Virbac — Interim / Quarterly Report 2009

Nov 3, 2009

Quarterly financial information as of September 30, 2009

This report is prepared in narrative form under the terms of implementation of article L451-1-2 of the Monetary and Financial Code issued by the French financial markets authority (AMF).

I – Key events of 2009 3rd quarter

In June 2009, Virbac launched a new external parasiticide for companion animals in the European market: Effipro.

This launch allows Virbac to strengthen its position in the external parasiticides segment which now represents a €380 million market, accounting for close to one third of veterinary medicine sales for companion animals in Europe.

At the end of September, the Group recorded sales for €4,2 million on the different presentations of Effipro.

II – General overview of Virbac financial situation

Consolidated figures (Millions euros)	rd quarter 3	9 months cumulative
2009 Provisional Net Sales	122.2	347.7
2008 Net Sales	114.9	326.7
Change	6.4%	6.4%
Change at constant exchange rate	6.9%	6.7%
Change at constant scope and exchange rate	8.0%	4.8%

* Excluding the impact of acquisitions made in 2008 in Europe: Denmark and ranges sold by Shering Plough

Activity :

Virbac's activity enjoyed an acceleration in organic growth during the third quarter, up to 8%.

Such positive trend originates from one hand in the contribution from new products and from another hand in the good performance of our product ranges in all geographical areas, translating into a noticeable increase of growth, including on the French market which had experienced a difficult first half.

On a year-to-date basis, the sales evolution is consequently keeping steady with a +6.7% growth at constant exchange rates (+6.6% at the end of june), with an acceleration of organic growth up to +4.8% (+3.1% end of June).

Perspectives:

Sales growth excluding exchange rates impacts is in line with the perspectives announced by the Group of a 5 to 8% growth for the whole year.

Debt:

The Group's net debt in the third quarter was down sharply from the end of 2008, primarily due to improvement of cash-flow generation and control of working capital.

III – Turnover breakdown per activity

Consolidated figures (Millions euros)	Change (Constant rate & scope)
Companion Animals	6.6%
Food Producing Animals	4.2%
Other businesses	-29.1%
TOTAL	4,8%

• Companion Animals

The growth in companion animals is 6.8% (including 6.6% of organic growth). It is driven by Europe, which benefits from the contribution of new products, in particular Effipro – parasiticide for companion animals - launched in June and by the United States.

• Food Producing Animals

The activity in the sector of food producing animals is increasing thanks to the combination of a strong organic growth especially in the emerging markets (India, South Africa, Latin America), and the positive contribution of acquisitions completed in Europe in 2008.

• Other businesses

These activities, which represent less than 2,5% of total sales, are declining in 2009. They correspond to the group's less strategic markets and include production on behalf of third parties in the United States.

VIRBAC : Passionate about Animal Health NYSE Euronext - Compartiment B / Code ISIN : FR0000031577 / MNEMO : VIRP Corporate Finance : tél. 33 4 92 08 71 32 / Email : finances@virbac.com website : www.virbac.com