The accounts were audited by the statutory auditors and examined by the board of directors on March 12, 2025. The report of the statutory auditors is in the process of being issued. The statements and detailed presentation of annual income are available on the corporate site at corporate.virbac.com.
Annual consolidated revenue
At the end of December 2024, our annual revenue reached €1,397.5 million compared to €1,246,9 million, representing an overall increase of +12.1% compared to 2023 and +13.6% at constant exchange rates. This significant growth is the result of an organic performance of +7.5% and a contribution of +6.1% linked to the acquisitions of Globion (acquisition in India in November 2023) and Sasaeah (acquisition in Japan completed in April 2024). Supported by a globally positive market dynamic, growth (in volume and value) is observed in all regions, with the exception of the Pacific, as well as across all our categories. The Europe area (+10.0% at constant exchange rates and scope) contributes to more than half of the Group's organic growth, benefiting from a strong rebound in the dog and cat vaccine range but also from increased demand for our petfood/pet care ranges. The performance of the North America area (+10.2% at constant exchange rates and scope) benefits from a sustained sales dynamic, particularly for our specialty and dental care products for companion animals.
The Latin America area (+7.4% at constant exchange rates and scope) shows strong growth supported by the performances of Chile, which is experiencing a favorable rebound in the aquaculture segment this year, and a strong performance from Mexico (companion & farm animals). Despite a temporary slowdown in sales of vaccines for ruminants, Brazil recorded positive growth (+3.7% at constant exchange rates and scope), driven in particular by the successful launch of Cortotic for companion animals.
The IMEA area maintains a solid performance (+6.7% at constant exchange rates and scope), particularly in its key segments of ruminants and poultry. The successful integration of Globion (avian vaccines) in November 2023 accelerates this dynamic, with a total increase of +15.1% at actual scope and constant exchange rates.
The East Asia area grew by +7.0% at constant exchange rates and scope, mainly driven by China with a growth of 11.7% at constant exchange rates and scope (specialty products and petfood) and sustained growth in Thailand and Japan. The integration of Sasaeah significantly strengthens our size in this area, which is recording a revenue change of +83.0% at actual scope and constant exchange rates.
The Pacific area is down (-5.9% at constant exchange rates and scope), affected by a trend reversal in the livestock market after a year of strong growth in 2023 and unfavourable weather patterns across key regions.
Current operating income before depreciation of assets arising from acquisitions amounted to €231.8 million, up compared to 2023 (€188.1 million). Boosted by an estimated ~+3.2% price effect coupled with a more favorable volume and product mix, our organic growth led to an increase of gross margin in absolute value and as a percentage of revenues (+1.7pt at a constant exchange rate). Our operating expenses increased by 12.6% on a reported basis and by 8.3% at a constant scope. This increase is due to higher personnel costs (impact of salary increases in a context of inflation and rising earnings, and the strengthening of organizations) and external expenses. It should be noted that the significant increase in our R&D expenditure, which stems from our commitment to accelerate investment in this crucial area, remained broadly in line with sales growth (R&D expenditure as percentage of revenues remained stable at around 8% of sales in 2024). Overall, our operating income continues to improve: as of December 2024 and on a like-for-like basis, our ratio of operating income before non-recurring items to revenues amounts to 16.2%, up by 1.1 points. As expected, acquisitions in 2024 had an accretive impact on the ratio, which now stands at 16.6% on an actual basis.
Consolidated net income was €145.8 million, up by 20.4% compared to 2023. Net financial expenses were slightly down by 5.5% compared to 2023, due to a €5.1 million improvement in certain currencies, almost entirely offset by a €4.7 million increase in net borrowing costs linked to the acquisitions of Globion and Sasaeah. These acquisitions also contributed to the sharp rise in non-recurring expenses, which amounted to 10.4 million euros in 2024. The tax charge increased in absolute terms, reflecting the Group's performance.
Net income - Group share amounts to €145.3 million in 2024, up sharply compared to the previous year (€121.3 million).
On the financial front, our net debt amounts to €168.5 million at the end of December 2024, compared with a net cash position of €52.4 million at the end of December 2023. This sharp reduction in our net cash position over the year is mainly due to the acquisitions completed this year namely Globion, Sasaeah and Mopsan. Excluding acquisitions, our net cash position improved by €87 million at actual exchange rates.
Outlook
In 2025, we currently anticipate revenue growth at constant scope and exchange rates between 4% and 6%.The impact of the Sasaeah acquisition is expected to represent an additional 1 point of growth in 2025. The ratio of “current operating income before amortization of assets resulting from acquisitions” (Ebit adjusted) to “revenue”, is expected to consolidate at the 2024 level at constant scope around 16%. This forecast takes into account the continued voluntary increase in our R&D investments relative to revenue, which will represent approximately +0.3 percentage points in 2025 compared to 2024. In addition, the impact of the Sasaeah acquisition should be neutral overall on operating income in 2025.
We reaffirm our ambition to achieve an Ebit adjusted ratio of 20% by 2030: in this respect, we plan over the next few years to gradually restore our R&D investments to the Group's normative and historical level.
In addition, Excluding acquisitions, our cash position should improve by €80 million by 2025.
Finally, at the next shareholders' meeting, a net dividend per share of €1.45 will be recommended for distribution for the 2024 fiscal year.
ANALYSTS’ PRESENTATION – VIRBAC
We will hold an analysts meeting on Friday, March 14, 2025 at 2:15 p.m. (Paris time - CET) in the Édouard VII Business Center’s auditorium, 23 square Edouard VII 75009 Paris (France).
Participants may arrive 15 minutes before the start of the meeting.
You may also attend the meeting using the webcast (audio + slides) available via the link below.
Information for participants:
Webcast access link: https://bit.ly/3WN9NN1
This access link is available on the corporate.virbac.com site, under the heading “Public releases.” This link allows participants to access the live and/or archived version of the webcast.
You will be able to ask questions via chat (text) directly during the webcast or after watching the replay via 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 - subfund A - ISIN code: FR0000031577/MNEMO: VIRP
Financial Affairs department: tel. +33 4 92 08 71 32 - finances@virbac.com - corporate.virbac.com
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