Virbac Reports Strong Growth in 2024 Half-Year Financials

Author: Kelly Martin Updated: 09-13-2024 12:01 PM

Virbac's Financial Performance Overview

In the first half of 2024, Virbac reported remarkable financial momentum, showcasing a revenue increase of 16.1% at constant exchange rates. The robust growth reflects the company's strong operational strategy and market position, with an adjusted current operating income reaching its highest level at 21.4% of revenue.

Details of Half-Year Financial Results

Virbac's revenue in the first semester amounted to €702.9 million, compared to €610.5 million in the same period of 2023, marking an overall change of +15.1%. Excluding currency effects, revenue rose significantly by +16.1%. The recent acquisitions of Globion in India and Sasaeah in Japan contributed an impressive growth of +4.8 points. When considering constant exchange rates and scope, the organic growth for the first half reached +11.3%, driven by an increase in both volumes and prices, despite a slight slowdown in inflation.

Regional Performance Insights

The performance varied across regions, with Europe showing a growth rate of +12.3% at constant exchange rates and scope, significantly contributing to the Group's organic growth. North America displayed a remarkable increase of +22.2%, benefitting from a favorable base effect and sustained sales momentum in specialty pet products. Latin America also performed well with a +10.5% growth rate, fueled by strong sales in specific countries.

Operating Income and Profitability Insights

For the first half, the current operating income before depreciation of assets arising from acquisitions was reported at €150.4 million, a substantial increase compared to €109.9 million in 2023. This growth can be attributed to an improvement in gross margin and effective cost management. The integration of Globion and Sasaeah had a positive impact on Group profitability, contributing around 0.5 points.

Future Outlook and Targets

Looking ahead, Virbac has confirmed its targets for the remainder of 2024, anticipating a revenue growth between 7% and 9% at constant exchange rates and scope. The company also aims for an adjusted current operating income ratio of about 16%, demonstrating confidence in sustained business momentum. The contribution from recent external growth operations is projected to be around +5.5 growth points on revenue.

Continued Expansion and Innovation

Virbac remains committed to expanding its market reach and investing in innovative solutions for animal health. The integration of new acquisitions and enhancement of existing product lines are key priorities moving forward. The company’s focus on maintaining high-quality standards and addressing customer needs in over 100 countries continues to shape its growth strategy.

Frequently Asked Questions

What factors contributed to Virbac's revenue growth in 2024?

Virbac's revenue growth was primarily fueled by increased volumes, price adjustments, and successful acquisitions, such as Globion and Sasaeah.

How did different regions perform in the first half of 2024?

Europe grew by +12.3%, North America led with +22.2%, while Latin America also showed robust performance at +10.5% during the period.

What is the company's target for adjusted operating income in 2024?

Virbac aims for an adjusted current operating income ratio of around 16% for the year, reflecting its commitment to improving profitability.

Will Virbac continue expanding through acquisitions?

Yes, ongoing acquisitions, like those of Globion and Sasaeah, are integral to Virbac's growth strategy and expansion plans.

How does Virbac ensure product quality across markets?

Virbac guarantees product quality through strict compliance with industry standards, continuous innovation, and by understanding local market needs across various regions.

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