Ceva Continues Rapid Growth in 201105 March 2012
FRANCE - During 2011 Ceva Santé Animale achieved 13.3 per cent growth through €530 in net annual sales, the first time the company reached the half billion euro mark. The company also invested record levels in research and development to fund future growth investing over €50m close to 10 per cent of sales. All of Ceva’s geographic zones achieved an increase in operating profit.
Internal growth driven by key products
Concentration on key brands has continued to drive internal growth where these products now represent more than 60 per cent of sales.
Particularly pleasing was the performance of the Vectra range of external parasecticides distributed exclusively through veterinarians in the US. Whilst many animal health companies chose to switch their allegiance to other channels, Ceva’s decision to stay with a “vet only” approach resulted in a 23.2 per cent increase of sales.
Ceva’s lead in poultry vaccine innovation became more evident as Transmune IBD the immune vaccine against Gumboro Disease was used to protect more than 16 billion broilers globally against Gumboro disease. Vectormune HVT-NDV the latest in an expanding range of vector vaccines was also launched in several countries, making it possible for the first time to protect against 3 major diseases in the hatchery.
Strong external growth
2011 saw a strong contribution from the two newly integrated businesses, Summit VetPharm in the United States and Nature Vet in Australia, both acquired during 2010.
Ceva re-enforced its position in the strategically important Chinese market following the signature, in July, of a joint venture agreement between Ceva and Huadu creating Beijing Ceva Huadu Biological Co. Ltd, which started operations in January 2012. The Huadu Group has a leading position in China’s poultry vaccine market.
In South America, Ceva acquired Argentina’s Instituto Sanidad Ganadera, a family-owned business specializing in the development and production of biologicals for ruminants, enlarging the groups’ expertise in this area.
Vetech Laboratories, Inc., a Canadian company producing live poultry coccidiosis vaccines was acquired in October giving Ceva access to the vital gut health market in over 40 countries. In the same month the company also strengthened its presence in Canada with the acquisition of CentaurVA Animal Health, a business primarily focused on the companion animal market.
Investing to keep pace with the growth
Ceva continues to invest massively in its production sites, more than €24m in 2011, with notably the June opening of a new poultry vaccine production facility at its Ceva Biomune Campus in Lenexa, Kansas, US.
Commenting on the past year, Dr Marc Prikazsky, president and CEO of Ceva Santé Animale said, "2011 was a year in which we really began to see the maturation of the Ceva business model. Many major markets presented challenging conditions, highlighting the importance of our earlier decision to invest in the emerging economies where we are now strongly placed. In the end, 2011 was a rich and prosperous year, thanks once again to the talent, motivation and reactivity of our teams, who continue to place the customer at the center of our thinking as we strive to become their partners of reference."
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