15 Sep. 2022 18:00
Vetoquinol CEO Matthieu Frechin said: “2020 was an exceptional year on a number of counts. Above all, it is important to pay tribute to our teams, whose hard work and exemplary dedication allowed us to manage the impact of the health crisis. Year on year, we achieved double-digit sales growth at constant exchange rates, driven by our Essentials products. This momentum accounts for additional sales of €43 million (at constant exchange rates). We also completed a major acquisition in the form of the Drontal® and Profender® product ranges, entailing three structural effects for Vetoquinol: a scale effect, a product mix effect in the Essentials range and potential extensions, the first of which has been confirmed in January 2021 for the Australian market. We are optimistic for our business outlook in 2021, while being vigilant in relation to the global sanitary situation.”
Vetoquinol Laboratory posted 2020 sales of €427.5 million, up 8.0% as reported and up 10.9% at constant exchange rates.
2020 sales of Essentials products totaled €220.6 million, up 17.3% at constant exchange rates. The momentum of Essentials product sales was driven by the solid development of the existing Essentials portfolio (+8.1%) and the contribution of the Drontal® and Profender® ranges acquired on August 1st, 2020. Essentials products accounted for 51.6% of Vetoquinol’s total sales in 2020, up from 48.1% in 2019.
Sales of companion animal products came to €256.7 million and accounted for 60% of total Vetoquinol sales, up 13.5% as reported; they benefited from the impact of the lockdown associated with the Covid-19 crisis as well as from the contribution of the Drontal® and Profender® range. Sales of livestock products came to €170.7 million, stable as reported (+0.6%).
All strategic territories posted growth in 2020 at constant exchange rates: +13.2% in Europe, +5.0% in the Americas and +17.4% in Asia Pacific.
In 2020, exchange rates had a negative impact of €11.6 million (-2.9%), primarily linked to the sharp decrease of the Brazilian Real, and the depreciation of the Indian Rupee, USD and Canadian dollar.
Fourth quarter sales amounted to €117.0 million, up 4.4% as reported and up 9.3% at constant exchange rates. Acquisitions boosted sales by 10.2%, offsetting the 4.9% negative impact of exchange rate fluctuations and the basis effect linked to a strong Q4 2019.
Covid-19 health situation as of January 21st, 2021
The mobilization of all its teams enabled Vetoquinol to monitor the impact of the health crisis. The Group has preserved the health and safety of its employees, maintained industrial activity, continued to execute the Group’s projects and served its customers without interruption throughout 2020.
The impact of Covid-19 has been particularly severe in the Americas and Brazil.
Growth prospects for this market are below the target set at the time of the Clarion acquisition. The Group is forecasting goodwill impairment for Brazil in relation to this expected slowdown in growth.
Vetoquinol’s financial structure as of December 31st, 2020 remains solid. Cash generation was strong during the second semester 2020. The audit of Vetoquinol’s financial statements is in progress at time of release.