(CercleFinance.com) – Virbac on Monday unveiled forecasts for 2023 deemed disappointing by investors, even if the animal health specialist justifies these prospects with an increased effort in R&D.
The veterinary laboratory announced this morning that it is aiming for a ratio between adjusted Ebit and turnover called to ‘consolidate’ between 13% and 14% at constant exchange rates next year.
In its press release, the group underlines that this deterioration in view of its adjusted Ebit ratio for 2023 is mainly the result of the acceleration of its investments in R&D.
Virbac explains that it has made the decision to continue to accelerate in 2023 on two key dimensions, namely R&D and investments, which should represent approximately 8.5% of its turnover next year.
At the same time and in order to prepare for the future, the laboratory plans to increase its investments to around 100 million euros during the 2023 financial year.
In the medium term, its objective of achieving a 20% adjusted Ebit ratio by 2025-2030 remains unchanged.
In terms of activity, the group says it anticipates growth in its turnover at constant rates and perimeter expected in a range between 4% and 6% in 2023.
Following these announcements, the title posted one of the largest declines in the SBF 120 index on Monday morning with a decline of 0.9%, after losing 2.8% at the very start of the session.