Virbac: slight increase in first half results
(Thomson Reuters ONE) -
Virbac: slight increase in first half results
Press release issued on September 11, 2017
CONSOLIDATED DATA AS OF
JUNE 30(th)
in million ? 2017 2016 % change 2017/2016
Revenue from ordinary activities 437.5 430.0 +1.8%
Evolution at constant exchange
rates -0.5%
Evolution at constant exchange
rates and scope (1) -0.5%
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Current operating profit before
depreciation of assets arising from
acquisitions (2) 40.7 39.7 +2.5%
As a % of sales 9.3%
As a % of sales at constant rates 9.2% 9.2%
Amortization of intangibles from
acquisitions 8.2 8.2
Current operating profit 32.5 31.5 +3.2%
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Non-recurring expenses and revenues 0.0 0.0
Operating profit 32.5 31.5 +3.2%
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Net consolidated profit 16.0 15.2 +5.6%
Of which net profit - Group share 13.9 13.1 +6.3%
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Shareholders' equity - Group Share 471.9 443.0 +6.5%
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Net debt (3) 542.9 606.8 -10.5%
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Operating cash flow (before
interest and taxes) (4) 56.1 52.0 +7.8%
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(1 )The change at constant exchange rates and scope corresponds to organic
growth in sales excluding fluctuations in exchange rates by calculating the
indicator for
the year in question and that of the previous financial year based on
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 financial year in
question based on the consolidation scope of the previous financial year
(2 )The current operating profit before depreciation of assets arising from
acquisitions reflects current earnings adjusted for the impact of
contributions to amortization of
intangible assets arising from acquisition operations
(3 )The net debt corresponds to current (?102.5 million) and non-current
(?487.3 million) financial liabilities less cash and cash equivalents (?46.9
million) as
published in the Statement of Financial Position
(4 )The operating cash flow corresponds to operating profit (?32.5 million)
adjusted for items without cash impact. Thus amortization and depreciation of
fixed assets (?21.5 million),
provisions for risk (?0.9 million), provisions related to employee benefits
(?1.1 million), and other charges and income without cash impact (?0.1
million).
The financial statements were subjected to a limited review by auditors. They
are available at corporate.virbac.com
First-half revenue saw overall growth of +1.8%, marked by the favorable
evolution in exchange rates; at comparable rates and scope, sales are down
slightly at -0.5%. The Group's sales numbers are mixed in the first half. They
show growth in certain emerging countries (China, Brazil, Mexico) due in
particular to the dynamism of product lines for food producing animals. But this
does not, however, make up for the drop in the United States, where sales to
distributors were impacted by a commercial recovery that was slower than
planned, and price pressure particularly on the Sentinel line. It should be
noted that first-half revenue includes the proceeds from a licensing agreement
of ?2.8 million.
The current operating profit before depreciation of assets arising from
acquisitions amounts to ?40.7 million, up from the first half of 2016 (?39.7
million). Exchange rates had a positive impact on adjusted operating profit up
to +1.4 million ?. Operating profit benefits from strong performance in many
countries, particularly in Latin America, as well as from cost control and to a
lesser extent from a slight decrease in expenditures on R&D. This is partly
offset by weaker sales recorded in the United States, which negatively impacted
the cost of goods sold.
The net profit - Group Share amounts to ?13.9 million, an increase of +6.3%
compared to the first half of 2016. This is despite the increase in financial
costs which, in June 2016, had enjoyed a positive foreign currency exchange
impact on Centrovet's debt, related to the change in the Chilean peso. This
currency's stability during this half did not allow for the same positive
effect. To a lesser extent financial costs were also impacted by the increase in
financial expenses.
From a financial standpoint, the Group's net debt is at ?542.9 million, down by
?4.2 million compared to December 31, 2016. Traditionally, the Group records an
increase in funding needs in the first half, related to the seasonal increase in
working capital requirements. The lack of a dividend payment by Virbac SA on
2016 profits, a strict audit of working capital requirements, and the further
development of operating funding solutions (factoring in certain subsidiaries)
helped to limit this increase. Furthermore, the debt benefited from a positive
euro/dollar exchange impact. At constant parity, the debt would have been
approximately ?30 million greater. Thus, the Group is in compliance with the
financial ratio (Net debt/EBITDA), at 4.64 versus 5.5, the maximum limit set at
the end of June, 2017 as part of the financial covenant.
Outlook
Given the slower than expected recovery in the United States, and despite
overall performance at the level expected in the other regions, the Group's
revenue at constant exchange rates is expected to be around 2016 in 2017.
For the full year, the Group anticipates a ratio of "current operating profit
before depreciation of assets arising from acquisitions" to "net sales", at
constant exchange rates, at the level of 2016. The progression of this ratio may
be higher at current exchange rates.
From a financial standpoint, tight control of invested capital and the impact of
the appreciation of the euro against the dollar should allow further debt
reduction, which should be between ?30 million and ?50 million for the year.
Furthermore, as part of its funding policy, the Group strengthened its liquidity
through establishment of a medium-to-long-term line of credit of up to USD90
million. This new line thus completes the RCF line (Revolving credit facility)
of ?420 million, signed in 2015, with historical banking pool, bilateral lines
and outstanding Schuldschein loans. As with the situation at the end of June
2017, the Group should be able to fulfill its financial covenant set at 4.75
(Net debt/EBITDA) by December 31, 2017.
Analysts' Presentation -
Virbac
A SFAF meeting for analysts will be held on Tuesday, September 12, 2017 at 2:30
pm CET -Paris time in the New York Room #Cloud Business Center, 10 bis, rue du
4 Septembre, 75002 in Paris (France).
Participants may arrive 15 minutes before the start of the meeting.
You may also attend the meeting using the webcast available via the link below.
INFORMATION FOR PARTICIPANTS
Webcast access link:
http://event.onlineseminarsolutions.com/
r.htm?e=1481373&s=1&k=B9DC1B8940152A565144056C5BF7CE82
This link allows participants to access the live and/or archived version of the
Webcast.
There will be no real-time interaction. You may send us your questions, if
necessary, via our email address: finances(at)virbac.com.
Virbac: slight increase in first half results:
http://hugin.info/136717/R/2132692/815472.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: 11.09.2017 - 17:45 Uhr
Sprache: Deutsch
News-ID 559461
Anzahl Zeichen: 9483
contact information:
Town:
Carros
Kategorie:
Business News
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