Virbac — Earnings Release 2012

Jul 19, 2012

CONTINUED SOLID SALES GROWTH IN THE SECOND QUARTER

Public release – July 19th, 2012

Virbac consolidated sales in the second quarter reached 173.0 M€, a +11.9% change compared to the same period of 2011. Sales increased by +9.1% excluding favourable exchange rates impacts and +9.8% at constant scope. All geographic regions recorded a positive evolution thanks, like in the first quarter, to a solid growth in Southern Europe, in emerging countries, in the United States and Japan, and to large countries such as France and Australia coming back to a positive trend.

Early May Virbac divested its business in specialized channels (garden centers, petstores): hygiene products and parasiticides in France and pet nutrition products in Europe, which account for around 10 M€ on a full year basis.

Total half-year sales amount to 349.4 M€ compared to 314.5 M€ in 2011, a +11.1% overall growth, of which +8.9% at constant exchange rates and +9.2% at constant scope.

• From a regional perspective, such performance is linked to the high level of growth generated : in Southern Europe with the launch of CaniLeish (canine leishmaniosis vaccine); in the United States with all product ranges, the launch of new products (Easotic -dermatology-, Effitix -parasiticide-) and the ongoing expansion of Iverhart, which also benefited from the temporary closure of a competitor's manufacturing site; in Latin America with a strong development in Brazil and Colombia; in Asia with in particular India and Japan. Conversely, sales remained stable in France and in Northern Europe, where markets evolution globally remains low, and decreased slightly in Australia and South Africa after a strong growth in 2011.

• Business by species reflects these geographic trends. The companion animals segment enjoyed a + 14.4% organic growth, driven primarily by the performance of the United States and Southern Europe, but also more generally by all countries. Organic growth in the food producing animals segment reached +2.2%; the high level of activity in the emerging countries is partially offset by a decrease in Europe, in a sluggish market, and by the evolution in South Africa and Australia mentioned previously.

NET SALES FIRST HALF 2012 349.4 M€ TOTAL GROWTH +11.1% GROWTH AT CONSTANT EXCHANGE RATES +8.9%

GROWTH AT CONSTANT SCOPE

+9.2%

Of which: COMPANION ANIMALS

+14.4%

FOOD PRODUCING ANIMALS

+2.2%

Consolidated numbers Unaudited – in million Euros	2012	2011	% change	Evolution at constant exchange rates	Evolution at constant scope and exchange rates
Net sales - $1st$ quarter	176.4	159.9	$+10.3%$	$+8.8%$	$+8.6%$
Net sales - $2nd$ quarter	173.0	154.6	$+11.9%$	$+9.1%$	$+9.8%$
Net sales $-1$ st half	349.4	314.5	$+11.1%$	$+8.9%$	$+9.2%$