Virbac (VIRP) H2 2024 earnings summary

Executive summary

• FY24 net sales reached €1,397 million, up 13.6% at constant exchange rates, driven by 7.5% organic growth and 6.1% M&A contribution from Globion and Sasaeah acquisitions.

• Net result increased to €145.3 million from €121.3 million in 2023, with EPS up 20.5% to €17.35.

• Major acquisitions in Japan (Sasaeah), India (Globion), and Türkiye (Mopsan) expanded market presence and product portfolio.

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

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

Financial highlights

• EBIT adjusted margin reached a historical high of 16.6%, with EBIT adjusted at €232 million (+23% year-over-year), mainly due to gross margin improvement (+1.7 pts at constant exchange rates).

• Net debt at year-end was €168.5 million, up from a net cash position of -€52.4 million, mainly due to acquisitions; net debt/EBITDA ratio at 0.59.

• Operating and net cash flow increased by over 20%, with free cash flow at €108 million and operating cash flow at €280.3 million.

• R&D investment grew 11%, maintaining an 8% ratio to sales.

• Dividend of €1.32 per share paid for 2023; proposal for €1.45 per share for 2024.

Outlook and guidance

• 2025 net revenue growth expected at 4%-6% at constant rates and scope, with an additional 1% from full-year Sasaeah consolidation.

• EBITDA/EBITA ratio to revenue projected to stabilize at 16%, with R&D ratio rising to 8.3%.

• CapEx to exceed €100 million in 2025 and 2026, supporting industrial transformation.

• Net debt expected to improve to around €80 million by end of 2025.

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