Animalcare Group Plc · LSE:ANCR
Animalcare — H1 2024 Earnings Presentation
23 slides from Animalcare's earnings presentation, Sep 24, 2024
Slide 1: Interim results 2024
I N VE S TO R PR E S E N TAT I ON Interim results 2024 Jenny Winter, Chief Executive Officer Chris Brewster, Chief Financial Officer
Slide 2: Disclaimer
Disclaimer The information contained in this confidential document (“Presentation”) has been prepared by the Company. It has not been verified by the Company and is subject to material updating, revision and further amendment. This Presentation has not been approved by an authorised person in accord
Slide 3: Strategic priorities underpinned by strong foundations
Strategic priorities underpinned by strong foundations ORGANIC GROWTH INORGANIC GROWTH NEW PRODUCT DEVELOPMENT Develop and nurture new and Pursue external opportunities Leverage our science focus and existing veterinary brands that that enhance revenue and development capability to deliver sustainab
Slide 4: H1 highlights: commercial delivery, strategic progress
H1 highlights: commercial delivery, strategic progress ORGANIC GROWTH INORGANIC GROWTH NEW PRODUCT DEVELOPMENT • Strong double-digit growth from • Animalcare continues to be • Pre-clinical and clinical studies Plaqtiv+ (up 36%) dental range highly active in pursuit of M&A ongoing with VHH antibodies
Slide 5: Dynamic, growing animal health market
Dynamic, growing animal health market Competitive sector with attractive long-term fundamentals • Average c5% sales growth reported by top 10 animal health companies in H1 2024 (H1 2023: c4%) • Companion Animals sector remains main driver of 46% of European growth households • Continuing high levels
Slide 6: Strong H1 performance; FY24 in line with market expectations
Strong H1 performance; FY24 in line with market expectations Revenue Underlying1 EBITDA ↑5.0% (↑7% CER) ↑2.5% 2024 2023 2024 2023 H1 £36.9m £6.6m H1 £36.9m £6.6m H1 H1 £35.2m £6.5m Underlying EBITDA margin 18.0% (H1 2023: 18.4%) Gross margin 2024 2023 Net cash2 2024 2023 ↑0.5% H1 56.5% H1 56.5% £32.
Slide 7: Growth in revenues and EBITDA
Growth in revenues and EBITDA Change at Six months to 30 June 2024 2023 AER Revenue £36.9m £35.2m 5.0% Gross profit £20.9m £19.7m 6.0% Gross margin % 56.5% 56.0% 0.5% Underlying EBITDA £6.6m £6.5m 2.5% Underlying EBITDA margin % 18.0% 18.4% (0.4%) Underlying financial results Revenue increase of 5.0
Slide 8: Companion Animals: long-term growth fundamentals
Companion Animals: long-term growth fundamentals H1 2024 revenue £24.4m ↑0.1% Companion Animals: Companion Animals H1 performance summary • Revenues in line with prior period • Revenue positives offset by a • Strong double-digit growth from combination of sales phasing within Plaqtiv+ dental range (
Slide 9: Production Animals: strong H1 performance
Production Animals: strong H1 performance H1 2024 revenue Production Animals: H1 performance summary • Revenues, chiefly generated by our • Strong performance reflected Southern European and growth in certain larger selling International Partners operations, brands, order phasing and one-off up 14.3
Slide 10: Equine: attractive growing market
Equine: attractive growing market H1 2024 revenue Equine: H1 performance summary • Sales increased by 20.3% to • During the period, the Group £3.6m, benefiting from continued received approval for a number of £3.6m ↑20.3% momentum of Danilon within the territory expansions for Danilon; UK market and
Slide 11: Key brands in growing markets
Key brands in growing markets Delivering sustainable future growth CA portfolio across lifetime stages of pet Increasing life Increasing pet Value drivers Mature products Generic versus expectancy population with strong brands novel; % moving and differentiation towards novel continue to products Co
Slide 12: Organic growth: new products helping drive revenues
Organic growth: new products helping drive revenues Daxocox: 41% revenue growth in competitive market Plaqtiv+: 36% sales increase over the period Growth factors: Growth factors: • Increasing size of elderly dog population • Dental disease a growing segment; forecast >6% to 2031 • Prevalence of oste
Slide 13: Divestments significantly strengthen deal firepower
Divestments significantly strengthen deal firepower H1 2024 H1 2023 Transformed balance sheet supports pursuit Underlying EBITDA (cont. & discontinued) £6.9m £7.2m of growth opportunities Net working capital movement (£1.2m) (£3.4m) • Cash conversion rate improved to 78.3% Other (tax and other adjus
Slide 14: Future growth strategy driven by M&A, BD and NPD
Future growth strategy driven by M&A, BD and NPD Opportunity assessment: active and disciplined Geographic • Focus on Europe, US and selected RoW markets footprint • Drives additional revenue and EBITDA Geography Companies Early NPD • Increases attractiveness for in-licensing and /brands assets valu
Slide 15: Continuing to build a balanced pipeline for the future
Continuing to build a balanced pipeline for the future Increasing investment in R&D to deliver future growth and greater novelty Focused on products meeting unmet clinical need, of Extension of existing products commercial value, technically to add indications or feasible, providing a strong formula
Slide 16: VHH antibody-based development programme progressing
VHH antibody-based development programme progressing • Pre-clinical and clinical studies are progressing • Short term clinical focus on the use of VHH antibodies in equine indications • Further development planning for the use of VHH antibodies in additional indications and species ongoing 16
Slide 17: Capital allocation aligned to our strategic priorities
Capital allocation aligned to our strategic priorities Investing in accelerating growth and value creation while rewarding shareholders Capital priorities £11.8m returned to shareholders over last five years through dividends Organic growth • Continued investment in people and operational excellence
Slide 18: Summary and outlook
Summary and outlook • Group delivers revenue growth from continuing operations, notably in Production Animals and Equine • Strong double-digit growth of Daxocox and Plaqtiv+; key products benefiting from focus on sales and marketing excellence • Increase in underlying EBITDA reflects improved gross
Slide 19: Interim results 2024
I N VE S TO R PR E S E N TAT I ON Interim results 2024
Slide 20: Appendix
APPENDIX > animalcare Animal ROUP
Slide 21: Condensed consolidated income statement (unaudited)
Condensed consolidated income statement (unaudited) For six months ended 30 June Underlying Non-Underlying Total Underlying Non-Underlying Total 2024 2024 2024 2023 2023 2023 £'000 £'000 £'000 £'000 £'000 £'000 Revenue 36,915 − 36,915 35,170 − 35,170 Cost of sales (16,044) − (16,044) (15,486) − (15,
Slide 22: Consolidated cash flow (unaudited)
Consolidated cash flow (unaudited) For six months ended 30 June 2024 2023 2024 2023 £'000 £'000 £'000 £'000 Operating activities Investing activities Profit before tax from continuing operations 6,023 2,397 Purchase of property, plant and equipment (58) (225) Profit/(loss) before tax from discontinu
Slide 23: Pro-forma income statement (unaudited)
Pro-forma income statement (unaudited) For year ended 31 December 2023 Underlying Non-Underlying Total 2023 2023 2023 £'000 £'000 £'000 Revenue 70,733 − 70,733 Cost of sales (30,566) − (30,566) Gross profit 40,147 − 40,147 SG&A expenses (31,358) (4,784) (36,142) Operating profit/(loss) 8,789 (4,784)