A year of consolidation for Norbrook as it continues to invest in the underlying business

Norbrook Holdings Ltd today announced its results for the year to 3rd August 2018 which show Revenue of £275 million, up 1% year-on-year (CER:2%), generating Operating Profit of £45.1million.

2018 was another strong year for the Group, with growth in key markets, and continued investment in the business to consolidate its position as a leading company in the global veterinary pharmaceutical market.

  • Continued underlying growth in key markets, including North America which grew +15%.
  • Three new products launched in the last year. Strengthened our Dairy portfolio in the US with the launch of a teat sealant and Eprizero Pour On (a wormer for dairy cattle).
  • Companion animal category, up 12%, reflecting our strategic focus.
  • Significant capital investment of £13.9 million (5% of revenue) bringing total invested in the last three years to c. £40 million.
  • Further progress made on the implementation of our operational efficiency programme, which includes the rationalisation of non-core product ranges/business, allowing the business to focus on the key value drivers.
  • Continued investment in R&D (up 12% on 2017), with a strong pipeline of products.

Liam Nagle, Chief Executive Officer, Norbrook said, “2018 was another solid year for us, in which we made further progress on the implementation of our business strategy. We saw growth in our key markets, particularly the US where we had another strong year, up 15%, supported by the launch of a number of important products in the dairy sector. Our companion animal category continues to grow in line with expectations (up 12% in 2018).

We invested significantly in the business in 2018 (£13.9m), bringing capital investment over the last three years to c. £40m. We have a strong pipeline and work closely with our Customers across the regions to identify new opportunities. Our strategy is delivering, with annual Revenue and EBITDA growth of 8% and 21% respectively over the last 4 years, and we see a good runway for continued growth, based on our current portfolio and pipeline, in what continues to be a buoyant veterinary pharmaceutical sector.

The business faces a number of challenges in 2019, not least the uncertainty of the Brexit outcome. As an export company, with 85% of our Revenue generated outside the UK, any barriers to trade, tariff and non-tariff, will impact on our competitiveness. We have an integrated supply chain, with a global supply base, which relies on frictionless trade, and we urge all those directly involved to work together to avoid a “No Deal” Brexit, the impact of which I believe would be disproportionately felt in Northern Ireland.” 

Results Summary

The company recorded another solid year with growth generated across key markets. Revenue of 1% (2% CER) to £275 million generating Operating Profit of £45.1million.

Download our business performance review here.