Image Credit: Heska.com, Homepage Screenshot, 1/03/2020
On February 25th, Heska Corporation, the US-originated supplier of veterinary and animal health products, reported financial results for its fourth quarter and full-year ended December 31st 2019. These results show that sales revenue contracted marginally during the quarter resulting in overall lower sales revenue for the year. The companies overall sales revenue reached $33.8m during Q4 2019, compared with $34.1m during Q4 2018, a decrease of -0.9% year-on-year. The full-year cumulative sales revenue reached $122.7m, compared with $127.4m during 2018, a decrease of approximately -3.8% year-on-year.
These latest top-line sales results are the continuation of a medium-term trend of declining revenues. On a trailing 12-month basis, revenues peaked during H1 2017, following explosive sales growth during 2016. Despite the recent decline in annual revenue, the step-change in revenue during 2016 yields a CAGR of +4.1% between FY15/19.
Sales results by segment
The company currently has two reportable segments, “core companion animal” (CCA) and “other vaccines and pharmaceuticals” (OVP). The contraction in sales during 2019 was driven by lower sales from both segments. The full-year 2019 sales revenue from the CAA segment reached $106.6m, compared with $108.9m during 2018, a decrease of -2.2% year-on-year. The sales revenue from the OVP segment reached $16.1m, compared with $18.5m during 2018, a decrease of -13.1% year-on-year. The CCA segment accounts for the majority of the companies sales revenue and encompasses products such as laboratory consumables and instrument, imaging solutions as well as pharmaceuticals, vaccines and diagnostics (PVD).
Imaging solutions sub-segment
The full-year 2019 sales revenue from the imaging sub-segment reached $25.7 million, an increase of approximately +12.5% relative to 2018. Sales revenue originating from the sale of digital radiography products to customers based within the United States reached $16.7 million, an increase of approximately +10% relative to 2018. Higher domestic sales were partially offset by weaker sales from international distributors which reached $2.6 million for the full-year 2019. The companies 2020 revenue outlook for its imaging business are revenues of between $25m and $30m, indicating sales growth of between 0% to 15%.