Covetrus Announces Modest Increase in Net Sales and Reduces Second Quarter Losses
In what may be one of its last reports as a public company, Portland-based Covetrus Inc. (Nasdaq: CVET) said Thursday that its second-quarter net sales rose 2% from the total for the same period last year.
The animal health company also trimmed its quarterly loss to $4 million, by 3 cents per share, for the three-month period ending June 30, 2022. That’s down from a loss of $31 million, or 23 cents per share, in the past second quarter of the year.
The improvement in net loss was primarily due to a $12 million decrease in income taxes, a $9 million increase in gross profit, a $4 million decrease in selling, general and administrative expenses and a $2 million decrease in net interest expense, according to a news release.
Covetrus said its organic net sales were up 9% in North America, but were partially offset by more muted trends in the company’s Asian and emerging markets (up 2% year-over-year ) and in Europe (down 1% year-on-year). -year).
“Our team performed well in the second quarter and delivered results in line with our expectations despite end-market and macroeconomic turbulence, which obscured some of the operational progress we made this year in our continued adoption of our technology stack, growing our proprietary brands and managing enterprise costs,” said Ben Wolin, President and CEO of Covetrus.
“We remain focused on executing our strategic plan, delivering on our innovation agenda and advancing our mission to drive positive outcomes for veterinarians, their practices and their patients around the world.”
Covetrus, which provides a wide range of technology, supplies and services to veterinary practices, is in the process of going private. In May, the company announced that it had agreed to sell to two private equity firms in an all-cash, $4 billion deal.
New York-headquartered Clayton, Dubilier & Rice and San Francisco-based TPG Capital plan to buy all outstanding shares of Covetrus for $21 per share. The deal is still pending.
Covetrus was formed in 2019 from the merger of Portland-based Vets First Choice, a veterinary technology company, and the animal health division of Henry Schein Inc., based in Melville, N.N. York (Nasdaq:HSIC).
The company has more than 5,500 employees and serves more than 100,000 veterinary practices worldwide.