Virbac reported a 7.4% organic revenue growth for H1FY26, reaching €768 million, while its adjusted EBIT margin expanded to 18.8%. The performance was driven by strong volume and mix effects across both companion and farm animal segments.

The French animal health company delivered solid top-line growth despite currency headwinds that limited reported revenue increase to 4.0%. Operating leverage was evident as gross margin improved by one percentage point, partially offset by higher operating expenses due to expenditure phasing.

Financial Performance

Consolidated net income rose 5.9% to €87.1 million. Adjusted EBIT (before amortizations) grew 6.8% to €144.2 million. Non-recurring expenses of €5.6 million impacted the bottom line, primarily from an asset impairment related to product discontinuation.

Segment and Regional Highlights

Revenue growth was broad-based, with the companion animal segment up 10.0% and farm animal up 6.7%. The 'Supercharge' platforms, excluding Thyronorm, grew 12% at constant exchange rates.

• Europe grew 6.5% at constant exchange rates and scope (CERS), led by Germany and the UK.
• North America saw a 10.1% rise at CERS, driven by Mobility and Dental ranges.
• International markets expanded 7.5% at CERS, with double-digit growth in IMEA and Latin America.

What the Numbers Show

Operating cash flow before interest and taxes reached €173.0 million, significantly outpacing the €57.3 million in capital expenditures. This robust cash generation capacity supports the company’s industrial transformation plan, even as net debt rose to €196 million due to seasonal working capital requirements rather than operational cash burn.

Balance Sheet and Guidance

Net debt increased to €195.9 million from €172.8 million at year-end, attributed to usual working capital seasonality. Shareholders’ equity stood at €1,217.1 million. Virbac confirmed its full-year guidance, targeting the upper end of its revenue growth range (5.5%–7.5%) and an adjusted recurring operating income margin of around 17%.

Virbac achieved solid growth in the first half of 2026, with revenue reaching €768m, an increase of 7.4% at constant exchange rates and scope (CERS). This performance was fueled by double-digit growth in the company's Supercharge platforms, which increased by approximately 12% at CERS. The company confirmed its 2026 guidance, positioning itself to target the upper end of its initial revenue growth range of 5.5% to 7.5% at CERS, with an adjusted recurring operating income margin expected around 17% at CERS.

The company delivered balanced growth across its two primary segments. The companion animal segment grew by 10.0%, while the farm animal segment increased by 6.7%. A solid volume and mix effect of approximately 5.4% complemented a price increase of around 2%. The Thyronorm acquisition contributed 1.4 percentage points to the overall growth in the first half.

First-half performance by geography

All regions reported solid growth during the period. North America led with a 10.1% increase at CERS, reaching €103m, driven by Supercharge platforms such as Mobility, Dental, and Ear care, alongside the Thyronorm acquisition. Europe grew by 6.5% at CERS to €314m, supported by petfood and endocrinology ranges. The International region increased by 7.5% at CERS to €351m, with double-digit expansion in IMEA and Latin America.

Second-quarter details

Second-quarter revenue amounted to €384m, representing growth of 7.2% at CERS compared to Q2 2025. Europe drove this quarterly performance with an 11.6% increase at CERS, reaching €156m, followed by the International region at €181m, up 5.9% at CERS. North America reported a slight decline of 0.8% at CERS to €48m, primarily due to a temporary product release hold for regulatory reasons on a toll manufacturing contract and supply challenges in the farm animal segment.

2026 outlook

Based on the strong first-half momentum, Virbac targets the upper end of its revenue growth range of 5.5% to 7.5% at CERS. The company expects an adjusted recurring operating income margin of around 17% at CERS and cash generation of approximately €80m, including capital expenditure spending of around €125m. The Thyronorm acquisition is expected to contribute approximately 1 percentage point to total revenue growth and 0.5 to adjusted EBIT on a full-year basis.