- Revenue up 4.9%, enabling market share gains despite difficulties in 2023
- 2023 operating profitability1 at an all-time high of 23.2% of revenue
- Up 0.4 points compared to 2022
- Strong momentum expected in 2024
- Expected revenue growth of 4% to 6% at constant exchange rates and scope
- Operating profitability1 expected to rise by 0,5 point
CONSOLIDATED FIGURES AS OF in millions of € | 2023 | 2022 restated6 | 2023/2022 change | ||
Revenue | 1 246.9 | 1 216.2 | +2.5% | ||
Change at constant exchange rates and scope2 | +4.9% | ||||
Current operating profit, before R&D and amortization of assets arising from acquisitions | 287.1 | 276.9 | +3.7% | ||
Change at constant exchange rates | +6.8% | ||||
as a % of revenue as a % of revenue at constant rates | 23.0% 23.2% | 22.8% | |||
Current operating profit, before amortization of assets arising from acquisitions3 | 188.1 | 186.6 | +0.8% | ||
as a % of revenue as a % of revenue at constant rates | 15.1% 15.3% | 15.3% | |||
Amortization of intangible assets from acquisitions | 3.3 | 3.7 | |||
Current operating income | 184.9 | 182.8 | +1.1% | ||
Non-recurring (expenses) and income | -0.9 | -3.3 | |||
Operating income | 184.0 | 179.5 | +2.5% | ||
Consolidated net income | 121.1 | 121.3 | -0.2% | ||
Including net income - Group share | 121.3 | 121.9 | |||
Shareholders’ equity - Group share | 900.3 | 839.6 | +7.2% | ||
Net cash4 | 52.4 | 79.4 | -34.0% | ||
Operating cash flow before interest and taxes5 | 235.1 | 229.9 | +2.3% |
1ratio of current operating income before R&D and depreciation of assets arising from acquisitions to revenue
2change 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. It should be noted that the impact on revenue growth resulting from the integration of
3current 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
4net cash corresponds to current (€47.7 million) and non-current (€40.7 million) financial liabilities as well as a lease obligation related to the application of IFRS 16 (€35.1 million), less the cash position and cash equivalents (€175.9 million) as published in the statement of financial position
5operating cash flow corresponds to operating income (€184.0 million) restated for items having no impact on the cash position and impacts related to disposals. The following items are adjusted: fixed asset depreciation and impairments (€46.7 million), provisions for risks and charges (€1.6 million), provisions related to employee benefits (-€0.6 million), and other expenses and income without any impact on the cash position (€1.4 million), and impacts related to disposals (+€2.0 million)
6non-material impact of restatement linked to IAS 12 amendment relating to deferred tax assets and liabilities - see full note in the half-year financial report
The accounts were audited by the statutory auditors and examined by the board of directors on
Thanks to the exceptional commitment of our teams around the world, we achieved annual revenue of €1,246.9 million, compared with €1,216.2 million, representing an overall change of +2.5% compared with the same period in 2022, and a +4.9% growth at constant exchange rates. The impact on revenue growth resulting from the integration of
Current operating income before depreciation of assets arising from acquisitions amounted to €188.1 million, up compared to 2022 (€186.6 million). Boosted by an estimated ~+5% price effect coupled with a more favorable product mix, our organic growth led to an increase of gross margin in absolute value. Our operating expenses increased in line with our sales growth. This increase is visible in personnel costs, due to the impact of salary increases and the strengthening of organizations. The significant increase in R&D expenditures reflects our commitment to accelerate investments in this crucial area. Our operating margin continues to improve: at the end of
Consolidated net income was €121.1 million, stable compared with the same period in 2022. Net financial expenses increased by €6.7 million due to the depreciation of certain currencies as well as, to a lesser extent, a rising cost of net financial debt. Conversely, the tax charge decreased in absolute terms, reflecting a base effect (2022 had recorded non-recurring tax provisions) as well as a favorable country-mix effect in 2023.
Net income - Group share amounted to €121.3 million in 2023, stable compared with the previous year (€121.9 million).
On the financial front, our net cash position stood at €52.4 million at the end of
Outlook
In 2024, at constant exchange rates and scope, we expect a ratio of “current operating income before depreciation of assets resulting from acquisitions” (Ebit adjusted) to “revenue” around 15% with growth in revenue estimated at this stage to be between 4% and 6%. As announced in our previous communications, this level of profitability takes into account a deliberate further acceleration in our R&D investments, representing nearly +0.5 points as a percentage of revenue compared with 2023. 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, with a ratio of R&D investments to revenue around 2.0 percentage points below 2024 level.
In addition, excluding any acquisitions, our cash position is expected to improve by €30 million, given the expected investments over the period, estimated to be around €100 million and considering the acceleration of our efforts in R&D.
Finally, at the next shareholders' general meeting, a net dividend per share of €1.32 will be recommended for distribution for the 2023 fiscal year.
7includes net cash of acquired companies
ANALYSTS’ PRESENTATION – VIRBAC
We will hold an analysts meeting on
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/42gMcGl
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.
A lifelong commitment to animal health
At Virbac, we provide innovative solutions to veterinarians, farmers and animal owners in more than 100 countries around the world. Covering more than 50 species, our range of products and services enables us to diagnose, prevent and treat the majority of pathologies. Every day, we are committed to improving the quality of life of animals and to shaping the future of animal health together.
Virbac: Euronext Paris - subfund A - ISIN code: FR0000031577/MNEMO: VIRP
Financial Affairs department: tel. 04 92 08 71 32 - finances@virbac.com - corporate.virbac.com
Attachment
- Virbac_2023_Results
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