Covetrus reports Q2 loss, despite revenue growth of 16%
Covetrus Inc. (Nasdaq: CVET), the Portland-based animal-health company, on Thursday reported an increase in net sales during this year's second quarter of $1.19 billion, an increase of 16% compared to the second quarter of 2020.
However, the company reported a net loss for the most recent quarter of $31 million, or 23 cents per diluted share, after recording earnings of $54 million, or 40 cents per diluted share, for the same quarter last year.
The primary driver of the year-over-year fall was the 2020 proceeds from the sale of the company’s scil animal care business, as well as higher selling, general and administrative expenses, Covetrus said in a news release.
Adjusted, non-GAAP earnings were $66 million for the second quarter of 2021 versus $63 million in the prior-year period. The 5% year-over-year increase reflected growth in all of the company's segments, according to Covetrus.
"Covetrus continues to advance our value proposition to the veterinary industry and pet owners globally. In the second quarter, we delivered solid results, improved our market position and progressed our innovation agenda," said Ben Wolin, Covetrus president and CEO.
"While we still have plenty of work to do, I am confident in our strategic direction and growth opportunities in what remains a healthy, but dynamic, end-market. I anticipate our momentum will continue to build in the second half of 2021 and beyond."
As of June 30, Covetrus had $230 million in cash and cash equivalents, $1.08 billion in term loan debt, and no borrowings outstanding on its $300 million revolving credit line.
The company renewed its guidance for full-year adjusted earnings of $245 million to $255 million, unchanged since May 6.
In late-morning trading Friday, shares of Covetrus stock were selling at roughly $22, after opening at $24.41. The company has a market capitalization of $3.5 billion.
Covetrus provides a range of technology and services for over 100,000 veterinary practices around the world, and employs more than 5,500 people.
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