Animal health: Virbac aims for current operating profitability at the top of the range – 01/18/2023 at 18:13


(AOF) – The Virbac group announces that its annual turnover grew by 9.6% at comparable exchange rates and scope (+14.3% at actual rates), thanks to exceptional activity recorded in the fourth quarter. The animal health specialist posted annual revenue of 1.216 billion euros, after a last quarter of 294.9 million, up 19.7% compared to the same period in 2021. closing, before the publication of these results, the Virbac share lost 1.17% to 254.50 euros, but gained 4.95% over five days. The action lost more than 35% over one year.

Virbac specifies that at species level, the companion animal segment “is drawing strong growth” from its results (+17.7% at constant exchange rates) in particular on “sales of petfood, specialties, the dental range, and vaccines”, thanks to the absorption of shortages and delays in deliveries in December. The food producing animal segment also progressed (+9.1% at constant exchange rates), driven by “sales of pest control and nutritional products for cattle”.

The group hails the “exceptional performance” of the last quarter, “unexpected in a sharply slowing market”, which allows it to “slightly exceed the top of (its) turnover range” in 2022. It now anticipates a ratio of “current operating income before amortization of assets resulting from acquisitions” to “revenue”, around 15% at constant exchange rates, with debt reduction around 35 million euros excluding dividends, at scope and constant exchange rates. This ratio was expected to be between 14% and 15% in 2022. This target was reduced in October.

For 2023, the animal health specialist has confirmed its objectives of a ratio of “current operating profit, before amortization of assets resulting from acquisitions” to “turnover” which should be between 13% and 14% at at constant exchange rates, with revenue growth at constant rates and scope expected between 4% and 6%.

In addition, its cash position should remain constant at the end of 2023 compared to the end of 2022, taking into account the investments planned over the period, estimated at around 100 million euros, the acceleration of R&D, and excluding any acquisitions.

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