Virbac (VIRP) H1 2024 earnings summary

Executive summary

• Achieved strong organic growth of 11.3% at constant exchange rate and scope, with total published growth at 15.1% for the first half of 2024, driven by robust demand across all segments and geographies except Pacific.

• Net sales reached €703m for HY24, with market share gains in all major regions, especially North America, Europe, and Latin America.

• Recent acquisitions (Globion and Sasaeah) contributed approximately five points to top-line growth and were accretive to profitability.

• Leadership transition announced: CEO stepping down for personal reasons, with CFO assuming interim CEO role.

• Released half-year financial report for the period ending June 30, 2024.

Financial highlights

• EBIT adjusted increased by nearly 40% at constant exchange rates, reaching an all-time high EBIT adjusted ratio to revenue of 21.3%.

• Net profit rose to just under EUR 100 million, up from EUR 75 million in the prior year.

• Gross margin improved by three points, supported by volume, product mix, and pricing.

• Operating profit margin was 20.9% (vs. 17.8% in 2023).

• Operating cash flow and net cash flow both increased by 30%.

Outlook and guidance

• Net revenue growth at constant rate and scope guided at 7-9%, or 12.5-14.5% including acquisitions.

• EBITDA ratio expected at 16% for the full year, with cash generation guidance raised to EUR 60 million after dividends.

• Continued focus on R&D investment, programmatic M&A, and operational competitiveness.