Virbac (VIRP) H2 2025 earnings summary

Executive summary

• Achieved 7.9% organic revenue growth at constant rates and scope in FY25, reaching €1,465 million, driven by both volume (+5%) and price (+3%) increases, with strong performance across most geographies except the Pacific.

• Adjusted EBIT margin was 16.3% at constant rates and scope, reflecting resilience despite FX headwinds, temporary industrial challenges, and production shutdowns.

• Net income grew by 3.2% year-over-year to €150.5 million, supported by efficient cost management and lower non-recurring expenses.

• Record investments in R&D (€115 million) and CapEx (€102 million) to drive innovation and future capacity, with stable low debt levels despite high investment.

• Major M&A activity included the €107.8 million Thyronorm acquisition and ongoing integration of Sasaeah, Globion, and Mopsan.

Financial highlights

• Revenue grew 7.9% at constant rates and scope, with North America up 14.7%, Europe and Latin America above 7%, and IMEA up 9.5%.

• Adjusted EBIT margin at 16.3% at constant rates and scope; net income up 3.2% to €150.5 million.

• FX impact reduced top line by €50–54.3 million and bottom line by €16–16.4 million, lowering profit ratio by 0.5 points.

• Net free cash flow at €81.4 million, impacted by record CapEx and FX; net debt stood at €172.8 million, net debt/EBITDA ratio at 0.5–0.51.

• Dividend of €1.45 per share proposed for FY25.

Outlook and guidance

• 2026 guidance: revenue growth of 5.5%–7.5% at constant rates and scope, including Thyronorm impact.

• Adjusted EBIT/EBITDA margin expected at around 17% in 2026, with €80 million cash generation and €125 million CapEx.

• Commitment to reach 20% adjusted EBIT margin by 2030.

• Guidance assumes market growth will slow to 4%–5% in 2026.

• Dividend per share of €1.45 proposed for FY25.