Virbac beats growth expectations with strong first-half performance amid sector uncertainties

Virbac reports a 7.4% organic revenue increase to €768m in H1 2026, driven by growth in companion and farm animals, while reaffirming its full-year outlook despite ongoing sector challenges and geopolitical risks.

Virbac’s first-half numbers suggest the French animal health group is still trading ahead of its own plan, with organic revenue up 7.4% to €768m and an adjusted EBIT margin of 18.8%. The results strengthen management’s case for finishing the year at the top of its growth range, although the figures do not by themselves establish that the sector’s better-run groups can expand margins even as costs, working capital and geopolitical risk remain in view.

According to Virbac’s latest release, companion animal sales rose 10% at constant exchange rates and scope, while farm animal revenue increased 6.7%. The company said its Supercharge platforms, excluding Thyronorm, grew by about 12%, helped by volume and mix gains of roughly 5.4% and price rises of about 2%. Virbac also secured strategic commercial agreements for Porus-One and Vetcare, with both deals targeting launches in 2027.

Adjusted recurring operating income before amortisation reached €144.2m, up from €135m a year earlier, as a better product mix lifted gross margin and R&D spend fell as a share of revenue. Higher operating costs, including one-off items, partly offset those gains. Net income rose 5.9% to €87.1m, while net debt climbed to €196m at end-June, mainly because of seasonal working capital needs. H1 2026 capital expenditure was €57.3m, including an additional €5m option payment. Virbac’s board reviewed the financials on 17 September 2026 and reaffirmed its target for the upper end of 2026 revenue growth guidance of 5.5%-7.5%, with an operating margin of about 17%. Cash generation is expected to be about €80m after capital expenditure of around €125m. Revenue from countries directly affected by the Middle East situation represents less than 0.5% of global revenue, while supply-chain disruption remains limited.