Vetoquinol Defies Market Trends: How This Animal Health Giant Outperformed in a Flat 2023 Market

Matthieu Frechin, Chairman and CEO of Vetoquinol (Paris:VETO), has announced a remarkable performance in a challenging 2023 animal health market, attributing the company's resilience and agility to its success. Despite flat market volumes, Vetoquinol's 2023 sales were buoyed by the strong showing of their Essentials product line in the latter half of the year, demonstrating sustained growth and operational efficiency.

With total sales recording €529 million, Vetoquinol maintained stability at constant exchange rates, though it marked a -1.9% drop on a reported basis. Challenges such as foreign exchange impacts and the rationalization of the non-Essentials product portfolio, which affected sales by around €10 million, were successfully navigated. The company's robust performance in the second half of 2023, showing a +4.5% increase at constant exchange rates, compensated for a first half hampered by cyclical factors, including the impact of an ERP changeover.

Essentials products were the standout performers, with year-end sales reaching €313 million, a rise of +4.5% at constant exchange rates and +2.9% on a reported basis. The second half of 2023 saw dynamic organic growth of +10% for these products, driven notably by successful launches like Felpreva®, a parasiticide for cats in Europe, and Simplera®, an otitis treatment for dogs in the United States. By December 2023, sales of Essentials products constituted over 59% of the Group’s total sales, a significant increase from 56% in the same period of 2022.

Region-wise, the Americas showed a +5.1% growth at constant exchange rates over the full year, with Europe remaining stable and Asia Pacific/Rest of World experiencing a decline, mainly due to distributor business. Companion animal product sales rose by +3.6% at constant exchange rates, accounting for 70.2% of Vetoquinol’s total sales. Meanwhile, farm animal product sales saw a decline.

In Q4 2023, all regions experienced growth, with Group sales increasing by +3.9% at constant exchange rates and +1.7% on a reported basis. The Group's cash position also strengthened by the end of December 2023 compared to mid-year.

This resilient performance of Vetoquinol in a flat market is a testament to the company's strategic agility and focus on innovation and efficiency. The full-year sales for 2023, yet to be audited by Statutory Auditors, point to a promising update on the annual results due on March 20, 2024.