Annual financial report 2007 - Virbac

34Geographic trend of businessGeographic breakdown of sales2007 2006 Change Change at(€ millions) (In % terms) constant exchange ratesFrance 94.9 93.4 1.6% 1.6%Europe (excluding France) 141.7 128.7 10.2% 10.5%North America 72.9 68.0 7.1% 16.1%Latin America 29.5 27.4 7.7% 12.6%Africa & Middle East 23.6 23.3 1.2% 13.1%Asia 45.4 31.2 45.6% 46.3%Pacific 30.5 29.6 3.0% 0.7%TOTAL 438.5 401.6 9.2% 11.8%EuropeThe Group’s European business sales amounted to €236.6million in 2007, 6.5% up on the previous year (6.8% at constantrates). Sales of all the subsidiaries grew in relation to 2006,except for Greece which has encountered a few difficulties.1 FranceSales were 1.6% up on 2006.Virbac France, which markets the Group products in the ethicalsector, showed a slight growth in relation to 2006.The goodresults in the companion animal segment offset the difficultiesencountered in the food producing animal market.In the companion animal market, growth was seen in thedermatology segment with the successful launch ofCortavance ® , specialized petfood with the complete renewal ofthe Vet Complex ® ranges for dogs (March 2007) and cats(September 2007) and the launch of a new dermatologicalproduct for dogs, enabling Virbac to position itself favourably inthe specialized petfood segment, the progress made by VetAquadent ® launched in 2006 and equine products with goodsales of Equimax ® (a broad-spectrum wormer for horses) andEraquell ® (a wormer for horses).In food producing animals, the good performance of theproducts launched since the end of 2005 (Virbamec ® rangeand Tenotryl ® ) did not manage to offset all the difficultiesencountered on the industrial farming markets (premixes andoral antibiotics). In the injectable antibiotics field, the Europeanregulatory context, which led to the suspension of marketingof Suramox ® LA and similar products by our competitors inmid-2007, did not allow business to be maintained at the levelsof 2006, despite the good performance of our referenceproducts such as Shotapen ® .The subsidiary Virbac Nutrition, which manufactures thespecialized petfood range for France and markets it for export,benefited from the launch of the new ranges for dogs and catsand from the launch of the new dermatological product. Exportsales to New Zealand, which markets these products under thebrand Virbac Excellence ® , also grew in 2007.Finally, the results achieved by Francodex Santé Animale(distribution in specialist channels) grew thanks to the range ofexternal parasiticides.1 GermanyAfter a difficult 2006,Virbac Germany resumed growth in its twolines thanks to the launches of new products and maintainingexisting ranges.For companion animals, all the segments grew except forimmunology where the subsidiary has to face strongcompetition in canine vaccines.The dermatology segmentexcelled with the successful launch of Cortavance ® in 2007.External parasiticides also continued their rapid growth thanksto Preventic ® spot-on and the environmental products.As regards food producing animals, the launch of doxycyclinePOS enabled the subsidiary to make a successful entry into theindustrial pig farming market.1 United KingdomHere both businesses contributed to the growth with thecompanion animal segment showing however faster progress.This business mainly grew thanks to the specialties segmentfollowing the marketing of two products: Soloxine ® and Medetor.The external parasiticide ranges and electronic identification alsocontributed to the progress made by the subsidiary.These goodresults clearly offset the downturn recorded in the equinesegment with a fall in sales of Equimax ® .1 Spain2007 sales developed favourably in both lines. For the foodproducing animals, the industrial strategy introduced enabledVirbac Spain to maintain its positions and to achieve a highgrowth in bovine products, particularly thanks to the markedgrowth in sales of Shotapen ® (antibiotic against bovinerespiratory disorders). On the companion animal market, thesubsidiary showed strong growth with the launches of productsin four segments : Cortavance ® in dermatology, Medetor in theanaesthetics range,Vet Aquadent ® in dental products andMilteforan ® against leishmaniasis. On the other hand, theslowdown in sales of Preventic ® (parasiticide collar) whichbegan in 2006 continued in 2007.