Vetoquinol hits 1.5-year low on Brazil charge, cash slide

Vetoquinol SA

16/09/2022 08:37

** Shares in Vetoquinol  VETO.PA  drop 10.8% as the French
animal health group reported on Thursday an impairment charge in
Brazil and a strong decline in cash position  urn:newsml:reuters.com:*:nFWN30M1PD
    ** The company recorded a goodwill impairment charge of EUR
9.3 million ($9.29 million) over H1, citing "a contracted and
uncertain economic environment in Brazil"
    ** "This charge contributes to the increase in the tax rate
over the period to 38% vs 28.3% last year," Midcap Partners
notes, leading to a 14.8% fall in net income
    ** Its cash position also decreased to EUR 23.7 million at
end-June, against EUR 53.6 million at end-December, due to a
sharp increase in working capital in H1
    ** The stock of Vetoquinol, down about 29% year-to-date, is
at its lowest price since March last year

($1 = 1.0006 euros)

 (Reportage Juliette Portala)
 ((juliette.portala@tr.com))