By Nina Kienle
Shares of Virbac, the French animal-health company, experienced a boost after the company raised its outlook following a recovery in revenue during the third quarter.
At 1557 GMT, shares were up 12% at EUR340.
Virbac, a developer of veterinary treatments, announced on Tuesday that it now anticipates revenue growth of approximately 4% at constant exchange rates and scope for this year. This revised forecast is based on the rebound in the third quarter and expectations for the fourth quarter. Previously, the company had projected revenue growth between 0% and 4%.
In October, Virbac reported a 7.8% increase in sales, reaching 314.8 million euros ($343.9 million).
The company now expects the ratio of adjusted earnings before interest and taxes (EBIT) to sales to be around 15%, compared to the previous forecast range of 12% to 13%.
Virbac attributed its strong third-quarter results to a higher-than-expected margin on production costs as well as the deferral of certain expenses.
Looking ahead, revenue growth for 2024 is expected to be between 4% and 6%, with the adjusted EBIT to sales ratio seen at around 15%. The company also reaffirmed its EBIT adjusted ratio target of 20% by 2030.
