Virbac (VIRP) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached €703 million, up 15.1% reported and 16.1% at constant exchange rates, driven by 11.3% organic growth and contributions from recent acquisitions (Globion and Sasaeah).

• Net income attributable to owners was €94.9 million, up 26.9% year-over-year.

• Market share gains continued in all major regions, with strong demand across segments except Pacific.

• CEO transition announced: Sébastien Huron stepping down, Habib Ramdani appointed interim CEO.

• Acquisitions strengthened positions in animal vaccines and were accretive to profitability.

Financial highlights

• Operating profit rose 35.1% to €146.7 million, with adjusted current operating income up 36.9% to €150.4 million and margin at 21.4%.

• Gross margin improved by about 3 points to 68.7% of revenue, supported by volume, mix, and pricing.

• Net profit rose to €94.9 million, up from €75.9 million in the prior year.

• Operating cash flow before interest and taxes reached €172.6 million (+30.4%).

• Net debt increased to €254.9 million, mainly due to acquisitions and seasonal working capital needs.

Outlook and guidance

• 2024 revenue growth expected between 7% and 9% at constant exchange rates and scope, with adjusted EBIT margin targeted at ~16%.

• Recent acquisitions expected to add up to 5.5 points to revenue growth and be slightly accretive to profitability.

• Cash generation guidance raised to €60 million after dividends, excluding acquisitions.