Virbac : Virbac : a 15,8% net profit increase in 2012

            Virbac : Virbac : a 15,8% net profit increase in 2012

Public release -March 11, 2013

                                  NET SALES
                                   695.2 M€


                           CURRENT OPERATING PROFIT
                                   98.1 M€

                                  NET PROFIT
                                 Group share
                                   66.6 M€

Sales growth of +11.6% in 2012. Primarily generated by an 8.2% organic growth,
this performance was driven by both segments: companion animals (+10.4%)  with 
in particular the launch of CaniLeish - vaccine against canine Leishmaniosis -
in Europe and the expansion of Virbac ranges in the US market; food  producing 
animals (+5.1%)  thanks  to the  continued  development of  emerging  markets. 
Growth has been further increased by two factors: a significant exchange  rate 
impact of around 2.7% and the integration of acquisitions - Stockguard in  New 
Zealand as from  July and  Centrovet in Chile  as from  December -  altogether 
adding 8.6 M€ of sales. 

Strong increase  of consolidated  results. Current  operating profit  and  net 
profit also  increased strongly,  +14.4% and  +15.8% respectively.  This  very 
positive evolution  has been  due on  one  side to  the improvement  of  gross 
margin, leveraged by a favourable mix of higher margin business and  countries 
(companion animals;  USA). On  the other  side, operating  expenses have  been 
controlled and as a whole increased less than sales with the exception of  R&D 
expenses. Commercial investments  have been further  increased in a  selective 
set of countries, in particular in the United States and Brazil.
As previously announced, human and financial resources allocated to innovation
continued to be  reinforced. The  outcome is a  new increase  of Research  and 
Development expense, more than  22% in 2012  or 0.6 point  as a percentage  of 
sales, after an increase of 15% and 0.3 point in 2011.
This investment  for the  long term  competitiveness could  be offset  by  the 
significant improvement of profitability before R&D. As a result, the  current 
operating profit increased by +14.4% and  reached 14.1% of sales, a 0.3  point 
improvement versus 2011. Stockguard and Centrovet contribution to the  current 
operating profit are in line with expectations and represented 2.7 M€.
After deduction of interest and tax, net profit - Group share amounts to  66.6 
M€, a +15.8% increase compared to 2011.

High generation  of cash  and sound  financial structure.  This good  economic 
performance produced a substantial cash-flow  increase. Combined with a  tight 
control of working capital needs, it resulted in an increased cash  generation 
and a debt reduction of around  40 million Euros excluding acquisitions.  Cash 
payments on acquisitions - essentially Stockguard and Centrovet -  represented 
92 million Euros.  Altogether the consolidated  debt increased moderately  and 
Virbac's financial structure remains  very sound, with a  rather low level  of 
net debt, 39% of shareholders equity.

2013 perspectives
2013 will be a year of  consolidation of recent products in companion  animals 
and sustained  growth in  emerging  markets in  food producing  animals.  This 
should lead to a 5 to 7% organic growth; in addition, Virbac will benefit from
the full year  impact of  the recent acquisitions,  primarily Centrovet  which 
accounted for only one month in 2012. Overall at current exchange rates, sales
should come close  to 800 Million  Euros in  2013 and Virbac's  ambition is  a 
further 0.5  point  improvement of  operating  profitability. The  net  profit 
should also  increase, but  to a  lesser extent  given minority  interests  in 
Centrovet and the interest expense on acquisitions.

A dividend of 1.90 euro per share,  as compared to 1.75 euro last year,  shall 
be proposed at the  next Annual Shareholders Meeting  and payable on June  26, 

Consolidated numbers as of December 31     2012  2011   % change
in millions €                                           2012 / 2011
Revenue from ordinary activities            695.2 623.1   +11.6%
          Growth at constant exchange rates                +8.9%
Pro-forma growth at constant exchange rates                +8.2%
Current operating profit                    98.1  85.7    +14.4%
                            As a % of sales 14.1% 13.8%
Other non operating income and expenses      0.1   0.5
Operating profit                            98.2  86.2    +13.9%
Profit before tax                           95.5  83.5    +14.3%
Net profit - Group share                    66.6  57.5    +15.8%
Shareholders' equity                        346.2 311.4   +11.2%
Net financial debt                          133.9 69.7     +92%
Operating cash flow before interest and tax 123.5 107.2   +15.2%

The financial statements have been  audited; issuance of the auditors'  report 
is ongoing.
Financial statements are available on

Virbac : a 15,8% net profit increase in 2012


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Source: Virbac via Thomson Reuters ONE
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