Virbac Sa · EURONEXT:VIRP
Virbac Sa — H1 2022 Earnings Presentation
32 slides from Virbac Sa's earnings presentation, Sep 16, 2022
Slide 1: 2022 half year results & perspectives
2022 half year results & perspectives September 16, 2022 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: Agenda
AGENDA 2022 half year results Strategy execution & perspectives Appendix : 2022 agenda 3
Slide 4: Financials – Summary (1/4)
FINANCIALS – SUMMARY (1/4) H1-2022 Strong sales organic growth of 12.0% @ constant rates • Driven by solid performance in all areas • In a context of good market dynamics in the first half despite the anticipated slowdown vs. 2021 market trends Increase of Ebit adjusted (Ebita1) +7.4 M€ @ constant e
Slide 5: Financials – Summary (2/4)
FINANCIALS – SUMMARY (2/4) H1-2022 5
Slide 6: Financials – Summary (3/4)
FINANCIALS – SUMMARY (3/4) H1-2022 • Net profit : 77.6 M€ (vs. 73.7M€ in 2021 restated1) @ real rates essentially impacted by: • + Higher level of sales and related EBIT adjusted increase • - Higher financial expenses mainly due to unfavorable exchange rate impacts essentially related to CLP exchang
Slide 7: Consolidated Sales (4/4)
CONSOLIDATED SALES (4/4) H1-2022 7
Slide 8: Sales Evolution
Me A2021 23.2 19.9% 38.0 15.6% 6.2% 11.8 14.0 Y 86.9 M€ (16.4%) at actual rates 63.8 M€ (12%) at constant rates Europe North America ROW Exchange rates A 2022
Slide 9: Sales Growth by Region
SALES GROWTH BY REGION H1-2022 At constant rates Europe North America 241.0 M€ Asia 70.8 M€ +6.2% 104.1 M€ +19.9% +10.8% Pacific 61.3 M€ +22.9% Africa/Middle East Latin America 23.8 M€ 92.2 M€ +24.6% +14.6% 9
Slide 10: Sales Growth by Segment - Companion Animals
SALES GROWTH BY SEGMENT - COMPANION ANIMALS H1-2022 At constant rates M€ 10
Slide 11: Sales Growth by Segment - Food Producing Animals
SALES GROWTH BY SEGMENT - FOOD PRODUCING ANIMALS H1-2022 At constant rates M€ Bovine, Swine & Poultry 11
Slide 12: Sales Breakdown by Region and Business
SALES BREAKDOWN BY REGION AND BUSINESS H1-2022 ( ) : 2021 * Australia, New Zealand, Japan, Korea 12
Slide 13: Profit & Loss Statement at Real Rates
PROFIT & LOSS STATEMENT AT REAL RATES H1-2022 1 Net opening balance restated as a consequence of the IFRIC update related to the configuration and customisation costs in a cloud computing arrangement, which led to a change in accounting policy with a retrospective effect as of January 1, 2020 (net i
Slide 14: Breakdown of Ebit Adjusted Evolution
BREAKDOWN OF EBIT ADJUSTED1 EVOLUTION H1-2022 M€ 1 Ebit adjusted : current operating profit before depreciation of assets arising from acquisitions 2 RDL : Research, Development & Licensing 14
Slide 15: Evolution of Cash Flow
EVOLUTION OF CASH FLOW H1-2022 M€ 15
Slide 16: Evolution of Free Cash-Flow
EVOLUTION OF FREE CASH-FLOW H1-2022 M€ 2021.06 2022.06 (restated) 16
Slide 17: Evolution of Net Debt
EVOLUTION OF NET DEBT H1-2022 M€ Closing net debt @ constant rate & scope –15.9 M€ (+58.0 M€ vs. 12/2021) 1 2 3 1 WCR movements at average rates 2 Includes disposal of assets and change in financial assets (mainly holdback amount) 3 Includes non cash IFRS 16 variations 17
Slide 18: Balance Sheet Analysis
BALANCE SHEET ANALYSIS H1-2022 M€ 708.3 857.1 708.3 857.1 1 1 WCR movements at closing rates 18
Slide 19: Balance Sheet – Financial Ratios
BALANCE SHEET – FINANCIAL RATIOS H1-2022 2021.06 2021.12 2022.06 Restated 19
Slide 20: Shareholding as of June 30, 2022
SHAREHOLDING AS OF JUNE 30, 2022 Number of shares: 8 458 000 20
Slide 21: Agenda
AGENDA 2022 half year results Strategy execution & perspectives Appendix : 2022 agenda 21
Slide 22: Main 2022 Half Year Achievements (1/2)
MAIN 2022 HALF YEAR ACHIEVEMENTS (1/2) Main achievements Another very strong performance • Operational excellence: rapid adaptation of our teams to the context evolution, inflation pressures, covid constraints, and +12.0% at constant rates and scope (of market dynamics to capture main opportunities
Slide 23: Main 2022 Half Year Achievements (2/2)
MAIN 2022 HALF YEAR ACHIEVEMENTS (2/2) Geographies MAIN 2020 COMMERCIAL ACHIEVEMENTS (2/2) ➢ Most countries growing double digit, especially USA, India, Australia, UK, Brazil, Mexico, Italy, Europe Export… Product ranges ➢ Busters commercial programs keep delivering double digit growth yoy: ○ Pet Fo
Slide 24: Geographies: Focus USA (1/4)
GEOGRAPHIES: FOCUS USA (1/4) ➢ Strong 2022 half year performance: +20.0% @ constant rate : US $85.4 million in 2022 vs. US $71.2 million in 2021 ➢ Major dynamics within our U.S. portfolio: ■ Among existing products, dentals with the Veggiedent flagship, dermatology with the brands Easotic and EpiOti
Slide 25: Geographies: Focus Australia (2/4)
GEOGRAPHIES: FOCUS AUSTRALIA (2/4) ➢ Leading the half year growth beyond the US: +9.7 M€ (+24.2%) at constant rates ■ Continuous strong demand on the back of favorable agricultural context (rain/prices/restocking…) ■ Good control of generic competition (Multimin) ■ Good growth of Stelfonta/Suprelori
Slide 26: Geographies: Focus India (3/4)
GEOGRAPHIES: FOCUS INDIA (3/4) ➢ Leading the half year growth beyond the US: +9.2 M€ (+17.4%) at constant rates ■ Commercial excellence and good mastery of supply chain parameters thanks to our leading position ■ The overall demand remains positive excluding poultry segment ➢ Perspectives for 2022 ■
Slide 27: Geographies: Focus China (4/4)
GEOGRAPHIES: FOCUS CHINA (4/4) ➢ H1 2022 results & strategy roll-out impacted by Covid-19 related lockdown ■ Revenue at -7.4% at constant exchange rate vs. H1 2021 essentially linked to Covid-19 ■ Some launches and recruitment delayed by the Covid situation ➢ Perspectives for 2022 ■ Market rebound e
Slide 28: 2022 Perspectives (1/2)
2022 PERSPECTIVES (1/2) ➢ Covid-19 Pandemic ■ The Covid pandemic notably impacted China during H1 2022 ■ The drastic restrictions implemented weighed on the Chinese economy and resulted in a slowdown in our activity in the country ■ We expect a rebound of our activity throughout the year in China ➢
Slide 29: 2022 Perspectives (2/2)
2022 PERSPECTIVES (2/2) 2022 Guidance Total revenue between 5% to 10% @ cst rates and scope Ebit adjusted1 ratio to around 15% @ cst rates revenue Net debt decrease of ~30 M€ without dividends and @ Net Debt evolution cst rates and scope 1 Ebit adjusted: current operating profit before depreciations
Slide 30: Agenda
AGENDA 2021 financial highlights Strategy execution & perspectives Appendix : 2022 agenda 30
Slide 31: 2022 Agenda
2022 AGENDA April 14* Q1 sales June 21 Annual shareholders’ meeting July 19* Q2 - H1 sales September 15* Half-year financial results September 16 SFAF meeting - 1st half 2022 financial & strategic information October 18* Q3 sales January 18, 2023* Q4 - Full year sales * After market close 31
Slide 32: Shaping the future of animal health
Shaping the future of animal health 2