Virbac (VIRP) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached €738.3 million, up 5.0% year-over-year, with 5.6% organic growth at constant rates and scope, driven by both volume and price increases; Sasaeah acquisition in Japan contributed 2.2 points to growth.

• EBIT adjusted was €135 million (18.3% of revenue), down 2.4 points YoY at constant exchange rates, mainly due to temporary and calendar effects, higher inventory write-offs, and production shutdowns.

• Net result was €82.2 million, down from €94.9 million in HY24, reflecting EBIT evolution, increased financial costs, and FX impacts.

• Strong performance in Americas, Europe, EMEA, and Far East Asia, with Mexico, USA, and India as top contributors; Pacific region declined due to Australia.

• New CEO Paul Martingell appointed, effective September 1, 2025; Habib Ramdani returns to CFO and deputy CEO roles.

Financial highlights

• Net revenue grew 5.6% at actual rates, with a 7.8% rise at constant exchange rates, excluding the positive impact of the Sasaeah acquisition in Japan.

• EBIT adjusted margin was 18.3%, down from 21.4% YoY, mainly due to increased write-offs and temporary site closure for maintenance.

• Net debt increased to €201.4 million, mainly due to CapEx, working capital needs, and seasonality; net debt/EBITDA ratio remains significantly below 1.

• CapEx nearly doubled YoY to €53.9 million, exceeding €50 million in H1, with full-year 2025 and 2026 expected above €100 million due to industrial transformation projects.

• Net free cash flow was -€41.1 million, reflecting higher capex and working capital needs.

Outlook and guidance

• Full-year 2025 guidance confirmed: net revenue growth of 4%-6% at constant rates and scope (5%-7% including Sasaeah), EBITDA margin around 16% at constant FX, and net debt evolution as previously guided.

• Targeting 20% EBIT adjusted margin by 2030, with no change to this ambition.

• Sasaeah acquisition expected to add 1 point to 2025 growth and be neutral on EBITA ratio.

• Cash position projected to improve by €80 million in 2025, excluding acquisitions.

• Moderate impact anticipated from US customs tariffs, with most US revenue shifting to local production.