Vetoquinol: Annual Results 2024

Annual sales: EUR539m (+2.2% at constant exchange rates)

Essential products sales: EUR328m (+4.6% at constant exchange rates)

Net result, Group share: EUR59m (10.9% of sales)

EBITDA: EUR104m (19.3% of sales)

Cash flow generation: EUR86m

LURE, France--(BUSINESS WIRE)--March 20, 2025-- 

Regulatory News:

Matthieu Frechin, Chairman and CEO of Vetoquinol (Paris:VETO), commented: "In 2024, we delivered a solid financial year, combining growth in almost all our reference markets, high profitability and sustained cash generation. We have achieved this performance while absorbing the sometimes significant uncertainties, such as in the United States this year, as well as the cost of transforming the Group. This is due to the strength of our model built around Essentials, which have achieved an annual average growth above 8% since 2014, and to our reactive management, which enables us to adapt quickly to changing economic conditions.

We will therefore actively pursue the implementation of this strategy in 2025, while paying particular attention to the uncertainties arising from recent geopolitical upheavals.

The Board of Directors of Vetoquinol SA met on March 18, 2025 to review business activity and approved the financial statements for the year ended December 31, 2024. The audit procedures are currently being finalized by the Statutory Auditors.

Vetoquinol sales for FY 2024 totaled EUR539 million, up 1.9% on a reported basis and 2.2% at constant exchange rates. Foreign exchange had a negative impact of EUR1.9m.

The program to simplify the Complementary products portfolio had a negative impact on Vetoquinol's annual sales of around EUR8m for the year, or around -1.5% of sales.

Sales of Essential products totaled EUR328 million, up 4.6% on a reported basis and at constant exchange rates. These products, the key drivers of the Group's strategy, confirmed their solid growth momentum. However, this figure does not reflect their real performance given the unavailability in the 1(st) half-year of one of the main Essential product ranges in the United States. Since the launch of this strategy in 2014, sales of Essentials have more than doubled, posting an average annual growth of over 8%. They now account for 61% of Group sales. In addition to their growth momentum, these products have a higher gross margin than complementary products.

Geographically, Europe (+5.1%), Asia Pacific/Rest of World (+4.1%) and the Americas excluding the United States (+3.1%) grew on a reported basis.

Europe, the Group's largest market accounting for almost 50% of sales, turned in a solid performance, driven in particular by Essential products.

In the United States, sales were down 6.9% at constant exchange rates. Two factors explain this trend. On the one hand, the market was disrupted by short-term arbitrages by local distributors at the end of the first half, and on the other hand, sales were affected by the unavailability in the first half of one of the main Essential product ranges due to a subcontracting problem. A solution was found, but due to the intense competition in this market, the return to normal is taking place gradually. The decline in business in 2024 does not call into question the strategic importance of the United States for the Group. In the long term, it will remain the Group's 1(st) market, notably because of the potential it offers for the development of Essentials, which currently account for just over 40% of sales in the United States.

Sales of products for companion animals (EUR378 million) rose by 2% at constant exchange rates and accounted for 70% of the Group's sales. Sales to farm animals came to EUR162 million, up 2.8% at constant exchange rates.

The margin on purchases rose slightly to 72.0% compared with fiscal 2023. The product mix, and particularly the continued growth of Essential products, as well as higher prices, contributed to this increase, despite inflation in purchasing costs for raw materials and subcontracted products.

Other purchases and external charges rose by EUR7.0 million, or 6.6%, compared with FY 2023. This increase is due to more sustained activity and an inflationary context.

Personnel costs rose by EUR10.2m (+6.5%) and represented 31.1% of sales in 2024 (vs. 29.7% in 2023). This increase is essentially due to the rise in payroll (salary increases in fiscal 2024). The number of employees at December 31, 2024 was 2,501 (2,483 at end-December 2023).

Depreciation and amortization charges related to the application of IFRS 16 generated a depreciation expense of EUR6.1m vs. EUR5.9m at end December 2023.

EBIT before amortization of intangible assets acquired amounted to EUR89.0m, up EUR4.0m, representing 16.5% of 2024 sales (2023: EUR85.0m, 16.1% of sales).

Depreciation of assets acquired amounted to EUR12.9m, vs. EUR13.4m at the end of December 2023. These mainly comprise depreciation of assets linked to the Drontal$(R)$ and Profender(R) products.

Group EBIT rose by EUR4.5 million to EUR76.1 million (14.1% of sales) from EUR71.6 million in 2023.

R&D expenses in fiscal 2024 amounted to EUR43.7m, or 8.1% of sales vs. 7.6% in fiscal 2023. This increase reflects the Group's determination to step up investment over the long term to support innovation and the ongoing development of Essential products.

The apparent tax rate was 27.7% (vs. 34.4% at end December 2023). Restated for non-recurring items, the tax rate was 28.7%.

EBITDA stood at EUR104.3 million at December 31, 2024, or 19.3% of sales vs. 20.3% at end 2023 (restated for non-recurring items in Brazil of EUR6.0 million).

Net income for the Vetoquinol Group came to EUR58.7 million, or 10.9% of 2024 sales, after taking into account non-recurring items of EUR1.2 million and net financial income of EUR3.7 million.

At the end of December 2024, the Vetoquinol Group had an overall net cash position of EUR185.2 million (including IFRS 16), up EUR55.2 million at the end of 2023.

The Board of Directors has proposed a dividend of EUR0.89 per share to the Annual General Meeting of Shareholders on May 22, 2025.

The 2024 Annual Results presentation is available on the Vetoquinol website: https://vetoquinol.com/fr/investisseurs

Next publication: Q1 2025 sales, April 24, 2025 after market close

ABOUT VETOQUINOL

Vetoquinol is a leading international player in animal health, with operations in Europe, the Americas and Asia/Pacific.

Independent and a pure player, Vetoquinol innovates, develops and markets veterinary medicines and non-medicated products for farm animals (cattle, pigs) and companion animals (dogs, cats).

Since its creation in 1933, Vetoquinol has combined innovation and geographic diversification. The strengthening of the product portfolio and acquisitions in high-potential territories ensure hybrid growth for the Group. At December 31, 2024, Vetoquinol employed 2,501 people.

Vetoquinol has been listed on Euronext Paris since 2006 (mnemonic code: VETO).

The Vetoquinol share is eligible for the French PEA and PEA-PME personal equity plans.

APPENDIX

Sales by quarter

 
                         Change on a  Change at constant 
                           reported        exchange 
EURm       2024   2023      basis            rates 
---------  -----  -----  -----------  ------------------ 
Q1 sales   133.6  145.4     -8,1%           -8,1% 
---------  -----  -----  -----------  ------------------ 
Q2 sales   130.8  110.9    +18.0%           +17.8% 
---------  -----  -----  -----------  ------------------ 
Q3 sales   133.7  135.8     -1.5%           -0.6% 
---------  -----  -----  -----------  ------------------ 
Q4 sales   141.1  137.2     +2.8%           +3.4% 
---------  -----  -----  -----------  ------------------ 
FY sales   539.2  529.3     +1.9%           +2.2% 
---------  -----  -----  -----------  ------------------ 
 

Sales by strategic territory

 
                                               Change on a  Change at constant 
                                                 reported        exchange 
EURm                             2024   2023      basis            rates 
-------------------------------  -----  -----  -----------  ------------------ 
Europe                           263.6  250.9     +5.1%           +4.2% 
-------------------------------  -----  -----  -----------  ------------------ 
Americas excl. USA               80.6   78.2      +3.1%           +6.4% 
-------------------------------  -----  -----  -----------  ------------------ 
USA                              112.2  120.6     -7.0%           -6.9% 
-------------------------------  -----  -----  -----------  ------------------ 
Asia Pacific / Rest of the 
 world                           82.9   79.6      +4.1%           +5.6% 
-------------------------------  -----  -----  -----------  ------------------ 
FY sales                         539.2  529.3     +1.9%           +2.2% 
-------------------------------  -----  -----  -----------  ------------------ 
 

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March 20, 2025 12:45 ET (16:45 GMT)