Virbac: sales up 7.9% over first nine months, targeting upper guidance range
The veterinary laboratory based in Carros posted revenue of €1,168 million over the first nine months, up 7.9% at constant exchange rates and scope. This pace is above the upper end of the group's annual guidance range (5.5% to 7.5%). Virbac has therefore indicated it is targeting the upper end of this range, without formally revising its outlook.
On a cumulative basis, reported growth is below organic growth: at actual rates, the increase reaches 5.9%, due to unfavorable currency effects. The third quarter reversed this trend, with reported growth of 9.8%, compared to 8.8% organic, thanks to favorable currency effects.
Third quarter at €400 million, up 8.8% organically
Third quarter revenue stood at €400 million, compared to €364 million a year earlier. Organic growth accelerated throughout the year: +7.7% in the first quarter (€384 million), +7.2% in the second (€384 million), then +8.8% in the third. At actual rates, growth moved from 2.2% in the first quarter to 5.9% in the second, then to 9.8% in the third, reflecting the progressive decline of the unfavorable currency effect.
Over nine months, both segments are up: +8.8% for companion animals and +7.0% for livestock. Growth is driven primarily by a volume and mix effect of around 6%, supplemented by a price increase of around 2%.
The "Supercharge" platforms (petfood, reproduction, dental, mobility, otology, endocrinology and ruminants), presented by the group as its main growth drivers, progressed by around 11% at constant exchange rates, excluding Thyronorm. The acquisition of Thyronorm, integrated into organic scope due to its materiality level, contributed 1.3 percentage points to overall growth at end-September.
All regions up, North America leading over nine months
Over nine months, North America showed the strongest organic growth (+9.9%, at €162 million), ahead of International (+7.9%, at €535 million) and Europe (+7.2%, at €471 million). According to the group, distributor inventory movements have had a favorable impact in North America since the beginning of the year: adjusted for this effect, underlying organic growth stands at around 8%, and around 12% excluding supply constraints on livestock.
In the third quarter, the region benefited from the resumption, in July 2026, of a contract manufacturing agreement suspended for regulatory reasons. The quarter was conversely marked by inventory destocking among distributors: adjusted for this effect, underlying organic growth would have reached around 17%, according to the company.
In Europe (+8.7% in the third quarter), livestock progressed by 12.9% at constant rates, driven by demand for bovine vaccines linked to the bluetongue epidemic. In International (+8.7% in the quarter), the IMEA zone progressed by 17.8% and the Pacific by 15.6%, while East Asia remained broadly flat, with growth in China offset by supply disruptions and competitive pressure on porcine vaccines.
Over nine months, the Pacific shows a slight decline, which the group attributes to competitive pressure in Australia at the beginning of the year. Ahead of the publication, the stock had gained 6.5% over one month as of October 14, 2026.
2026 objectives unchanged, adjusted operating margin expected around 17%
For the full year 2026, Virbac is targeting the upper end of its revenue growth range, between 5.5% and 7.5% at constant exchange rates and scope. The group maintains its target for an adjusted operating profit margin of around 17% at constant rates and scope. These prospects include a Thyronorm contribution of around 1 percentage point of revenue growth and around 0.5 percentage points of adjusted EBIT.
Cash generation is expected to remain at around €80 million, after investments of around €125 million. For reference, 2025 revenue had stood at €1,465 million, according to results published on March 17, 2026.
Regarding the situation in the Middle East, the group clarifies that directly exposed countries represent less than 0.5% of its revenue and that it does not anticipate, at this stage, any significant impact related to inflation or energy costs, thanks to its energy hedging strategy. The key element of the publication remains organic growth of 7.9% at end-September, which leads the group to target the upper end of its annual objective of 5.5% to 7.5%.
