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, and 2.2% M&A contribution from Sasaeah; new product launches and balanced price/volume mix supported growth.

• EBIT adjusted was €135 million (18.3% of revenue), down 2.4 points YoY, impacted by higher inventory write-offs, temporary production shutdowns, and FX effects, but aligned with expectations.

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

• Strong revenue growth in all regions except Pacific, with notable performances in Americas, Europe, Latin America, IMEA, and Far East Asia.

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

Financial highlights

• Net debt increased to €201.4 million, up €32.9 million, mainly due to working capital needs, capex, and dividend payments; net debt/EBITDA ratio remains below 1.

• CapEx nearly doubled YoY to €53.9 million, focused on major industrial transformation projects.

• Gross margin ratio declined to 67.4% due to higher write-offs, temporary plant shutdowns, and negative FX impacts; OpEx increased with Mopsan acquisition and R&D expansion.

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

• Dividend of €1.45 per share paid for 2024, totaling €12.1 million.

Outlook and guidance

• Full-year 2025 guidance confirmed: revenue growth of 4%-6% at constant rates and scope (5%-7% including Sasaeah), adjusted EBIT margin around 16%, and net debt evolution at ~€80 million.

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

• CapEx expected above €100 million for 2025 and 2026, reflecting ongoing industrial projects.

• 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.