REG - Animalcare Group PLC - H1 Trading Update and Notice of Interim Results

AnimalcareAnnouncement

26/07/2022 07:00

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RNS Number : 6874T  Animalcare Group PLC  26 July 2022

ANIMALCARE GROUP PLC

("Animalcare" or the "Group" or the "Company")

Half Year Trading Update and Notice of Interim Results

 

26 July 2022. Animalcare Group plc (AIM: ANCR), the international animal
health business, provides the following unaudited trading update for the six
months ended 30 June 2022 ahead of publishing its interim results on 27
September 2022.

 

Trading overview

Animalcare is pleased to report strong revenue performance and improved
margins in H1 2022 as the Group continues to invest in long-term drivers of
growth.

 

Driven primarily by demand for Companion Animals products, supported by a
strengthening contribution from Daxocox, sales for the period totalled
£38.3m. This represents a decrease of £0.8m or 2.1% (0% at CER) compared to
H1 2021 which experienced exceptional growth as markets bounced back following
the easing of COVID-19 counter measures. We expect a more even revenue balance
between the first and second halves of this year, versus 2021, as demand
patterns slow to more normal levels.

 

Underlying EBITDA for the first half is expected to track in line with
revenues. This reflects improved gross margins, attributable to the product
mix for the 40 top selling brands, offset by investment in the Orthros R&D
programmes and people-related SG&A.

 

As expected, cash conversion in H1 2022 will be significantly lower than the
prior period as the exceptional cash conversion in H2 2021 unwinds. We
continue to expect that cash conversion will remain on average within the
target 90-100% range over 2021 and 2022. At 30 June 2022, net debt stood at
approximately £7.5m, well within the Group's target net debt to underlying
EBITDA range of 1 to 2 times. This provides Animalcare with the financial
strength and flexibility to continue investment in value-creating
opportunities through the likes of M&A, partnerships and pipeline
projects.

 

Despite the deterioration in macroeconomic conditions over the period we have
yet to see a widespread negative effect on the veterinary pharmaceutical
market and our business. However, we continue to carefully monitor the impact
of inflation on costs and customer demand levels. The Group remains confident
that full year earnings will be in line with market expectations.

 

Jenny Winter, Chief Executive Officer said: "We are pleased to have delivered
a positive first half against what we knew would be a tough prior year
comparison. Strong revenues and improved margins help us maintain trading
momentum as we continue to pursue attractive external opportunities and invest
in key assets such as Daxocox and the Plaqtiv+ antibiofilm range."

 

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014.

 

Enquiries

 

 Animalcare Group plc                      +44 (0)1904 487 687

 Jenny Winter, Chief Executive Officer

 Chris Brewster, Chief Financial Officer

 Media relations                           communications@animalcaregroup.com (mailto:communications@animalcaregroup.com)

 Stifel Nicolaus Europe Limited            +44 (0)20 7710 7600
 (Nominated Adviser & Joint Broker)

 Ben Maddison

 Nick Adams

 Nicholas Harland

 Panmure Gordon                            +44 (0)20 7886 2500

 (Joint Broker)

 Corporate Finance

 Freddy Crossley/Emma Earl

 Corporate Broking

 Rupert Dearden

 

Animalcare Group plc is a UK AIM-listed international veterinary sales and
marketing organisation. Animalcare operates in seven countries and exports to
approximately 40 countries in Europe and worldwide. The Group is focused on
bringing new and innovative products to market through its own development
pipeline, partnerships and via acquisition.

For more information about Animalcare, please visit www.animalcaregroup.com
(//www.animalcaregroup.com) (http://www.animalcaregroup.com/)
(http://www.animalcaregroup.com/)

 

 

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