Virbac SA reported on Friday that first-quarter revenues rose 7.7% at constant exchange rates and scope, supported by robust demand in North America and healthy expansion across its international markets.
The French animal health company said North American revenues climbed 20.7% at constant exchange rates and scope, while international markets expanded by 9.1%. Europe recorded more modest growth of 2% on the same basis.
Management broke down the drivers of the quarter. Volume additions accounted for roughly 6 percentage points of the growth, while pricing contributed about 2 percentage points. Foreign exchange movements acted as a drag of about 5.5 percentage points on reported figures. The company also noted that the Thyronorm acquisition contributed approximately 1 percentage point to overall revenue growth for the period.
By product category, companion animal offerings increased 9.9% at constant exchange rates and scope. Farm animal products rose 8.4% over the same comparator. Virbac said its "other business" segment declined during the quarter because a regulatory update postponed some product releases.
Regional and product details
In Europe, the company attributed growth mainly to companion animal products, naming pet food, ear care and dermatology as supporting categories. Endocrinology also benefited from the addition of Thyronorm. However, France and the Benelux region underperformed, with temporary back-orders in farm animal channels cited as the cause.
North America benefitted from momentum in mobility, dental and ear product categories plus a strong ramp-up of Thyronorm sales. The company said that some of the region's farm animal performance was partially offset by back-orders linked to contract manufacturing issues.
Internationally, Virbac reported double-digit growth in the Middle East, Africa and Latin America, driven by farm animal and nutritional products. Japan posted high single-digit growth led by ruminant products, while the Pacific region declined due to heightened competition in vaccines and parasiticides in Australia.
The company acknowledged geopolitical and foreign exchange uncertainty but said its direct exposure to the Middle East represents under 0.5% of sales and has produced limited supply-chain disruption to date.
Guidance and financial outlook
Following the quarter, Virbac maintained its full-year revenue guidance of 5.5% to 7.5% growth at constant exchange rates and scope, a range that incorporates an expected 1 percentage point contribution from the Thyronorm acquisition. The company reiterated expectations for an adjusted EBITA margin of around 17% at constant exchange rates and scope. Cash generation is expected to be approximately c80 million for the year, alongside capital expenditure of about c125 million.
Overall, the first-quarter results reinforced management's confidence in reaching the companys 2026 targets, with regional and product-line performance largely supporting the maintained full-year outlook.