Sales up 4.7% like-for-like and stable at €177.9 million as reported
Essentials: €87.1 million, organic growth of 10.1%
Net income - Group share: up 9.7% to €15.8 million
At its meeting on July 25, 2018, the Vetoquinol S.A. Board of Directors reviewed the Group results and approved the audited first half 2018 financial statements.
Vetoquinol H1 2018 sales amounted to €177.9 million versus €177.7 million in H1 2017, up 0.1% as reported and up 4.7% like-for-like. The negative currency impact on sales amounted to 4.6% and affected all of the main currencies used by the Group. Reported sales in the Essentials products range rose 6.6%, up 10.1% like-for-like. Net income Group share amounted to €15.8 million, up 9.7%.
Sales growth in the first half was driven by a solid performance in the Americas and Asia Pacific region (up 6.3% and 8% like-for-like, respectively), as well as a return to growth in Europe (up 2.4% like-for-life).
The Group has applied IFRS 15 "Revenue from Contracts with Customers" since January 1, 2018. For the statements to be comparable, the Group performed an adjustment of its 2017 figures, which showed a €2 million increase in sales during first half 2017 and €4.4 million over the full year as well as a corresponding expense increase by the same amount. This restatement has no impact on the Group's EBIT in 2017 or 2018, expressed in Euros. The table provided in the Appendix shows the impacts of IFRS 15.
All of the financial data set out in this press release takes the adjustments mentioned above into account.
The Vetoquinol Group posted second quarter sales of €90.3 million, stable as reported compared to the same period in 2017 (up 3.8% like-for-like). This growth is the result of a strong performance in the Americas and Asia Pacific and a slight decline in sales in Europe. Essentials products drove growth in the second quarter, up 6.5% as reported and 9.6% like-for-like during the period.
Group EBIT amounted to €20.4 million in the first half, down 0.8% compared to the same period in 2017 and resulting in an EBIT margin of 11.5%. The gross margin on purchases rose 2.0%; the increase in costs primarily resulted from our goal to step up R&D efforts, which accounted for 7.8% of sales (7.2% in H1 2017), as well as a continued marketing expenditures in support of the Essentials product range.
Net financial income amounted to €0.3 million in H1 2018, compared to a €1.3 million expense in H1 2017. The currency impact recorded by the Group for first half 2018 was neutral on its foreign currency denominated cash on hand.
Group EBITDA rose 5.4% to €27.4 million, representing 15.4% of sales versus 14.6% in H1 2017.
Net income Group share amounted to €15.8 million, up 9.7%, representing an effective tax rate of 22.9% (H1 2017: 24.9%).
As of June 30, 2018, Vetoquinol held net cash of €92.9 million.
Vetoquinol CEO Matthieu Frechin said: “The performances presented today by our Group attest to the success of our strategy, which was reiterated on our Investor Day in September 2017. We are continuing the expansion of Essentials products across all of our strategic regions. These regions have recorded solid growth over the first half of 2018, which supports our strategy of focusing on this range.”
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