Virbac: the stock falls after a significant profit warning
The veterinary laboratory finds itself in operational difficulty at the start of the financial year. He was also the victim of a cyberattack.
The high basis of comparison made this first part of the year complicated for Virbac, after a good 2022 vintage. The first quarter confirmed this anticipation, with a decline in turnover, but the second should show a more positive development .
However, two weeks before the publication of half-yearly sales, the group has just issued a warning on its results.
Thus, while it was targeting organic growth of between 4 and 6% for the financial year, the group now only anticipates growth of between 0 and 4%. Likewise, management targeted an adjusted current operating margin between 13 and 14%, and a range of 12 to 13% is now announced.
Troubles pile up in the first half
Several reasons are given to explain this profit warning. On the one hand, the company confirms the slowdown in growth in the sector observed in the first quarter and specifies that in several regions, it is recording lower volumes compared to last year.