Courtesy / Covetrus
Ben Wolin, president and CEO of Covetrus Inc.
May 6, 2022
Covetrus reports Q1 uptick in sales, shrinking loss
By William Hall
Portland-based animal-health company Covetrus Inc. (Nasdaq: CVET) on Thursday reported financial results for the year’s first quarter, showing an uptick in revenue and a net loss that shrank from the same period's results last year.
Net sales for the three months ended March 31, 2022, totaled $1.15 billion, an increase of 4% over the amount during Q1 2021. The company reported a loss of $2 million, or 2 cents a share, down from $16 million, or 11 cents a share, in the year-ago period.
Before-tax earnings for Covetrus during the most recent quarter were $63 million, an 11% increase over the $57 million reported a year ago. Much of the growth was driven by sales in North America, which totaled $696 million, up 10% year-over-year. Revenue from Covetrus’ prescription management services in that market grew 24%.
Those increases were partially offset by a continued downturn in Europe, where the company’s net sales for this year’s first quarter were $344 million, a 5% fall from Q1 2021.
Covetrus ended the most recent quarter with $117 million in cash, $1.05 billion in term loan debt and no borrowings on a $300 million credit line.
The company reiterated its financial guidance for 2022 of $270 million to $280 million in adjusted earnings.
In a news release, Covetrus President and CEO Ben Wolin said, “The first quarter represented a strong start to the year for Covetrus. We continued to drive momentum in our strategic growth drivers, progressed our technology roadmap forward and delivered against our financial commitments."
Shares of Covetrus were trading at around $13.55 early Friday morning. The stock closed on Thursday, before the quarterly report, at $13.98.
Covetrus, which has a market capitalization of roughly $2 billion, provides a range of technology and services for over 100,000 veterinary practices around the world, and employs more than 5,700 people.
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