Virbac (VIRP) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached €703 million, up 15.1% year-over-year, with strong organic growth of 11.3% at constant exchange rates and scope, and significant contributions from recent acquisitions (Globion and Sasaeah).

• All geographies performed well except Pacific; companion animal vaccines saw notable demand due to increased production capacity.

• Market share gains continued in all major regions, with performance outpacing market growth, especially in North America, Europe, and Latin America.

• CEO transition announced: Sébastien Huron stepping down for personal reasons, with CFO Habib Ramdani appointed interim CEO.

• Strategic acquisitions of Sasaeah (Japan) and full ownership of Globion (India) were completed, strengthening positions in animal vaccines.

Financial highlights

• EBIT adjusted increased by nearly 40% at constant exchange rates, reaching an all-time high EBIT adjusted ratio to revenue of 21.3%.

• Net profit rose to just under €100 million, up from €75 million in the prior year, with net income attributable to owners at €94.7 million (+26.2%).

• Operating profit grew by 35% year-over-year to €146.7 million.

• Gross margin improved to 68.7% of revenue, up from 66.0% in H1 2023, supported by volume, product mix, and pricing.

• Operating cash flow and net cash flow both increased by 30%, with free cash flow at €82.0 million for HY24.

Outlook and guidance

• Net revenue growth at constant rate and scope guided at 7–9% for FY 2024, or 12.5–14.5% including acquisitions.

• EBITDA/EBIT margin expected at ~16% for the full year, with cash generation guidance raised to €60 million after dividends.

• Recent acquisitions expected to add up to 5.5 points to revenue growth, with a slightly accretive impact on profitability.

• Continued focus on R&D investment, programmatic M&A, and operational competitiveness.