(Boursier.com) — Virbac rose 1.8% to 366.50 euros this Wednesday, while in the 1st quarter of 2024, the group’s turnover stood at 345.7 million euros, up 9.8% to real rates compared to the same period of 2023. After restating for the unfavorable impact resulting from the evolution of monetary parities, the growth in turnover over the period reached +10.8%.
The integration of the company Globion (acquisition in India closed in November 2023) contributes +1.1 points of growth. Thus, excluding acquisition and at constant exchange rates, revenue growth is +9.7%. Driven by more sustained dynamics in the animal health market, this progression benefits firstly from a volume contribution estimated at around 6.4 points of growth; then to a lesser extent, a more modest price effect due in particular to the slowdown in inflation.
Perspectives displayed
In 2024, at constant exchange rates and scope, Virbac forecasts growth in turnover estimated, at this stage, between 4% and 6% as well as a ratio of “current operating income, before amortization of assets resulting from acquisitions “(Adjusted Ebit) on “turnover” around 15%.
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In addition, the contribution to 2024 turnover resulting from recent external growth operations (acquisitions of the company Globion in India closed in November 2023 then of the company Sasaeah in Japan closed in April 2024) is estimated at around +5 points of growth.
Finally, excluding acquisitions, Virbac’s cash position should improve by 30 ME, taking into account the acceleration of its R&D efforts as well as the investments planned over the period, estimated at around 100 ME.
Portzamparc underlines the recovery in volumes which is confirmed amplified by the recovery of the ‘company’ segment… Enough to aim higher with a target price of 402 euros, compared to 388.30 euros previously, and a purchase rating on the case.