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Virbac cuts full-year revenue forecast amid still weak US sales
September 11, 2017 / 5:02 PM / 9 days ago

Virbac cuts full-year revenue forecast amid still weak US sales

Sept 11 (Reuters) - French veterinary pharmaceutical firm Virbac cut its full-year outlook on Monday, saying it now expected revenue to be little changed from last year after a fall in U.S. sales affected its first-half earnings.

The company, which sells medicines for animals in more than 100 countries, has seen a downturn in its U.S business with distributors continuing to run down stocks in the first half and not placing new orders.

“[In the United States] sales to distributors were impacted by a commercial recovery that was slower than planned, and price pressure, particularly on the Sentinel line,” the company said in a statement. Sentinel is an anti-parasite medicine for dogs, which has faced tough competition in the United States.

Virbac’s overall sales to the United States fell 42 percent in the first quarter of this year from a year earlier and dropped about 11 percent in the second quarter.

The company said it expects its full-year revenue at constant exchange rates to be at around the same level as in 2016, versus its previous guidance of low single-digit organic growth.

It also said its ratio of current operating profit before depreciation of assets arising from acquisitions to net sales, at constant exchange rates, would be flat, rather than the improvement of around 0.5 point previously expected.

The company reported a 3.2 percent increase in first-half operating profit to 32.5 million euros ($39 million). ($1 = 0.8364 euros) (Reporting by Alan Charlish; Editing by Susan Fenton)

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