VIRBAC : 2023 Outlook
December 19 2022 - 2:30AM
VIRBAC : 2023 Outlook
As we continue to execute our 2030 strategic
plan, we have made the decision to continue to accelerate in 2023
on two key dimensions : R&D and capital expenditures. In
order to maximize the long-term value of our rich R&D portfolio
and in-line with our strategic priorities, we intend to boost in
2023 our R&D investment to around 8.5% of our revenues. In
parallel, and in order to prepare for the future, to accompany
Virbac’s growth and to increase our medium-term productivity we
intend to increase our capital expenditure investments in 2023 to
around €100 million. This will include possible € 20-25 million
one-time real estate investments in France that will allow us to
expand our footprint to prepare for the development of our
operations for the next decades. Finally, we continue to execute on
the other dimensions of our 2030 Strategic Plan including our
commercial focus on our Virbac Busters, the geo-extensions of our
key products as well as our entry into new markets such as petfood
and livestock in the USA, or parasiticides and petfood in China.
As such, in 2023, the ratio of “current operating income, before
depreciation of assets arising from acquisitions” (EBIT Adjusted)
to “revenue” should consolidate between 13% to 14% at constant
exchange rates with a growth in revenue at constant rates and scope
anticipated between 4% to 6%. This deterioration in our EBIT
adjusted ratio is primarily the result of our deliberate
acceleration of our R&D investments as a ratio to revenues
since the beginning of 2022 representing, in 2023, ~+2 percentage
points compared to 2021 and +~1 percentage point compared to 2022.
Consequently, we anticipate our cash position to remain constant at
the end of 2023 when compared to 2022.
In the medium term, our objective of reaching
20% of EBIT adjusted ratio by 2025-2030 remains unchanged with
the assumption of a R&D "ratio to revenues" at around 6.5% (vs
around 8.5%1 expected in 2023 given our deliberate additional
investments). The timing continues to be dependent upon mainly
external growth contribution (M&A), success rate of our R&D
projects, as well as top-line dynamics (impacted by external market
conditions).
A lifelong commitment to animal
healthAt 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: VIRPFinancial Affairs Department: tel. 04 92
08 71 32 - email: finances@virbac.com - Website:
corporate.virbac.com
____________________
[1] After the benefit of French Research Tax Credit
- Virbac_Press release_December 2022
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