/3) HY24 net result Focus €95m Cash Operating profit increasing by +35.1% at actual rates to Net debt situation of €254.9m compared to net cash reach €146.7m, representing 20.9% of revenue, above situation of -€52.4m as of December 2023, mainly last year by +3.1
Slide 7: Consolidated Sales
CONSOLIDATED SALES €m Growth At CER2 & scope +11.3% 1 2 scope impacts arising from acquisitions: Globion in India and Sasaeah in Japan 7 at constant exchange rates
Slide 8: Sales Evolution by Region
SALES EVOLUTION BY REGION €m 1 2 RoW: Rest of the world 8 at constant exchange rates
Slide 9: Sales Growth by Region
SALES GROWTH BY REGION €m - At constant exchange rates Europe HY24 revenue €709m €282.1 +12.3% +16.1% North America €95.5 +22.2% €63.3 +65.8% Far East Asia India, Middle East & Africa €95.3 Latin America +19.1% Pacific €108.5 +10.5% €64.2 -0.8% 9
Slide 10: Sales by Segment
SALES BY SEGMENT €m - At actual rates 1 contract manufacturing 10
Slide 11: Sales Growth by Segment - Companion Animals
SALES GROWTH BY SEGMENT - COMPANION ANIMALS €m - At constant exchange rates and scope COMPANION ANIMALS +15.1% GROWTH +14.8% At CER¹ At actual rates 1 at constant exchange rates 11
Slide 12: Sales Growth by Segment - Farm Animals
SALES GROWTH BY SEGMENT - FARM ANIMALS €m - At constant exchange rates and scope FARM ANIMALS +7.0% GROWTH +6.3% At CER¹ At actual rates 1 at constant exchange rates 12
Slide 13: Sales Breakdown by Region & Segment
SALES BREAKDOWN BY REGION & SEGMENT €m - At constant exchange rates and scope Legend: 🡻/🡻%: 2024 growth at constant exchange rates and scope. 1Australia, New Zealand, Japan, Korea - 2contract manufacturing 13
Slide 14: Condensed Profit & Loss Statement
CONDENSED PROFIT & LOSS STATEMENT €m - At actual rates 2024 % 2023 % Net sales 702.9 100 610.5 100 Gross margin on purchasing costs 482.8 68.7 403.0 66.0 Net expenses -309.8 44.1 -273.0 44.7 Amortization, depreciations and provisions -22.7 3.2 -20.2 3.3 Current operating profit before depreciation o
Slide 15: Ebit Adjusted Evolution
EBIT ADJUSTED¹ EVOLUTION Ebit adjusted1 before R&D ratio to revenue €m 2023 2024@CER4 24.6% 27.9% 1 Ebit adjusted: current operating profit before depreciation of assets arising from acquisitions 2 RoW: Rest of the world 3 RDL: Research, development & licensing 4 at constant exchange rates 15
Slide 16: Cash Flow Evolution
30.4% 1 172.6 132.4 BB operating cash flow I Net cash flow 2023 2024
Slide 17: Free Cash Flow Evolution
FREE CASH FLOW EVOLUTION €m 2023.06 2024.06 1 working capital requirements 17 figures may not add due to rounding
Slide 18: Net Debt Evolution
NET DEBT EVOLUTION €m Closing net debt at constant rate & scope - €32.4m (+ €20m vs Dec 2023) 1 working capital requirements 2 3 Sasaeh, tranche 2 Globion and earn-out payment due on Centrovet 18 includes non cash IFRS 16 variations (+ €7.9m), non cash derivatives (+€ 1.1m) and non cash other financ
Slide 19: Condensed Balance Sheet Analysis
CONDENSED BALANCE SHEET ANALYSIS €m 2023.06 2023.12 2024.06 Net debt/shareholder’s equity, Group share -5.7% -5.8% 25.7% Net debt/net cash flow -0.3 -0.3 1.1 Net debt/operating cash flow -0.2 -0.2 0.7 19
Slide 20: Shareholding Structure as of June 30, 2024
SHAREHOLDING STRUCTURE AS OF JUNE 30,2024 20
Slide 21: Strategy execution & perspectives
2024 half-year financial highlights Strategy execution & perspectives Sébastien Huron Chief executive officer 2024 financial calendar Q&A session 2024 HALF-YEAR RESULTS & PERSPECTIVES
Slide 22: Main 2024 Half Year Achievements
MAIN 2023 HALF YEAR ACHIEVEMENTS ➤ Exceptional first half momentum + 16.1% at constant exchange rates fuelled by strong organic growth across all geographies ○ excellent performance in North America >20% growth1 ○ good performance in Europe and Latin America >10% growth 1 ○ exception of Pacific post
Slide 23: Focus Geographies
FOCUS GEOGRAPHIES USA CHILE 2024 half year performance: +22% @constant rate 2024 half year performance: +18% @constant rate Strong double digit performance of extended sales: prioritisation Parasiticide is showing a very good evolution due to climatic and focus on execution and channel strategy star
Slide 24: M&A Integration - Status Update
M&A INTEGRATION - STATUS UPDATE GLOBION SASAEAH Integration process very well advanced Japan new ExCom in place and integration governance set-up ● organisation fully integrated as of January 2024 ● new R&D organisation in place to boost pipeline of new Roll-out of final target organisation & operat
Slide 25: From December 2017 to June 2024
FROM DECEMBER 2017 TO JUNE 2024 Economic & financial performance ○ 2017: Virbac is heavily indebted, with 460 M€ in debt on sales of 862 M€ with low product margin and limited room for maneuver, with R&D expenditure of 69 million euros, Ebita of 9.3%, Ebit of 58 million euros (6.7% of sales) and net
Slide 26: From December 2017 to June 2024
FROM DECEMBER 2017 TO JUNE 2024 Social & ethical performance ○ GPTW: increase of our trust index from 64% in 2018, to 73% in 2021, to 75% in 2024 (+ 11 points over the period) and strong improvements in almost all dimensions (management + 16 points (+30 points in France), business conduct + 10 point
Slide 27: Virbac Performance Roadmap to 2030
VIRBAC PERFORMANCE ROADMAP TO 2030 ● GPTW +2 points at global level vs 2021 (+10 points in France) ● Improvement in diversity and Equality index in France Employees ● ● Code of conduct deployed all over the world Creation of an ESG department. CSR roadmap execution, with new ambitious objectives def
Slide 28: From ~16% Ebit adjusted in 2024 to ~20% before 2030
VIRBAC PERFORMANCE ROADMAP EXECUTION FROM ~16% EBIT ADJUSTED1 EXPECTED IN 2024 TO ~20% BEFORE 2030 4 points required to reach our target of 20% Ebit1 adjusted before 2030 coming from: Roadmap presented in March, 2024 ~ 2 points coming from R&D spending normalisation back to historical (2021) levels,
Slide 29: 2024 Outlook - Guidance
2024 OUTLOOK - GUIDANCE Guidance 2024 Net revenue growth at constant rates & scope +7% to +9% Ebita¹ ratio to revenue at constant rates & scope ~16% Net debt evolution at constant rates & scope ~+ €60m 1 Ebita: current operating profit before depreciation of assets arising from acquisitions 29
Slide 30: 2024 financial calendar
2024 half-year financial highlights Strategy execution & perspectives 2024 financial calendar Q&A session 2024 HALF-YEAR RESULTS & PERSPECTIVES
Slide 31: 2024 Financial Calendar – Upcoming Events
2024 FINANCIAL CALENDAR – UPCOMING EVENTS October 17, 2024* • Q3 Sales January 16, 2025* • Q4-Full year 2024 Sales *after market close 31
Slide 32: Q&A session
2024 half-year financial highlights Strategy execution & perspectives 2024 financial calendar Q&A session 2024 HALF-YEAR RESULTS & PERSPECTIVES
Slide 33: Shaping the future of animal health
Shaping the future of animal health