Half Year 2024 Virbac SA Earnings Call Transcript
Key Points
- Virbac SA (FRA:V16) reported a strong organic growth of 11.3% at constant exchange rates and scope, reflecting exceptional market momentum.
- The company achieved a significant increase in EBIT-adjusted, reaching an all-time high ratio to revenue of 21.3%, driven by volume increases and favorable pricing.
- Recent acquisitions, Globion and Sasaeah, contributed positively, adding around 5 points to the top-line growth and 0.5 points to profitability.
- Virbac SA (FRA:V16) experienced robust performance across all geographies except the Pacific region, with notable growth in Europe, North America, and Latin America.
- The company maintained a favorable financial position with a net debt on EBITDA ratio below 1%, ensuring strong liquidity and potential for further M&A activities.
- The Pacific region underperformed, showing a slight negative growth due to challenging market dynamics.
- Increased financial expenses were noted, linked to higher financial debts and unfavorable exchange rate impacts.
- Operating expenses grew, albeit at a slower pace than revenue, slightly impacting the ratio to revenue.
- The net debt situation worsened, moving from a net cash positive position at the end of December 2023 to a net debt of EUR 254 million by June 2024, primarily due to acquisitions.
- The company anticipates a seasonal drop in margins in the second half of the year, influenced by lower sales and higher costs.
Good afternoon. We are very pleased to welcome you to the Virbac '24 half-year results webcast.
Hosting the call today is Sandrine Brunel, I am Head of Corporate Communications for Virbac; and Sébastien Huron, our Chief Executive Officer; and Habib Ramdani, our Chief Financial Officer.
Before we begin, I'll remind you that the slides and additional financial materials are available on the Investor section of our corporate website. The replay of the meeting will be available at the conclusion of the meeting.
You will be able to post your questions by using the chat section on the bottom right-hand corner of your screen. All the questions will be answered during the Q&A session or afterwards if time does not allow us to answer them all immediately.
It is now my pleasure to turn the floor to Habib Ramdani and then Sébastien Huron.
Good
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