22
/
2014
Registration document
/ Financial report
19.1.1. Overview of the Vétoquinol Group
Vétoquinol is a leading global player in the animal health
sector serving both the livestock (cattle and pigs) and pet
(dogs and cats) markets. As an independent pure player,
Vétoquinol designs, develops and sells veterinary drugs and
non-medicinal products in Europe, the Americas and the Asia
Pacific region.
Since its foundation in 1933, Vétoquinol has pursued a stra-
tegy combining innovation with geographical diversification.
The Group’s hybrid growth is driven by the reinforcement of
its product portfolio coupled with acquisitions in high potential
growth markets. Vétoquinol employs 2,004 people.
Vétoquinol has been listed on NYSE Euronext Paris since
2006 (symbol: VETO).
The parent company, Vétoquinol SA, is a French public limited
company (société anonyme) with head office in Magny-Ver-
nois, 34 rue du Chêne-Sainte-Anne, 70204 Lure Cedex.
Vétoquinol SA, the Group parent company, is controlled by
Soparfin.
The Vétoquinol Group consolidated financial statements were
approved by the Board of Directors on March 17, 2015. They
will be submitted for shareholder approval at the next Ordinary
General Meeting, due to be held on May 20, 2015.
19.1.2. Key events
April 15, 2014 the Company acquired the animal health
division of Bioniche, a leader in the North American repro-
duction sector. This acquisition represents a new phase in
the roll-out of the Excellence 2016 program. The acquired
business included some 60 products generating revenues
of CAD$31.5m (
€
21m) for the year ended June 30, 2013.
Livestock products accounted for 65% of these revenues.
85 employees were transfered. Bioniche has four manufactu-
ring plants, the main plant being located in Belleville, Canada.
The Athens (Georgia) plant has since been resold. The acqui-
sition was completed by purchasing the following four legal
entities:
•
BAC: Bioniche Animal Health Canada
•
BAU: Bioniche Animal Health USA
•
BAA: Bioniche Animal Health Asia and Australia
•
BAE: Bioniche Animal Health Europe
On December 1, 2014, BAC and BAU were merged with
Vétoquinol NA Inc and Vétoquinol USA respectively, backda-
ted to July 1, 2014.
The acquisition was funded by a 5-year
€
41m loan.
On April 1, 2014 the three legal entities - VNA , Prolab and
Canada - were merged into Vétoquinol NA Inc and migrated
to the Group ERP system.
19.1.3. Accounting principles
19.1.3.1. General accounting principles
and standards
The 2014 consolidated financial statements were prepared
in accordance with international accounting standards as
published by the IASB and adopted by the European Union
as of December 31, 2014. These international standards
include IAS (International Accounting Standards), IFRS (Inter-
national Financial Reporting Standards) and SIC and IFRIC
interpretations. The IFRS adopted by the European Union as
of December 31, 2014 may be consulted in the section entit-
led “IAS/IFRS Standards and Interpretations” on the following
website:
/
index_en.htm.
The financial statements have been prepared on a histori-
cal cost basis, except for available-for-sale financial assets,
which are measured at fair value and for which adjustments
are recognized in other comprehensive income, and financial
assets and liabilities, which are measured at fair value and for
which adjustments are recognized in profit or loss (including
derivatives).
Preparation of IFRS financial statements requires the use of
certain accounting estimates, the most important of which
are described in Note 19.1.6.
The principal accounting methods and policies applied in the
preparation of the consolidated financial statements are pre-
sented below.
These policies are identical to those used by the Group as of
December 31, 2013, with the exception of standards, inter-
pretations and amendments adopted by the European Union
and applicable for accounting periods beginning on or after
January 1, 2014:
•
new consolidation standards:
•
IFRS 10 – Consolidated financial statements; IFRS 11 –
Joint arrangements; IFRS 12 – Disclosure of interests in
other entities;
•
2011 amendments to IAS 27 – Separate financial
statements;
•
2011 amendments to IAS 28 – Investments in associates
and joint ventures;
•
amendments to IAS 32 – Offsetting financial assets and
financial liabilities;
•
amendments to IAS 36 – Recoverable amount disclosures
for non-financial assets;
•
amendments to IAS 39 – Novation of derivatives and conti-
nuation of hedge accounting.
These standards, interpretations and amendments do not
have a material impact on the Group consolidated financial
statements.
The Group has elected not to apply in advance standards,
interpretations and amendments adopted by the European
Union, which were not mandatory as of January 1, 2014:
IFRIC 21. The effect of this interpretation is that the Group will
recognize a
€
0.3m tax charge in the first half 2015 financial
statements that it would not have recognized in the first half
2014 financial statements; there is no impact on the full-year
financial statements.
NOTES TO THE 2014 CONSOLIDATED FINANCIAL STATEMENTS
