Pet drugs firm Animalcare hit by vet closures during crisis

PET DRUGS firm Animalcare said its performance in the first three months of 2020 was strong although the expected downturn in demand due to Covid-19 came into view at the start of the second quarter.

The York-based firm said its companion animals division, where coronavirus public health measures have often restricted veterinary activity to emergency treatments, has been the most affected.

By contrast, the production animals division has shown “real resilience”, helping to offset some of the decline in demand.

Animalcare’s chief executive, Jenny Winter, said: “Since the turn of the year the importance of employee safety and balance sheet strength has been thrown into even sharper relief by Covid-19.

“Of course, we are not alone in facing this challenge, but I am satisfied that we were able to take early and decisive action to safeguard our people and protect our cash position.

“Forecasting the exact shape and speed of the recovery will be difficult, though judging by the countries, like Germany, that have operated more normally through this period it is clear that the driver of the recovery in demand will be the speed with which vets return to work.

“We have noted the early signs of a return in some other countries more recently and continue to monitor the situation closely.”

Animalcare said revenue for the year to December 31 fell 2 per cent to £71.1m after it was hit by supply challenges.

Underlying EBITDA increased by 11 per cent to £13.1m.

The group made a statutory pre-tax loss of £1.6m, up from a £400,000 loss the previous year.

The firm reported significant progress towards its goal of generating 80 per cent of revenue from its top 20 products, in pursuit of a more profitable portfolio.

Newly introduced companion animal products contributed to sales with £1.5m generated in the year. Four 2019 product launches are expected to show a sales benefit in 2020.

It said its internal pipeline is progressing with completion of clinical studies and regulatory submission for Enflicoxib E6087 for treatment of pain in dogs.