Virbac : growth of half-year results
(Thomson Reuters ONE) -
Virbac: growth of half-year results
Public release - September 19th, 2016
CONSOLIDATED DATA AS OF
JUNE 30th % change
in million Euros 2016 2015 2016/2015
Revenue from ordinary activities 430.0 432.3 -0.5%
Evolution at constant exchange rates +3.6%
Evolution at constant scope and exchange
rates +3.5%
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Current operating profit - adjusted
(excluding amortization of intangibles
from acquisitions) 39.7 27.4 +44.8%
As a % of sales 9.2% 6.3%
Amortization of intangibles from
acquisitions 8.2 9.6
Operating profit from ordinary
activities 31.5 17.8 +76.8%
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Non-recurring expenses and revenues 0.0 7.9
Operating profit 31.5 10.0 +216.0%
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Net consolidated profit 15.2 -0.5 +3384.5%
Of which net profit - Group share 13.1 -3.8 +442.5%
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Shareholder's equity 443.0 430.7 +2.9%
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Net financial debt (1) 606.8 632,4 -4.0%
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Operating cash-flow before interest and
tax (2) 52.0 43.4 +19.9%
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(1) Net financial debt corresponds to the current and non-current financial
liabilities less cash and cash equivalents as reported in the statement
of financial position
(2) Operating cash-flow before interest and tax corresponds to the operating
profit adjusted for items with no cash impact namely the amortizations
and depreciations of assets, provisions for liabilities , provisions related
to employee benefits , and any other expenses or revenues with no cash
impact
The financial statements have been subject to a limited review by the
auditors; issuance of their report is ongoing.
They are available on www.virbac.com
Net revenue in the first-half recorded an overall change of -0.5%, negatively
impacted by the unfavorable evolution of exchange rates; at constant exchange
rates, the growth is +3.6%, of which +3.5% organic. The growth is driven by a
good performance of all geographies, except Chile benefiting from the ramp-up of
the new parasiticides products for companion animals, recently launched in
Europe, the good dynamic of the ranges for food producing animals in emerging
countries, and the gradual recovery in sales of historic ranges in the United
States.
Presentation of operating profit. Because of the importance of external growth
transactions realized in the last years, the amortization expense related to
intangible assets valued according to the purchase price allocation of these
acquisitions is significant. In order to facilitate the reading of the Group's
operating performance, this amortization expense is since June 30, 2015
identified on a separate line in the current operating profit, which is
consequently presented adjusted or not from such expense. This item amounted to
8.2 million ? in the first-half, compared to 9.6 million ? in 2015.
Besides, certain accounting entries resulting from the application of IFRS
principles may have an exceptional incidence on operating profit (it is the case
in 2015, where a non-recurring expense of 7.9 million ? related to the
revaluation of finished goods inventories from the Sentinel acquisition at net
realisable value, equal to the full-year impact, was recorded in the first-
half).
The current operating profit -adjusted, before any impact of the above items
amounts to 39.7 million ?, a strong growth compared to last year (27.4 million
?) due particularly to the improved result of the U.S. subsidiary. In total, the
U.S. subsidiary has recorded during this half-year, a positive operating
contribution (excluding R & D) of 2.2 million $ (2.0 million ?) against - 10.8
million $ (-9.7 million ?) in 2015 thanks to improved margins and lower
exceptional expenses.
Outside of the United States, the current operating profit - adjusted is growing
by around +6.1 million ? at comparable rates thanks to the good contributions of
Europe, Asia-Pacific and Latin America with the exception of Chile, penalized by
the sanitary situation. Conversely the overall evolution of exchange rates since
the beginning of the year had a negative impact of around 7 million ?.
The net profit - Group share amounts to 13.1 million ?, significantly above last
year (-3.8 million ?). It includes the entries mentioned above related to
amortization, as well as financial expenses which have increased as a
consequence of the Sentinel acquisition, financed through debt.
From a financial standpoint, Virbac's financial debt was down -25.6 million ?
compared to the same period of 2015. Due to the seasonality of working capital
needs, the Group should significantly decrease its debt during the second part
of 2016.
Perspectives
In the United States, as a follow-up of the inspection initiated in December
2014, the FDA (Food and drug administration) has inspected the manufacturing
site of St. Louis from August 9 to September 7, 2016. Following this inspection,
the FDA has provided the company Virbac Corporation with a 483 report containing
five observations. In accordance with standard procedures, the FDA did not make
any comment, at this stage, regarding the suspension or not of the warning
letter received in December 2015. Virbac has now fifteen days after the receipt
of the 483 report to answer to the FDA, which will then decide on the
consequences of this inspection within a period that usually ranges from two to
six months.
To take into account new elements, in particular the market conditions in Chile
and in the United States (increased competition on Sentinel) as well as the
unfavorable evolution of exchange rates, and to reflect a residual variability
in the manufacturing and commercial activities in the US by the end of December,
the Group has decided to update its outlooks as follows:
· organic sales growth is expected to range between 4.5% to 6.5%;
· operating profit - adjusted is expected to be above 10% at constant exchange
rates;
· net debt will improve by approximately 50 million ? in 2016;
· net debt to EBITDA ratio is expected to be around 4.5 at constant exchange
rates.
Analyst presentation - Virbac
Virbac will hold a meeting on Tuesday, September 20, 2016 at 08:30 AM Central
European Summer Time.
Audience members may arrive 15 minutes in advance of this time.
Please note that all online participants will be in a listen-only mode. All
submitted questions will be answered by e-mail after the conference.
To listen to the presentation by phone, please join the conference call by
dialing one of the access numbers followed by the Participant PIN code.
CONFERENCE CALL ACCESS DETAILS
FR : +33 1 72 00 15 10
UK : +44 203 043 2440
US : +1 877 887 4163
French - Participant PIN : 58759296#
English - Participant PIN : 67025407#
Virbac: growth of half-year results:
http://hugin.info/136717/R/2043087/762724.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Virbac via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 19.09.2016 - 17:45 Uhr
Sprache: Deutsch
News-ID 495609
Anzahl Zeichen: 9050
contact information:
Town:
Carros
Kategorie:
Business News
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