In This Article:
-
Organic Growth: 11.3% at constant exchange rate and scope.
-
Volume Effect: More than 7% increase.
-
Price Effect: Positive impact of around 3.5%.
-
Acquisitions Contribution: 5 points of additional top line growth from Globion and Sasaeah.
-
EBIT-Adjusted: Increase of around EUR40 million, reaching 21.3% ratio to revenue.
-
Gross Margin: Increased by 3 points.
-
Operating Expenses: Ratio to revenue improved to 44.1% from 44.7% last year.
-
R&D Investments: Increased by 15% year on year.
-
Net Profit: Slightly below EUR100 million, up from around EUR75 million in 2023.
-
Net Debt: EUR254 million, up from minus EUR52 million at the end of December 2023.
-
Sales Growth: 16% growth or 15.1% on a published basis.
-
Regional Performance: Europe 12.3%, North America 22.2%, Latin America 11%, India, Middle East, and Africa 19%, Far East Asia rebound, Pacific slightly negative.
-
Segment Performance: Companion animals 40%, farm animals 60%, with notable growth in swine and poultry.
-
Operating Cash Flow: 30% increase.
-
Net Cash Flow: 30% increase.
-
CapEx Investments: Increased with further acceleration expected in the second part of the year.
-
Free Cash Flow Generation: Expected around EUR60 million for the full year.
-
Net Free Cash Flow: Around zero during the first semester.
-
Net Debt to EBITDA Ratio: Below 1%.
-
EBITDA Ratio: 21.4%.
-
Net Income: Increased from EUR75 million to close to EUR95 million.
Release Date: September 16, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Virbac SA (FRA:V16) reported a strong organic growth of 11.3% at constant exchange rates and scope, reflecting exceptional market momentum.
-
The company achieved a significant increase in EBIT-adjusted, reaching an all-time high ratio to revenue of 21.3%, driven by volume increases and favorable pricing.
-
Recent acquisitions, Globion and Sasaeah, contributed positively, adding around 5 points to the top-line growth and 0.5 points to profitability.
-
Virbac SA (FRA:V16) experienced robust performance across all geographies except the Pacific region, with notable growth in Europe, North America, and Latin America.
-
The company maintained a favorable financial position with a net debt on EBITDA ratio below 1%, ensuring strong liquidity and potential for further M&A activities.
Negative Points
-
The Pacific region underperformed, showing a slight negative growth due to challenging market dynamics.
-
Increased financial expenses were noted, linked to higher financial debts and unfavorable exchange rate impacts.
-
Operating expenses grew, albeit at a slower pace than revenue, slightly impacting the ratio to revenue.
-
The net debt situation worsened, moving from a net cash positive position at the end of December 2023 to a net debt of EUR 254 million by June 2024, primarily due to acquisitions.
-
The company anticipates a seasonal drop in margins in the second half of the year, influenced by lower sales and higher costs.