Virbac

2018 first quarter revenue rose by +3.3% at comparable exchange rates

2018 first quarter revenue rose by +3.3% at comparable exchange rates

Public release dated April 12, 2018

Key figures
Net revenue 1st quarter 2018   193.5 m€	Total growth   -3.1%	Growth at constant exchange rates   +3.3%	Growth at constant scope 1   +3.3% of which : companion animals +4.0% (+9.5% excl. USA) food producing animals +3.2%

¹ Growth at constant exchange rates and scope is the organic growth of sales, excluding the impact of exchange rate changes, by calculating the indicator for the financial year in question and that for the previous financial year on the basis of identical exchange rates (the exchange rate used is that in effect for the previous financial year), and excluding the impact of changes in scope, by calculating the indicator for the financial year in question on the basis of the scope of consolidation for the previous financial year.

Quarterly consolidated revenue

Virbac's first quarter revenue rose to 193.5 m€, down -3.1% compared to the same period in 2017, deeply impacted by exchange rates. At constant exchange rates, total growth reached +3.3%, primarily linked to sustained activity at the beginning of the year in all regions, except the United States and, to a lesser degree, Chile.

In the United States, activity was down in the first quarter by -30.5% (-19.7% at constant exchange rates); this impact is primarily related to a decline in sales of Sentinel at the beginning of the year due to an increase in destocking at the distribution level compared to that recorded in the first quarter of 2017, to rebate program timing that differed from that observed in the first quarter of 2017, and lastly by challenging climatic conditions in the northeastern part of the country, coupled with persistently intense competition impacting sales. Apart from a base effect on Iverhart Max, which  returned to the market in the first quarter of 2017, the Iverhart range is experiencing continued growth. The upcoming launch of the Iverhart Max Soft Chew should boost sales in this range. Meanwhile, the dental and dermatology ranges show strong growth that benefits from a favorable base effect in comparison to the same period in 2017, when sales had been impacted by a restocking of distributors at the end of 2016 in anticipation of the January 1^st, 2017 price increases. It should be noted that sales ex-distributors to veterinarian clinics, in the United States, of Virbac products are down overall by -9%; however, other than Sentinel, the other ranges show an average growth of +10% in the first quarter of 2018 compared to the first quarter of 2017.