Virbac

Annual Report • Mar 13, 2025

• Very strong revenues increase of 13.6% at constant exchange rates, driven by:
  • dynamic organic growth (+7.5%)
  • strategic contribution of our acquisitions (+6.1%)
• 2024 operating income2 at an all-time high of 16.6% of revenues (16.0% excluding acquisitions) ○up by 1.5 percentage points compared to 2023
• Positive trend for 2025
  • sales growth expected between 4% and 6% at constant exchange rates and scope
  • operating income relatively stable at around 16%, excluding the impact of acquisitions

ublic release on March 13, 2023 anter market Close at 5.45 p.m. CET CONSOLIDATED FIGURES AS OF DECEMBER 31
in € million	2024	2023	Variance 2024/2023
Revenues	1 397.4	1 246.9	+12.1%
Change at constant exchange rates			13.6%
Change at constant exchange rates and scope		V	+7.5%
Current operating profit, before amortization of assets arising from acquisitions 4	231.8	188.1	+23.2%
as a % of revenue	16.6%	15.1%
as a % of revenue at constant rates	16.8%
as a % of revenue at constant scope	16.0%
Amortization of intangible assets from acquisitions	43	33
Current operating income	227.5	184.9	+23.0%
Non-recurring (expenses) and income	-10.4	-0 9
Operating income	217.1	184.0	+18.0%
Consolidated net income	145.8	121.1	+20.4%
Including net income - Group share	145.3	1213
Shareholders' equity - Group share	1 043.1	900.3	15.9%
Net debt3	168.5	-52.4	421.6%
Operating cash flow before interest and taxes *	280.3	235.1	19.2%

Public release on March 13, 2025 after market close at 5:45 p.m. CET

1variance at constant exchange rates and scope corresponds to the organic growth of sales, excluding exchange rate variations, by calculating the indicator for the financial year in question and the indicator for the previous financial year on the basis of identical exchange rates (the exchange rate used is the one from the previous financial year), and excluding change in scope, by calculating the indicator for the financial year in question on the basis of the scope of consolidation for the previous financial year 2current operating income, before depreciation of assets arising from acquisitions, reflects current income adjusted for the impact of allowances for depreciation of intangible assets resulting from acquisition transactions

3net debt corresponds to current (€57.9 million) and non-current (€222.1 million) financial liabilities as well as a lease obligation related to the application of IFRS 16 (current €11,5 millions € and non-current 26,6 millions €), less the cash and cash equivalents position (€149.6 million) as published in the statement of financial position 4operating cash flow corresponds to operating income (€231.8 million) restated for items having no impact on the cash position and impacts related to disposals. The following items are adjusted: fixed asset depreciation, impairments and provisions (€51.2 million), impacts related to disposals (+€2.5 million), other expenses and income without any impact on the cash position (€0.5 million) and provisions related to employee benefits (€0.5 million), and other non-current income & expenses (-€0.5 million)

The accounts were audited by the statutory auditors and examined by the board of directors on March 12, 2025. The report of the statutory auditors is in the process of being issued. The statements and detailed presentation of annual income are available on the corporate site at corporate.virbac.com.

Annual consolidated revenue

At the end of December 2024, our annual revenue reached €1,397.5 million compared to €1,246,9 million, representing an overall increase of +12.1% compared to 2023 and +13.6% at constant exchange rates. This significant growth is the result of an organic performance of +7.5% and a contribution of +6.1% linked to the acquisitions of Globion (acquisition in India in November 2023) and Sasaeah (acquisition in Japan completed in April 2024). Supported by a globally positive market dynamic, growth (in volume and value) is observed in all regions, with the exception of the Pacific, as well as across all our categories. The Europe area (+10.0% at constant exchange rates and scope) contributes to more than half of the Group's organic growth, benefiting from a strong rebound in the dog and cat vaccine range but also from increased demand for our petfood/pet care ranges. The performance of the North America area (+10.2% at constant exchange rates and scope) benefits from a sustained sales dynamic, particularly for our specialty and dental care products for companion animals. The Latin America area (+7.4% at constant exchange rates and scope) shows strong growth supported by the performances of Chile, which is experiencing a favorable rebound in the aquaculture segment this year, and a strong performance from Mexico (companion & farm animals). Despite a temporary slowdown in sales of vaccines for ruminants, Brazil recorded positive growth (+3.7% at constant exchange rates and scope), driven in particular by the successful launch of Cortotic for companion animals. The IMEA area maintains a solid performance (+6.7% at constant exchange rates and scope), particularly in its key segments of ruminants and poultry. The successful integration of Globion (avian vaccines) in November 2023 accelerates this dynamic, with a total increase of +15.1% at actual scope and constant exchange rates. The East Asia area grew by +7.0% at constant exchange rates and scope, mainly driven by China with a growth of 11.7% at constant exchange rates and scope (specialty products and petfood) and sustained growth in Thailand and Japan. The integration of Sasaeah significantly strengthens our size in this area, which is recording a revenue change of +83.0% at actual scope and constant exchange rates.

The Pacific area is down (-5.9% at constant exchange rates and scope), affected by a trend reversal in the livestock market after a year of strong growth in 2023 and unfavourable weather patterns across key regions.

Current operating income before depreciation of assets arising from acquisitions amounted to €231.8 million, up compared to 2023 (€188.1 million). Boosted by an estimated ~+3.2% price effect coupled with a more favorable volume and product mix, our organic growth led to an increase of gross margin in absolute value and as a percentage of revenues (+1.7pt at a constant exchange rate). Our operating expenses increased by 12.6% on a reported basis and by 8.3% at a constant scope. This increase is due to higher personnel costs (impact of salary increases in a context of inflation and rising earnings, and the strengthening of organizations) and external expenses. It should be noted that the significant increase in our R&D expenditure, which stems from our commitment to accelerate investment in this crucial area, remained broadly in line with sales growth (R&D expenditure as percentage of revenues remained stable at around 8% of sales in 2024). Overall, our operating income continues to improve: as of December 2024 and on a like-for-like basis, our ratio of operating income before non-recurring items to revenues amounts to 16.2%, up by 1.1 points. As expected, acquisitions in 2024 had an accretive impact on the ratio, which now stands at 16.6% on an actual basis.

Consolidated net income was €145.8 million, up by 20.4% compared to 2023. Net financial expenses were slightly down by 5.5% compared to 2023, due to a €5.1 million improvement in certain currencies, almost entirely offset by a €4.7 million increase in net borrowing costs linked to the acquisitions of Globion and Sasaeah. These acquisitions also contributed to the sharp rise in non-recurring expenses, which amounted to 10.4 million euros in 2024. The tax charge increased in absolute terms, reflecting the Group's performance.

Net income - Group share amounts to €145.3 million in 2024, up sharply compared to the previous year (€121.3 million).

On the financial front, our net debt amounts to €168.5 million at the end of December 2024, compared with a net cash position of €52.4 million at the end of December 2023. This sharp reduction in our net cash position over the year is mainly due to the acquisitions completed this year namely Globion, Sasaeah and Mopsan. Excluding acquisitions, our net cash position improved by €87 million at actual exchange rates.

Outlook

In 2025, we currently anticipate revenue growth at constant scope and exchange rates between 4% and 6%.The impact of the Sasaeah acquisition is expected to represent an additional 1 point of growth in 2025. The ratio of "current operating income before amortization of assets resulting from acquisitions" (Ebit adjusted) to "revenue", is expected to consolidate at the 2024 level at constant scope around 16%. This forecast takes into account the continued voluntary increase in our R&D investments relative to revenue, which will represent approximately +0.3 percentage points in 2025 compared to 2024. In addition, the impact of the Sasaeah acquisition should be neutral overall on operating income in 2025.

We reaffirm our ambition to achieve an Ebit adjusted ratio of 20% by 2030: in this respect, we plan over the next few years to gradually restore our R&D investments to the Group's normative and historical level.

In addition, Excluding acquisitions, our cash position should improve by €80 million by 2025.

Finally, at the next shareholders' meeting, a net dividend per share of €1.45 will be recommended for distribution for the 2024 fiscal year.

ANALYSTS' PRESENTATION – VIRBAC

We will hold an analysts meeting on Friday, March 14, 2025 at 2:15 p.m. (Paris time - CET) in the Édouard VII Business Center's auditorium, 23 square Edouard VII 75009 Paris (France).

Participants may arrive 15 minutes before the start of the meeting.

You may also attend the meeting using the webcast (audio + slides) available via the link below.

Information for participants:

Webcast access link:https://bit.ly/3WN9NN1

This access link is available on the corporate.virbac.com site, under the heading "Public releases." This link allows participants to access the live and/or archived version of the webcast.

You will be able to ask questions via chat (text) directly during the webcast or after watching the replay via the following email address: finances@virbac.com.

Caring for animals together

At Virbac, we are constantly exploring new ways to prevent, diagnose and treat the majority of animal pathologies. We develop care, hygiene and nutrition products to offer complete solutions to veterinarians, farmers and pet owners around the world. Our purpose: advancing the health of animals with those who care for them every day, so we can all live better together.

Virbac: Euronext Paris - subfund A - ISIN code: FR0000031577/MNEMO: VIRP Financial Affairs department: tel. +33 4 92 08 71 32 - finances@virbac.com - corporate.virbac.com

1. Income statement of the period

in €k	2024	20%	Variance
Net sales	1397380	1246901	12.1%
Purchases	-456 117	-433 873
External expenses	-262 223	-230 155
Personnel expenses	-383 213	-342 840
Taxes and duties	-17 404	-15 294
Depreciation and provisions	-51 192	-44652
Other operating income and expenses	4 592	8 055
Current operating profite before depreciation of assets arising from acquisitions	231821	188142	23.2%
Amortization of intangible assets arising from acquisitions	-4324	-3 265
Operating profit from ordinary activities	227 497	184876	23.1%
Other non-recurring income and expenses	-10422	-878
Operating profit	217 075	183 998	18.0%
Financial income and expense	-9 282	-9845
Profit before tax	207793	174153	19.3%
Income tax expense	-62 478	-53 520
Share in earnings - Equity method	467	455
Net income of consolidated entities	145782	121,088	20,4%
attributable to owners of the parent company	145 290	121 298	19.8%
attributable to non-controlling interests	492	-210	-334.3%

en €k	2024	2023
Goodwill	276633	165 372
Intangible assets	251 237	185 109
Tangible assets	397 537	268016
Right of use	36861	32 940
Other financial assets	12 993	6 243
Share in companies accounted for by the equity method	4511	4 244
Deferred tax assets	24628	22323
Non-current assets	1 004 400	684 247
Inventories and work in progress	404 166	339663
Trade receivables	196081	167977
Other financial assets	4312	2 636
Other receivables	89 931	85 302
Cash and cash equivalents	149631	175 906
Current assets	844 121	771484
Assets classified as held for sale
Assets	1848 521	1455731
Share capital	10488	10573
Reserves attributable to the owners of the parent company	1032628	889 728
Equity attributable to the owners of the parent company	1043116	900 301
Non-controlling interests	286	9616
Equity	1043402	909917
Deferred tax liabilities	57 233	31 560
Provisions for employee benefits	20 358	19606
Other provisions	8 899	7 299
Lease obligations	26 552	25001
Other financial liabilities	222 088	40689
Other payables	5430	22612
Non-current liabilities	340 560	146 767
Other provisions	776	2 309
Trade receivables	174574	149629
Lease obligations	11 550	10 144
Other financial liabilities	57977	47 709
Other payables	219683	189 256
Current liabilities	464 560	399 047
Liabilities	1848 522	1455731

en €k	2024	2023
Consolidated result for the period	145 782	121 088
Elimination of share from companies' profit accounted for by the equity method	-467	-455
Elimination of depreciations & provisions	57 352	47618
Elimination of deferred tax change	-4 584	1 686
Elimination of gains and losses on disposals	2451	1973
Other income and expenses with no cash impact	5519	-4090
Net cash flow	206 053	167820
Net financial interests paid	4727	। ਵੇਰੇ
Income tax accrued for the period	67510	51 454
Net cash flow before financial interests & income tax	278 290	219 433
Effect of net change in inventories	-20 890	-9027
Effect of net change in trade receivables	-4892	-22 040
Effect of net change in trade payables	4076	-9941
Income tax paid	-44891	-61 457
Effect of net change in other receivables and payables	-7472	1673
Effect on change in working capital requirements	-74 069	-100 792
Net cash flow generated by operating activities	204 221	118641
Acquisitions of intangible assets	-11 193	-18859
Acquisitions of tangible assets	-69 246	-41 042
Disposals of intangible and tangible assets	274	203
Change in financial assets	2 934	દર્વદ
Change in debts relative to acquistions	-3 485	-925
Acquisitions of subsidiaries or activities	-348 436	-62 367
Disposals of subsidiaries or activities
Withholding tax on distributions
Dividends received	463	475
Net cash flow allocated to investing activities	-428 689	-121870
Dividends paid to the owners of the parent company	-11 054	-11 165
Dividends paid to the non-controlling interests	-4	12
Change in treasury shares		-19422
Transaction between the Group and owners of non-controlling interests	-17492
Increase/decrease of capital
Cash investments
Debt issuance	273632	88651
Repayments of debt	-89 291	-50 492
Repayments of lease obligation	-12479	-10 149
Net financial Interests paid	-4727	-159
Net cash flow from financing actitvities	138 585	-2724
Change in cash position	-85883	-5953

4.1. Net debt

in Ek	2024	2023
Loans	265 344	82 448
Bank overdrafts	3 567	2517
Accrued interests not yet matured	27	31
Lease obligation [IFRS16]	38 102	35 145
Employee profit sharing	945	1 156
Currency and interest rate derivatives	5 835	2 196
Other	4 346	50
Other financial liabilities	318 166	123 543
Cash	104945	79 294
Cash equivalents	44 685	96611
Cash & cash equivalents	149631	175 906
Net financial debt	168536	-52362

4.2. Operating cash flow before interest and taxes

in €k	2074	20175
Current operating profit before depreciation of assets arising from acquisitions	231 822	188 142
Elimination of depreciations & provisions Elimination of gains and losses on disposals Other income & expenses with no cash impact	51 166 2451 466	43475 1973 1 528
Current operating cash flow	285 905	235 118
Other non-current income & expenses	-5637	O
Operating cash flow	280 268	235 118