Vetoquinol

2021 Annual Results

Regulatory News:

Vetoquinol (Paris:VETO):

Matthieu Frechin, CEO of Vetoquinol, said: "In 10 years, our laboratory has shifted its portfolio towards higher value-added products and improved its risk profile. This good performance in fiscal year 2021 is in line with our plan for a sustainable and profitable growth in a solid animal health market. At the beginning of this year, we remain cautious in the face of the current conflict and inflationary pressure."

At its meeting on March 22^th, 2022, the Vetoquinol S.A. Board of Directors reviewed the Group results and approved the 2021 financial statements. The audit of these financial statements is being finalized by the Auditors.

Vetoquinol laboratory recorded sales of €521 million for the year 2021, up 21.9% as reported and up 22.3% at constant exchange rates.

At the end of December 2021, sales of Essential products amounted to €296 million, up 33.3% at constant exchange rates. Essential products continued to deliver profitable growth, driven by the ongoing development of the existing portfolio and by the contribution of acquired parasiticides products. Essential products accounted for 56.7% of the 2021 laboratory's sales (2020: 51.6%).

Sales of companion animal products amounted to €335 million and represented 64% of total Vetoquinol sales. They increased by 30.4% as reported and at constant exchange rates. Sales of farm animals products amounted to €186 million, up 9.2% as reported and up 10.0% at constant exchange rates.

All strategic territories grew at constant exchange rates in 2021: +23.5% in Europe, +22.6% in the Americas and +18.0% in Asia/Pacific.

For the year 2021, the Group recorded a negative currency impact of €1 million (-0.3%), mainly due to the decrease of the Brazilian Real and the US and Canadian Dollar.

Gross margin on purchases was 71.3%, up 1.3 point compared to the same period in 2020, due in particular to sustained industrial activity. The impact of exchange rate fluctuations related to the consolidation of the accounts was negligible in fiscal year 2021 (vs. -€6.8m in 2020).

Other purchases and external expenses increased by €24.9 million, mainly due to a sharp rise in marketing and advertising costs in the second half of 2021 in line with the preparation of a major campaign to launch new Essentials products. Vetoquinol also received a €4.0 million settlement payment at the end of 2021 following the resolution of a dispute.