Virbac Sa · EURONEXT:VIRP
Virbac Sa — H1 2023 Earnings Presentation
34 slides from Virbac Sa's earnings presentation, Oct 9, 2023
Slide 1: 2023 half year results & perspectives
2023 half year results & perspectives October 9, 2023 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 2023 half year results Strategy execution & perspectives Appendix : 2023 agenda 3
Slide 4: Financials – Summary (1/4)
FINANCIALS – SUMMARY (1/4) H1-2023 Organic growth of 0.4% @ constant rates • Q2 performance (+2.1%) enabled to catch-up after slow start of the year • 1st half year impacted by two unfavorable one-off effects (dogs and cats vaccines’ manufacturing issues and cyber attack) • In a context of market sl
Slide 5: Financials – Summary (2/4)
FINANCIALS – SUMMARY (2/4) H1-2023 5
Slide 6: Financials – Summary (3/4)
FINANCIALS – SUMMARY (3/4) H1-2023 • Net profit : 74.8 M€ (vs. 77.6 M€ in 2022) @ real rates essentially impacted by: • Lower operating profit after RDL2 vs 2022 • Compensated by 0.9 M€ of net financial profit vs net financial losses recorded in 2022 (8 M€) due to unfavorable Chilean peso related ex
Slide 7: Consolidated Sales (4/4)
CONSOLIDATED SALES (4/4) H1-2023 7
Slide 8: Sales Evolution
i -5.9 M€ (-1%) at actual rates 2.3 M€ (0.4%) at constant rates A 2022 Europe North America ROW Exchange rates A 2023
Slide 9: Sales Growth by Region
SALES GROWTH BY REGION H1-2023 At constant rates Europe North America 250.9 M€ Asia 76.0 M€ +2.7% 107.9 M€ -2.6% -1.3% Pacific 68.2 M€ +8.2% Africa/Middle East Latin America 22.0 M€ 93.6 M€ +4.9% -7.0% 9
Slide 10: Sales Growth by Segment - Companion Animals
SALES GROWTH BY SEGMENT - COMPANION ANIMALS H1-2023 At constant rates M€ 10
Slide 11: Sales Growth by Segment - Farm Animals
SALES GROWTH BY SEGMENT - FARM ANIMALS H1-2023 At constant rates M€ Bovine, Swine & Poultry 11
Slide 12: Sales Breakdown by Region and Business
SALES BREAKDOWN BY REGION AND BUSINESS H1-2023 ( ) : 2022 * Australia, New Zealand, Japan, Korea 12
Slide 13: Profit & Loss Statement at Real Rates
PROFIT & LOSS STATEMENT AT REAL RATES H1-2023 1 13 1 restated for IAS12 amendment
Slide 14: Breakdown of Ebit Adjusted Evolution
BREAKDOWN OF EBIT ADJUSTED1 EVOLUTION H1-2023 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 H1-2023 M€ 15
Slide 16: Evolution of Free Cash-Flow
EVOLUTION OF FREE CASH-FLOW H1-2023 M€ 2022.06 2023.06 16
Slide 17: Evolution of Net Debt
EVOLUTION OF NET DEBT H1-2023 M€ Closing net debt @ constant rate & scope –63.4 M€ (-15.9 M€ vs. 12/2022) 1 2 3 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 H1-2023 M€ 857.3 812.2 897.8 857.3 812.2 897.8 2 2 2 2 2 1 1 1 WCR movements at closing rates 2 restated for IAS12 amendment 18
Slide 19: Balance Sheet – Financial Ratios
BALANCE SHEET – FINANCIAL RATIOS H1-2023 2022.06 2022.12 2023.06 Restated1 Restated1 1 Restated for IAS12 Amendment 19
Slide 20: Shareholding as of June 30, 2023
SHAREHOLDING AS OF JUNE 30, 2023 Number of shares: 8 458 000 20
Slide 21: Agenda
AGENDA 2023 half year results Strategy execution & perspectives Appendix : 2023 agenda 21
Slide 22: Main 2023 Half Year Achievements
MAIN 2023 HALF YEAR ACHIEVEMENTS Remarkable resilience demonstrated Products Focus ○ slight growth at constant rate despite ○ Petfood keeps delivering growth at cst rate: +19% strong headwinds ■ overall animal health market slowdown ○ CA vaccines down due to manufacturing issues (especially the CA s
Slide 23: Geographies: Focus Australia (1/4)
GEOGRAPHIES: FOCUS AUSTRALIA (1/4) ➢ Half year growth : +4.4 M€ (+8.6%) at constant rates ■ Strong market demand across livestock portfolio ■ Commercial excellence: ○ leveraging strategic customers partnership with KAM strategy ○ multi channel marketing opportunities ■ Key brands continue to outperf
Slide 24: Geographies: Focus Chile (2/4)
GEOGRAPHIES: FOCUS CHILE (2/4) ➢ Revenue declining by -33.4% at constant rates ■ Antibiotics sales decline due to voluntary limitation given very low margin level & environmental conditions with lower than expected sea water temperature ■ Base effect on parasiticides essentially due to interruption
Slide 25: Geographies: Focus USA (3/4)
GEOGRAPHIES: FOCUS USA (3/4) ➢ 2023 half year performance: -2.6% @constant rate ■ Base effect following very strong first half 2022 (+20.0% @ constant rate) ■ Destocking observed in the distribution in H1 2023 linked with cyberattack and cost of carrying goods given rising interest rates ■ Strong sa
Slide 26: Geographies: Focus India (4/4)
GEOGRAPHIES: FOCUS INDIA (4/4) ➢ Stable revenue (+0,8% at constant rates) ■ Following a very high first half year 2022 (+17.4%) ■ Launch of Pet food (HPM) ■ EBIT growing +16.1% at constant rates with profitability improvements driven by ■ favorable product mix with increasing share of high-value the
Slide 27: Virbac 2030 - Strategy
VIRBAC 2030 - STRATEGY ➔ To focus/accelerate on sub-segments where we believe we can compete as a mid sized player : ◆ Vaccines ● Only a few AH players have the know-how to really compete in the vaccines arena ● Virbac has historical presence, skills and resources within the biological field ● Focus
Slide 28: Virbac Will Enter Poultry Vaccines Segment in India Through Globion Acquisition (1/2)
VIRBAC WILL ENTER THE FAST-GROWING POULTRY VACCINES SEGMENT IN INDIA THROUGH GLOBION ACQUISITION (1/2) • Globion has been Founded in 2005, as a joint venture between Suguna Group, one of the leading Indian poultry conglomerates, and Lohmann Animal Health, a German poultry vaccines specialist • Globi
Slide 29: Virbac Will Enter Poultry Vaccines Segment in India Through Globion Acquisition (2/2)
VIRBAC WILL ENTER THE FAST-GROWING POULTRY VACCINES SEGMENT IN INDIA THROUGH GLOBION ACQUISITION (2/2) • INDIA ▪ Market growth trends: most populated country in the world (> 1.4 Billion), young population (median age is 28.7 years), purchasing power, 2nd largest egg producer in the world behind Chin
Slide 30: Cyberattack Update
CYBERATTACK UPDATE On June 19, several of our sites worldwide were targets of an unprecedented and virulent cyberattack - ransomware type of virus, resulting in a temporarily either slowdown or interruption of some of our services Immediate response swiftly organized with set-up of a crisis unit inc
Slide 31: 2023 Perspectives
2023 PERSPECTIVES 2023 guidance Total revenue between 0% to 4% @ cst rates and scope Ebit adjusted1 ratio to between 12% to 13% @ cst rates revenue Net cash position at the improvement by around 30 M€ vs end of 2022 @ cst rates, without acquisitions and without the impact end of 2023 of the share bu
Slide 32: Agenda
AGENDA 2023 financial highlights Strategy execution & perspectives Appendix : 2023 agenda 32
Slide 33: 2022 Agenda
2022 AGENDA April 14* Q1 sales June 21 Annual shareholders’ meeting July 19* Q2 - H1 sales September 28* Half-year financial results - Press release October 9 SFAF meeting - 1st half 2023 financial & strategic information October 23* Q3 sales January 17, 2024* Q4 - Full year sales *after market clos
Slide 34: Shaping the future of animal health
Shaping the future of animal health 4