For the first half of the year, our revenue reached €738.3 million compared to €702.9 million in 2024, representing an overall increase of +5.0%. Excluding exchange rate effects, revenue showed a significant increase of +7.8%. The integration of Sasaeah, a company acquired in Japan in April 2024, contributed +2.2 points of growth. At constant exchange rates and scope, organic growth for the first half reached +5.6%, favorably impacted by a concomitant increase in volumes (estimated at ~2.1 points of growth) and prices (estimated at ~3.5 points of growth). It should be noted that the acquisition of Mopsan contributed 0.6 points of growth and was not restated from the constant scope as it was deemed immaterial. 

In the first half, Europe recorded a notable growth of +7.1% at constant exchange rates. This performance was supported by all our regions. Western Europe particularly distinguished itself with an increase of +9.4%, thanks notably to the performance of bovine vaccine sales and our dermatology range for companion animals. At the same time, Central and Eastern Europe showed growth of +27.4%, boosted by the pet food segment following the acquisition of Mopsan. France, however, showed relative sales stability, mainly due to a slight decrease in pet food sales over the half-year. North America achieved growth of +5.9% at constant exchange rates and scope, despite a temporary inventory effect observed at our distributors (estimated impact of approximately 5 points of growth). Growth was driven, in particular, by sustained sales momentum for our specialty and dental products for companion animals. Latin America, driven by Mexico, Colombia, and Brazil, in both the companion animal and livestock segments, recorded strong growth of +8.2% at constant exchange rates and scope. This performance was partially offset by a decrease in our aquaculture activities in Chile (-11.2%), mainly linked to the negative dynamic of one of our antiparasitic products facing increased competition. IMEA also showed solid growth of +8.2% at constant exchange rates and scope. This progression was generated by good performance across all regions, particularly in India (+6.8%). Far East Asia experienced growth of +2.8% at constant exchange rates and scope, driven by good growth momentum across all countries in this region, with the exception of Vietnam, which, due to a swine fever epidemic, recorded a decrease in activities of -17.8%. Finally, activity in the Pacific region declined by -7.9% in the first half at constant exchange rates and scope. This decrease is primarily attributable to dynamics in Australia (-11.4% at constant exchange rates and scope, about half of which is explained by inventory effects), offset by sales growth in New Zealand (+7.6% at constant exchange rates and scope). We expect a return to growth in Australia in the second half, favored by improving market conditions and the normalization of inventory levels at our distributors.

Current operating income before amortization of assets from acquisitions stood at €135.0 million for the first half, compared to €150.4 million for the same period in 2024. The corresponding margin thus reached 18.3% of revenue. After adjusting for a currency effect of -0.7 points and a scope effect of -0.2 points, the margin at constant scope and exchange rates declined by 2.2 points. This change is explained by a decrease in the gross margin (-1.3 points) and a controlled increase in operating and R&D expenses (-0.9 points). The decline in gross margin is primarily attributable to temporary factors that mask an underlying performance of our sales prices and production costs which remain in line with our expectations. These factors notably include a higher level of inventory write-offs than last year (as the H1 2024 write-off level represented only ~30% of the annual level) and a temporary production shutdown of one of the Group's antigens for facility maintenance. Concurrently, the increase in operating expenses results from a phasing of expenditures more concentrated in the first half compared to 2024 and a one-off increase in legal fees. Lastly, R&D expenses continued to grow in line with our strategic plan, representing an increase of 0.4 points of revenue at constant exchange rates.

Consolidated net income was €82.2 million, a decrease of 13.3% compared to the first half of 2024. Amortization charges on intangible assets from acquisitions increased from €1.7 million to €2.6 million, a rise due to the integration of Sasaeah. Furthermore, the net financial expense increased to €8.5 million, compared to €4.8 million in the first half of 2024, and consists of a foreign exchange loss of €5.7 million, supplemented by a cost of financial debt of €2.8 million. The foreign exchange loss is due to the appreciation of the euro against unhedged exposures, particularly to the Chilean peso (-€4.3 million) and, to a lesser extent, the Mexican peso (-€1.4 million). However, these charges were partially offset by a lower tax charge, in line with the level of activity.

Net income - Group share stands at €82.4 million, a decrease of 12.9% compared to the first half of the previous year (€94.7 million).

From a financial standpoint, our net debt as of June 30, 2025, amounts to €201.4 million, an increase of €32.9 million compared to the end of fiscal year 2024. This change is mainly explained by the usual seasonal effect on working capital requirements and by the payment of dividends amounting to €12.1 million.

2025 Outlook Confirmed
We confirm our outlook for revenue growth at constant rates and scope of between 4% and 6%. The impact of the Sasaeah acquisition is expected to represent 1 point of additional growth in 2025. The ratio of "current operating income before amortization of assets from acquisitions" (Adjusted EBIT) to revenue is expected to consolidate at the same level as 2024 at constant scope, i.e., around 16%. This forecast takes into account the continuation of the deliberate increase in our R&D investments relative to revenue, which in 2025 will represent approximately +0.3 percentage points compared to 2024. In terms of operating income, the impact of the Sasaeah acquisition should be broadly neutral in 2025. As for our cash position, it is expected to improve by €80 million in 2025, excluding potential acquisitions.

We anticipate a moderate impact from the possible increase in customs tariffs in the United States. Indeed, approximately two-thirds of our US revenue in 2025 and nearly 80% by the end of 2026 (due to ongoing industrial projects) are expected to be generated by our local production in the United States. Furthermore, purchases by our US subsidiary of components and raw materials from outside the United States represent approximately €8 million over a full year. Given this, the direct impact of the tariffs (i.e., not taking into account any potential price increases that could offset all or part of these impacts), as assessed to date, is around US$4 million on a full-year basis.

First half 2025 key events

June 19: Paul Martingell Appointed CEO of Virbac Group, Effective September 1, 2025

 

ANNEXES

1. Income statement of the period

 

2. Statement of financial position

3. État des flux de trésorerie

4. Reconciliation tables for alternative performance indicators

    4.1 Net Debt

     
    4.2 Operating cash flow before interest and taxes

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