March 28, 2011
Ceva's sales up in 2010
Ceva Santé Animale (Ceva) reported strong growth for the tenth consecutive year with sales of EUR468 million (US$658 million) (+18.5%), including partial sales from the latest acquisitions (14.8% at a constant parameter).
On a proforma basis, sales passed the EUR500 million (US$703 million) barrier for the first time (EUR503 million) (US$707 million). The result was favourably impacted by foreign exchange gains, with overall sales growth of 9.3% after adjustment.
Record levels of R&D and industrial investments were made to support the group's innovation strategy. R&D investments reached EUR42 million (US$59 million) (9% of sales).
Market conditions were particularly favourable, especially in fast-emerging economies such as Brazil, South Africa and Turkey where Ceva has a strong presence.
Two acquisitions, Summit VetPharm (SVP) in the US and Nature Vet in Australia, significantly increased Ceva's position in key segments of the companion animal market. Due to sales seasonality, the late-August acquisition of SVP had marginal impact on 2010 results. Strategically, the move allows Ceva to enter the single largest market sector of the global animal health market: companion animal parasiticides. Nature Vet, a specialist equine and companion animal business, performed particularly well with strong sales and earnings growth both in Australia and export markets.
At the infrastructural level, the group continued to make large investments in its manufacturing and distribution capacity to support existing and anticipated growth. The company completed construction of a new facility at its biotechnology campus in Lenexa, Kansas (US) to produce vector vaccines. A new distribution centre and administrative building was added to the headquarters in Libourne, France.
Commenting on the 2010 results, Chairman and CEO Dr. Marc Prikazsky said, "2010 was an impressive year for Ceva as we completed our first 10-year plan ahead of our objectives. We achieved solid growth yet again, aided in part by favourable market conditions. I was particularly pleased to see the strong contribution from our subsidiaries in Brazil, South Africa and Turkey, which illustrates the importance of our investments in rapidly-emerging economies. The successful roll-out of our innovative vector vaccines and new products for companion animals illustrates our value in bringing new technologies to new markets."
