Virbac: 7.9% Growth in 2025, But Gross Margin Erodes

Annual Financial Performance

Virbac's annual revenue reached 1,465 million euros in 2025, up 4.8% from 1,397 million euros in 2024. Adjusted for currency effects, this growth accelerates to 8.7%. At constant exchange rates and scope, organic growth stands at 7.9%, in line with expected trajectories. The acquisitions of Sasaeah in Japan (April 2024) and Mopsan in Turkey (December 2024) contributed respectively 0.8 and 0.4 percentage points to the total growth. The group has thus demonstrated its ability to generate internal growth while integrating targeted acquisitions.

Operational Results and Margin Dynamics

The current operating income before depreciation stood at 234.4 million euros in 2025, compared to 231.8 million euros in 2024. The actual reported margin reached 16.0%, down 0.6 points from 16.6% in 2024. Adjusted for currency and scope effects, the margin at constant exchange rates and scope rose to 16.3%. Behind this apparent stability lies a contrasting dynamic: the gross margin contracted by 0.7 points, revealing pressures on production costs or pricing structure. This degradation was fully offset by exemplary control of operational and research and development expenses, which positively contributed 0.1 point. The consolidated net result amounted to 150.5 million euros, up 3.2% year-on-year.

Cash Flow and Future Outlook

Virbac generated an operational cash flow of 289 million euros in 2025, showing a significant increase. The group invested 102 million euros in capital expenditures, mainly dedicated to its industrial transformation and the construction of new sites to support future growth. The improvement in the inventory turnover ratio positively contributed to the available cash, which amounted to 93 million euros at constant exchange rates and scope. This cash generation allowed the group to finance the acquisition of Thyronorm in December 2025 for 107.8 million euros, while keeping its net debt stable at 172.8 million euros, compared to 168.5 million euros at the end of 2024. For 2026, Virbac anticipates an organic revenue growth between 5.5% and 7.5%, notably driven by the contribution of Thyronorm, estimated at about 1 growth point. The adjusted operating margin (Ebit) should benefit from an additional contribution of 0.5 point from the same acquisition. However, the direct impact of U.S. customs duties is estimated at about 4 million dollars for the full year and is included in these outlooks. The group will propose a net dividend of 1.45 euros per share for 2025 at the next general meeting.