Virbac : strong rebound in profitability in 2016
(Thomson Reuters ONE) -
Virbac: strong rebound in profitability in 2016
Public release - March 13(th), 2017
CONSOLIDATED DATA AS OF
DECEMBER 31(st), 2016 % change
in million Euros 2016 2015 2016/2015
Revenue from ordinary activities 871.8 852.6 +2.3%
Evolution at constant exchange rates +4.5%
Evolution at constant exchange rates and
scope (1) +4.4%
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Current operating profit before
depreciation of assets arising from
acquisitions (2) 82.9 57.5 +44.2%
As a % of sales 9.5% 6.7%
As a % of sales at constant exchange rates 10.4% 6.7%
Amortization of intangibles from
acquisitions 16.5 19.2
Operating profit from ordinary activities 66.4 38.3 +73.3%
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Non-recurring expenses and revenues -2.6 3.8
Operating profit 69.0 34.5 +100%
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Net consolidated profit 37.9 12.7 +198.9%
Of which net profit - Group share 34.6 9.4 +268.4%
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Shareholder's equity 473.6 438.4 +8%
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Net debt (3) 547.1 605.0 -9.6%
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Operating cash flow (4) 110.7 86.4 +28.1%
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(1 )The change at constant exchange rates and scope corresponds to the organic
growth in sales excluding exchange rate changes by calculating the indicator for
the current
year and the previous year on the basis of identical exchange rates (the
exchange rate used is that of the previous financial year), and excluding
variation of the scope
by calculating the indicator for the year under review on the basis of the
consolidation scope of the previous financial year
(2 )The current operating profit before depreciation of assets arising from
acquisitions reflects the adjusted earnings for the impact of depreciation and
amortization of intangible
assets arising from acquisitions
(3 )The net debt corresponds to current financial liabilities (? 157.1 million)
and non-current financial liabilities (? 438.5 million) minus cash and cash
equivalents
(? 48.5 million) as published in the statement of financial position
(4 )The operating cash flow corresponds to operating profit (? 69.0 million)
restated for items not having a cash impact. Amortization and depreciation of
fixed assets
(? 43.0 million), provisions for risks (? 0.3 million), provisions related to
employee benefits (? 0.6 million) and other charges and income without cash
impact (-2.1 M ?)
The financial statements have been audited; issuance of the auditors' report is
ongoing.
Financial statements are available on
www.virbac.com
Annual net revenue reached 871.8 M?, a +2.3% growth, impacted by the unfavorable
evolution of exchange rates; at comparable rates, growth was + 4.5%, of which +
4.4% organic growth. With the exception of the Aquaculture, growth was driven by
a good performance in all regions, which benefited from the growth of the new
parasiticides products launched recently in Europe, the dynamism of the food
producing ranges in the emerging markets, and the gradual ramp-up in the US of
the historical range, even though it is somewhat lower than the expectations at
the beginning of the year. It should also be noted that the United States
benefited from a stocking effect from distributors in 2016, linked to the return
to the market of certain products at the end of the year, in particular Iverhart
Max, to a very gradual recovery of sales to clinics of reintroduced products, as
well as price increases as of January 1(st).
The current operating profit before depreciation of assets arising from
acquisitions is, as expected, up significantly in the second half (? 43.2
million compared to ? 39.7 million in the first half). Over the year as a whole,
it therefore stood at ? 82.9 million, up sharply (+44.2%) compared to last year,
despite the negative impact of 9.7 M? of the exchange rates. This change is
mainly due to the improvement in the US operating contribution generated on the
one hand by the increase in the margin linked to the gradual recovery of the
historical activity; and on the other hand to lower costs for depreciation and
destructions of inventories and lower consulting costs. The other regions also
contributed to the improvement in current operating profit thanks to the growth
in activity and margin and good control of expenses. The current operating
profit before depreciation of assets arising from acquisitions to revenues thus
stood at 9.5% in 2016 and 10.4% at constant exchange rates.
The net profit - Group share amounts to 34.6 M?, a +268% increase compared to
2015. It includes, on one hand, the decrease of the amortization expense of
intangibles assets related to acquisitions (16.5 M? compared to 19.2 M? in
2015); and on the other hand non-recurring expenses of purely accounting nature,
resulting from the application of IFRS principles related to Business
combinations (such as the cancellation of a debt on securities no longer
applicable in 2016); and lastly, the decrease in financial expenses, due to a
favorable currency impact, mainly in the Chilean subsidiary, which is benefiting
from a more favorable USD / CLP parity this year. This impact offsets the
increase in financial expenses.
From a financial standpoint, the decrease in the Group's net debt compared to
2015 stems mainly from good control of working capital requirements. Overall,
the net debt level, has declined, as expected in the second half of the year (-
57.9 M?) to 547.1 M?. At the end of 2016, these financial elements enable the
Virbac group to meet its obligations to its banking pool, renegotiated as part
of the waiver application, which was obtained unanimously in December 2016.
2017 Perspectives
2017 should see moderate growth of the Group's operations at constant exchange
rates. The outlook remains moderate in Europe and very good for Asia-Pacific and
Latin America. In the United States, the latest products that are still absent
from the market and do not require a change in their registration files will be
marketed again in the first months of the year. In parallel, as a consequence of
the lifting of the warning letter end 2016, Virbac United States can finally
work on file variations and consider new registrations. The volume of business
ex-distributors will continue to grow well in this country. On the other hand,
ex-Virbac sales are expected to be close to 2016 : the products sold to
distributors at the end of 2016, such as Iverhart Max, will have to be sold
before the restocking orders take momentum. In Chile, the aquaculture market
remains disrupted, so the Group does not yet expect an improvement in the
outlook in this country.
In this context, the Group's organic growth at constant exchange rates in 2017
should be at a low-single digit level (the evolution of 1(st) quarter sales is
expected to be negative compared to 2016). The gradual recovery in the United
States should result in an improvement in the margin. R&D spending will increase
slightly as a ratio on sales in order to pursue development programs. As a
result, the Group anticipates an improvement in the current profit before
depreciation of assets arising from acquisitions to sales, which should be
around +0.5 points at constant exchange rates, but could rise more at current
exchange rates. On the financial front, the recovery in profitability and a
strict control of the capital employed should allow for the continuation of the
deleveraging that will occur during the second half of the year, given the
Group's usual pattern of generation and consumption of cash, and should be
between 30 and 50 million ?.
A SFAF meeting for analysts will be held on Monday 13 March at 2.30 pm in the
Salon Club des Arts & Métiers, 9bis avenue d'Iéna - 75116 Paris.
For those who cannot get there, a webcast is provided. INFORMATION FOR
PARTICIPANTS
Webcast Link : http://event.onlineseminarsolutions.com/
R.htm? E = 1377956 & s = 1 & k = 73B31AFCCDDF50CE658B47FCD4291CDE
This link allows participants to access the live webcast and / or archive.
There will be no real-time interaction. You will be able to send us your
questions if necessary on our e-mail address:
finances(at)virbac.com.
Virbac: strong rebound in profitability in 2016:
http://hugin.info/136717/R/2087015/787548.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: 13.03.2017 - 07:15 Uhr
Sprache: Deutsch
News-ID 529642
Anzahl Zeichen: 10508
contact information:
Town:
Carros
Kategorie:
Business News
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