Virbac: 2025 Half-year results
- Solid revenue growth in the first half of 2025 of +5.6% at constant exchange rates and scope
- Adjusted recurring operating income² of 18.3% as a ratio to revenue, in line with our expectations
- Down compared to 2024 due to phasing and non-recurring effects
- 2025 targets confirmed
- Revenue growth expected between 4% and 6% at constant rates and scope
- Adjusted recurring operating income¹ expected around 16%
| CONSOLIDATED FIGURES AS OF JUNE 30 in € million | HY25 | HY24 | Variance 2025/2024 |
| Revenues | 738.3 | 702.9 | 5.0% |
| Change at constant exchange rates1 | 7.8% | ||
| Change at constant exchange rates and scope1 | 5.6% | ||
| Current operating profit, before amortization of assets arising from acquisitions2 | 135.0 | 150.4 | -10.2% |
| as a % of revenue | 18.3% | 21.4% | |
| as a % of revenue at constant rates | 19.0% | na | |
| as a % of revenue at constant exchange rates and scope | 18.9% | na | |
| Amortization of intangible assets from acquisitions | -2.6 | -1.7 | |
| Current operating income | 132.4 | 148.7 | -11.0% |
| Non-recurring (expenses) and income | 0 | -2.0 | |
| Operating income | 132.4 | 146.7 | -9.7% |
| Consolidated net income | 82.2 | 94.9 | -13.3% |
| Including net income – Group share | 82.4 | 94.7 | |
| Shareholders’ equity – Group share | 1 065.1 | 994.3 | 7.1% |
| Net debt3 | 201.4 | 254.9 | -21.0% |
| Operating cash flow before interest and taxes4 | 164.0 | 172.6 | -5.0% |
¹Change at constant exchange rates and scope corresponds to organic sales growth, excluding exchange rate variations by calculating the indicator for the current and prior periods using identical exchange rates (the exchange rate used is that of the prior period), and excluding material changes in scope by calculating the indicator for the current period based on the prior period’s consolidation scope. This change is calculated on the actual scope, including scope impacts from acquisitions (Sasaeah company), for which the relevant indicator is calculated using the prior period’s exchange rate.
²Adjusted recurring operating income corresponds to “recurring operating income before amortization of assets arising from acquisitions”.
³Net debt corresponds to current (€86.9 million) and non-current (€207.9 million) financial liabilities, as well as the lease liability related to the application of IFRS 16 (€35.4 million), less cash and cash equivalents (€128.7 million) as published in the statement of financial position.
⁴Operating cash flow corresponds to the adjusted recurring operating income (€135.0 million) restated for non-cash items and impacts related to disposals. As such, depreciation and amortization of fixed assets before acquisition are restated for €28.4 million (i.e., €31.1 million in depreciation and amortization (including €27.7 million in net charges on fixed assets excluding assets from acquisitions), adjusted for -€2.6 million in amortization of assets from acquisitions).
The financial statements have been audited by the statutory auditors and were reviewed by the Board of Directors on September 11, 2025. The financial statements and the detailed presentation of the annual results are available on the corporate.virbac.com website.
For the first half of the year, our revenue reached €738.3 million compared to €702.9 million in 2024, representing an overall increase of +5.0%. Excluding exchange rate effects, revenue showed a significant increase of +7.8%. The integration of Sasaeah, a company acquired in Japan in April 2024, contributed +2.2 points of growth. At constant exchange rates and scope, organic growth for the first half reached +5.6%, favorably impacted by a concomitant increase in volumes (estimated at ~2.1 points of growth) and prices (estimated at ~3.5 points of growth). It should be noted that the acquisition of Mopsan contributed 0.6 points of growth and was not restated from the constant scope as it was deemed immaterial.
In the first half, Europe recorded a notable growth of +7.1% at constant exchange rates. This performance was supported by all our regions. Western Europe particularly distinguished itself with an increase of +9.4%, thanks notably to the performance of bovine vaccine sales and our dermatology range for companion animals. At the same time, Central and Eastern Europe showed growth of +27.4%, boosted by the pet food segment following the acquisition of Mopsan. France, however, showed relative sales stability, mainly due to a slight decrease in pet food sales over the half-year. North America achieved growth of +5.9% at constant exchange rates and scope, despite a temporary inventory effect observed at our distributors (estimated impact of approximately 5 points of growth). Growth was driven, in particular, by sustained sales momentum for our specialty and dental products for companion animals. Latin America, driven by Mexico, Colombia, and Brazil, in both the companion animal and livestock segments, recorded strong growth of +8.2% at constant exchange rates and scope. This performance was partially offset by a decrease in our aquaculture activities in Chile (-11.2%), mainly linked to the negative dynamic of one of our antiparasitic products facing increased competition. IMEA also showed solid growth of +8.2% at constant exchange rates and scope. This progression was generated by good performance across all regions, particularly in India (+6.8%). Far East Asia experienced growth of +2.8% at constant exchange rates and scope, driven by good growth momentum across all countries in this region, with the exception of Vietnam, which, due to a swine fever epidemic, recorded a decrease in activities of -17.8%. Finally, activity in the Pacific region declined by -7.9% in the first half at constant exchange rates and scope. This decrease is primarily attributable to dynamics in Australia (-11.4% at constant exchange rates and scope, about half of which is explained by inventory effects), offset by sales growth in New Zealand (+7.6% at constant exchange rates and scope). We expect a return to growth in Australia in the second half, favored by improving market conditions and the normalization of inventory levels at our distributors.
Current operating income before amortization of assets from acquisitions stood at €135.0 million for the first half, compared to €150.4 million for the same period in 2024. The corresponding margin thus reached 18.3% of revenue. After adjusting for a currency effect of -0.7 points and a scope effect of -0.2 points, the margin at constant scope and exchange rates declined by 2.2 points. This change is explained by a decrease in the gross margin (-1.3 points) and a controlled increase in operating and R&D expenses (-0.9 points). The decline in gross margin is primarily attributable to temporary factors that mask an underlying performance of our sales prices and production costs which remain in line with our expectations. These factors notably include a higher level of inventory write-offs than last year (as the H1 2024 write-off level represented only ~30% of the annual level) and a temporary production shutdown of one of the Group’s antigens for facility maintenance. Concurrently, the increase in operating expenses results from a phasing of expenditures more concentrated in the first half compared to 2024 and a one-off increase in legal fees. Lastly, R&D expenses continued to grow in line with our strategic plan, representing an increase of 0.4 points of revenue at constant exchange rates.
Consolidated net income was €82.2 million, a decrease of 13.3% compared to the first half of 2024. Amortization charges on intangible assets from acquisitions increased from €1.7 million to €2.6 million, a rise due to the integration of Sasaeah. Furthermore, the net financial expense increased to €8.5 million, compared to €4.8 million in the first half of 2024, and consists of a foreign exchange loss of €5.7 million, supplemented by a cost of financial debt of €2.8 million. The foreign exchange loss is due to the appreciation of the euro against unhedged exposures, particularly to the Chilean peso (-€4.3 million) and, to a lesser extent, the Mexican peso (-€1.4 million). However, these charges were partially offset by a lower tax charge, in line with the level of activity.
Net income – Group share stands at €82.4 million, a decrease of 12.9% compared to the first half of the previous year (€94.7 million).
From a financial standpoint, our net debt as of June 30, 2025, amounts to €201.4 million, an increase of €32.9 million compared to the end of fiscal year 2024. This change is mainly explained by the usual seasonal effect on working capital requirements and by the payment of dividends amounting to €12.1 million.
2025 Outlook Confirmed
We confirm our outlook for revenue growth at constant rates and scope of between 4% and 6%. The impact of the Sasaeah acquisition is expected to represent 1 point of additional growth in 2025. The ratio of “current operating income before amortization of assets from acquisitions” (Adjusted EBIT) to revenue is expected to consolidate at the same level as 2024 at constant scope, i.e., around 16%. This forecast takes into account the continuation of the deliberate increase in our R&D investments relative to revenue, which in 2025 will represent approximately +0.3 percentage points compared to 2024. In terms of operating income, the impact of the Sasaeah acquisition should be broadly neutral in 2025. As for our cash position, it is expected to improve by €80 million in 2025, excluding potential acquisitions.
We anticipate a moderate impact from the possible increase in customs tariffs in the United States. Indeed, approximately two-thirds of our US revenue in 2025 and nearly 80% by the end of 2026 (due to ongoing industrial projects) are expected to be generated by our local production in the United States. Furthermore, purchases by our US subsidiary of components and raw materials from outside the United States represent approximately €8 million over a full year. Given this, the direct impact of the tariffs (i.e., not taking into account any potential price increases that could offset all or part of these impacts), as assessed to date, is around US$4 million on a full-year basis.
First half 2025 key events
June 19: Paul Martingell Appointed CEO of Virbac Group, Effective September 1, 2025
ANALYSTS’ PRESENTATION – VIRBAC
We will hold a virtual analyst meeting on Monday, September 15, 2024 at 2:00 p.m. (Paris time – CEST).
Information for participants:
Webcast access link: https://bit.ly/4lByXs5
This access link is available on the corporate.virbac.com site, under the heading “financial press releases.” This link allows participants to access the live and/or archived version of the webcast.
You can ask questions via chat (text) directly during the webcast or after watching the replay at the following email address: finances@virbac.com.
Caring for animals together
At Virbac, we are constantly exploring new ways to prevent, diagnose and treat the majority of animal pathologies. We develop care, hygiene and nutrition products to offer complete solutions to veterinarians, farmers and pet owners around the world. Our purpose: advancing the health of animals with those who care for them every day, so we can all live better together.
Virbac : Euronext Paris – compartiment A – code ISIN : FR0000031577/MNEMO : VIRP
Direction financière : tél. 04 92 08 71 32 – finances@virbac.com – corporate.virbac.com
ANNEXES
1. Income statement of the period
| in €k | HY25 | HY24 | Variance |
| Net sales | 738 276 | 702 933 | 5.0% |
| Purchases | -240 856 | -220 118 | |
| External expenses | -131 601 | -115 961 | |
| Personnel expenses | -200 677 | -186 589 | |
| Taxes and duties | -9 741 | -8 473 | |
| Depreciation and provisions | -28 037 | -22 669 | |
| Other operating income and expenses | 7 652 | 1 231 | |
| Current operating profite before depreciation of assets arising from acquisitions | 135 016 | 150 353 | -10.2% |
| Depreciations of intangible assets arising from acquisitions | -2 635 | -1 652 | |
| Operating profit from ordinary activities | 132 381 | 148 701 | -11.0% |
| Other non-recurring income and expenses | – | -2 048 | |
| Operating profit | 132 381 | 146 653 | -9.7% |
| Financial income and expense | -8 492 | -4 805 | |
| Profit before tax | 123 889 | 141 848 | -12.7% |
| Income tax expense | -41 763 | -47 317 | |
| Share in earnings – Equity method | 113 | 350 | |
| Net income of consolidated entities | 82 239 | 94 881 | -13.3% |
| attributable to owners of the parent company | 82 408 | 94 667 | -12.9% |
| attributable to non-controlling interests | -169 | 213 | -179.4% |
2. Statement of financial position
| en €k | Jun25 | Dec24 |
| Goodwill | 252 432 | 276 633 |
| Intangible assets | 237 649 | 251 237 |
| Tangible assets | 400 129 | 397 537 |
| Right of use | 34 221 | 36 861 |
| Other financial assets | 20 231 | 12 993 |
| Share in companies accounted for by the equity method | 4 058 | 4 511 |
| Deferred tax assets | 24 521 | 24 628 |
| Non-current assets | 973 242 | 1 004 400 |
| Inventories and work in progress | 395 504 | 404 166 |
| Trade receivables | 223 419 | 196 081 |
| Other financial assets | 9 973 | 4 312 |
| Other receivables | 84 618 | 89 931 |
| Cash and cash equivalents | 128 671 | 149 631 |
| Current assets | 842 185 | 844 121 |
| Assets classified as held for sale | – | – |
| Assets | 1 815 427 | 1 848 521 |
| Share capital | 10 488 | 10 488 |
| Reserves attributable to the owners of the parent company | 1 054 599 | 1 032 628 |
| Equity attributable to the owners of the parent company | 1 065 087 | 1 043 116 |
| Non-controlling interests | 57 | 286 |
| Equity | 1 065 144 | 1 043 402 |
| Deferred tax liabilities | 54 831 | 57 233 |
| Provisions for employee benefits | 20 588 | 20 358 |
| Other provisions | 8 704 | 8 899 |
| Lease obligations | 24 158 | 26 552 |
| Other financial liabilities | 207 854 | 222 088 |
| Other payables | 3 610 | 5 430 |
| Non-current liabilities | 319 744 | 340 560 |
| Other provisions | 1 065 | 776 |
| Trade payables | 153 951 | 174 574 |
| Lease obligations | 11 234 | 11 550 |
| Other financial liabilities | 86 860 | 57 977 |
| Other payables | 177 429 | 219 683 |
| Current liabilities | 430 539 | 464 560 |
| Liabilities | 1 815 427 | 1 848 522 |
3. Statement of cash flow
| en €k | HY25 | HY24 |
| Consolidated result for the period | 82 239 | 94 881 |
| Elimination of share from companies’ profit accounted for by the equity method | -113 | -350 |
| Elimination of depreciations & provisions | 31 076 | 24 217 |
| Elimination of deferred tax change | -130 | 3 273 |
| Elimination of gains and losses on disposals | 96 | 1 321 |
| Other income and expenses with no cash impact | -15 814 | -7 201 |
| 0 | ||
| Net cash flow | 97 353 | 116 140 |
| 0 | ||
| Net financial interests paid | 2 761 | 2 464 |
| Income tax accrued for the period | 41 960 | 43 879 |
| Net cash flow before financial interests & income tax | 142 075 | 162 484 |
| Effect of net change in inventories | -10 531 | -25 816 |
| Effect of net change in trade receivables | -36 972 | -33 903 |
| Effect of net change in trade payables | 289 | -6 850 |
| Income tax paid | -41 275 | -20 666 |
| Effect of net change in other receivables and payables | -25 939 | -38 659 |
| Effect of change in working capital requirements | -114 428 | -125 894 |
| Net cash flow generated by operating activities | 27 646 | 36 591 |
| 0 | ||
| Acquisitions of intangible assets | -4 719 | -5 401 |
| Acquisitions of tangible assets | -49 137 | -21 801 |
| Disposals of intangible and tangible assets | 52 | 100 |
| Change in financial assets | -600 | -1 262 |
| Change in debts relative to acquisitions | – | -3 301 |
| Acquisitions of subsidiaries or activities | – | -335 580 |
| Disposals of subsidiaries or activities | – | – |
| Dividends received | – | – |
| Net cash flow allocated to investing activities | -54 404 | -367 245 |
| Dividends paid to the owners of the parent company | -12 148 | -11 054 |
| Dividends paid to the non-controlling interests | 0 | -2 |
| Change in treasury shares | – | – |
| Transactions between the Group and owners of non-controlling interests | – | -17 614 |
| Increase/decrease of capital | – | – |
| Cash investments | – | – |
| Debt issuance | 89 633 | 321 727 |
| Repayments of debt | -52 703 | -30 327 |
| Repayments of lease obligation | -6 591 | -5 983 |
| Net financial interests paid | -2 761 | -2 464 |
| Net cash flow from financing activities | 15 430 | 254 282 |
| Change in cash position | -11 327 | -76 372 |
4. Reconciliation tables for alternative performance indicators
4.1. Net Debt
| in €k | Jun25 | Dec24 |
| Loans | 284 062 | 265 344 |
| Bank overdrafts | 5 318 | 3 567 |
| Accrued interests not yet matured | 61 | 27 |
| Lease obligation [IFRS16] | 35 393 | 38 102 |
| Employee profit sharing | 519 | 945 |
| Currency and interest rate derivatives | 852 | 5 835 |
| Other | 3 902 | 4 346 |
| Other financial liabilities | 330 106 | 318 166 |
| Cash | 106 802 | 104 945 |
| Cash equivalents | 21 870 | 44 685 |
| Cash & cash equivalents | 128 671 | 149 631 |
| Net financial debt | 201 435 | 168 536 |
4.2. Operating cash flow before interest and taxes
| in €k | HY25 | HY24 |
| Current operating profit before depreciation of assets arising from acquisitions | 135 016 | 150 353 |
| Elimination of depreciations & provisions | 28 441 | 20 518 |
| Elimination of gains and losses on disposals | 96 | 1 321 |
| Other income & expenses with no cash impact | 412 | 393 |
| Current operating cash flow | 163 964 | 172 585 |
| Other non-current income & expenses | 0 | 0 |
| Operating cash flow | 163 964 | 172 585 |
Attachment
