Financial sustainability through revenue growth, strong cash conversion, EPS growth and EBITDA margin growth
Revenue growth
key initiatives
Focus on segments and products with highest potential
New product launches
Leverage strengths across all our direct markets
Maximise opportunities in other high growth markets through partnerships or selective acquisition
progress
New product sales of £2.2m (2020: £2.2m)
Successful launch of Daxocox in H2, contributing £1.2m in revenue
8.3% growth in revenue generated by top 40 products in portfolio
2022 priorities
Continue to scale up in fast-growing countries
Maximise growth potential of Daxocox in dynamic market
Successful launch of STEM biofilm dental range in H1
Cash conversion and net debt
key initiatives
Maintain net debt to underlying
EBITDA leverage ratio between 1 to
2 times
Optimise inventory
Tax efficiency
progress
Strong underlying cash conversion of 108.8%
£5.3m net debt at year end; reduced by 60% over course of 2020
Net debt comfortably below
target range
2022 priorities
Support investment in growth strategy by maintaining strong cash conversion within 90%-100% range
Maintain EBITDA leverage in the range of 1 to 2 times
Underlying EBITDA margin and EPS growth
key initiatives
Focus on higher margin products
Operating efficiency and leverage
progress
Total number of brands in portfolio close to steady state target of 150. Reduced from c.330 at time of merger
Underlying EBITDA margin increased to 18.2% even allowing for absorption of higher SG&A investment in people
Underlying EPS of 12.0 pence
2022 priorities
Investment in new product launches, other growth opportunities and capability development while maintaining focus on operational efficiency
Organisation for success; leadership strength and core capabilities
Attract, retain and develop
talented people
key initiatives
Build leadership capabilities
Align reward to performance
One-team culture
Drive effective communication and collaboration
Improve diversity
progress
Well ahead of Gallup's average
benchmark of European companies
despite slight decline (down 4%) in
annual employee engagement score
Strengthened sales and marketing
capabilities
Wellbeing programme available for all
employees
Launch of leadership development and
talent management programme
2022 priorities
Implement actions from employee
engagement survey
Continue to improve two-way
employee communication
Embed leadership development “high
challenge, high support” principles
Organisation for growth
key initiatives
Reorganisation to drive growth agenda
with clear leadership accountabilities
progress
Regional structure and Senior
Executive Team (SET) supporting
focus on performance and growth
opportunities
Sandra Single appointed Strategic
Product and Portfolio Director and
joined SET (February 2022)
2022 priorities
ontinue adoption of regional and
Group model
Focused portfolio in key therapy areas
in growing market segments
Focus on existing core brands
that generate sustainable
growth and margins
key initiatives
Improve quality of portfolio; focus
on smaller number of bigger-selling,
higher-margin brands
progress
Increased management focus on top
40 products; tail further reduced
£2.2m of new product sales supported
by launches such as Daxocox
Strengthened sales and marketing
excellence
2022 priorities
Drive growth in Companion Animals
and maintain strong presence in
Production Animals
Continued focus on bigger-selling,
higher-margin products
Further investment in product launch
capability
Work with partners to build a pipeline
of products that meets our criteria
for growth
In-license or acquire products
and develop network
partnerships
key initiatives
In-license or acquire innovative
pipeline or market-ready products
Establish Animalcare as partner of
choice, especially for companies selling
into Europe
Build partnerships to exploit growing
global markets
progress
Secured distribution partnership with
Virbac for Daxocox in most European
countries outside Group’s direct
markets
UK Identibase business carved out
to facilitate growth opportunities.
Entrepreneurial leader appointed
2022 priorities
Continue to pursue value-creating
partnerships and in-licensing
opportunities
Building a pipeline of novel and
differentiated products
Launch new products and
develop differentiated and
innovative pipeline of products
for the future
key initiatives
Strengthen internal pipeline of
differentiated products through
partnerships, in-licensing and
acquisitions
Prioritise and accelerate in-house R&D
projects
progress
EU and UK authorities approve
Daxocox for canine OA-related pain
Early-stage pipeline licence and
collaboration deal signed with Orthros
Medical to develop innovative
therapies using VHH antibodies
(March 2022)
Advancement of life cycle management
(LCM) programmes for Daxocox and
STEM biofilm technology
2022 priorities
Increase investment in pipeline versus
2021 (as percentage of revenues)
Execute clinical and regulatory
programme for Daxocox LCM
Identify potential development
opportunities from STEM joint venture
We Are Animalcare
Animalcare Group plc is an international veterinary pharmaceutical and services business driven by a collective belief that healthy animals can have a hugely beneficial effect on their owners and society.
Listed on the UK’s AIM exchange, we have a direct commercial presence in seven European countries and export to more than 40 markets in Europe and beyond. We are focused on growing our business sustainably by bringing new and innovative animal health products to market through our own development pipeline, partnerships and via acquisition.
