Virbac Posts 7.7% Q1 Revenue Growth, Holds Steady on 2026 Outlook

Virbac SA reported a 7.7% increase in first-quarter revenue at constant exchange rates and scope, fueled by gains across North America and international markets. The French animal health company saw its topline jump 20.7% in North America and nearly 9.1% in other international regions, while Europe's growth was more modest at 2%.

Volume growth accounted for roughly 6% of this increase, with pricing adding another 2%. However, the company faced a foreign exchange drag close to 5.5% during the quarter. The acquisition of Thyronorm added about 1% to overall growth, giving a slight boost despite the challenging FX backdrop.

Breaking down by segment, companion animal products generated a 9.9% uptick, whereas farm animal products advanced 8.4%. Meanwhile, the "other" category declined, hampered by regulatory delays that slowed product introductions.

Virbac highlighted that the strong start to the year reinforces confidence in reaching its 2026 targets. The company kept its full-year guidance intact, projecting revenue growth of between 5.5% and 7.5% on a constant currency basis, which includes a 1% contribution from Thyronorm.

Operationally, Virbac anticipates adjusted EBITA margins near 17%, steady cash generation around €80 million, and capital expenditures in the neighborhood of €125 million. These financial targets underscore the firm's balanced approach between growth investments and margin management.

Regionally, Europe's expansion was mostly driven by companion animal products like pet food, ear care, and dermatology, with endocrinology benefiting from the Thyronorm acquisition. However, France and the Benelux countries faced some softness due to temporary back-orders in farm animal products.

North America's momentum was solid, buoyed by categories such as mobility, dental, and ear care, alongside a robust ramp-up of Thyronorm. That said, supply chain issues related to contract manufacturing caused some back-orders in farm animal products, partially weighing on overall performance.

International markets enjoyed double-digit growth in the Middle East, Africa, and Latin America, thanks largely to farm animal and nutritional products. Japan posted high single-digit gains thanks to ruminant products, whereas the Pacific region-especially Australia-experienced setbacks from competitive pressure on vaccines and parasiticides.

Despite geopolitical and currency uncertainties, Virbac noted its direct exposure to the Middle East remains minimal at under 0.5% of sales, limiting supply chain disruptions. This cushioning likely helps stabilize the company amid broader market volatility.