2005 Annual report - Virbac

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❖ In Portugal
2005 sales at Virbac Portugal were virtually unchanged on
2004. The strong performance in companion animals driven
by sales of vaccines and specialties was offset by a decline in
food producing animals. In this market, Virbac Portugal had
a good year in the pigs and poultry market where the
subsidiary has a 30% market share in the premixes market
(strong performance of the Pulmodox ® premix). On the
other hand, sales fell sharply in the bovine market.
❖ In Austria
Virbac Austria saw growth in both markets thanks largely to
the equine segment, companion animals and the strong
performance of Pulmodox ® premix in food producing
animals.
❖ In Eastern Europe
In this zone with strong growth potential, Virbac saw an
increase of 70.8% in 2005 with in particular strong
performances in Hungary, Poland, the Czech Republic and
Estonia. In these countries the most buoyant market is the
food producing one but Virbac has also managed to make
major inroads into companion animals with dog vaccines
posting a strong performance in Hungary.
North America
Sales were up 4.9% on 2004 (4.8% at constant exchange
rates), amounting to €63.1 million at 31 December 2005.
In this zone, the Group is primarily active in the companion
animal market in which it generated 4/5th of its sales.
The segments contributing to this growth in 2005 were
specialties with the dental and endocrinology ranges, as well
as internal parasiticides with the strong growth of Iverhart ® .
In food producing animals Virbac US pulled out of the
generic bovine parasiticides market, generating too low
margins.
Latin America
In 2005, the Group saw strong growth of 18% aided by a
strong exchange rate impact (8.1% at comparable exchange
rates). All subsidiaries in the region grew sharply.
❖ In Mexico
In 2005, the subsidiary posted a 10.5% increase in sales at
constant exchange rates on the back of growth in both of its
markets.
In food producing animals, the most buoyant segments were
the antimicrobials (bovine, pig, poultry) with strong
performances by the Suramox premix ® and Pulmodox
premixes (marketed under the Premedox ® brand) in pigs
and poultry and injectable Maxflor ® in the bovine segment.
Virbac Mexico also had a good year in companion animals
thanks to growth in sales of dog vaccines.
❖ In Brazil
The performance of the Brazilian subsidiary in 2005
stemmed from the companion animal ranges with strong
sales offsetting the decline in sales in food producing
animals. Dermatology, with in particular the launch of
Pyoderm (skin infection treatment) and above all external
parasiticides with the launch of an innovative full range,
drove the growth.
The subsidiary closed the year up 20.9%, strongly aided by a
positive exchange rate impact.
❖ In Costa Rica
Virbac Costa Rica performed well, with sales up 32.5% at
constant exchange rates. The subsidiary performed well
across the board.
❖ In Colombia
In 2005, Virbac Colombia posted growth of 58.6% at constant
exchange rates and posted strong performances in both
businesses. In food producing animals, all segments grew and
in companion animals sales took off thanks to the taking over
by the subsidiary of the marketing of dog vaccines.
Asia
In Asia, the Group also started growing again with sales up
14.2% (11.7% at constant exchange rates). After a 2004
weighed down by a series of negative factors, such as avian
influenza in Vietnam and deflation in Korea, all subsidiaries
grew in 2005.
❖ In Japan
In 2005, Japan posted moderate growth of 2.1% (3.8% at
constant exchange rates). In the companion animal market,
the subsidiary closed the year up on the back of the
performances of the dental range following the 2004 launch of
vegetable chews, antibiotics with the 2005 launch of Rilexine ®
tablets (Rilexipet ® ) and the dermatology range. The subsidiary
saw a decline in the food producing animal market, where it is
active in the bovine parasiticide market (parasiticides for
internal and external use).
❖ In Korea
Sales at the Korean subsidiary rose on the previous year thanks
to the strong performance of the bovine business, up on a 2004
that was weighed down by a crisis in the dairy cattle business.
❖ In Vietnam
After having suffered from the impact of avian influenza
in 2004, the Vietnamese subsidiary closed 2005 up 28.4%
(29% at constant exchange rates). This growth was largely
due to higher food producing animal sales with strong
performances in the bovine antimicrobial range (Shotapen ®
and Multibio ® ).