Virbac (VIRP) H2 2025 earnings summary

Executive summary

• Achieved 7.9% organic revenue growth in 2025 at constant exchange rates and scope, reaching €1,465 million, driven by 5% volume and 3% price increases, with strong performance across most geographies except the Pacific.

• Maintained strong financial discipline and resilience despite FX headwinds and temporary industrial challenges, with adjusted EBIT margin at 16.3% (constant rate/scope).

• Net income rose by 3.2% year-over-year to €150.5 million, supported by efficient cost management and favorable product mix.

• Record investments in R&D (up to €115 million) and CapEx (€102 million), including nine technology deals and the Thyronorm acquisition.

• Launched refreshed strategy, "Growing Together," and continued programmatic M&A, including Sasaeah, Globion, and Mopsan integrations.

Financial highlights

• Revenue grew 7.9% at constant rates and scope, with a five-year CAGR over 8%.

• Adjusted EBIT margin at 16.3% (constant rate/scope), with adjusted EBIT of €234.4 million.

• Net free cash flow at €81.4 million, impacted by record CapEx and FX; operating cash flow before interest and taxes at €289 million.

• Net debt stood at €172.8 million at year-end, with net debt/EBITDA ratio of 0.5.

• R&D investment reached up to €115 million (7.9–8% of revenue).

Outlook and guidance

• 2026 net revenue growth expected between 5.5%-7.5%, including Thyronorm impact.

• EBITDA/EBIT margin targeted at 17% for 2026, up from 16.3% in 2025.

• CapEx planned at €125 million for 2026, with €80 million expected cash generation.

• Midterm EBIT adjusted margin target of 20% by 2030.

• Dividend per share of €1.45 proposed for FY25.