Vetoquinol (VETO) H1 2025 earnings summary

Executive summary

• Group sales for H1 2025 were €258 million, down 2.6% year-over-year, mainly due to negative foreign exchange and product simplification impacts; Essentials products grew 4.2% at constant exchange rates and now represent 64.2% of sales.

• Net income increased by 5.3% to €25.1 million, with a reduced effective tax rate of 30.2%.

• EBITDA rose to €53 million (20.4% of sales), up from €45 million (17.0%) in H1 2024.

• Essentials product line showed strong growth, offsetting declines in complementary products.

• Integration of Drontal® and ProfenderⓇ is in its final phase, with full production transfer expected by year-end.

Financial highlights

• Gross margin improved to 75.8% of sales, up from 72.3% in H1 2024, driven by product mix and price increases.

• Operating income (ROC) rose to €34.9 million (13.5% of sales), up from €32 million (12.1%).

• Cash flow generation reached €51 million, up from €48 million at June 30, 2024; net cash position stood at €164 million after dividends, CAPEX, and buybacks.

• External expenses fell 8.3%, while personnel expenses rose by €3.3 million.

• Earnings per share increased to €2.13 from €2.01.

Outlook and guidance

• Continued focus on Essentials product growth and operational profitability, with external growth opportunities remaining a strategic priority amid economic, regulatory, and inflationary uncertainties.

• Finalization of Drontal® and ProfenderⓇ integration expected by end of 2025.

• Next financial update scheduled for Q3 2025 on October 28, 2025.