Animal Health Marketing: 2009 Animal Industry Financial Reports

Feb. 8, 2010 - PRLog -- Now that 2009 is in the books, animal health companies are releasing their year end financials and earnings.  Below is a snapshot of a wide range of different companies in the animal health industry with their financial results for 2009.

- Pfizer Inc. reported financial results for the full year 2009. Animal Health revenues were $2,764 million, a decline of 2% compared to the prior year. Revenues included approximately 2 months of Fort Dodge legacy product revenues.
- MWI Veterinary Supply, Inc. announced financial results for its first fiscal quarter ended December 31, 2009. Total revenues were $236 million for the quarter, 2% higher than revenues for the same period in the prior fiscal year. Net income was $7.8 million, up 32% from net income of $5.9 million in the first fiscal quarter of 2008.  
- Animal Health International, Inc. reported its financial results for the company’s second fiscal quarter, which ended December 31, 2009. Net sales for the quarter were $171 million, compared to $185 million for the same period a year ago.  Net income was $1.2 million compared to $2.3 million in last year’s second quarter.
- Central Garden & Pet Company announced results for its first quarter ended December 26, 2009. Net sales for the Pet Products segment were $182 million, a decrease of two percent compared to $186 million in the year ago period.
- Pilgrim’s Pride Corp. reported results for its fiscal 2010 first quarter ended Dec. 27, 2009. The company reported sales that totaled $1.603 billion, down from $1.877 billion the year before. Pilgrim’s Pride reported net earnings of $33.6 million compared with a loss of ($229 million) in its fiscal 2009 first quarter.
- Lilly reported results for the full year 2009.  Sales for Elanco Animal Health increased 10% to $1.2 billion.  The increase was primarily attributable to Elanco’s acquisition of Posilac in October 2008.
- Novartis reported results for the full year 2009.  Sales for the animal health group were $1.1 billion, an increase of 4% in local currencies.  
- Virbac SA reported financial results for 2009.  Sales were EUR 467 million ($669 million), an increase of 5% compared to the prior year.  All regions have contributed to this performance.
- Vétoquinol reported results for the full year 2009.  Revenues totaled EUR 252 million ($361 million), an increase of 8% over the previous year. With exchange rates held constant, revenues increased by 10%.  The strength in sales is primarily due to acquisitions in Italy and India and by the resumption of organic growth, which held firm in the second half of 2009.
- IDEXX announced that revenues for the year ended December 31, 2009 increased 1% to $1.032 billion. Net income for the year increased 5% to $122 million. Companion Animal Group revenues for the year increased 1% to $843 million.
- Abaxis, Inc. reported financial results for the third fiscal quarter ended December 31, 2009. Veterinary Market sales were $23.9 million, an increase of 33% compared to the comparable period in the prior year.
- Colgate-Palmolive Company reported results for the full year 2009.  Hill’s Pet Nutrition recorded net sales of $2.13 billion, a decline of 1% compared to the prior year.
- PetMed Express, Inc. announced its financial results for the third fiscal quarter ended December 31, 2009. Net sales for the quarter were $48.4 million, an increase of 11% compared to the quarter ended December 31, 2008.  Net income was $5.6 million, a 14% increase compared to the comparable period in the prior year.  

A breakdown of the above 13 companies shows that eight companies, or 62%, showed a positive revenue stream in 2009 while five companies (32%) showed a decrease in revenues from 2008 to 2009.  The median was a 2% increase in revenue while the mean (average) was a 3.5% increase.  Inflation in 2009 was 2.7% so for most companies 2009 was a breakeven campaign.  In visiting with industry leaders who grew their business in 2009 they attributed the growth to either new products, price increases or international growth.  For those companies that showed a strong commitment to international growth they saw the greatest returns.  Price increases were met with mixed results but for several companies it was the only way to keep their head above water in 2009.  For those that launched new products in 2009 they reaped the benefits.  Unfortunately, new product development in 2009 and so far in 2010 has been slow.  Most companies stated the reason for the lack of new products entering the market is due to the decrease in R&D funding.

Overall, 2009 was a year of survival for most companies in the animal health industry.  To experience growth in 2010 companies will have to expand their business to include the ideas of international growth, new products and reaching customers in a more cost effective manner (i.e. online marketing).

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About cheetahLink

Founded by Preston Munsch, cheetahLink is an online marketing and consulting firm that specializes in the animal health industry. The focus of cheetahLink is to increase sales, brand recognition, online visibility and website traffic through search engine optimization, website development, social media site marketing (Facebook, Twitter, LinkedIn, etc.) and other online marketing services. CheetahLink also provides consulting services for animal health companies including product development, business development, sales/distribution plans, contract manufacturing, and other services. Munsch has spent the past 10 years in the animal health industry specializing in product development, animal health marketing, branding, sales, distribution and advertising. Munsch has a Masters Degree in Business Administration along with a Bachelors Degree in Communication and Associates Degree in Graphic Design.