Vetoquinol, one of the largest veterinary companies in the world, expanded revenues in Brazil by 22% last year, to R$129.4 million. By 2026, the French multinational expects to double the size of the operation by creating and exporting products to nearby markets.
Jorge Espanha, the company’s chief executive in Brazil, linked last year’s performance to the expansion of the company’s portfolio, the higher rate of medicalization of pets and the performance of animal protein exports, which provided conditions for the sector to invest.
The acquisition of Clarion Biosciences, a Brazilian company based in Goiás, in 2019, is the main growth driver for Vetoquinol, Mr. Espanha said. Last year alone, the company put 10 new products on the market, five of them developed in Brazil. “These are products that will be exported to the world,” he said. Before the purchase, the company’s revenues in the country stood at R$88 million.
The closer relationship between guardians and pets during the coronavirus pandemic also favored the business of the Brazilian subsidiary – even though the pet segment currently represents only 15% of the operation in the country. Globally, the rate is over 65%.
More representative in terms of revenues at this moment, livestock also had a favorable year for the adoption of technologies focused on animal health. According to Mr. Espanha, the strong pace of exports, especially of poultry and beef, allowed producers to add value.
The executive was cautious when talking about the future. According to him, government programs will be necessary after the elections to generate jobs and encourage consumption. Otherwise, an eventual increase in supply – livestock enters the cycle of high availability of animals this year – can reduce margins.
The company is also pressured by the high cost of inputs used to make its products, in addition to international freight. As a result, the company has been moving up purchases and using its global operation as a trump card in negotiations.
Vetoquinol is investing R$5 million in the expansion of its industrial complex in Goiás. The plan is to have three production lines and export products. Listed on the Paris stock exchange, the company expanded sales by 22% worldwide last year, to €427 million. The business was driven by the acquisition of antiparasitic products for pets.
Source: Valor International