Pet drugs firm hit by vet closures

Many vet surgeries have closed except for emergency procedures | other

Pet drugs firm Animalcare said its performance over the first three months of 2020 was strong although the expected downturn in demand due to Covid-19 came into view at the start of the second quarter.

The York-based firm said its companion animals division, where coronavirus public health measures have often restricted veterinary activity to emergency treatments, has been the most affected.

By contrast, the production animals division has shown "real resilience", helping to offset some of the decline in demand.

Animalcare's chief executive, Jenny Winter, said: "Since the turn of the year the importance of employee safety and balance sheet strength has been thrown into even sharper relief by Covid-19. Of course, we are not alone in facing this challenge, but I am satisfied that we were able to take early and decisive action to safeguard our people and protect our cash position.

"Forecasting the exact shape and speed of the recovery will be difficult, though judging by the countries, like Germany, that have operated more normally through this period it is clear that the driver of the recovery in demand will be the speed with which vets return to work.

"We have noted the early signs of a return in some other countries more recently and continue to monitor the situation closely."