Virbac (VIRP) H1 2026 earnings summary

Executive summary

• Achieved 7.4% revenue growth at constant exchange rates and scope in H1 2026, reaching €768 million, driven by strong performance in Supercharge platforms and both companion (+10.0%) and farm animal (+6.7%) segments, with successful integration of recent acquisitions including Thyronorm.

• Operating profit margin improved to 18.8% (+0.5ppt year-over-year), with net income rising 5.9% to €87.1 million, supported by favorable product mix and ongoing cost efficiency programs.

• Continued disciplined investment in R&D (~€50m), CapEx (~€57m), and advertising to support future growth and omnichannel transformation.

• Demonstrated agility in managing inflationary pressures, tariff changes, and geopolitical risks, maintaining margin expansion and resilience.

• Strategic focus on bolt-on M&A and seamless integration of acquisitions, with Thyronorm and Felanorm brands exceeding expectations and contributing to growth.

Financial highlights

• Revenue grew 7.4% at constant rates and scope to €768 million (+4.0% reported), with adjusted EBIT reaching €144.2 million (18.8% margin), and gross margin improving by 1ppt to 68.4%.

• Net income reached €87.1 million, up 5.9% year-over-year, and net cash flow generation was €130 million, with CapEx spending of €57 million.

• Net debt increased to €196 million, mainly due to seasonal working capital and CapEx, with net debt/EBITDA ratio at 0.6x.

• Free cash flow for H1 was -€7.2 million, improved year-over-year, mainly due to CapEx and working capital requirements.

• Negative currency impact: €25 million on revenue and €5 million on EBIT adjusted, but EBIT margin ratio remained stable.

Outlook and guidance

• Targeting upper end of 5.5%–7.5% net revenue growth for 2026 at constant rates and scope, with adjusted EBIT margin guidance of around 17%.

• Expected CapEx for 2026 is €125 million, with anticipated cash generation of ~€80 million.

• Thyronorm acquisition included in organic perimeter for 2026, expected to contribute ~1ppt to revenue growth and ~0.5ppt to EBIT margin.

• No material impact from energy inflation or geopolitical risks expected in 2026 due to hedging and proactive management.