Virbac Q4 Revenue Surges 10.5% to €355.4 Mln, Eyes 16% EBIT Margin by 2030

Virbac SA reported Q4 revenue of €355.4 million, up 10.5%, with annual revenue growth of 13.6%. The company expects a ratio of EBIT adjusted to revenue of around 16% in 2024 and a revenue growth of 4-6% in 2025. Net cash position is expected to improve by around €100 million. Virbac aims to achieve a 20% EBIT adjusted ratio by 2030.

Virbac SA (VIRB), a leading animal health company, reported a strong fourth quarter with revenue growth of 10.5% at actual exchange rates and 12.3% at constant exchange rates [1]. This growth was driven by organic performance and recent external growth operations, including the acquisitions of Globion in India and Sasaeah in Japan.

Europe, the company's largest market, maintained a positive dynamic, with revenue growth of 3.9% at constant exchange rates and scope [1]. The region's growth was supported by sales of vaccines for dogs and cats, as well as the pet food range. In contrast, Latin America experienced a slight slowdown, with growth of 2.5% at constant exchange rates and scope [1]. This was mainly due to an unfavorable base effect on the aquaculture segment in Chile.

The United States, which had experienced a temporary destocking effect in the previous quarter, showed growth of 4.0% at constant exchange rates and scope [1]. Growth in the India-Middle East-Africa (IMEA) region was driven by good momentum on the company's products for bovine, avian, and porcine species [1]. The East Asia region, particularly China, showed accelerated growth of 20.6% at constant exchange rates and scope [1].

At the end of 2024, Virbac reported annual consolidated revenue of €1,397.5 million, representing an overall increase of 12.1% compared to 2023 and 13.6% at constant exchange rates [1]. This growth was due to organic performance of 7.5% and contributions of 6.1% from the acquisitions of Globion and Sasaeah.

Looking ahead, Virbac expects a ratio of EBIT adjusted to revenue of around 16% in 2024 and revenue growth of 4-6% in 2025 [1]. The company also aims to achieve a 20% EBIT adjusted ratio by 2030 [1]. With a globally positive market dynamic and growth observed in all regions and categories, except for the Pacific, Virbac is well-positioned to achieve these goals.

References:
[1] Virbac SA. (2024, February 8). Virbac 2024 fourth quarter consolidated sales. MarketScreener. Retrieved February 12, 2024, from https://www.marketscreener.com/quote/stock/VIRBAC-5234/news/Virbac-2024-fourth-quarter-consolidated-sales-48789232/