Virbac falls after Q1 penalized by base, inventory effects

Virbac SA

18/04/2023 08:42

** Shares in Virbac  VIRB.PA  fall 4.6% after the French
animal drugs maker reported lower Q1 revenue due to strong base
effect and market slowdown
    ** The company reports Q1 revenue at 314.8 million euros
($344.8 million), down 1.3% y/y at constant exchange rates and
scope
    ** Virbac points to an unfavourable base effect in a context
of market slowdown, and inventory effects observed in
distribution at the end of 2022 in anticipation of price
increases 
    ** Results are slightly below expectations, Portzamparc
says, adding the group "suffers" from very demanding base effect
in the quarter, which still came in at record high
    ** It however cuts Virbac to "accumulate" from "buy" as the
stock's performance since Jan. suggests a bit less upside
short-term
    ** Midcap Partners and Jefferies also point to a 41.1% Q1
sales drop in Chile, due to no sales of a parasiticide product
in distribution since July 2022, a sharp drop in sales of
antibiotic ranges and, to a lesser extent, vaccines
    ** Stock sits at the very bottom on SBF 120 index  .SBF120 


($1 = 0.9130 euros)

 (Reporting by Clement Martinot)
 ((Clement.martinot@tr.com))