(BFM Bourse) – Accustomed to stock market peaks, Vetoquinol fell nearly 12% to 127.80 euros. The publication of the day was considered short by investors wishing to take their profits on a title evolving on its annual highs and posting a gain of 158% over five years.
Although the Vetoquinol group operates in a buoyant sector (animal health), it is not immune to geopolitical and inflationary tensions. In its quarterly financial report published on Thursday, Vetoquinol conceded that it was exposed to the risk of inflation in the cost of purchasing raw materials and energy, caused by the Ukrainian conflict. In this regard, the laboratory explains that it has no direct presence (subsidiary, establishment, factory, workforce) in Ukraine and Russia.
The Vetoquinol laboratory recorded revenue of 135 million euros for the first three months of the 2022 financial year, up +5.5% on a reported basis. At constant exchange rates, growth is contained at 2.2%, where analysts were counting on a more sustained rise expected at +4.8% excluding currency effects.
Sales of strategic products, known as “essential” at Vetoquinol, considered the main growth drivers, continued to support activity at the end of March 2022. They amounted to 77 million euros, up by +8.1%. with published data. They represent 57% of the laboratory’s sales over the first 3 months of the 2022 financial year (55.6% at the end of March 2021).
Sales of products intended for companion animals, posted at 89 million euros, up +6.9% on a reported basis, represent more than 66% of total sales. Sales to food producing animals amounted to 46 million euros, up +2.9% on a reported basis and down slightly at constant exchange rates by -0.4%.
Caution on the 2022 program
Revenue for the 1st quarter of 2022 was marked by contrasting activity in strategic territories. The “Americas” zone recorded revenue of 45 million euros, up 16.8% on a reported basis, while the “Asia Pacific” zone increased by 12.6% to 22 million euros.
Europe, which concentrates 50% of the group’s sales, however shows a decline of -2.7% based on published data. At the end of March 2022, the laboratory recorded positive foreign exchange impacts for 4.3 million euros (+3.3%), mainly related to the appreciation of the US dollar and the Canadian dollar compared to the first quarter of 2021.
Vetoquinol does not put forward a quantified outlook for 2022, the geopolitical context inviting the company to be cautious. The group is content to announce that it is continuing to deploy its strategy by focusing “on an international portfolio of essential products, illustrated by the launch in Europe of Felpreva, a very innovative antiparasitic product for cats”.
Sabrina Sadgui
©2022 BFM Bourse
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