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1. Company Snapshot

1.a. Company Description

Virbac SA manufactures and sells a range of products and services for companion and food-producing animals in France, Europe, Latin America, North America, the Asia Pacific, the Middle East, and Africa.The company offers a range of vaccines, dental hygiene, reproduction, dermatology, parasiticides, diagnostic, antibiotics, and aquaculture products; and veterinary medicines for anesthesia, geriatrics, behavior, and injectable micronutrients, as well as petfood and electronic identification.It serves veterinarians, farmers, and pet owners.


Virbac SA was founded in 1968 and is headquartered in Carros, France.

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1.b. Last Insights on VIRP

Virbac's recent performance was negatively impacted by a 9.3% decline, likely due to market volatility. The company's 2025 half-year results revealed solid revenue growth of 5.6% at constant exchange rates and scope. However, adjusted recurring operating income decreased compared to 2024 due to phasing and non-recurring effects. Recently, Virbac upgraded its full-year revenue guidance, expecting growth between 5.5% and 7.5% at constant rates and scope, driven by sustained revenue growth of 7.8% at the end of September.

1.c. Company Highlights

2. Virbac's H1 2025 Earnings: A Mixed Bag

Virbac reported a 5.6% organic growth in revenues for the first half of 2025, driven by a mix of price and volume impacts, as well as new product launches. However, the EBIT adjusted margin decreased to 18.3%, down 3 points from last year, mainly due to temporary effects, including a decrease in the gross margin on material costs and an increase in expenses. The net result was EUR 82.2 million, slightly below last year. The earnings per share (EPS) was not disclosed.

Publication Date: Oct -27

📋 Highlights
  • Organic Growth: 5.6% H1 2025 growth driven by price/volume mix and new product launches.
  • Margin Decline: EBIT adjusted margin at 18.3% (-3 pts YoY), impacted by material cost write-offs and maintenance costs.
  • Regional Performance: Double-digit growth in Far East Asia; Mexico (15%), U.S. (6%), and India (6.8%) as top drivers vs. declines in Australia and Chile.
  • Segment Mix: Farm animals (40% of turnover) driven by Ruminants; companion animals (60%) fueled by pet food (double-digit growth) and specialties.
  • Financial Position: Net debt rose to EUR 201M, but net debt/EBITDA <1; CapEx exceeds EUR 100M for 2025-2026, aligned with industrial projects.

Segmental Performance

The company's companion animals segment drove growth, with pet food, specialties, and vaccines contributing to the increase. The farm animals segment also performed well, fueled by a strong Ruminants segment. Geographically, the Americas, Europe, and EMEA regions showed solid performance, while Pacific and Chile experienced declines.

Cash Flow and Balance Sheet

Virbac's net free cash flow for the first semester was slightly below EUR 100 million. The company's net debt situation increased to EUR 201 million, but the net debt to EBITDA ratio remains below 1, indicating a favorable balance sheet. The company's capital expenditures were more than EUR 50 million, and working capital needs were EUR 72 million.

Outlook and Valuation

Virbac is on track to meet its full-year 2025 guidance, with top-line growth of 4% to 6% and an EBITDA margin of around 16% at constant exchange rate. Analysts estimate next year's revenue growth at 5.1%. The company's current valuation metrics, such as a P/E Ratio of 22.91 and an EV/EBITDA of 12.82, indicate a relatively high valuation. The dividend yield is 0.4%, and the free cash flow yield is 3.18%. As Paul Martingell, the new CEO, mentioned, "it's too early to provide a strong perspective on future M&A, but acquisitions should remain a strong part of Virbac's growth model."

Conclusion on Valuation Metrics

The Price-to-Book Ratio of 2.86 and Return on Equity (ROE) of 12.62% suggest that the company is generating decent returns on its equity. The Net Debt / EBITDA ratio of 0.78 indicates a healthy balance sheet. These metrics should be considered when evaluating the company's valuation.

3. NewsRoom

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How Analyst Optimism Is Changing the Growth Story for Virbac

Nov -08

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VIRBAC Announces Third Quarter 2025 Sales

Oct -16

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Virbac: 2025 Half-year results

Sep -12

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Does Heineken’s Slump Signal Opportunity After Record Low US Alcohol Consumption?

Sep -09

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Enel (BIT:ENEL): Is the Current Valuation Overlooking Subtle Shifts in Performance?

Sep -09

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Telecom Italia (BIT:TIT): Fresh Valuation Perspectives After Strong Share Price Momentum

Sep -09

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Alfa Laval (OM:ALFA): Evaluating the Company’s Valuation as Investors Weigh Recent Modest Share Price Movements

Sep -09

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Porsche SE (XTRA:PAH3): Assessing Value Potential Following Recent Share Price Stability

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.79%)

6. Segments

Farm Animals - Other Ruminants

Expected Growth: 5%

Virbac SA's 5% growth in Farm Animals - Other Ruminants is driven by increasing demand for parasiticides and vaccines, expansion into emerging markets, and strategic partnerships. Growing awareness of animal health and welfare, coupled with rising meat consumption, also contribute to this growth. Additionally, the company's focus on innovation and R&D investments in novel products and services supports its market share expansion.

Companion Animals - Specialties

Expected Growth: 4%

Virbac SA's Companion Animals - Specialties segment growth is driven by increasing pet humanization, rising demand for premium pet care, and growing awareness of animal health. Additionally, advancements in veterinary medicine, expansion into emerging markets, and strategic partnerships contribute to the segment's growth.

Companion Animals - Specialized Petfood

Expected Growth: 5%

Strong demand for premium petfood, increasing pet humanization, and rising awareness of animal health drive growth. Virbac's specialized petfood offerings cater to specific dietary needs, attracting pet owners willing to pay a premium. Expanding distribution channels, strategic partnerships, and innovative products further fuel growth.

Companion Animals - Others

Expected Growth: 3%

Virbac SA's Companion Animals - Others segment growth is driven by increasing pet humanization, rising demand for premium pet care, and growing awareness of animal health. Additionally, the company's strategic expansion into emerging markets and innovative product offerings contribute to its growth.

Companion Animals - Parasiticides

Expected Growth: 6%

The 6% growth of Companion Animals - Parasiticides from Virbac SA is driven by increasing pet ownership, rising awareness of parasitic diseases, and growing demand for convenient and effective treatments. Additionally, the expansion of veterinary clinics and online sales channels, as well as the introduction of new products with improved efficacy, contribute to the segment's growth.

Companion Animals - Antibiotics/Dermatology

Expected Growth: 5%

Strong demand for pet care, increasing pet ownership, and rising awareness of animal health drive growth in Companion Animals - Antibiotics/Dermatology segment. Virbac SA's product portfolio expansion, strategic partnerships, and geographic presence in high-growth markets also contribute to the 5% growth.

Farm Animals - Bovine Antibiotics

Expected Growth: 4%

The 4% growth of Bovine Antibiotics from Virbac SA is driven by increasing demand for animal health products, rising awareness of antibiotic resistance, and growing adoption of veterinary care in emerging markets. Additionally, the company's strong R&D pipeline and strategic partnerships contribute to its market share expansion.

Companion Animals - Immunology

Expected Growth: 7%

Strong demand for pet healthcare, increasing pet humanization, and rising awareness of zoonotic diseases drive growth in Companion Animals - Immunology segment. Virbac SA's innovative vaccine portfolio, strategic partnerships, and expanding distribution network further support the 7% growth rate.

Farm Animals - Bovine Parasiticides

Expected Growth: 6%

The 6% growth of Farm Animals - Bovine Parasiticides from Virbac SA is driven by increasing demand for animal health products, rising awareness of parasitic diseases, and growing adoption of preventive measures in livestock farming. Additionally, expansion into emerging markets and product innovation are contributing to the segment's growth.

Farm Animals - Other Pig/Poultry

Expected Growth: 4%

Virbac SA's Farm Animals - Other Pig/Poultry segment growth is driven by increasing demand for animal health products, expansion into emerging markets, and strategic partnerships. Rising consumer awareness of animal welfare and disease prevention also contribute to growth. Additionally, the company's focus on innovation and R&D investments in vaccine development and parasiticide products further support segment growth.

Farm Animals - Aquaculture

Expected Growth: 5%

Virbac SA's 5% growth in Farm Animals - Aquaculture is driven by increasing global demand for protein-rich food, rising aquaculture production, and growing adoption of sustainable farming practices. Additionally, advancements in animal health products and services, such as vaccination and parasite control, contribute to the segment's growth.

Companion Animals - Equine

Expected Growth: 4%

Virbac SA's Companion Animals - Equine segment growth is driven by increasing pet ownership, rising disposable income, and growing awareness of animal health. The equine market is further boosted by the growing popularity of horse riding and equestrian sports, leading to increased demand for veterinary care and products.

Other

Expected Growth: 3%

Virbac SA's 3% growth in the 'Other' segment is driven by increasing demand for pet accessories and supplies, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation and R&D has led to the development of new products, further contributing to growth.

Farm Animals - Pig/Poultry Antibiotics

Expected Growth: 5%

Strong demand for animal health products, increasing adoption of antibiotics in pig and poultry farming, growing concerns over animal welfare, and rising prevalence of diseases in livestock drive the 5% growth of Virbac SA's farm animals antibiotics segment.

7. Detailed Products

Vaccines

Virbac SA offers a range of vaccines for companion animals, including dogs, cats, and horses, to protect against various diseases.

Parasiticides

Virbac SA provides a variety of parasiticides to control internal and external parasites in animals, including flea and tick preventatives.

Dermatology Products

Virbac SA offers a range of products to treat skin conditions in animals, including shampoos, conditioners, and topical treatments.

Dental Products

Virbac SA provides dental care products, including toothpaste, dental chews, and water additives, to promote oral health in animals.

Nutrition and Supplements

Virbac SA offers a range of nutritional supplements and specialty foods to support animal health and well-being.

Reproduction and Breeding Products

Virbac SA provides products to support reproductive health in animals, including breeding and fertility management.

8. Virbac SA's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Virbac SA is medium, as there are some alternative products available in the market, but they are not highly attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for Virbac SA is low, as the company has a strong brand presence and customers are loyal to its products.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Virbac SA is medium, as the company has a diverse supplier base, but some suppliers have a higher bargaining power due to their size and importance.

Threat Of New Entrants

The threat of new entrants for Virbac SA is low, as the company has a strong market presence and high barriers to entry in the animal health industry.

Intensity Of Rivalry

The intensity of rivalry for Virbac SA is high, as the company operates in a highly competitive market with several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 9.66%
Debt Cost 8.43%
Equity Weight 90.34%
Equity Cost 8.43%
WACC 8.43%
Leverage 10.69%

11. Quality Control: Virbac SA passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Novartis

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Quality: 7.8

Yield: 7.5

Momentum: 5.5

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A-Score: 6.1/10

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Yield: 6.2

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Growth: 6.2

Quality: 8.6

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A-Score: 5.5/10

Value: 5.0

Growth: 6.0

Quality: 7.7

Yield: 1.2

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Volatility: 7.3

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A-Score: 4.5/10

Value: 1.8

Growth: 7.7

Quality: 8.0

Yield: 2.5

Momentum: 1.0

Volatility: 6.3

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Virbac

A-Score: 4.0/10

Value: 3.1

Growth: 6.3

Quality: 6.5

Yield: 0.0

Momentum: 2.0

Volatility: 6.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

356.5$

Current Price

356.5$

Potential

-0.00%

Expected Cash-Flows