Virbac (VIRP) H2 2024 earnings summary

Executive summary

• Revenue grew 13.6% at constant exchange rates to €1,397 million, with 7.5% organic growth and significant contributions from Sasaeah, Globion, and Mopsan acquisitions.

• Net result increased to €145.3 million, exceeding initial guidance, with EPS up 20.5% to €17.35.

• Strong performance across most geographies except Australia/Pacific, which declined due to adverse market and climatic conditions.

• Major acquisitions and successful integration expanded commercial reach and product portfolio.

• R&D milestones achieved, with over 90% of 2024 targets met and several product launches, including Movoflex Cat and Trilotab.

Financial highlights

• EBIT adjusted margin reached a historical high of 16.6%, driven by gross margin improvement (+1.7 pts) and favorable product mix.

• Operating profit from ordinary activities rose 23.1% to €227.5 million; EBITDA increased 23.2% to €231.8 million.

• Operating and net cash flow grew by over 19%; CapEx increased from €60 million to €80 million.

• Net debt increased to €168.5 million due to acquisitions, with net debt/EBITDA at 0.59x.

• Gross margin on material cost improved to 67.4% from 65.2% year-over-year.

Outlook and guidance

• 2025 net revenue growth expected at 4%-6% at constant rates and scope, with Sasaeah adding ~1 point.

• EBITDA ratio to revenue targeted at ~16% for 2025; R&D ratio expected to rise to 8.3%.

• CapEx to remain above €100 million for several years due to transformation projects.

• Net debt projected to improve to around €80 million in 2025.

• Sufficient liquidity and funding capacity to support ongoing operations and growth.