VIRBAC: 2022 current operating income on the rise at +8.3%, reflecting the momentum of our business over the year in a slowing market

Carros Cedex, FRANCE

in millions of €  
 202220212022/2021 Change 
Change at constant exchange rates  +9.6% 
Change at constant exchange rates and scope 1  +9.6% 
Current operating profit, before depreciation of assets arising from acquisitions 2186.6173.2+7.7% 
as a % of revenue
as a % of revenue at constant rates
Depreciation of intangible assets from acquisitions3.74.3  
Current operating income182.8168.9+8.3% 
Non-recurring (expenses) and income-3.3-1.20  
Operating income179.5167.6+7.1% 
Consolidated net income121.3115.7+4.9% 
Including net income - Group share122.0113.2  
Shareholders’ equity - Group share839.3724.9+15.8% 
Net financial cash 379.473.8+7.6% 
Operating cash flow before interest and taxes 4229.9210.1+9.4% 

1 Change 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.
2 Current 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.
3 Net financial cash corresponds to current (€43.2 million) and non-current (€18.0 million) financial liabilities as well as a lease obligation related to the application of IFRS 16 (€36.8 million), less the cash position and cash equivalents (€177.4 million) as published in the statement of financial position.
4 Operating cash flow corresponds to operating income (€179.5 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 (€49.5 million), provisions for risks and charges (€-0.3 million), provisions related to employee benefits (-€0.1 million), and other expenses and income without any impact on the cash position (€0.9 million), and impacts related to disposals (+€0.4 million).

The accounts were audited by the statutory auditors and examined by the board of directors on March 21, 2023. The report of the statutory auditors is in the process of being issued. The statements and detailed presentation of annual income are available on the corporate site at

Thanks to the Virbac teams’ constant dedication to animal health, we posted revenue for the year of €1,216.2 million, an increase of +14.3% compared to 2021. Adjusted for the favorable impact of exchange rates, revenue shows growth of +9.6%, despite the slowdown in the market. Excellent execution of our strategic plan allowed us to reinforce our annual organic growth in all geographic areas. In Asia-Pacific, growth at real exchange rates came to +18.5% (+13.8% at constant exchange rates); India and Australia continue to drive growth in the area, thanks to products for cattle, representing approximately 80% of this growth. In Europe, revenue is growing at +6.3% at real rates (+5.9% at constant rates). The main contributors to this performance are the United Kingdom, France, Italy, and Spain. The area is supported by the strong dynamism of the companion animal ranges (in particular petfood, specialties, and vaccines), which compensated for the decline in the antibiotic ranges for farm animals. In the United States, business grew by +30.2% (+15.7% at constant exchange rates). It benefited from sustained sales for new products launched in 2021 (Clomicalm and Itrafungol) and those launched in early 2022 (petfood, and Tulissin for the farm animals segment), as well as good performance in the dental, specialties (Movoflex, Stelfonta), and dermatology ranges. Finally, in Latin America, business grew by +17.1% at real rates (+5.6% at constant exchange rates), thanks in particular to the contribution of Mexico and Brazil, which offset the downturn in Chile. It should be noted that the effect of the increase in average prices recorded in 2022 compared to 2021 represents approximately five percentage points of growth.

The current operating income before depreciation of assets arising from acquisitions amounts to €186.6 million, significantly up compared to 2021 (€173.2 million). This improvement in performance is mainly due to the growth in our revenue, driven by strong performance in all areas despite a market slowdown. This was partially offset by a relative deterioration in the margin due to the impacts of inflation on raw material costs and operating expenses such as transport and energy. Our commercial expenses have increased (travel expenses, seminars, etc.), post Covid-19 period. Similarly, our R&D expenses are up significantly, following our desire to increase the number of projects in our portfolio. After normalizing R&D (+1 percentage point at constant exchange rates), our ratio of “current operating income, before depreciation of assets arising from acquisitions” to “revenue” at the end of December 2022 is slightly increased compared to the same period for 2021 (16.4% in 2022 vs. 16.3% in 2021) at constant rates.

Consolidated net income was €121.3 million, up 4.9% compared to the same period for 2021. This improvement in our net income is explained by the reasons given above, especially the growth of our business and good control of our operating expenses, which remain relatively contained as a proportion of our revenue, despite the inflationary pressure observed in 2022. The consolidated net income is also impacted by a non-current and non-cash charge of €3.3 million corresponding to an impairment loss for brands that are no longer used. Lastly, it should be noted that our operating income includes a charge of €3.1 million, which is significantly down compared to the end of December 2021 (charge of €8.5 million). This is due to the decrease in the cost of gross financial debt of €2.3 million mainly related to the maturity of rate derivatives, and the sharp increase in cash instruments (+€2.5 million), following the increase in our investments and remuneration rates from June 2022.

Net income - Group share amounted to €122.0 million in 2022, an increase compared to the previous year (€113.2 million), which is explained by the elements detailed above.

From a financial standpoint, our net financial cash amounts to €79.4 million at the end of December 2022, compared to €73.8 million at the end of December 2021. This positive change in our cash position over the year is mainly due to strong cash generation, which enabled the financing of more sustained capital expenditures (Capex), higher working capital requirements in 2022 given the strong increase in our revenue, and finally the payment of dividends with respect to the 2021 profit.

In 2023, we expect a ratio of “current operating income before depreciation of assets resulting from acquisitions” to “revenue” that should be between 13% and 14% at constant exchange rates, with growth in revenue at constant rates and scope estimated at this stage to be between 4% and 6%. This deterioration in our adjusted EBIT ratio is primarily the result of our deliberate acceleration in R&D investment to revenue since early 2022 (~+2 percentage points in 2023 compared to 2021 and +~1 point compared to 2022), and the expected effects of inflation in 2023.

In addition, our cash position is expected to remain constant at the end of 2023 compared to the end of 2022, given the expected investments over the period, estimated to be around €100 million, from the acceleration of R&D, and excluding any acquisitions.

Ultimately, at the next general meeting of shareholders, a net dividend of €1.32 per share will be recommended for distribution for the 2022 fiscal year, in evolution compared to €1.25 in 2021.


We will hold an analysts meeting on Friday, March 24, 2023 at 2:30 p.m. (Paris time - CET) in the Edouard VII Business Center’s auditorium, 23 square Edouard VII - 75 009 Paris (France).

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:

This access link is available on the 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:

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 - email: - Website:


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