Virbac: 7.4% Growth in H1 2026, but North America Declines in Q2
Veterinary laboratory Virbac recorded an organic growth of 7.4% in the first half of 2026, driven by its Supercharge platforms and the integration of Thyronorm. This performance exceeds initial expectations and justifies targeting the upper end of its 2026 outlook. However, the second quarter reveals regional slowdowns: a decline of 0.8% in North America and operational hurdles (regulatory blockages, supply shortages) that temper the group's growth trajectory.
Strong H1 Performance Despite Unfavorable Exchange Rates
In the first half of 2026, Virbac posted revenues of €768 million, up 7.4% on a like-for-like and constant currency basis compared to the first half of 2025, marking a significant increase despite an unfavorable exchange rate environment that limited real growth to 4.0%. This growth was balanced between two segments: pet care recorded +10.0%, while livestock grew by +6.7%. The contribution of Thyronorm, integrated during the semester, accounted for 1.4 percentage points of overall growth. Excluding this acquisition, organic growth was approximately 5.9%. Across the group, the volume and mix effect accounted for +5.4% of the increase, complemented by price increases of +2.0%, reflecting controlled pricing power in an inflationary environment. By region, Europe showed +6.5% and International +7.5%, while North America registered a solid increase of +10.1% over the entire semester, driven by the Supercharge categories (mobility, dental, ear care).
Q2 Reveals Operational Cracks in North America
While the first half consolidates a positive dynamic, the analysis of the second quarter alone exposes vulnerabilities. Quarterly revenue reached €384 million, representing a growth of 7.2% at constant scope and currency, but this result masks a contraction in North America (−0.8% at constant scope and currency), the group's leading region. This decline resulted from three concrete factors: a temporary blockage in the release of a product for regulatory reasons under a contract manufacturing agreement (production resumed as of July 2026), supply difficulties with a subcontractor (CMO) in the livestock segment, and unfavorable stock movements among distributors. Neutralizing these purely operational elements and contract manufacturing, the underlying organic growth in North America stands at about 10%, revealing robust underlying demand but obscured by disruptions. Conversely, Europe recorded a strong acceleration to +11.6% in Q2, notably driven by growth in endocrinology (Thyronorm), pet food, and dental. The International region grew by +5.9%, supported by the IMEA regions and Latin America, although the Pacific suffered from increased competition in Australia.
2026 Guidance Confirmed at Upper Range, Stable Cash Flow
Despite the challenges of Q2, Virbac has confirmed its annual 2026 targets, explicitly aiming for the upper end of the revenue growth range (between 5.5% and 7.5% at constant scope and currency). The group anticipates an adjusted current operating margin of about 17% at constant scope and currency for the full year. Regarding cash flow, the group expects to generate unchanged free cash flow of about €80 million for the year, with capital expenditures (capex) of about €125 million. This stability in guidance, despite the operational disruptions of Q2, is based on the assumption of a gradual normalization starting from July 2026 and the continuity of H1 performances. Virbac also maintains vigilance against geopolitical risks in the Middle East (less than 0.5% of global revenue exposed) and inflationary trends, estimating it can absorb these pressures without revising its trajectory.
