Virbac — Earnings Release 2013

Oct 17, 2013

SLIGHT REBOUND OF ORGANIC GROWTH IN THE THIRD QUARTER

Public release – October 17th, 2013

Virbac consolidated sales in the third quarter amounted to 183.4 M€,

a +2.5% change compared to the same period of 2012 but +9.8% excluding a very unfavourable impact of exchange rates, which have deteriorated increasingly during these last months.

At constant rates and scope, sales grew by +2.1%. This shows a certain rebound of organic growth, as expected by the Group, after the low market dynamics observed in the first half due to the economic environment and to unfavourable weather conditions.

Business evolution during this quarter has been more positive in most regions, with the exception of the USA where sales declined due to a temporary destocking observed in some distributors who have postponed orders until the fourth quarter.

Revenues from companies acquired last year, Centrovet in Chile and Stockguard in New Zealand, keep growing nicely, in line with expectations. In addition, Virbac took recently full control of Santa Elana in Uruguay, a company specialized in vaccines for bovines in which Virbac had purchased a 30% minority stake in 2010. Sales from Santa Elena amounted to 0.7 M€ in September and have been consolidated from this date.

With total year-to-date sales of 555.4 M€ compared to 528.4 M€ last year, Virbac records a +5.1% total growth over 9 months. The Group's performance is strongly impacted by foreign exchange rates as growth would reach 9.0% at constant parities. This evolution reflects an organic growth which has become now slightly positive, +0.4%, and the net impact of recent acquisitions (Chile, New Zealand and Uruguay) and divestments (distribution in OTC channels in Europe).

In terms of species, year-to-date sales at constant scope in the companion animals segment remain, as in the first half, (slightly) declining: -1%. This trend is essentially due to the expected slow-down of CaniLeish in Southern Europe and the decrease of Iverhart in the US and has been even more pronounced, momentarily, due to orders from US distributors being postponed as mentioned previously.

Conversely the food producing animals segment enjoys a +2.9% organic growth, a higher growth rate than in the first half and still driven overall by the emerging markets.

TOTAL GROWTH +5.1% GROWTH AT CONSTANT EXCHANGE RATES +9.0%

2013 NET SALES Nine months 555.4 M€

GROWTH AT CONSTANT SCOPE

+0.4%

Of which: COMPANION ANIMALS

-1.0%

FOOD PRODUCING ANIMALS

+2.9%

Consolidated numbers Unaudited - in million Euros	2013	2012	% change	Evolution at constant exchange rates	Evolution at constant scope and exchange rates
Net sales - $1st$ quarter	182.8	176.4	$+3.6%$	$+5.6%$	$-2.3%$
Net sales - $2nd$ quarter	189.2	173.0	$+9.3%$	$+11.7%$	$+1.3%$
Net sales - 3d quarter	183.4	179.0	$+2.5%$	$+9.8%$	$+2.1%$
Net sales - year-to-date	555.4	528.4	$+5.1%$	$+9.0%$	$+0.4%$