Media Coverage

Ceva one step away from top five as robust 2016 closes


Feb 09, 2017 - Animal Pharm

By Joseph Harvey
Animal Pharm
February 9, 2017


Ceva Santé Animale's goal of becoming a top-five animal health player has got ever nearer following healthy sales growth in 2016.

The French business reported sales of €912 million ($976.5 million) during the fiscal year. This represents year-on-year growth of around 6%, or 10% at constant scope and exchange rate.

The Libourne-based company spurred this increase with several acquisitions over the previous year, as well as organic growth.

The company's sales were particularly buoyant in Europe, where they climbed by 36%. Ceva showed strong performances across all of its international markets: Africa, Middle East, Eastern Europe, Russia, Ukraine and Turkey (+23% sales growth); North America/Pacific (+17%); Asia (+11%); and Latin America (12%).

The firm said its product portfolio "performed well across all species, especially poultry and swine".

Ceva set for more acquisitions

Acquisitions had a significant impact on Ceva's growth in 2016. Over the course of last year, Ceva made six purchases. These deals mean Ceva has acquired more than 30 companies since it was founded in 2000.

The company's latest deals further established Ceva's presence internationally – particularly in Brazil and India – and boosted its portfolio with autogenous vaccines, hatchery automation technology and several assets from Merial.

Dr Marc Prikazsky, Ceva's chairman and chief executive, said: "The challenge now is to consolidate these acquisitions to make sure they are all successful. In 2017, we will pursue our international ambitions, most likely through new acquisitions. After India and South America, we should be strengthening our position in Asia."

'Virtuous growth cycle'

Dr Prikazsky added: "Our priority for 2017 is to continue our virtuous growth cycle, to deliver more value for our customers, for the society in which we live and ultimately for Ceva."

Ceva said it aims to continue significant investment in its industrial facilities. This year, the company intends to spend over €90m on enlarging and improving its main production sites in Brazil, China, France, Hungary, India and the US.

Next stop: Top five

In fiscal 2013, Ceva sat 10th in Animal Pharm's industry rankings and ninth in terms of manufacturers of pharmaceuticals and vaccines (the latter ranking excludes IDEXX Laboratories as it is a diagnostics specialist).

Ceva's goal is to become a top five player amongst the manufacturers of pharmaceuticals and vaccines for animals by 2020.

Since 2013, the company has overtaken fellow French company Virbac in the rankings. It has also witnessed the acquisition of Novartis Animal Health and Merial, which has allowed to rise two more places. While Merial will still feature in Animal Pharm's rankings this year (as it completed a full fiscal year under its Sanofi guise), next year it will be fully consumed by Boehringer Ingelheim.

This means in fiscal 2017, Ceva will be the sixth largest veterinary medicines firm globally. It will be positioned behind Bayer Animal Health, which will be around $700m ahead of Ceva in fifth place.

Decade of growth

Ceva has almost tripled its revenues over the last 10 years. Since 2007, the firm has shown an increase in sales every fiscal year.

In recent years – with the exception of 2013, when Ceva suffered from a weak dollar and an abnormally long winter in the US – Ceva has consistently recorded sales growth in excess of 5% with some notable double-digit increases.

Ceva sales 2007-2016

Year

Sales (€ million)

Growth (%)

2007

339

+12.6

2008

363

+7.1

2009

395

+4.2

2010

468

+18.5

2011

530

+13.2

2012

607

+14.5

2013

624

+2.8

2014

766

+22.8

2015

857

+11.9

2016

912

+6.4

Source: Ceva

Reprinted with permission of Animal Pharm News 

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