Consolidated accounts
CONSOLIDATED FINANCIAL STATEMENTS

Statement of financial position
Notes 2024 2023
in € thousand

Goodwill A1-A3 276,633 165,372
Intangible assets A2-A3 251,237 185,109
Tangible assets A4 397,537 268,016
Right of use A5 36,861 32,940
Other financial assets A6 12,993 6,243
Share in companies accounted for by the equity method A7 4,511 4,244
1
Deferred tax assets A8 24,628 22,323
Non-current assets 1,004,401 684,246

Inventories and work in progress A9 404,166 339,663
Trade receivables A10 196,081 167,977
Other financial assets A6 4,312 2,636
Other receivables A11 89,931 85,302
Cash and cash equivalents A12 149,631 175,906
Current assets 844,121 771,484

Assets classified as held for sale A13 — —

Assets 1,848,522 1,455,730

Share capital 10,488 10,573
1
Reserves attributable to the owners of the parent company 1,032,628 889,728
Equity attributable to the owners of the parent company A14 1,043,117 900,301

Non-controlling interests A14 286 9,616

Equity 1,043,403 909,917

Deferred tax liabilities A8 57,233 31,560
Provisions for employee benefits A15 20,358 19,606
Other provisions A16 8,899 7,299
Lease liability A17 26,552 25,001
Other financial liabilities A18 222,088 40,689
Other payables A19 5,430 22,612
Non-current liabilities 340,559 146,767

Other provisions A16 776 2,309
Trade payables A20 174,574 149,629
Lease liability A17 11,550 10,144
Other financial liabilities A18 57,977 47,709
Other payables A19 219,683 189,256
Current liabilities 464,560 399,047

Liabilities 1,848,522 1,455,730




1
Income statement
Notes 2024 2023 Variation
in € thousand

Revenue from ordinary activities A21 1,397,380 1,246,901 12.1%

Purchases consumed A22 -456,117 -433,873
External costs A23 -262,223 -230,155
Personnel costs -383,213 -342,840
Taxes and duties -17,404 -15,294
Depreciations and provisions A24 -51,192 -44,652
Other operating income and expenses A25 4,592 8,055

Current operating profit before depreciation of assets
1 231,821 188,142 23.2%
arising from acquisitions

Depreciations of intangible assets arising from acquisitions A24 -4,324 -3,265

Operating profit from ordinary activities 227,497 184,876 23.1%

Other non-current income and expenses A26 -10,422 -878

Operating result 217,075 183,998 18.0%

Financial income and expenses A27 -9,282 -9,845

Profit before tax 207,793 174,153 19.3%

Income tax A28 -62,478 -53,520
Share from companies' result accounted for by the equity
A7 467 455
method

Result for the period 145,782 121,088 20.4%
attributable to the owners of the parent company 145,290 121,298 19.8%
attributable to the non-controlling interests 492 -210 -334.3%

Profit attributable to the owners of the parent company, per
A30 €17.35 €14.40 20.5%
share
Profit attributable to the owners of the parent company, diluted
A30 €17.34 €14.38 20.6%
per share

1
in order to provide a clearer picture of our economic performance, we isolate the impact of the allowance for
depreciations of intangible assets resulting from acquisitions. This turned out to have a material impact considering
the latest external growth that took place through acquisitions. Therefore, our income statement shows a current
operating profit, before depreciation of assets arising from acquisitions (see note A24)




Comprehensive income statement

2024 2023 Variation
in € thousand

Result for the period 145,782 121,088 20.4%

Conversion gains and losses 918 -11,951
Effective portion of gains and losses on hedging instruments 1,733 -1,473
Items subsequently reclassifiable to profit and loss 2,651 -13,424 -119.7%

Actuarial gains and losses 508 -1,939
Items not subsequently reclassifiable to profit and loss 508 -1,939 -126.2%

Other items of comprehensive income (before tax) 3,159 -15,363 -120.6%

Tax on items subsequently reclassifiable to profit and loss -448 381
Tax on items not subsequently reclassifiable to profit and loss -207 527

Comprehensive income 148,287 106,632 39.1%
attributable to the owners of the parent company 147,827 107,304 37.8 %
attributable to the non-controlling interests 461 -672 -168.6 %




2
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




Statement of change in equity
Equity
Result attributable Non-
Share Share Conversion
Reserves for the to the owners controlling Equity
capital premiums reserves
period of the parent interests
in € thousand company


Equity as at
01/01/2023 10,573 6,534 718,474 -17,885 121,943 839,640 -351 839,288
1
restated

2022 allocation of
— — 110,779 — -110,779 — — —
net income
Distribution of
— — — — -11,165 -11,165 -7 -11,172
dividends
Treasury shares — — -18,289 — — -18,289 — -18,289
Changes in scope — — -15,865 — — -15,865 10,647 -5,219
Other variations — — -1,325 — — -1,325 — -1,325
Comprehensive
— — -2,505 -11,488 121,298 107,304 -672 106,632
income


Equity as at
10,573 6,534 791,269 -29,373 121,298 900,301 9,616 909,917
12/31/2023


2023 allocation of
— — 110,245 — -110,245 — — —
net income
Distribution of
— — — — -11,053 -11,053 -4 -11,057
dividends
Treasury shares — — 799 — — 799 — 799
Changes in scope — — 7,655 — — 7,655 -9,786 -2,131
Other variations -84 — -2,327 — — -2,411 — -2,411
Comprehensive
— — 1,587 950 145,290 147,827 461 148,287
income

Equity as at
10,488 6,534 909,228 -28,423 145,290 1,043,117 286 1,043,403
12/31/2024
1
restatement following the IAS 12 amendment related to deferred tax assets and liabilities arising from the same
transaction, applicable as at January 1, 2023 (see “Accounting principles and methods applied”)

The general shareholders’ meeting of Virbac, which was held on June 21, 2024, approved the payment of a dividend
of €1.32 per share for the 2023 financial year, for a total amount of €11,164,560 (reduced to €11,054,464 given
the number of outstanding shares).

The “Changes in scope” line essentially reflects the impact of the acquisition of Globion's non-controlling interests
which was finalized on June 21, 2024 (see note A1). The debt relating to the acquisition of non-controlling interests
had been recognized in the Group's equity as of December 31, 2023. In accordance with the provisions of IFRS 10,
the effects of the subsequent change in debt were recognized via equity.

The reduction of the share capital decided by the board of directors on September 13, 2024 by cancellation of
67,340 treasury shares was carried over to the “Other variations” line for an amount of €84 thousand. This line also
includes, in essence, the impact on consolidated reserves of Globion's non-controlling interests reserve adjustment
following the completion of the work to allocate the acquisition price.




3
Cash position statement
2024 2023
in € thousand

Cash and cash equivalents 175,906 177,383
Bank overdraft -2,517 -639
Accrued interests not yet matured -31 -65
Opening net cash position 173,358 176,679

Cash and cash equivalents 149,631 175,906
Bank overdraft -3,567 -2,517
Accrued interests not yet matured -27 -31
Closing net cash position 146,037 173,358

Impact of exchange rates 939 -5,345
1
Impact of changes in scope 57,623 7,977

Net change in cash position -85,883 -5,952
1
see the cash flow statement




4
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




Statement of change in cash position
Notes 2024 2023
in € thousand

Result for the period 145,782 121,088

Elimination of share from companies' profit accounted for by the equity method A7 -467 -455
Elimination of depreciations and provisions A16-A24 57,352 47,618
Elimination of deferred tax change A8 -4,584 1,686
Elimination of gains and losses on disposals A25 2,451 1,973
Other income and expenses with no cash impact 5,519 -4,090

Cash flow 206,053 167,820

Net financial interests paid A27 4,727 159
Income tax accrued for the period 67,510 51,454

Cash flow before financial interests and income tax 278,290 219,433

Effect of net change in inventories A9 -20,890 -9,027
Effect of net change in trade receivables A10 -4,892 -22,040
Effect of net change in trade payables A20 4,076 -9,941
Income tax paid -44,891 -61,457
Effect of net change in other receivables and payables A11-A19 -7,472 1,673
Effect of change in working capital requirements -74,069 -100,792

Net cash flow generated by operating activities 204,221 118,641

Acquisitions of intangible assets A2-A20 -11,193 -18,859
Acquisitions of tangible assets A4-A20 -69,246 -41,042
Disposals of intangible and tangible assets A25 274 203
Change in financial assets A6 2,934 645
Change in debts relative to acquisitions -3,485 -925
1
Acquisitions of subsidiaries or activities A1 -348,436 -62,367
Disposals of subsidiaries or activities — —
Withholding tax on distributions — —
Dividends received A7 463 475

Net cash flow allocated to investing activities -428,689 -121,869

Dividends paid to the owners of the parent company A36 -11,054 -11,165
Dividends paid to the non-controlling interests -4 12
Change in treasury shares — -19,422
2
Transactions between the Group and owners of non-controlling interests A1 -17,492 —
Increase/decrease of capital — —
Cash investments — —
Debt issuance A18 273,632 88,651
Repayments of debt A18 -89,291 -50,492
Repayments of lease obligation A17 -12,479 -10,149
Net financial interests paid A27 -4,727 -159

Net cash flow from financing activities 138,585 -2,723

Change in cash position -85,883 -5,952
1
the line “Acquisitions of subsidiaries or activities” reflects the IFRS 3 operations realized over the period in Japan
and Türkiye. For Sasaeah, it comprises a part paid to the seller and a repayment of bank loan of the targeted
acquisition simultaneously to the transaction. Added to the scope impacts of the “Cash position statement”, it
reflects the value of the Sasaeah business acquired for a total amount of approximately €280 million
2
the acquisition of the second tranche of Globion's shares was illustrated on this line. As the transaction does not
modify the control exercised over the entity, it is analyzed as a flow from financing activities




5
NOTES TO THE CONSOLIDATED ACCOUNTS

General information note
Virbac is an independent, global pharmaceutical laboratory exclusively dedicated to animal health which markets a
full range of products designed for companion animals and farm animals.
The Virbac share is listed on the Paris stock exchange in section A of the Euronext.
Virbac is a public limited company governed by French law, whose governance evolved in December 2020 from an
organization with an executive board and a supervisory board to an organization incorporating a general
management (which relies on a Group executive committee) and a board of directors. Its trading name is “Virbac”.
The company was established in 1968 in Carros.
After the joint ordinary and extraordinary shareholders' meeting held on June 17, 2014, which adopted the
resolution on reviewing the by-laws, the company’s lifetime was extended to 99 years, i.e. until June 17, 2113.
ère
The head office is located at 1 avenue 2065m LID 06516 Carros. The company is registered in the Grasse Trade
and companies register under the number 417350311 RCS Grasse (France).

Our consolidated accounts for the 2024 financial year were approved by the board of directors on March 12, 2025.
They will be submitted for approval to the shareholders’ general meeting on June 19, 2025, which has the power to
have the statements amended.
The explanatory notes below form part of the consolidated accounts.


Significant events over the period

Sasaeah's acquisition on April 1, 2024
On April 1, 2024, we completed the acquisition of Sasaeah. This strategic acquisition brings Virbac a leadership
position in the farm animal vaccines market in Japan, notably in the cattle segment, and a large portfolio of
pharmaceutical products for all the major species.

Formed through the combination of two legacy animal health providers (Fujita Pharmaceutical Co. Ltd. and Kyoto
Biken Laboratories Inc.) under the stewardship of ORIX Corporation, Sasaeah generates annual revenues of about
€75 million, of which around 50% from vaccines. With strong footholds in Japan, Sasaeah develops, manufactures
and markets a large portfolio of veterinary products targeting both farm animals and companion animals.

Virbac will benefit from Sasaeah’s manufacturing sites in Japan and in Vietnam, its R&D capabilities as well as more
than 500 passionate and skilled employees. Virbac will be propelled as a leading animal health player in Japan, with
an opportunity to leverage these capabilities within the Group.

Finalization of the acquisition of Globion's minority shares’ on June 21, 2024
On June 21, 2024, we finalized the acquisition of Globion's minority shares, bringing our stake to 100%. As
planned, this transaction follows the acquisition of a 74% majority stake concluded on November 1, 2023. During
the 2024 financial year, in compliance with the twelve-month period provided for by IFRS 3, the Group finalized the
work to allocate the acquisition price. As a result, the valuation of goodwill and the fair value of assets and liabilities
acquired as a result of the business combination have been updated.

Founded in 2005, as a joint venture between Suguna Group, one of the leading Indian poultry conglomerates, and
Lohmann Animal Health, a German poultry vaccines specialist, Globion has developed robust know-how and
expertise in the development, manufacturing and commercialization of live and inactivated vaccines targeting a
large array of avian pathogens.

Globion is based in Hyderabad where its industrial and R&D facilities employ around 120 full-time employees.

Virbac executive management change
At the beginning of July, the group has announced the resignation of Sébastien Huron from his position as chief
executive officer for personal reasons. His mandate ended on September 27, 2024.

Habib Ramdani, Group chief financial officer and deputy chief executive officer prior to the departure of Sébastien
Huron, was appointed as interim CEO by the board of directors, giving the appointments and remuneration
committee time to recruit the next chief executive officer. Since taking office, Habib Ramdani has been supported
by the Group executive committee to execute the roadmap for our Virbac 2030 project.

Capital reduction
During the meeting held on September 13, 2024, the board of directors, acting on the authorization granted by the
combined shareholders’ meeting on June 20, 2023, decided to reduce the share capital of Virbac by cancelling
67,340 treasury shares. These shares were acquired during 2023 under the share buyback program authorized by
the same shareholders’ meeting.
As of today, the share capital of Virbac amounts to €10,488,325, represented by 8,390,660 shares of €1.25 each,
fully paid-up.
On December 31, the Dick family group holds 50.09% of the share capital of Virbac and 66.21% of its voting rights.
Information on the total number of voting rights and shares, as well as the shareholder structure, are updated on
the company's website corporate.virbac.com.


6
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




Acquisition of Mopsan in Türkiye on December 2, 2024
On December 2, we finalized the acquisition of Turkish company Mopsan, specialized in the distribution of petfood
and companion animal health products.

With a population of more than 4 million cats, 1.3 million healthcare dogs and more than 5,000 veterinarian clinics
serving companion animals, Türkiye is one of the key European markets for Virbac, which has been present in
Türkiye for more than 20 years through various local distributors, and has had its own subsidiary since 2018.
The acquisition of Mopsan, our distributor of products for companion animals, represents a new step for Virbac’s
development in Türkiye. Mopsan has been working alongside Turkish veterinarians for over 30 years and has
extensive experience in the petfood and companion animal healthcare product sector. Virbac will benefit from its
extensive distribution network, in-depth knowledge of the local market and an experienced team.
The company is based in Istanbul and employs nearly 50 employees.


Significant events after the closing date
There is no significant event after the closing date.


Accounting principles and methods

Compliance and basis for preparing the consolidated financial statements
The consolidated financial statements cover the twelve-month periods ended December 31, 2024 and 2023.

In line with regulation n°1606/2002 of the European parliament and of the council of July 19, 2002 on the
application of international accounting standards, our consolidated financial statements are established in
accordance with the international accounting standards and interpretations, which encompasses the IFRS
(International financial reporting standards), the IAS (International accounting standards), as well as applicable
interpretations by the SIC (Standards interpretations committee) and the Ifric (International financial reporting
interpretations committee), whose application was compulsory at December 31, 2024.

Our consolidated financial statements as of December 31, 2024 have been prepared in accordance with the
standard published by the IASB (International accounting standards board) and the standard adopted by the
European Union as of December 31, 2023. The IFRS standard adopted by the European Union as at December 31,
2024 is available under the heading “IAS/IFRS interpretations and standards”, on the following website:
http://ec.europa.eu/finance/company-reporting/standards-interpretations/index.

The consolidated financial statements have been prepared in accordance with the IFRS general principles: true and
fair view, business continuity, accrual basis accounting, consistency of presentation, materiality and consolidation.

New standards and interpretations

Mandatory standards and interpretations as at January 1, 2024

■ Amendments to IAS 1 - Presentation of financial statements: classification of liabilities as current
or non-current & non-current liabilities with covenants

■ Amendments to IAS and IFRS 7 - Supplier finance arrangements

■ Amendments to IFRS 16 - Leases contracts: lease liability in a sale and leaseback

IFRIC decisions applicable over the period

■ Amendment to IFRS 3 Business combination and IAS 27 Separated financial statements - Merger
between parent and subsidiary

■ Amendment to IFRS 3 Business combination - Payment contingent on continued employment
during a post-acquisition handover period

■ Amendment to IAS 37 Provisions, contingent assets and liabilities - Climate-related commitments


These new texts have had no significant impact on our accounts.




7
Consolidation rules applied

Consolidation scope and methods
In accordance with IFRS 10 “Consolidated financial statements”, our consolidated financial statements include all of
the entities controlled, directly or indirectly, by Virbac, whatever equity share it may have in these entities. An
entity is controlled by Virbac once the following three criteria are cumulatively met:
• Virbac has power over the subsidiary whereby it has actual rights that give it the ability to direct relevant
activities;
• Virbac is exposed to or has rights to variable returns because of its connections to that entity;
• Virbac has the capacity to exercise its power over this entity so as to affect the amount of returns that it
receives.
Determining control takes into account potential voting rights if they are substantive, in other words, whether they
can be exercised in a timely fashion when decisions about the entity’s relevant activities should be taken.
The entities over which Virbac exercises this control are fully consolidated. As applicable, any non-controlling
(minority) interests are valued on the date of acquisition in the amount of the fair value of the identified net assets
and liabilities.

In accordance with IFRS 11 “Partnerships”, we classify partnerships as joint ventures. Depending on the
partnerships, Virbac exercises:
• joint control over a partnership when decisions regarding the partnership’s relevant activities require
unanimous consent from Virbac and the other parties sharing control;
• significant influence over an associated company when it has the power to participate in financial and
operational decisions, albeit without having the power to control or exercise joint control over these policies.
Joint ventures and associated companies are consolidated using the equity method in accordance with IAS 28
“Investments in associated companies and joint ventures” standard.

The consolidated financial statements as at December 31, 2024 include the financial statements of the companies
that Virbac controls indirectly or directly, in law or in fact. The list of consolidated companies is provided in
note A40.

The changes in perimeter that took place during the year were the following: acquisition of Sasaeah's entities in
Japan and Vietnam, and Mopsan in Türkiye.

All transactions between Group companies, as well as inter-company profits, are eliminated from the consolidated
accounts.

Foreign exchange conversion methods

■ Conversion of foreign currency operations in the accounts of consolidated companies
Fixed assets and inventories acquired using foreign currency are converted into functional currency using the
exchange rates in effect on the date of acquisition. All monetary assets and liabilities denominated in foreign
currency are converted using the exchange rates in effect on the year-end date. The resulting exchange rate gains
and losses are recorded in the income statement.

■ Conversion of foreign company accounts
In accordance with IAS 21 “Effects of changes in foreign exchange rates”, each of our entities accounts for its
operations in its functional currency, the currency that most clearly reflects its business environment.
Our consolidated financial statements are presented in euros. The financial statements of foreign companies for
which the functional currency is not the euro are converted according to the following principles:
• the balance sheet items are converted at the rate in force at the close of the period. The conversion difference
resulting from the application of a different exchange rate for opening equity is shown in the other
comprehensive income;
• the income statements are converted at the average rate for the period. The conversion difference resulting
from the application of an exchange rate different from the balance sheet rate is shown in the other
comprehensive income.

In addition, since 2024, the Group has applied IAS 29 relating to hyperinflationary economies. Türkiye is the only
country covered by the Group’s scope of consolidation and has been included in the list of hyperinflationary
economies since 2022. The transactions that we carry out in this country remain insignificant at Group level, and
the impact in 2022 and 2023 was negligible. In 2024, it remains negligible, but as the contribution of this country is
increasing, the Group has acquired a new Turkish subsidiary within its scope during the period (Mopsan), we
however began to apply the provisions of IAS 29 over the period.
The impact of hyperinflation, although trivial, is treated as “Other variations” in the changes in equity, as a financial
result in the income statement, and on the lines “Changes in scope and others” in the balance sheet items
concerned.




8
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




Accounting principles applied

Goodwill
Goodwill is recognized as an asset in our statement of financial position and represents the excess, at the date of
acquisition, of the acquisition cost over the fair value of the identifiable assets and liabilities acquired. It also
includes the value of the acquired business goodwill.

In line with IAS 36 “Impairment of assets”, goodwill is at the very least tested once annually, at the end of the
year, regardless of whether there is an indication of an impairment, and consistently whenever events or new
circumstances indicate an impairment.
For the purposes of these tests, the asset values are grouped by CGU (Cash generating unit). In the case of
goodwill, the related assets held by the legal entity are typically the smallest identifiable group of cash-flow-
generating assets. The legal entity is therefore used as a CGU. In the implementation of goodwill impairment
testing, we apply a DCF (Discounted cash flow) approach. This approach consists of calculating the value in use of
the CGU by discounting estimated future cash flows. When the value in use of the CGU is less than its net carrying
amount, an impairment loss is recognized to reduce the net carrying amount of the CGU assets to their recoverable
amount, which is defined as the higher between the net fair value and the value in use. The goodwill is first
impaired, before the other assets are impaired in proportion to their weighting in the total assets of the CGU, or
group of CGUs.

The future cash flows used for the impairment tests are calculated based on estimates (business plans) over a five-
year period. IAS 36 authorizes more distant perspectives to be used in certain situations when they provide a better
account of the forecasts. This is especially the case when major product launches are being considered.
All of the business plans are validated by the subsidiaries’ general management, as well as by the Group’s Finance
Affairs department. The board of directors formally validates the business plans and main assumptions of
impairment tests of the most significant CGUs.
For cash flow forecasts, the perpetual growth rates used, which depend on products and market growth
expectations, and the discount rates based on the weighted average cost of capital after tax method, are presented
in note A3. The calculation of discount rates is made by geographic area, with the support of a valuation firm.
Valuations carried out during the goodwill impairment tests are sensitive to the assumptions used in regards not
only to the selling price and future costs, but also to the discount and infinite growth rates. Sensitivity calculations
for measuring our exposure to significant variations in these assumptions are performed.

Intangible assets
IAS 38 sets out the six criteria required to account for an intangible asset:
• technical feasibility required to complete the development project;
• intent to complete the project;
• ability to use the intangible asset;
• support proving that the asset will generate future economic benefits;
• availability of technical, financial and other resources in order to complete the project;
• reliable valuation of the development expenditures.

■ Internal development costs
They are only recorded under intangible assets if all six IAS 38 criteria have been met.
Intangible assets are valued at their historical acquisition cost, including acquisition fees, plus, if applicable, the
internal costs of employees who have contributed in the realization of the intangible asset.

■ Research and development projects acquired separately
Payments made for the separate acquisition of research and development activities are recognized as intangible
assets when they meet the definition of an intangible asset, i.e. when they are a controlled resource from which
future economic benefits are expected to flow, and which is identifiable, that is, separable, or it arises from
contractual or legal rights.
In line with paragraph 25 of IAS 38, the first accounting criterion, which relates to the likelihood the intangible asset
will generate future economic benefits, is deemed to be met for research and development activities when they are
acquired separately. In this respect, amounts paid to third parties in the form of deposits or installments on generic
products that have not yet been granted a Marketing authorization (MA) are recognized as an asset.

The amount of the intangible assets is reduced by any accumulated depreciation and, if applicable, accumulated
impairment losses.
The intangible assets with finite useful lives are subject to a linear depreciation, as soon as the asset is ready to be
used:
• concessions, patents, licenses and marketing authorizations: amortized over their useful lives;
• standard software (office tools, etc.): amortized over a period of three or four years;
• ERP: amortized over a period of five to ten years.

It should be noted that most of the brands owned by the Group, and recognized in our accounts following
acquisitions made under IFRS 3, have an indefinite lifespan, except in some cases where we felt that it was more
relevant to retain a definite life, considering a set of indicators such as: the history of the acquired brand, possible
legal limitations, potential technical obsolescence, etc.

Intangible assets with indefinite useful lives are reviewed annually, to ensure that their useful life has not become
finite.
During the useful life of an intangible asset, it may seem that the estimation of its useful life has become
inadequate. As required by IAS 38, the duration and method of depreciation of this asset are re-examined and if the


9
expected useful life of the asset is different from previous estimations, the depreciation period is consequently
modified.
In accordance with IAS 36 “Impairment of assets”, the potential impairment loss of intangible assets is assessed
each year. In the case of assets with indefinite useful lives, the tests are carried out during the second half year,
regardless of whether there is any indication of impairment, and consistently whenever events or new
circumstances indicate an impairment loss for assets with defined useful lives.
Intangible assets are tested for impairment in the same way as goodwill, as described in the paragraph above.

Tangible assets
In accordance with IAS 16, tangible assets are valued at their historical acquisition cost, including acquisition fees,
or at their initial manufacturing cost, plus, if applicable, the internal costs of staff directly contributing to the
construction of a tangible asset.
In accordance with IAS 23 revised, borrowing costs are incorporated into the acquisition costs of eligible assets.
The amount of the tangible assets is reduced by any accumulated depreciation and, if applicable, accumulated
impairment losses.
If applicable, assets are broken down by component, each component having its own specific depreciation period, in
line with the depreciation period of similar assets.
Tangible assets are depreciated over their estimated useful lives, namely:
• buildings:
– structure: forty years;
– components: ten to twenty years;
• materials and industrial equipment:
– structure: twenty years;
– components: five to ten years;
– computer equipment: three or four years;
• other tangible assets: five to ten years.

Right of use
Our Group recognizes assets related to those leases falling within the scope of the IFRS 16 standard. Consequently,
the Group has decided to separately identify the rights of use on a dedicated balance sheet line. The rights of use
are generally amortized over the residual term of the contracts or over a longer term in the event of likely renewal.

Inventories and work in progress
Inventories and work in progress are accounted for at the lowest value of the cost and the net realizable value.
The cost of inventories includes all acquisition costs, transformation costs and other costs incurred to bring the
inventories to their current location and condition. The acquisition costs of inventories include the purchase price,
customs fees and other non-retrievable taxes, as well as transport and handling costs and other costs directly
attributable to their acquisition. Rebates granted to customers and other similar items are deducted from this cost.
Inventories in raw materials and supplies are evaluated in accordance with the weighted average cost method.
Inventories in trading goods are also evaluated in accordance with the weighted average cost method. The
acquisition cost of raw material inventories includes all additional purchase costs.
The manufacturing work in progress and the finished products are valued at their actual manufacturing cost,
including direct and indirect production costs.
Finished products are valued in each of our subsidiaries at the price invoiced by the Group’s selling company, plus
distribution costs; the margin included in these inventories is eliminated in the consolidated accounts, taking into
account the complete average production cost stated for the Group’s selling company.
The inventories of spare parts are valued on the basis of the last purchase price.
An impairment loss is recorded where necessary to value inventories at their net realizable value, when the
products become out-of-date or unusable or sometimes based on the sales forecasts of certain products in
dedicated markets.

Trade receivables
Trade receivables are classified as current assets to the extent that they form part of our normal operating cycle.
Trade receivables are recognized and recorded for the initial amount of the invoice, minus any impairment recorded
in the income statement. An estimation of the total bad debt is made when it becomes unlikely that the full amount
will be recovered. Bad debts are written off when identified as such.
In accordance with IFRS 9, they are subject to impairment, corresponding to the estimated expected losses,
determined by application of an impairment matrix (application of the simplified impairment model provided for by
IFRS 9). This approach consists of applying, to each ageing bracket, an impairment rate based on the history of
credit losses, adjusted, if applicable, to take into account elements of a prospective nature.
Receivables assigned as part of a factoring contract without recourse are subject to a substantial factoring contract
analysis based on the criteria set out in IFRS 9. These receivables are deconsolidated, if applicable.

Other financial assets
The other financial assets recognized in our accounts include mainly loans, other receivables, non-available cash
items, and financial derivatives.
Loans and other receivables are accounted for at amortized cost, derivatives are recognized at fair value (see
note A6).

Other financial assets at fair value
All of our financial assets are valued at fair value using observable data. The only financial assets that come under
this category are hedging instruments and marketable securities (see note A32).




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CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




Cash and cash equivalents
The cash position is made up of bank balances, securities and cash equivalents highly liquid, readily convertible to
known amounts and that can therefore be used to meet short-term cash commitments.
The majority of these investments are UCITS (Undertakings for collective investment in transferable securities) and
futures contracts with maturities that are generally under three months, or, when above - without exceeding twelve
months - they are easily available and can be called back without material penalties. These are in place with first-
class counterparties.

The bank accounts subject to restrictions (restricted accounts) are excluded from the cash flow and reclassified as
other financial assets.

Treasury shares
Shares in the parent company held by the parent company or its consolidated subsidiaries (whether classified in the
statutory accounts as non-current financial assets or marketable securities), are recognized as a deduction from
shareholders’ equity at their purchase cost. Any gain or loss on disposal of these shares is directly recognized (net
of tax) in shareholders’ equity and not recognized in income for the year.

Conversion reserves
This item represents the conversion variance of net opening positions for foreign companies, arising from the
differences between the conversion rate at the date of entry into the consolidation and the closing rate of the
period, and also other conversion differences recorded on the profit for the period arising from differences between
the conversion rate of the income statement (average rate) and the closing rate for the period.

Reserves
This item represents the share attributable to the owners of the parent company in the reserves accumulated by the
consolidated companies, since their entry into the scope of consolidation.

Non-controlling interests
This item represents the share of the shareholders outside the Group in the equity and the income of the
consolidated companies.

Derivative instruments and hedge accounting
We hold derivative financial instruments only for the purpose of reducing our exposure to rate or exchange risks on
balance sheet items and our firm or highly likely commitments.
We use hedge accounting to offset the impact of the hedged item and of the hedging instrument in the income
statement, on a quasi-systematic basis, when the following conditions are met:
• the impact on the income statement is significant;
• the hedging links and effectiveness of the hedging can be properly demonstrated.

We hedge most of our significant and certain foreign exchange positions (receivables, liabilities, dividends, intra-
group loans), as well as our future sales and purchases (see note A33).

Trade payables
Trade payables and other debts fall within the category of financial liabilities valued at amortized cost, as defined by
the IFRS 9 “Financial instruments”. These financial liabilities are initially recorded at their nominal value.

Other financial liabilities
The other financial liabilities consist primarily of bank loans and financial debts. Loan and debt instruments are
valued initially at the fair value of the consideration received, minus the transaction costs directly attributed to the
operation. Thereafter, they are valued at their amortized cost.

Lease liability
The Group recognizes in its financial statements a liability relating to leases falling within the scope of the IFRS 16.
We have chosen to isolate lease liabilities, for their current and non-current part, on a dedicated balance sheet line.
These debts are discounted on the basis of rates determined with the support of an actuary, according to the
country risk, the category of the underlying asset and the lease period.

Retirement plans, severance pay and other post-employment benefits

■ Defined-contribution retirement plans
The advantages associated with defined contribution retirement plans are expensed as incurred.

■ Defined-benefit retirement plans
Our liabilities arising from defined benefit retirement plans are determined using the projected unit credit actuarial
method. These liabilities are measured at each reporting date. The method used to calculate the liabilities is based
on a number of actuarial assumptions. The discount rate is determined in relation to the yield on investment grade
corporate bonds (issuers rated “AA”). The Group’s obligations are subject to a provision for their amount, net of the
fair value of the hedging assets. In accordance with IAS 19 revised, actuarial differences are recorded in the other
items of the comprehensive income.

Other provisions
A provision is recognized when the Group has a present obligation resulting from a past event which will probably
lead to an outflow of economic benefits that can be reasonably estimated. The amount recorded under provisions is



11
the best estimate of the expenditure required to settle the existing obligation on the balance sheet date, and is
discounted if the effect is material.

Taxation
Our subsidiaries account for their taxes based on the respective tax regulations applicable locally. The parent
company and its French subsidiaries are part of a fiscally integrated group. Under the terms of the tax consolidation
agreement, each consolidated company is required to account for tax as if it were taxed separately. The income or
expense of tax consolidation is recognized in the parent company’s accounts.
Our Group recognizes deferred taxes on timing differences between the carrying amount and the tax base of an
asset or liability. Tax assets and liabilities are not discounted.
In accordance with the IAS 12, which allows under certain conditions the offsetting of tax liabilities and receivables,
the deferred tax assets and liabilities have been offset by tax entity. In situations involving a net deferred tax asset
on tax loss carryforwards, it is only recognized in accordance with IAS 12 if there are strong indications that it can
be offset against future taxable profits.

Non-current assets held with a view to sale and discontinued activities
IFRS 5 states that an activity is considered discontinued when the classification criteria of an asset being held with a
view to sale have been fulfilled, or when the Group ceases the activity. An asset is classified as held for sale if its
carrying amount will be mainly recovered through sale rather than through continued use.
As at December 31, 2024, no asset was classified as held for sale.

Revenue from ordinary activities
In accordance with IFRS 15, revenue recognition is assessed in light of performance obligations and transfer of
control. In relation to the accounting of the sale of products, the transfer of risks and rewards is an indicator of
transfer of control, even if this is not always the key criterion.
Our income from ordinary activities reflects the sale of animal health and nutrition products. Revenue comprises the
fair value before tax of the goods and services sold by the integrated companies as part of their normal operations,
after elimination of intra-group sales.
Returns, discounts and rebates are recorded over the accounting period for underlying sales and are deducted from
revenue. These amounts are calculated as follows:
• provisions for rebates related to the achievement of objectives are measured and recognized at the time of the
corresponding sales;
• provisions for product returns are calculated based on management’s best estimate of the amount of products
that will eventually be returned by customers. Provisions for returns are estimated based on past experience
with returns, but also on items such as: inventory levels in the various distribution channels, product
expiration dates, and information on the potential discontinuation of products. In each case, provisions are
regularly reviewed and updated based on the most recent information at management’s disposal.

Other income accounted for into our accounts consists mainly of license fees. Each contract is subject to specific
analysis in order to identify the performance obligations and to determine the progress of each one of them towards
achievement at the closing date of our consolidated accounts, and revenue is recognized accordingly.

Employee costs
Employee costs mainly include the cost of retirement plans. In accordance with the revised IAS 19 standard,
actuarial differences are recorded in the other items of the comprehensive income.
They also include optional and compulsory profit-sharing.

Taxes and duties
We have opted for a classification of the business value added contribution/tax in the “Taxes and duties” item of the
operating profit.

Operating profit
Operating profit corresponds to income from ordinary activities, minus operating expenses.
Operating expenses include:
• purchases consumed and external costs;
• employee costs;
• taxes and duties;
• depreciations and provisions;
• other operating income and expenses.
Operating items also include tax credits that may qualify for government grants and that meet the IAS 20 criteria
(relates primarily to the research tax credit).

■ Current operating profit, before depreciation of assets arising from acquisitions
In order to provide a clearer picture of our economic performance, we use the current operating profit before
depreciation of assets arising from acquisitions, as the main indicator of performance. To this end, we isolate the




12
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




impact of the depreciation of intangible assets resulting from acquisition transactions. Indeed, these have a material
effect considering the latest external growth that took place through recent acquisitions.

■ Operating profit from ordinary activities
Operating profit from ordinary activities corresponds to operating profit, excluding the impact of other non-current
income and expenses.

■ Other non-current income and expenses
Other non-current income and expenses are non-recurring income and expenses, or income and expenses resulting
from non-recurring decisions or operations for an unusual amount. They are presented on a separate line in the
income statement in order to make it easier to read and understand current operational performance.
They mainly include the following items which, where appropriate, are described in a note to the consolidated
financial statements (note A26):
• restructuring costs where material;
• impairment or scrapping of assets where material according to quantitative criteria;
• the effect of revaluing inventories acquired as part of a business combination at fair value;
• the disposals of assets of significant value;
• any revaluation of the participation in a subsidiary previously held, in the event of a change in control;
• profits or costs incurred by the acquisition or sale of an asset, where material according to quantitative criteria
(unless a specific treatment is set for by an applicable standard).

Net result from ordinary activities
Net profit from ordinary activities represent the net profit restated for the following items:
• the “Other non-current income and expenses” line;
• non-current tax, which includes the tax impact of “Other non-current income and expenses”, as well as all non-
recurring tax income and expenses.

Financial income and expenses
Financial expenses mainly include interest paid for the Group’s financing, interests on lease liabilities, negative
changes in the fair value of financial instruments recognized in the income statement, as well as realized and
unrealized foreign exchange losses.
Financial income includes interest income, positive changes in the fair value of financial instruments recognized in
the income statement, realized and unrealized foreign exchange gains, as well as gains and losses on disposal of
financial assets.

Earnings per share
The net earnings per share is calculated by dividing the net result attributable to the shareholders of the parent
company by the weighted average number of shares issued and outstanding at the end of each reporting period
(that is, net of treasury shares). Diluted earnings per share are calculated by dividing the net earnings attributable
to the shareholders of the parent company by the weighted average number of ordinary shares outstanding, plus, in
the event of the issue of dilutive instruments, the maximum number of shares that could be issued (upon
conversion into ordinary shares of Virbac equity instruments, thereby giving deferred access to Virbac capital).

Main sources of uncertainty relating to estimations
Our consolidated financial statements have been established in accordance with international accounting standards,
and include a number of estimates and assumptions considered as realistic and reasonable.
Certain facts and circumstances could lead to changes in estimates and assumptions, which could affect the value of
assets, liabilities, equity and Group results.

Acquisition prices
Some acquisition contracts relating to business combinations or the purchase of intangible assets, include a clause
that could impact the acquisition price, based on the financial performance, the success or failure of a marketing
authorization, or the outcome of clinical trials.
We estimate accordingly the acquisition price at the end of the fiscal year, based on the most realistic assumptions
in relation to the achievement of these objectives.

Goodwill and other intangible assets
We own intangible assets that were purchased or acquired through business combinations, in addition to the
resulting goodwill. As indicated in the section “Accounting policies and methods”, we perform at least an annual
impairment test of goodwill, intangible assets in progress and assets with an indefinite life, based on an assessment
of future cash flows incremented by a terminal value. Valuations carried out during the goodwill impairment tests
are sensitive to the assumptions used in regards not only to the selling price and future costs, but also to the
discount and infinite growth rates. Sensitivity calculations for measuring our exposure to significant variations in
these assumptions are performed.
In the future, we may have to depreciate these goodwill items and other intangible assets in the event of a
deterioration in the outlook for the return of these assets, based on the result of the impairment tests of one of
these assets.
As of December 31, 2024, the net total goodwill was €276,633 thousand and the value of the intangible assets was
€251,237 thousand.

Deferred taxes
Deferred tax assets are recognized on deductible temporary differences between tax and accounting values of
assets and liabilities. Deferred tax assets, and in particular those relating to tax loss carryforwards, are recognized


13
only if it is probable, in line of IAS 12, that sufficient future taxable profits will be available within a reasonable
period of time, which involves a significant amount of judgment.
At each balance sheet date, we analyze the origin of losses for each of the tax entities in question and re-measure
the amount of deferred tax assets based on the likelihood of making sufficient taxable profits in the future.

Provisions for pension schemes and other post-employment benefits
As indicated in note A15, the Group has established retirement plans as well as other post-employment benefits.
The corresponding commitments were calculated using actuarial methods that take into account certain
assumptions such as the benchmark salary for scheme beneficiaries and the likelihood of the persons in question
being able to benefit from the scheme, and the discount rate. These assumptions are updated at each year-end.
Actuarial differences are immediately recognized in the other items of the comprehensive income.
The net amount of commitment relating to employee benefits was €20,358 thousand as at December 31, 2024.

Other provisions
Other provisions mainly relate to miscellaneous commercial and social liabilities and disputes.
No provisions are established if the company deems that the liabilities are contingent (as defined by IAS 37).
As at December 31, 2024, the amount of other provisions was €9,676 thousand.

Uncertain tax positions
Ifric 23 requires the valuation and recognition of tax liabilities and tax assets in the balance sheet on the basis of
uncertain tax positions. The standard creates a 100% risk of detection and introduces the following methods: the
most likely amount or mathematical expectation corresponding to the weighted average of the various assumptions.
Our analysis of the new tax risks identified during the year, as well as those previously accrued in accordance with
IAS 37 and IAS 12, and re-evaluated at the closing date, led to the determination of a tax liability of €7.5 million in
our accounts as of December 31, 2024.




14
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




A1. Goodwill

Changes in goodwill by CGU
Gross value Impairment Book value Conversion Book value
Impair-
as at value as at as at Increases Sales gains and as at
ment
12/31/2023 12/31/2023 12/31/2023 losses 12/31/2024
in € thousand

Sasaeah — 93,368 — — 223 93,591
United States 62,201 -3,650 58,551 — — — 3,622 62,174
1
India 33,750 — 33,750 5,918 — — 1,211 40,879
Chile 24,095 — 24,095 — — — -1,165 22,930
New Zealand 14,520 -154 14,366 — — — -794 13,572
SBC 7,594 — 7,594 — — — 344 7,937
Denmark 4,643 — 4,643 — — — — 4,643
Uruguay 4,306 — 4,306 — — — 274 4,580
Peptech 3,371 — 3,371 — — — -102 3,268
Australia 3,214 -312 2,902 — — — -50 2,852
Italy 1,585 — 1,585 — — — — 1,585
Colombia 1,552 — 1,552 — — — -68 1,484
Greece 1,358 — 1,358 — — — — 1,358
Other CGUs 9,020 -1,722 7,298 8,580 — — -99 15,779

Goodwill 171,210 -5,838 165,372 107,865 — — 3,396 276,633
1
Globion included. The increase corresponds to the completion of the acquisition accounting as of December 31,
2024

The change in this position is explained by:
• the acquisition of the companies in the Sasaeah group on April 1, 2024 for €93.4 million;
• the acquisition of Mopsan our Turkish distributor on December 2, 2024 for €8.6 million (“Other CGU” lines);
• the completion of Globion’s goodwill, acquired on November 1, 2023, in accordance with the provisions of
IFRS 3 allowing a period of twelve months to finalize the acquisition accounting in the event of new items
available since the acquisition date (+€5.9 million);
• conversion gains and losses for €3.4 million.

Business combination

Acquisition of Sasaeah

On April 1, 2024, we completed the 100% acquisition of Sasaeah. This strategic acquisition brings Virbac a
leadership position in the farm animal vaccines market in Japan, notably in the cattle segment, and a large portfolio
of pharmaceutical products for all the major species.

This operation meets the criteria for a business combination defined by IFRS 3 and has, therefore, been accounted
for accordingly. The fair value valuation of acquired assets and liabilities assumed is detailed below and leads to the
recognition of goodwill of €93.4 million.

Valuation
in € thousand

Tangible assets and right of use 87,161
Intangible assets 79,146
Trade receivables and other receivables 26,248
Cash and cash equivalents 56,748
Inventories 45,721
Other financial assets and deferred tax asset 17,739
Goodwill 93,368
Total acquired assets 406,131

Trade payables and other payables -31,913
Loans and financial debts, incl. lease liability -138,377
Deferred tax liability -31,931
Fair value of acquired liabilities -202,221

Acquisition price 203,910




15
The purchase price consists of a payment of €203.9 million, and of the reimbursement of a debt acquired upon
acquisition for €138.4 million. There is no earn-out payment. Further, it should be noted that the purchase price
includes the acquisition of cash in the amount of €56.7 million.

Goodwill, which corresponds to the difference between the price paid and the fair value of the acquired net assets
recorded in the Group’s consolidated accounts, is recognized or its final amount as at December 31, 2024.

The sales performed by this company over the 2024 year total circa €74.1 million (of which €52.1 million since the
acquisition date) for a net result close to €10.3 million (of which €8.4 million since the acquisition date).

Acquisition of Globion India Private Ltd

On November 1, 2023, we acquired, through our subsidiary Virbac Animal Health India Private Ltd, a majority stake
in Globion India Private Ltd from Suguna Holding Private Ltd. This transaction allows us to strengthen our position
as a leader in animal health in India by extending Virbac India’s existing poultry ranges to the growing avian
vaccine segment.

Founded in 2005, as a joint venture between Suguna Group, one of India’s leading poultry conglomerates, and
Lohmann Animal Health, a German poultry vaccine specialist, Globion has developed solid know-how and expertise
in the development, manufacture and marketing of live and inactivated vaccines targeting a wide range of avian
pathogens.

Initially, Virbac bought 74% of the shares (installment 1). On June 21, 2024, we finalized the acquisition of
Globion’s minority shares for the remaining 26% (installment 2), thus increasing our stake to 100% as of
December 31, 2024

This transaction constitutes a business combination within the meaning of IFRS 3, and it was already recorded as
such in the consolidated accounts closed December 31,2023, by using the partial goodwill method.

As at December 31, 2024, in accordance with the provisions of IFRS 3, which allows newly obtained information
about conditions prevailing at the date of acquisition to be reflected for a period not exceeding twelve months, the
calculation of goodwill, the fair value of the net assets acquired and their tax impact has been finalized. Goodwill
reflects the expected synergies in the poultry segment described above.


Valuation
in € thousand

Tangible assets and right of use 11,580
Intangible assets 23,040
Trade receivables and other receivables 2,805
Cash and cash equivalents 2,726
Inventories 2,177
Other financial assets and deferred tax asset 100
Goodwill 28,353
Total acquired assets 70,781

Trade payables and other payables -2,763
Deferred tax liability -6,976
Fair value of acquired liabilities -9,739

Acquisition price 61,042


Acquisition price under IFRS 3 was made up of:
• a payment of €52.5 million for installment 1;
• the installment 2 of non-controlling interests valued at €8.5 million in the context of partial goodwill.
Payment of installment 2, operated in June 2024, amounted to €17.5 million.
There is no price complement.

Acquisition of Mopsan Veteriner

On December 2, we finalized the acquisition of Turkish company Mopsan, specialized in the distribution of petfood
and companion animal health products.

With a population of more than 4 million cats, 1.3 million healthcare dogs and more than 5,000 veterinarian clinics
serving companion animals, Türkiye is one of the key European markets for Virbac, which has been present in
Türkiye for more than 20 years through various local distributors, and has had its own subsidiary since 2018.
The acquisition of Mopsan, our distributor of products for companion animals, represents a new step for Virbac’s
development in Türkiye. Mopsan has been working alongside Turkish veterinarians for over 30 years and has
extensive experience in the petfood and companion animal healthcare product sector. Virbac will benefit from its
extensive distribution network, in-depth knowledge of the local market and an experienced team.
The company is based in Istanbul and employs nearly 50 employees.


16
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




This transaction constitutes a business combination within the meaning of IFRS 3, and it was recorded as such in
the consolidated accounts.

As the acquisition took place at the end of the year, the additional work in progress could lead to the reassessment,
by the closing of the accounts for the first half of 2025, of the fair value of the net assets acquired and the
associated tax impact. Indeed, IFRS 3 allows for a period not exceeding twelve months, to reflect newly obtained
information regarding facts that prevailed on the date of acquisition and to retrospectively adjust the amounts of
the business combination that were not final at the end of the first financial year during which the combination took
place. The calculation of goodwill presented below is therefore provisional.

Fair value in the consolidated accounts at December
in € thousand 31,2024

Total amount paid as at December 31, 2024 10,901

Group part of the fair value of the net assets acquired (100%) 2,322

Provisionnal goodwill 8,579



Fair value in the consolidated accounts at December 31,2024
in € thousand

Intangible assets 11
Tangible assets 541
Other assets and deferred tax asset 3,558
Inventories 2,494
Cash and cash equivalents 979
Financial debts -126
Other operating receivables and debts -5,135

Total 2,322


The sales performed in 2024 by this company total €13 million (of which €1.6 million since the acquisition date) for
a net result close to €1.4 million (of which €0.2 million since the acquisition date).




17
A2. Intangible assets

Changes in intangible assets
Concessions, patents, licenses Other Intangible
and brands Intangible
intangible assets
assets
in € thousand Indefinite life Finite life assets in progress

Gross value as at
116,747 119,533 82,958 27,072 346,311
12/31/2023

Acquisitions and other increases — 205 4,756 5,387 10,348
Disposals and other decreases -112 -950 -2,659 -792 -4,513
Changes in scope and others 31,478 37,595 2,044 -506 70,611
Transfers — — 16,257 -16,186 71
Conversion gains and losses -425 492 319 515 902

Gross value as at
147,689 156,875 103,675 15,490 423,730
12/31/2024

Depreciation as at
-3,180 -88,571 -68,745 -707 -161,202
12/31/2023

Depreciation expense — -6,426 -5,584 — -12,010
Impairment losses (net of
— -395 — 500 105
reversals)
Disposals and other decreases — 178 2,466 — 2,644
Changes in scope and others — -726 -1,442 — -2,168
Transfers — -40 40 — —
Conversion gains and losses — 334 -187 -8 139

Depreciation as at
-3,180 -95,646 -73,453 -214 -172,492
12/31/2024

Net value as at 12/31/2023 113,568 30,963 14,213 26,366 185,109

Net value as at 12/31/2024 144,510 61,230 30,222 15,276 251,237


The other intangible assets relate essentially to IT projects, in several of the Group' subsidiaries. They all have
defined useful lives.
The increase in intangible assets is explained for €69.2 million by the acquisition of Sasaeah and the review of
Globion’s intangible assets following the finalization of the PPA (Purchase price allocation). The rest of the increase
is linked to investments in IT projects, particularly at Virbac in France (parent company) and to R&D investments
relating to new licensing contracts.
The outflows mainly come from the derecognition of assets that were fully amortized or depreciated in previous
financial years and which no longer generate an inflow of resources for the Group.
The “Transfers” line materializes the commissioning of these projects.

Concessions, patents, licenses and brands
The item “‘Concessions, patents, licenses and brands” includes:
• rights relating to the patents, know-how and Marketing authorizations necessary for the Group’s production
activities and commercialization procedures;
• trademarks;
• distribution rights, customer files and other rights to intangible assets.

It consists primarily of intangible assets arising from acquisitions, which are accounted for in accordance with
IAS 38, as well as assets acquired as part of external growth transactions, as defined by IFRS 3.




18
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




As at December 31, 2024
Marketing
Patents Customers
Acquisition authorizations
Brands and lists and Total
date and registration
know-how others
in € thousand rights

United States: iVet 2021 1,185 — — 142 1,327
SBC 2015 — 3,084 2,029 — 5,113
Uruguay: Santa Elena 2013 3,773 9,580 3 — 13,356
Australia: Axon 2013 859 436 — — 1,294
Australia: Fort Dodge 2010 1,442 429 — — 1,871
New Zealand 2012 2,968 416 130 608 4,122
Centrovet 2012 15,589 23,742 12 881 40,224
Multimin 2011-2012 2,984 1,810 — — 4,794
Peptech 2011 923 — — — 923
Colombia: Synthesis 2011 1,359 — 91 — 1,450
Schering-Plough Europe 2008 1,711 — — — 1,711
India 2006-2023 10,129 — — 21,182 31,312
Sasaeah 2024 59,904 10,910 8 7,403 78,225
Others 6,702 2,819 9,040 1,453 20,015


Total intangible assets 109,530 53,226 11,313 31,670 205,739



As at December 31, 2023
Marketing
Patents Customers
Acquisition authorizations
Brands and lists and Total
date and registration
know-how others
in € thousand rights

United States: iVet 2021 1,114 — — 1,273 2,387
SBC 2015 — 3,735 2,035 — 5,770
Uruguay: Santa Elena 2013 3,548 9,007 112 — 12,667
Australia: Axon 2013 885 571 — — 1,457
Australia: Fort Dodge 2010 1,487 442 — — 1,929
New Zealand 2012 3,143 499 206 919 4,767
Centrovet 2012 16,381 25,350 12 1,936 43,679
Multimin 2011-2012 3,037 2,297 — — 5,334
Peptech 2011 952 — — — 952
Colombia: Synthesis 2011 1,443 — 186 — 1,630
Schering-Plough
2008 1,711 — — — 1,711
Europe
India: GSK 2006 9,802 — — — 9,802
Others 31,004 4,206 8,751 8,486 52,446

Total intangible
74,508 46,107 11,302 12,614 144,530
assets


The classification of intangible assets, based on the estimated useful life, is the result of the analysis of all relevant
economic and legal factors, to conclude on whether or not there is a foreseeable limit to the period over which the
asset is expected to generate net cash inflows for the entity.
Innovative or differentiated products in general, and vaccines and other assets from biotechnologies in particular,
are generally classified as intangible assets with indefinite useful lives, once a detailed analysis has been conducted
and experts have given their opinions on their potential. This approach is based on Virbac’s past experience.

As at December 31, 2024
Intangible assets with Intangible assets with
Total
in € thousand indefinite life finite life

Brands 109,530 — 109,530
Patents and know-how 32,773 20,453 53,226
Marketing authorizations (MA) and
2,207 9,106 11,313
registration rights
Customers lists and others — 31,670 31,670

Total intangible assets 144,510 61,230 205,739




19
As at December 31, 2023
Intangible assets with Intangible assets with
Total
in € thousand indefinite life finite life

Brands 74,508 — 74,508
Patents and know-how 36,742 9,364 46,107
Marketing authorizations (MA) and
2,302 8,999 11,302
registration rights
Customers lists and others 15 12,599 12,614

Total intangible assets 113,568 30,963 144,530




A3. Impairment of assets
At end of the 2024 financial year, we have conducted intangible assets impairment tests. These involve comparing
their net carrying amount, including acquisition goodwill, to the recoverable amount of each Cash-generating unit
(CGU).

A fair value assessment of assets acquired during the financial year is conducted on the date of acquisition.

CGUs are homogeneous groups of assets whose continued use generates cash inflows that are substantially
independent of cash inflows generated by other groups of assets.
The net carrying amount of the CGUs includes acquisition goodwill, tangible and intangible assets as well as other
assets and liabilities that can be directly assigned to the CGUs and that contribute directly to the generation of
future cash flows.

CGUs recoverable amount is determined using the value in use. This is based on estimates of future discounted
cash-flows positions, commonly known as the Discounted cash flow (DCF) method.

Future cash flows are flows net of tax and are valued based on cash flow forecasts consistent with the budget and
the latest mid-term estimates (business plans).
All business plans are validated by our subsidiaries’ management as well as by the Group's Financial Affairs
department. The board of directors formally validates the business plans and main assumptions of impairment tests
of the most significant CGUs.
Beyond the finite horizon for forecasting future cash flows set at five years for all the CGUs, an infinite growth rate
is applied to the terminal value.
We have considered a zero infinite growth rate for MA and patents. The infinite growth rate was set up at 2% for
subsidiaries based in mature markets such as Europe, Australia, Japan and New Zealand, except for North America,
Uruguay, Colombia and Republic South Africa where we used a rate of 2.5%, consistent with the country's long-
term inflation rate, at 3.5% for Chile and at 5% for emerging markets such as India.
The discount rates used for these calculations are based on the average weighted cost of capital estimated for each
of the Group's cash-generating units. These are after-tax discount rates, determined by region or country (applied
to after-tax cash flows) and are prepared with the support of a valuation firm.

For the 2024 financial year, the discount rates used are the following:
• 9.45% for the United States;
• 8.55% for Europe;
• 10.0% for Chile and 9.3% for the rest of Latin America;
• 9.85% for India;
• 8.45% for Far East Asia;
• 7.9% for Pacific and South Africa.

Sensitivity tests
We have also performed sensitivity analyses on key assumptions for all of the tested CGUs. Changes in assumptions
are as follows:
• increase of +2.0 points in the discount rate;
• decrease of -2.0 points in the infinite growth rate.
These two variations in key assumptions would not result in any impairment of the assets tested except for the
Chilean CGU, for which the increase of +2 points in WACC would result in an impairment of €1.7 million.

The three CGUs most sensitive to these sensitivity analyses are Chile, SBC and the United States.

Furthermore, for the five most significant CGUs, namely the United States, Chile, India, Australia and New Zealand
(representing 45% of the gross value of intangible assets and goodwill as of December 31, 2024), we have carried
out additional sensitivity tests by changing the Ebit ratio after tax on revenue, by more or less 2 points compared to
the basis scenario.
Assuming a drop of -2.0 points in this ratio and a discount rate higher than at least +1.0 point, it would be
appropriate to depreciate the Chile CGU by €5.5 million.
The changes in this ratio to arrive at break-even point, at constant discount rates and terminal growth rates, would
be as follows:



20
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




• -6.0 point change for the United States CGU;
• -3.8 point change for the Chile CGU;
• -30.1 point change for the India CGU;
• -21.9 point change for the Australia CGU;
• -21.2 point change for the New Zealand CGU.

We also conduct additional sensitivity analyses based on the break-even point for all of the tested CGUs. The break-
even point refers to the discount rate, combined with a zero perpetual growth rate, on the basis of which Virbac
would have to record an impairment.
For the major CGUs, the results of the break-even point are presented below.


Net book value Discount rate, combined into a zero
of CGU perpetual growth rate, from which
as at 12/31/2024 impairment is established
in € thousand

United States 168,594 14.0%
India 110,480 20.7%
Chile 88,350 6.8%
Australia 41,167 41.6%
Uruguay 36,022 33.3%
SBC 29,683 16.0%
New Zealand 27,226 29.9%
Antigenics 16,123 118.4%
Peptech 10,977 427.2%
Multimin 7,091 182.3%
Denmark 9,348 82.3%




21
A4. Tangible assets
The main assets constituting the Group’s tangible assets are:
• lands;
• constructions, which include:
– the buildings;
– the development of buildings;
• technical facilities, materials and industrial equipment;
• other tangible assets, which notably include:
– IT equipment;
– office furniture.

Technical
Other Tangible
facilities, Tangible
Lands Buildings tangible assets in
materials and assets
assets progress
in € thousand equipment

Gross value as at 12/31/2023 27,235 222,558 264,451 36,557 34,686 585,487

Acquisitions and other increases — 2,485 7,849 3,020 61,485 74,838
Disposals and other decreases — -223 -9,343 -395 -561 -10,522
Changes in scope and others 25,569 89,756 72,313 561 14,240 202,439
Transfers — 5,548 9,378 984 -15,876 33
Conversion gains and losses -82 1,090 1,595 -269 355 2,689

Gross value as at 12/31/2024 52,721 321,214 346,242 40,458 94,329 854,965

Depreciation as at 12/31/2023 — -123,526 -167,102 -26,344 -499 -317,471

Depreciation expense — -11,698 -17,684 -3,061 — -32,443

Impairment losses (net of reversals) — -2 213 — -53 158

Disposals and other decreases — 212 9,173 380 — 9,765
Changes in scope and others — -62,445 -52,891 -535 — -115,871
Transfers — 2 -107 — — -104
Conversion gains and losses — -679 -886 92 13 -1,461

Depreciation as at 12/31/2024 — -198,135 -229,284 -29,468 -540 -457,427

Net value as at 12/31/2023 27,235 99,033 97,348 10,213 34,187 268,016

Net value as at 12/31/2024 52,721 123,078 116,958 10,991 93,789 397,537


On April 1, 2024, we completed the acquisition of Sasaeah. This acquisition contributes to a net increase in tangible
assets of +€86 million, which allows us to benefit from Sasaeah production sites in Japan and Vietnam as well as
these facilities.

Other significant investments during the period amounted to €74.8 million in gross value, whereas €47.3 million at
the historic Carros site, including building refurbishments and new industrial equipment to increase our production
capacity. We are also investing in our production sites in the United States, Australia, and to a lesser extent in
Mexico or Uruguay.

Conversion gains and losses impact the item “Tangible assets” for a net amount of €1.2 million.

The “Transfers” line essentially shows the commissioning of fixed assets.




22
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




A5. Right of use
In presenting our financial statements, we have chosen to isolate the right of use resulting from the contracts that
fall within the scope of the IFRS 16, on a separate line in the statement of financial position.
Changes in the right of use during 2024 are analyzed as follows:


Right of use
in € thousand

Gross value as at 12/31/2023 65,106

Increases 15,317
Decreases -6,307
Changes in scope 2,674
Transfers —
Conversion gains and losses -176

Gross value as at 12/31/2024 76,614

Depreciation as at 12/31/2023 -32,166

Allowances -12,783
Impairment losses (net of reversals) —
Termination of contracts 5,880
Changes in scope -713
Transfers —
Conversion gains and losses 30

Depreciation as at 12/31/2024 -39,752

Net value as at 12/31/2023 32,940

Net value as at 12/31/2024 36,861


The table below shows the right of use for each asset category:

Technical
Lands Office
facilities, Transportation Hardware
and equipment Total
materials and equipment /software
buildings and others
in € thousand equipment

Gross value as at
38,435 3,807 17,457 4,672 734 65,106
12/31/2023

Increases 6,200 1,156 7,227 445 290 15,317
Decreases -702 -842 -3,578 -1,143 -44 -6,307
Changes in scope 1,722 99 850 4 — 2,674
Transfers — — — — — —
Conversion gains and losses 434 -36 -506 -83 15 -176

Gross value as at
46,089 4,184 21,450 3,896 995 76,614
12/31/2024

Depreciation as at
-18,450 -2,370 -8,652 -2,254 -440 -32,166
12/31/2023

Allowances -5,124 -893 -5,509 -1,100 -157 -12,783
Termination of contracts 609 793 3,469 979 29 5,880
Changes in scope -365 -18 -325 -4 — -713
Transfers — — — — — —
Conversion gains and losses -283 36 225 61 -9 30

Impairment as at
-23,614 -2,452 -10,793 -2,318 -577 -39,752
12/31/2024

Net value as at 12/31/2023 19,985 1,437 8,805 2,418 294 32,940

Net value as at 12/31/2024 22,475 1,733 10,658 1,578 417 36,861


The increase in rights of use is related to new contracts signed during the period, or renewal options approved by
our subsidiaries in 2024. The year also saw the impact of changes in the scope of consolidation with the recognition
of the lease contracts of the acquired entities (Sasaeah amounting to €2.7 million).



23
The main increases relate to the car fleet in all subsidiaries, real estate leases, notably in France for new offices, in
India for several warehouses, in the United States for warehouses and offices, and in China for a new plant, as well
as technical facilities, material and industrial equipments mainly in France.

The net value of the rights of use slightly increases during the period (+€3.9 million), the rise being however
balanced by the allowances for depreciation amounting to €12.8 million.

Analysis of the residual rent liability
The table below shows the rent payments resulting from non-capitalized leases under exemptions set out in the
standard:
Residual rental costs
in € thousand

Variable rental costs -2,114
Rental costs on short-term contracts -1,368
Rental costs on assets of low value -1,343

Residual rental costs -4,825




A6. Other financial assets

Change in other financial assets
Change in Conversion
2023 Increases Decreases consolidat Transfers gains and 2024
ion scope losses
in € thousand

Loans and other financial receivables 5,750 350 -3,468 7,792 799 -85 11,139
Currency and interest rate derivatives 43 1,341 — — — — 1,384
Restricted cash 124 1 — — — 2 127
Other 325 25 -89 145 -33 -30 342
Other financial assets, non-current 6,243 1,717 -3,557 7,937 766 -113 12,993
1
Loans and other financial receivables 140 137,668 -105 — -137,668 2 37
Currency and interest rate derivatives 2,495 1,779 — — — — 4,274
Restricted cash — — — — — — —
Other — — — — — — —
Other financial assets, current 2,636 139,447 -105 — -137,668 2 4,312

Other financial assets 8,879 141,139 -3,638 7,937 -136,902 -110 17,305
1
the movements on the “Loans and other financial receivables - current” line are canceled and correspond to the
intra-group financing related to the acquisition of Sasaeah (see note A18 for more details)

The amount of other financial assets increased by €8.4 million.
The main variation, on the line “Loans and other receivables, current”, is due to the acquisition of Sasaeah in Japan
for €7.9 million. This amount is primarily made up of a €7.5 million hedging asset on pension liabilities (see also
note A15). In the statement of financial position, this surplus hedging is shown net of the provision.

Finally, the €3 million increase in foreign exchange and interest rate derivatives is due to the JPY hedging of the
loan granted by Virbac to Virbac Japan following the acquisition of Sasaeah.


Other financial assets classified according to their maturity

As at December 31, 2024
Payments
Total
in € thousand less than 1 year from 1 to 5 years more than 5 years

Loans and other financial receivables 37 9,805 1,335 11,177
Currency and interest rate
4,274 1,384 — 5,658
derivatives
Restricted cash — — 127 127
Other — 142 201 343

Other financial assets 4,311 11,331 1,663 17,305




24
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




As at December 31, 2023
Payments
Total
in € thousand less than 1 year from 1 to 5 years more than 5 years

Loans and other financial receivables 140 5,661 89 5,891
Currency and interest rate
2,495 43 — 2,539
derivatives
Restricted cash — — 124 124
Other — 325 — 325

Other financial assets 2,636 6,029 214 8,879




A7. Information about IFRS 12

Information about non-controlling interests
Since the acquisition of the non-controlling interests of the company Holding Salud Animal (HSA) during 2021
second semester, increasing hence our ownership to 100% in all Chile's entities, and the acquisition of the non-
controlling interests of Globion on June 21, 2024 (see note A1), the portion of non-controlling interests in our equity
remains insignificant, as most of the fully consolidated entities are wholly owned. The following entities contribute
to the non-controlling interests:
• Pharma 8 Llc: entered into the consolidation scope during the 2022 financial year, this company carries our
farm animal activities in the United States. This is not material;
• Kyoto Biken Hanoi Laboratories: part of Sasaeah Group acquired in 2024 (see note A1), this entity based in
Vietnam exclusively sources Kyoto Biken in Japan for the production of vaccines.

Information about equity-accounted companies
Consolidated financial
Company's individual accounts using equity method
statements
Balance Share of Share of
Equity Sales Result
in € thousand sheet total equity result

AVF Animal Health Co Ltd NA NA — — 4,511 467

Share in companies accounted for by the equity method 4,511 467


In line with IFRS 12, companies consolidated through equity method are not considered material to our financial
statements, therefore information disclosed is limited to aforementioned items.


A8. Deferred taxes
In accordance with IAS 12 standard, allowing offsetting of tax liabilities and receivables under certain conditions,
deferred tax assets and liabilities have been offset by tax entity.

Variation in deferred taxes
Change in Conversion
2023 Variations Transfers consolidation gains and 2024
in € thousand scope losses

Deferred tax assets 43,186 2,479 -350 7,576 -1,247 51,645
Deferred tax liabilities 52,424 -1,657 26 33,862 -404 84,250

Deferred tax offset -9,237 4,136 -376 -26,285 -843 -32,605


The change in deferred taxes presented above includes, for -€448 thousand, deferred tax on the effective portion of
profits and losses on hedging instruments recognized in other comprehensive income.




25
In accordance with the IAS 12 standard, which requires under certain conditions the offsetting of tax liabilities and
receivables, the deferred tax assets and liabilities have been offset by tax entity in the statement of financial
position, for €27,017 thousand.

Deferred taxes breakdown by nature
Below table indicates deferred tax positions breakdown by nature as of December 31, 2024:
Deferred Deferred
Total deferred tax
tax tax
by nature
in € thousand assets liabilities

Internal margin on inventories 17,740 33 17,708
Retirement and end of career severance commitments 5,392 5,392
Sales adjustments (IFRS 15) 1,811 1,811
Inventory adjustments (IAS 2) 3,506 785 2,721
Other non-deductible provisions 6,787 6,787
Other charges with deferred deduction 3,378 2,622 757
Lease contracts (IFRS 16) 9,564 9,564
Tax loss carryforwards 194 194
Total deferred tax asset bases 44,933

Adjustments on intangible assets 5,814 58,911 53,097
Adjustments on tangible assets 6,544 11,366 4,822
Adjustments on fiscal provisions -9,328 6 9,334
Activation of expenses linked to acquisitions 271 1,086 815
Other income taxed in advance -29 446 475
Lease contracts (IFRS 16) 8,995 8,995
Total deferred tax liability bases 77,538

Total deferred tax accounted for 51,645 84,250 -32,605

Impact of compensation by fiscal entity -27,017 -27,017

Net deferred tax 24,628 57,233 -32,605


Deferred tax asset use horizon
The table below details the useful life of deferred deductible expenses:
Deferred tax Use horizon
assets as at less than from more than
12/31/2024 1 year 1 to 5 years 5 years
in € thousand

Deferred tax on other charges with deferred deduction in Chile 1,873 328 1,545 —
Deferred tax on tax losses carried forward 194 87 107 —
Deferred tax on retirement and end of career severance
5,392 1,234 720 3,438
commitments
Deferred tax on other bases 44,186 29,973 7,100 7,113

Total deferred tax assets 51,645 31,621 9,473 10,551


Most tax loss carry forwards are carried forward indefinitely. They may only be used by the subsidiaries that
generated the corresponding tax losses.

Non-capitalized tax losses
In addition, the amount of non-capitalized tax losses as of December 31, 2024, amounts to €52 million (compared
to €62 million as of December 31, 2023), mainly resulting from our subsidiary Virbac Corporation in the United
States on the one hand, and Virbac Taiwan on the other hand, whose main focus is on research and development
activities. Most tax loss carry forwards (particularly those of our American subsidiary which are used since 2023 up
to the tax result of the year) are carried forward indefinitely. The utilization period for tax losses generated by the
Taiwan subsidiary is ten years from the date they are generated.




26
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




Expiry date
in € thousand

2025 1,416
2026 255
2027 933
2028 1,023
2029 6,687
2030 468
2031 464
2032 1,274
2033 754
2034 1,308
Over 10 years —
Unlimited 37,335




A9. Inventories and work in progress
Raw materials and Work in Finished products Inventories and
in € thousand supplies progress and goods for resale work in progress

Gross value as at 12/31/2023 107,142 29,061 233,649 369,852

Variations -57 2,961 11,506 14,410
Changes in scope 10,080 20,123 19,406 49,609
Transfer 7,063 -28,518 21,455 —
Conversion gains and losses -573 124 -470 -919

Gross value as at 12/31/2024 123,655 23,752 285,545 432,953

Depreciation as at 12/31/2023 -5,708 -1,290 -23,191 -30,189

Allowances -4,208 — -13,569 -17,776
Reversals 2,337 128 18,867 21,332
Changes in scope -379 -504 -932 -1,815
Transfer — 1,290 -1,290 —
Conversion gains and losses -175 — -163 -338

Depreciation as at 12/31/2024 -8,132 -376 -20,277 -28,786

Net value as at 12/31/2023 101,434 27,771 210,458 339,663

Net value as at 12/31/2024 115,522 23,376 265,268 404,166


Excluding foreign exchange, net inventories increased by €65.8 million, including €47.8 million from the impact of
changes in scope (see note A1) mainly due to the acquisition of Sasaeah.
The increase of €18.0 million excluding impacts of foreign exchange and changes in scope, is particularly noticeable
in inventories of finished products and goods, and manufacturing work in progress, mainly at Virbac SA, the latter
entity producing for the rest of the Group, and is mainly explained by the joint effects:
• of the increase in activity observed over the year;
• of the increase in our production costs.

The United States is also to a lesser extent one of the contributors to this increase, which is partially offset by a
reduction in inventories in Chile as well as in the Philippines.

The ratio of inventories to revenue has increased by 1.4 point at real rates. At constant exchange rates and scope,
the ratio of inventories to revenue decreased by 0.4 point.

Finally, it should be noted that the transfer movements for the period concern reclassifications carried out within the
parent company, inventories of manufacturing work in progress to inventories of finished products and inventories
of raw materials.




27
A10. Trade receivables
Trade receivables
in € thousand

Gross value as at 12/31/2023 170,800

Variations 4,862
Changes in scope 26,814
Transfer -524
Conversion gains and losses -3,023

Gross value as at 12/31/2024 198,927

Depreciation as at 12/31/2023 -2,822

Allowances -904
Reversals 934
Changes in scope -93
Conversion gains and losses 39

Depreciation as at 12/31/2024 -2,847

Net value as at 12/31/2023 167,977

Net value as at 12/31/2024 196,081

The net trade receivables item is up by €31.1 million, excluding foreign exchange effects, whereas a €26.7 million
of change in perimeter impact arising from the acquisition of Sasaeah.
The €4.9 million increase observed excluding foreign exchange and changes in scope impacts is mainly due to:
• Virbac Brazil with a combined effect of the impact of the increase in sales by volume and to a lesser extent, a
slight increase in payment terms;
• Virbac SA and Virbac France, due to a higher level of activity at the end of 2024 compared to that at the end of
2023;
• a decrease in deconsolidated receivables in Italy offset by an increase in trade receivables (see below).

This increase is partially offset by a decrease in trade receivables in the United Kingdom, for which the balance of
the item at the end of 2023 was impacted by the late payment of a major distributor, as well as in Australia,
following the reduction in outstanding amounts of two main customers at the end of 2024 compared to 2023.

It should be noted that deconsolidated receivables, as they have been assigned under factoring contracts, amount
to €9.0 million as at December 31, 2024 (compared with €12.0 million as at December 31, 2023). This decrease
mainly concerns our Italian subsidiary, as well as the entity Alfamed, in France, due to the exit of a major customer
from the factoring program.

The credit risk from trade receivables and other receivables is presented in note A33.


A11. Other receivables
Change in Conversion
2023 Variations consolidation Transfers gains 2024
in € thousand scope and losses

Income tax receivables 21,392 -7,381 — — -828 13,183
Social receivables 734 -353 2 — -2 381
Other State receivables 41,705 10,784 2,160 — -1,009 53,640
Advances and prepayments on orders 3,992 1,180 12 — -176 5,008
Depreciation on various other
— — — — — —
receivables
Prepaid expenses 9,319 2,258 663 33 87 12,359
Other various receivables 8,160 -2,902 38 3 62 5,360

Other receivables 85,302 3,585 2,875 36 -1,866 89,931

The net increase in this item is +€3.6 million, excluding the effect of scope of consolidation (+€2.9 million) and
foreign exchange impact (-€1.9 million). This change is mainly due to the joint effects:
• of the increase in other receivables on the State for €10.8 million, in particular for the parent company (+€5.9
million) due to the increase in the research tax credit receivables, as well as in Mexico, which recorded an
increase in VAT receivables of +€5.6 million;
• of the decrease in income tax receivables of -€7.4 million, including in particular -€10.5 million for the parent
company which received repayment of the overpaid installments for 2023, offset by an increase of €3 million in
Brazil.
The other changes are individually immaterial.



28
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




A12. Cash and cash equivalents
Change in Conversion gains
2023 Variations Transfers 2024
in € thousand scope and losses

Available funds 79,294 -27,672 54,479 -104 -1,051 104,945
Marketable securities 96,611 -57,165 3,249 — 1,991 44,685
Cash and cash equivalents 175,906 -84,837 57,727 -104 939 149,631

Bank overdraft -2,517 -1,049 — — — -3,567
Accrued interests not yet matured -31 3 — — — -27
Overdraft -2,548 -1,046 — — — -3,594

Net cash position 173,358 -85,883 57,727 -104 939 146,037


The main investment vehicles used are UCITS and term accounts with a maturity of less than three months. These
term deposits have the following characteristics: they are renewable by tacit agreement and may be repaid before
maturity.
The decrease in marketable securities is mainly related to the distribution of dividends by one of our subsidiaries to
the parent company.
Bank overdrafts correspond to the overdraft lines negotiated but not confirmed by our banks.

The variation of €57,727 thousand carried over in “Changes in scope” is mainly related to the acquisition of Sasaeah
on April 1, 2024 and to a lesser extent, to the acquisition of Mopsan on December 2, 2024 (see note A1).




A13. Assets classified as held for sale
As of the closing date of the financial year, no assets have been classified as assets held for sale.




A14. Equity
2024 2023
in € thousand

Capital 10,489 10,573

Premiums linked to capital 6,534 6,534

Legal reserve 1,089 1,089

Other reserves and retained earnings 683,520 650,505

Consolidation reserves 230,715 146,077

Conversion reserves -28,423 -29,377

Actuarial gains and losses -6,096 -6,398

Result for the period 145,289 121,298

Equity attributable to the owners of the parent company 1,043,117 900,301

Other reserves and retained earnings -165 10,358

Conversion reserves -41 -533

Result for the period 492 -210

Non-controlling interests 286 9,616

Equity 1,043,403 909,917




Capital management policy
Within the framework of capital management, the Group aims to preserve the continuity of operations, to provide a
return to shareholders, to procure the advantages from other partners and to maintain an optimal capital structure
to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group can:
• adjust the amount of dividends paid to shareholders;
• return capital to shareholders;
• issue new shares; or
• sell assets to reduce the total debts.




29
The Group uses various indicators, one of which is financial leverage (net debt/equity), which provides investors
with a vision of debt for the Group comparative to the total equity. In particular, this equity includes the reserve for
variations in the value of cash position flows.

Treasury shares
Virbac holds treasury shares with no voting rights which are intended to supply the allocation of performance-
related stock grants. The amount of these treasury shares is posted as a reduction in equity.

Shares with double voting rights
Double voting rights are granted to all shareholders whose shares have been registered in their name for at least
two years. Of the 8,390,660 shares making up the share capital, 4,316,655 have double voting rights.

Share buyback program
The June 21, 2024 ordinary shareholders’ meeting authorized the Virbac parent company to buy back its treasury
shares in accordance with article L225-209 et seq. of the French commercial code.
As of December 31, 2024, Virbac owned a total of 16,066 treasury shares acquired on the market for a total
amount of €4,070,768 excluding costs, that is, an average cost of €253.38 per share.

The 2021 performance plan expired during the year and was allocated to the employees concerned based on the
previously established performance criteria. A new performance plan was created over the financial year (see note
A35).

Our liquidity contract was suspended from February 1, 2023 until June 30, 2024 and then closed on this date. No
shares were purchased or disposed of by the company in connection with this during the financial year.

Furthermore, on September 13, 2024, the board of directors decided to decrease the company's capital by
cancelling 67,340 shares with a nominal value of €1.25. These shares had been acquired with a view to being
cancelled for a total amount of €17,541 thousand.

Treasury shares as of December 31, 2024 represent 0.19% of Virbac's capital. They are exclusively intended for the
allocation of performance shares.

A resolution will be submitted for the approval of the next shareholders’ meeting authorizing the company to buy
back up to 10% of the capital. Shares may be acquired with a view to:
• ensuring liquidity or supporting the market price via an independent investment services provider pursuant to
a liquidity contract in accordance with AMF (French financial market authority) regulations;
• allocating performance-related stock grants;
• reducing the company’s share capital by cancelling all or part of the shares purchased, subject to the adoption
by the ordinary shareholder’s meeting of the resolution for authorizing a reduction in the share capital by
cancelling repurchased shares.

The maximum unit purchase price may not exceed €1,000 per share. When calculating the maximum number of
shares, shares already purchased under the aforementioned prior authorizations will be included, together with
those that could be purchased under the liquidity agreement.




A15. Employee benefits
The commitments related to employee benefit schemes are calculated using the projected unit credit method.
Future commitments are subject to a provision for expenses.
Where a commitment is pre-financed by payments into a fund, the provision corresponds to the difference between
the total commitment at the closing date and the amount of the hedging asset. The hedging asset is made up of the
amount of the fund plus the investment income and any contributions paid during the year.




30
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




Change in provisions by country
Conversion
Change in
2023 Allowances Reversals Equity Transfer gains and 2024
scope
in € thousand losses

France 11,406 966 -869 — 62 — — 11,563
Italy 655 72 -29 — -15 — — 682
Germany 138 81 — — — — — 219
Greece 149 27 — — — — — 176
Mexico 385 77 -17 — 42 — -59 428
Korea -117 121 -125 — -70 — 10 -180
Taiwan 1,295 129 -83 — -65 — -1 1,275
Thailand 756 76 -66 — 21 — 51 837
Philippines 31 9 — — -28 — — 12
Retirement and
severance pay 14,697 1,558 -1,189 — -53 — 1 15,013
allowances
1
Japan 1,685 588 -815 532 -868 805 -70 1,856
Defined benefit
1,685 588 -815 532 -868 805 -70 1,856
retirement plans

South Africa 937 106 -75 — -54 35 948
Medical coverage 937 106 -75 — -54 35 948

India 716 411 -688 — 468 28 935
Allowances for absence 716 411 -688 — 468 28 935

Australia 1,410 166 -96 — — -44 1,435
Austria 81 2 -1 — — — 82
Spain 80 8 — — — — 88
Other long term benefits 1,571 176 -98 — — -44 1,606

Provisions for employee
19,606 2,840 -2,866 532 -507 805 -52 20,357
benefits
1
the Virbac group acquired Fujita and Kyoto Biken Laboratories in Japan in April 2024 (acquisition of Sasaeah). The
debt accumulated by Kyoto Biken Laboratories amounts to €6,921 thousand. This actuarial debt is covered by a
hedging asset amounting to €14,483 thousand. The surplus of €7,561 thousand is reported in note A6 “Other
financial assets”

The main equity impacts mainly concern France due to the updating of the data resulting in a loss of experience of
€676 thousand, the increase in the discount rate resulting in a gain of €111 thousand, and the updating of the
retirement age resulting in a gain of €503 thousand.

The amount of €805 thousand of transfers to Japan corresponds to the debt related to the acquisition of Kyoto
Biken Laboratories in April 2024.

Main commitments
The main existing employee benefit plans are the ones of France, Japan, Australia, Taiwan, and South Africa. As of
December 31, 2024, they contributed respectively for 57%, 9%, 7% , 6% and 5% of the total provisions for
employee benefit plans.

Retirement and severance pay allowances

■ France
In accordance with the collective agreement, the Group’s French companies pay their employees an allowance on
their retirement based on their salary and seniority.
The rights vested (for executives as well as or non-executives) are as follows: 12% of the monthly salary per year
of seniority.

■ Taiwan
Severance pay is due when the employee reaches the age of 65 or in the event of inability to perform his/her
duties. In the event of voluntary departure, vesting is subject to the following conditions:
• a minimum of 15 years of service and being at least 55 years of age;
• a minimum of 10 years of service and being at least 60 years of age;
• a minimum of 25 years of service.
The amount paid depends on seniority.
The plan also covers severance pay in the event of dismissal or resignation, the amount of which varies depending
on the employment start date (before or after June 30, 2005) and the employee’s seniority.




31
Defined-benefit retirement plans

■ Japan
• Virbac Japan: the scheme results in payments in the form of capital. To qualify, employees must have at least
two years of seniority in the company on the closing date. The amount of capital is calculated from the base
salary multiplied by a coefficient based on years of service;
• Kyoto Biken Laboratories plan: employees must have at least three years of service to be eligible for
retirement benefits (three years or more for lump sum capital, and ten years or more for pension). Benefits
are based on the annual accumulation of monthly salary multiplied by a coefficient depending on the years of
service completed on April 1.

Medical coverage

■ South Africa
The program implemented by Virbac South Africa stipulates that the company is responsible for handling the
contributions paid by retired employees who wish to enroll in voluntary medical insurance.
The eligibility condition is that the employee must have joined the company before April 30, 1995.

The insurance contribution paid by Virbac South Africa is between 50% and 100%, depending on the level of
coverage chosen by the beneficiary. In the event that the beneficiary should die, his or her legal successors
continue to benefit from the Virbac South Africa holding under certain conditions.

Because the scheme is not restricted only to Virbac South Africa employees, it has been valued based on
contributions paid by Virbac South Africa, restated to reflect the inflation rate for medical costs.

Long-service leave

■ Australia
In accordance with regulations in Australia, Virbac grants employees long-service leave in line with their
compensation and years of service. Each employee is entitled to two months’ leave after ten years’ service, which is
acquired as follows:
• if the employee is dismissed after five to ten years’ service, he/she is entitled to his/her proportionate share of
the acquired rights;
• if the employee leaves the company for any other reason after five to ten years of service, they have no
entitlements;
• if the employee leaves the company, for whatever reason, after ten years of service, he/she is entitled to his/
her proportionate share of the acquired rights.

The provision is calculated as the sum of the individual rights, calculated pro rata for the ratio of the employee’s
years of service at the closing date to the years of service for full rights.

Calculation parameters of the main personnel benefits schemes in the Group

Assumptions as at December 31, 2024
Discount rate Future salary growth


France 3.25% 2.50%
Japan 1.70% 2.00%
Australia 5.00% 3.00%
South Africa 10.60% 6.33%
Taiwan 1.50% 4.50%



Assumptions as at December 31, 2023
Discount rate Future salary growth


France 3.15% 2.50%
Japan 1.40% 2.00%
Australia 5.00% 3.00%
Thailand 11.15% 7.40%
Taiwan 1.38% 4.50%

Discount rates are based on high-quality corporate bond yields with a maturity similar to that of the bond in
question. In accordance with IAS 19 revised, the expected return on assets is considered to be equal to the
discount rate.
A 0.5-point increase or decrease in the discount rate would entail, respectively, a reduction in the provision for
employee benefits of around €1,206 thousand or an increase of approximately €1,199 thousand, recognized with
the counterparty entry to other comprehensive income.




32
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




Moreover, a 0.5-point increase or decrease in the future growth rate of salaries would entail, respectively, an
increase in the provision for employee benefits of around €913 thousand or a reduction of approximately
€907 thousand, which would be recognized with the counterparty entry to other in other comprehensive income.

Allowance for the year
2024 allowance
in € thousand

Cost of services rendered 2,338
Financial cost 851
Interest income -350
Change of scheme —
Immediate recognition of actuarial (gains)/losses in the year —
Administrative costs recognized in expenses —

Net cost or gain (-) recognized in income 2,840


Employer contributions (including benefits paid directly by the employer) in 2024 totaled €2,732 thousand and are
estimated to reach €2,166 thousand in 2025.

Movements of amounts recognized in the statement of financial position
Below table reconciles the movements in the amounts recognized in the statement of financial position (actuarial
debt, hedging assets, provision for employee benefits).
Actuarial liability
in € thousand

Present value as at January 1, 2024 23,316

Benefits paid by employer -1,203
Benefits paid by funds -1,262
Cost of services rendered and financial cost 3,168
Termination/end of contract —
Actuarial (gains)/losses due to demographic assumptions -305
Actuarial (gains)/losses due to financial assumptions -486
Actuarial experience (gains)/losses 968
Change of scheme —
Other variations 7,200
Transfers —
Conversion gains and losses 14

Present value as at December 31, 2024 31,410


Actuarial liabilities are pre-financed in Japan, in India and South Korea through hedging assets (insurance policies)
covering annual financial interest.


Hedging assets
in € thousand

Fair value as at January 1, 2024 3,825

Contributions paid 1,109
Benefits paid by funds -846
Interest income 350
Actuarial gains/(losses) 680
Tax on premiums paid —
Other variations 13,376
Conversion gains and losses 120

Fair value as at December 31, 2024 18,614




33
Employee benefits
in € thousand

Fair value of hedging assets -18,614
Present value of the actuarial debt 31,410
12,796
Provision recognized into the financial assets related to KBL entity 7,561

Assets (-) or liabilities recognized in provisions as at December 31, 2024 20,357



Employee benefits
in € thousand

Provision to liabilities as at January 1, 2024 19,607

Charge/gain recognized in income - allowance 2,840
Amount recognized in equity -507
Employer contributions/benefits paid - reversal -2,866
Other events 530
Transfers 805
Conversion gains and losses -52

Provision to liabilities as at December 31, 2024 20,358




A16. Other provisions
Changes Conversion
2023 Allowances Reversals Transfers 2024
in € thousand in scope gains and losses

Trade disputes and labor
2,689 1,371 -1,078 20 — -26 2,978
litigation
Fiscal disputes 3,704 878 -1,036 — 34 -601 2,979
Various risks and charges 906 2,062 -239 239 — -24 2,943
Other non-current provisions 7,298 4,311 -2,354 259 34 -650 8,899

Trade disputes and labor
627 — -257 — — 16 386
litigation
Fiscal disputes — — — — — — —
Various risks and charges 1,681 5 -1,301 — — 4 391
Other current provisions 2,309 5 -1,558 — — 20 776

Other provisions 9,608 4,316 -3,911 259 34 -630 9,676


Each situation is analyzed in light of IAS 37 or Ifric 23 when there is uncertainty over the tax treatment. Tax-related
provisions are intended to deal with the financial consequences of the Group’s tax audits.

Provisions that have become irrelevant over the period, either because they have been used in accordance with the
initial purpose, or due to risk's extinction, have been reversed over the period.
No provisions are established if the company deems that the liabilities are contingent, and information is given in
the appendix (see note A39).


A17. Lease liability

Change in lease liability
New
Repayments Change in Conversion
contracts
2023 and consolidation Transfers gains 2024
and
cancellations scope and losses
in € thousand renewals

Lease liability - Non-
25,001 11,470 -114 521 -10,209 -117 26,552
current
Lease liability -
10,144 3,733 -12,793 324 10,209 -67 11,550
Current

Lease liability 35,145 15,203 -12,907 845 — -184 38,102




34
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




The IFRS 16 standard introduces a single lessee accounting model for the lease contracts meeting the criteria of
application, with the new lease obligation encompassing the liabilities arising from contracts previously capitalized
pursuant to IAS 17.

Lease liabilities classified according to their maturity
Payments
Total
less than 1 year from 1 to 5 years more than 5 years
in € thousand

Lease liability - Non-current — 20,458 6,093 26,552
Lease liability - Current 11,550 — — 11,550

Lease liability 11,550 20,458 6,093 38,102




Information related to financing activities
Cash flows Non-cash flows

2023 Repayments Increase Decrease Change in Transfers Conversion 2024
consolidation gains and
scope losses
in € thousand

Lease liability 35,145 -12,479 15,203 -428 845 — -184 38,102

Lease liability 35,145 -12,479 15,203 -428 845 — -184 38,102


Decreases correspond to early terminations with no cash impact.

The increase in debt liabilities stems essentially from the new contracts or extensions of contracts relating to the
fleet of vehicles, as well as lease obligations related to real estate contracts mentioned in note A5.


A18. Other financial liabilities

Change in other financial liabilities
Changes Conversion
2023 Increase Decrease Transfer 2024
in scope gains and losses
in € thousand

Loans 40,618 189,876 -2,353 -8 -8,632 -1,777 217,725
Employee profit sharing 21 5 -9 — — — 17
Currency and interest rate
— — — — — —
derivatives
Other 50 174 -37 4,147 12 4,346
Other non-current
40,689 190,054 -2,399 4,139 -8,632 -1,765 222,088
financial liabilities

1
Loans 41,830 82,775 -85,999 138,501 -129,036 -451 47,620
Bank overdrafts 2,517 1,049 — — — — 3,567
Accrued interests not yet
31 — -3 — — — 27
matured
Employee profit sharing 1,135 803 -893 — — -116 929
Currency and interest rate
2,196 3,639 — — — — 5,835
derivatives
Other — — — — — — —
Other current financial
47,709 88,267 -86,896 138,501 -129,036 -567 57,977
liabilities

Other financial liabilities 88,398 278,321 -89,294 142,640 -137,668 -2,332 280,065
1
the flows changes in scope and transfer on the “Loans” line represent the acquired debt of Sasaeah, which was
repaid simultaneously to the acquisition, and replaced by a debt within the Group (also refer to note A6 for more
details)

In 2024, in order to finance the acquisition of Sasaeah, we set up a bridging loan of €300 million, for a twelve-
month period with two options to extend by six months, available in euros and Japanese yen. This credit facility was




35
only drawn up to the equivalent of €200 million to repay Sasaeah existing loan and to pay a portion of the purchase
price , the remainder of it having been financed by part of the available funds in the Group and our syndicated loan.
At the same time, in March 2024, following our request to activate the accordion feature clause of our syndicated
loan agreement, the banks in our pool agreed to increase their commitment by €150 million, taking our new
available funding commitment to €350 million.
Finally, at the same time, our request for an amendment to include a new €100 million accordion facility in this
syndicated contract was unanimously accepted by our banks, increasing the potential amount of our credit to
€450 million. It should be noted that this new financing line includes commitments related to our CSR policy,
reflecting our commitment to preserving the environment and respecting animal ethics that has been in place for
several years. Negotiating these clauses ensures that we have access to controlled financial conditions and support
for our needs of organic and/or external growth. The applicable credit margin is adjustable based on the annual
financial ratio and, to a lesser extent, on the annual results of three CSR performance indicators already monitored
within our CSR policy.
In July 2024, we proceeded with the prepayment of this bridging loan in yen in return for a drawdown on the
syndicated loan and the implementation of currency hedging.
Thus, in order to ensure our liquidity, in terms of bank and disintermediated funding, our status is as follows:
• a syndicated loan of €350 million, at variable rate, repayable in fine in October 2028 after being extended by
two years, with a so-called “accordion” clause to increase funding by €100 million and which includes
commitments in connection with our CSR policy;
• a market-based contract (Schuldschein) for a total of €6 million, with maturity April 2025, at a fixed rate;
• financing contracts with Bpifrance, for €10.2 million, depreciable and maturing in July 2027 and June 2032;
• non-recourse factoring contracts in the United States and in Europe for US $15 million and €30 million
respectively;
• factoring contracts with recourse and export loans for US $25.1 million (i.e. approximately €24.2 million) in
Chile;
• loans for CLP 24.3 billion (i.e. approximately €23.6 million) in Chile too;
• uncommitted credit lines in the United States for US $37 million (i.e. approximately €35.6 million).

As of December 31, 2024, the funding position is as follows:
• the syndicated loan was drawn for €187 million;
• market-based contract amounted to €6 million;
• the Bpifrance financing amounted to €10.2 million;
• non-recourse factoring lines are mobilized in Europe for an amount of €6.1 million;
• factoring lines with recourse are mobilized in Chile for an amount of almost US $15 million;
• the loan in Chile amounts to CLP 24.3 billion;
• the drawn credit of our subsidiary in the United States amounted to US $24 million.

The financing agreements of the parent company include a financial covenant compliance clause that requires us to
comply with an annual financial ratio based on the annual consolidated accounts, corresponding to the consolidated
1 2
net debt for the period over the consolidated Ebitda .

As at December 31, 2024, we comply with the financial ratio clauses, which is 0.59 and therefore below the
contractual financial covenant limit of 3.75.
1
for the purpose of calculating the covenant, consolidated net debt refers to the sum of other current and non-
current financial liabilities, namely the following items: loans, bank loans, accrued interest liabilities, liabilities
related to leases, profit sharing, interest rate and foreign exchange derivatives, and others; minus the amount of
the following items: cash and cash equivalents, term deposits, and foreign exchange and interest rate assets
derivatives as shown in the consolidated accounts
2
under the contractual definition, consolidated Ebitda refers to operating profit for the period under review, plus the
allowances for depreciation and provisions, net of reversals, and dividends received from non-consolidated
subsidiaries

The company’s financing capacity is sufficient to fund its cash requirements.

The increase in the liability recognised on foreign exchange derivatives at the end of the 2024 financial year is
explained by the difference between the average exchange rate on the hedges of our US dollar debt and the
exchange rate at the end of the financial year.




36
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




Other financial liabilities classified according to their maturity

As at December 31, 2024
Payments
Total
less than 1 year from 1 to 5 years more than 5 years
in € thousand

Loans 47,620 216,412 1,313 265,344
Bank overdrafts 3,567 — — 3,567
Accrued interests not yet matured 27 — — 27
Employee profit sharing 929 17 — 946
Currency and interest rate derivatives 5,835 — — 5,835
Other — 15 4,332 4,346

Other financial liabilities 57,977 216,443 5,644 280,065


The generation of operating cash flow, as well as negotiated overdrafts and factoring make it possible to cover
short-term financial liabilities.

As at December 31, 2023
Payments
Total
less than 1 year from 1 to 5 years more than 5 years
in € thousand

Loans 41,830 38,680 1,938 82,448
Bank overdrafts 2,517 — — 2,517
Accrued interests not yet matured 31 — — 31
Employee profit sharing 1,135 22 — 1,156
Currency and interest rate derivatives 2,196 — — 2,196
Other — 50 — 50

Other financial liabilities 47,709 38,752 1,938 88,399




Information related to financing activities
Cash flows Non-cash flows
2023 Issuance Repayments Fair value Changes Transfers Conversion 2024
in scope gains and
in € thousand losses

Non-current financial
40,618 189,876 -2,352 — -8 -8,632 -1,777 217,725
liabilities
Current financial
41,830 82,775 -85,999 — 138,501 -129,036 -451 47,620
liabilities
Employee profit sharing 1,156 808 -902 — — — -116 945
Currency and interest
2,196 — — 3,639 — — — 5,835
rate derivatives
Others 50 174 -37 — 4,147 — 12 4,346

Other financial
85,851 273,632 -89,291 3,639 142,640 -137,668 -2,332 276,471
liabilities




37
A19. Other payables
Changes Conversion
2023 Variations Transfers 2024
in € thousand in scope gains and losses

Income tax payables — — — — — —
Social payables — — — — — —
Other fiscal payables — — — — — —
Advances and prepayments on orders — — — — — —
Prepaid income 1,450 -221 — — — 1,229
Various other payables 21,162 -3,953 -12,168 -233 -608 4,201
Other non-current payables 22,612 -4,174 -12,168 -233 -608 5,430

Income tax payables 10,270 14,790 1,262 -508 -451 25,363
Social payables 66,220 4,023 3,561 — -109 73,695
Other fiscal payables 9,964 7,868 396 — -154 18,074
Advances and prepayments on orders 456 -1,253 1,624 — 26 853
Prepaid income 1,124 251 — — -6 1,369
Various other payables 101,223 -2,433 867 197 475 100,328
Other current payables 189,256 23,247 7,710 -311 -219 219,683

Other payables 211,869 19,074 -4,459 -543 -827 225,112


Other payables increased by €14.1 million, excluding foreign exchange effects. The main changes are shown below.

The decrease in “Other non-current payables” of €17.2 million is mainly due to the reversals of securities liabilities,
respectively:
• of the purchase commitment of installment 2 of Globion in India;
• partially offset by the recognition of earn-outs relating to the acquisition of Mopsan in Türkiye over the period
(see note A1).

The “Other current payables” item increased by €30.4 million mainly in connection with:
• an increase in “Income tax payables” of +€15.1 million as a result of the increase in the tax burden
provisioned in 2024 compared to the previous financial year, with a variation of +€10.8 million for the parent
company, and +€2.9 million in Mexico. In addition, the acquisition of the Sasaeah group in Japan led to an
increase of +€4.4 million in this item at the closing date;
• an increase in “Other fiscal payables” of +€8.1 million, with an increase of +€2.3 million in Mexico mainly
related to an increase in VAT to be paid in connection with the increase in sales volume, and an increase of
€1.3 million for the parent company. The Sasaeah group is also contributing +€3.7 million to the increase in
this item at the closing date;
• an increase in social payables of €7.5 million, including +€3.6 million of changes in scope, in connection with
the acquisition of Sasaeah. The rest of the variation across the Group is consistent with the increase in staff
costs, related to the activity and to a lesser extent, to salary increases and inflation;
• the various other payables amount to €100.3 million as of December 31, 2024. They mainly consist of
customers - credit notes to be issued; they remain relatively stable at Group level (-€0.9 million) but vary
according to the subsidiaries (see supplement below).

Below table details the type of contract-related liabilities:
Changes Conversion
2023 Variations Transfers 2024
in € thousand in scope gains and losses

Advances and prepayments on orders 456 -1,253 1,624 — 26 853
Customers - credits to be issued 93,727 -1,968 388 388 92,535

Customer liabilities 94,182 -3,220 2,012 — 414 93,387


Credit notes to be issued arise primarily from changes in transaction pricing, as the majority of the Group's
subsidiaries grant customers year-end discounts, the amount of which is contingent on the achievement of sales
objectives. The main increases were in France (+€4.6 million), in the United States (+€1.9 million), partially offset
by a decrease in the United Kingdom (-€6.3 million) and in Australia (-€2.2 million).




38
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




A20. Trade payables
Changes Conversion gains
2023 Variations Transfers 2024
in € thousand in scope and losses

Current trade payables 133,201 4,019 14,143 -524 -1,467 149,371
Trade payables -
suppliers of intangible
assets 3,061 -845 239 — -2 2,454
Trade payables -
suppliers of tangible —
assets 13,367 5,592 3,722 68 22,749

Trade payables 149,629 8,767 18,104 -524 -1,401 174,574


This item amounted to €174.6 million as of December 31, 2024, compared to €149.6 million at the end of 2023, or
a net increase of €26.4 million, excluding foreign exchange effects, which includes a €18.1 million change in scope
impact.
Major changes are observed within the parent company and mainly due to:
• the increase in operational expenditure related to the increase in activity;
• investments made to increase our production capacity.

To a lesser extent, the United States is also participating in this increase, which is partially offset by a decrease in
trade payables in Australia and South Africa.


A21. Revenue from ordinary activities
2024 2023 Change
in € thousand

Sales of finished goods and merchandise 1,614,957 1,437,698 12.3%
Services 1,599 468 241.6%
Additional income from activity 3,391 2,894 17.2%
Royalties paid 263 464 -43.4%
Gross sales 1,620,211 1,441,524 12.4%

Discounts, rebates and refunds on sales -179,456 -148,852 20.6%
Expenses deducted from sales -26,374 -34,347 -23.2%
Financial discounts -17,215 -10,854 58.6%
Provisions for returns 215 -570 -137.6%
Expenses deducted from sales -222,831 -194,623 14.5%

Revenue from ordinary activities 1,397,380 1,246,901 12.1%


The expenses presented within the revenue are mainly made up of the following elements:
• amounts paid under commercial cooperation contracts (commercial communication actions, provision of
statistics, etc.);
• cost of business operations (including loyalty programs), the amount of which is directly related to the revenue
generated.
Provisions for customer returns are calculated using a statistical method, based on historical returns.

Evolution
In 2024, our annual revenue amounted to €1,397.4 million compared to €1,246.9 million at the end of December
2023, which represents an overall change of +12.1% over the year (+13.6% at constant exchange rates). This
significant growth is the result of an organic performance of +7.5% and a contribution of +6.1% made by the
acquisitions of Globion (acquisition in India in November 2023) and Sasaeah (acquisition in Japan closed in April
2024).
The change in revenue from ordinary activities by segment and geographic area is detailed in the activity report.




39
A22. Purchases consumed
2024 2023 Change
in € thousand

Inventoried purchases -420,550 -397,923 5.7%
Non-inventoried purchases -43,805 -37,509 16.8%
Supplementary charges on purchases -10,088 -7,035 43.4%
Discounts, rebates and refunds obtained 416 374 11.2%
Purchases -474,027 -442,093 7.2%

Change in gross inventories 14,354 15,705 -8.6%
Allowances for depreciation of inventories -17,776 -24,110 -26.3%
Reversals of depreciation of inventories 21,332 16,625 28.3%
Net variation in inventories 17,910 8,220 117.9%

Consumed purchases -456,117 -433,873 5.1%


The 5.1% increase in purchases consumed is mainly analyzed by the effect of recent acquisitions (Globion, Sasaeah
and Mopsan), partially offset by the positive impact of inventory depreciation over the period compared to 2023
(see note A9 on the net change in inventories).

Excluding recent acquisitions, purchases consumed increased by 0.4% compared to the previous period.


A23. External costs
External costs amounted to €262.2 million in 2024 compared to €230.2 million in 2023, i.e. an increase of
€32.0 million (+13.9%) in real scope; excluding the effect of scope of consolidation (Sasaeah and Globion), the
increase in external expenses amounted to +€24.1 million. The variation is explained by the increase in activity
across the Group; we mainly note an increase in marketing costs, transport on sales, fees, as well as an increase in
travel costs, due to the resumption of normal activity after a year 2023 impacted by the cyber-attack and a very
strong slowdown in travel.


A24. Depreciation, impairment and provisions
2024 2023 Change
in € thousand
1
Allowances for depreciation of intangible assets -7,686 -6,374 20.6%
Allowances for impairment of intangible assets -395 — —
Allowances for depreciation of tangible assets -32,443 -26,356 23.1%
Allowances for impairment of tangible assets — -499 -100.0%
Allowances for depreciation of right of use -12,783 -11,524 10.9%
Reversals for depreciation of intangible assets — — —
Reversals for impairment of intangible assets 500 1,025 -51.2%
Reversals for depreciation of tangible assets — — —
Reversals for impairment of tangible assets 755 310 143.3%
Depreciation and impairment -52,052 -43,418 19.9%

Allowances of provisions for risks and charges -2,474 -2,561 -3.4%
Reversals of provisions for risks and charges 3,335 1,326 151.4%
Provisions 860 -1,235 -169.7%

Depreciations and provisions -51,192 -44,652 14.6%
1
excluding allowance for depreciations of intangible assets arising from acquisitions




40
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




Allowances for depreciation of intangible assets arising from acquisitions
2024 2023
in € thousand

SBC -134 -48
Uruguay: Santa Elena — -100
Australia: Axon -121 -122
New Zealand -326 -332
Centrovet -1,354 -1,511
Multimin -442 -437
Colombia: Synthesis -87 -83
Schering-Plough Europe — -476
India: Globion -1,366 -157
Sasaeah -493

Depreciations of intangible assets arising from acquisitions -4,324 -3,265


The increase in this position is mainly related to the new acquisitions made at the end of 2023 for Globion and April
2024 for Sasaeah partially offset by Schering-Plough products fully amortized as of June 30, 2023.


A25. Other operating incomes and expenses
2024 2023 Change
in € thousand

Royalties paid -3,659 -3,430 6.7%
Grants received (including research tax credit) 11,478 14,111 -18.7%
Allowances for depreciation of receivables -904 -941 -3.9%
Reversals of depreciation of receivables 934 646 44.6%
Bad debts -215 -257 -16.3%
Net book value of disposed assets -2,555 -2,176 17.4%
Income from disposal of assets 168 125 34.4%
Other operating income and expenses -655 -22 2877.3%

Other operating income and expenses 4,592 8,055 -43.0%


The item “Other current income and expenses” shows a change of -43%, which is mainly explained by:
• the decrease in the amount of tax credits recorded in grants, which amounts to €11.3 million in 2024,
compared to €14.1 million in 2023;
• asset write-offs at the parent company of €0.5 million.

The other changes are individually immaterial.




41
A26. Other non-current income and expenses
As of December 31, 2024, a net charge of €10.4 million was recorded, consisting of the following elements:
2023
in € thousand

Restructuring costs in Australia -2,061
Revaluation of inventories acquired from Sasaeah (purchase accounting method) -2,924
Sasaeah acquisition expenses -8,122
Unused release provision for restructuring in Chile 200
©
Sale of production equipment following Sentinel divestiture in the United States (purchase option
2,485
taken by the buyer as set for by the contract)

Other non-current income and expenses -10,422


As of December 31, 2023, this item breaks down as follows:
2023
in € thousand

Revaluation impact of the debt on iVet shares acquired in the United States in 2021 (earn-out clause) 925
Revaluation of inventories acquired in Czech Republic (purchase accounting method) -807
Restructuring costs in Chile -997

Other non-current income and expenses -878




A27. Financial income and expenses
2024 2023 Change
in € thousand

Gross cost of financial debt -11,119 -8,882 25.2%
Income from cash and cash equivalents 6,392 8,724 -26.7%
Net cost of financial debt -4,727 -158 2874.5%

Foreign exchange gains and losses -2,707 -15,788 -82.9%
Changes in foreign currency derivatives and interest rate -2,267 5,687 -139.9%
Other expenses -43 -273 -84.4%
Other income 462 687 -35.2%
Other financial income or expenses -4,554 -9,687 -52.9%

Financial income and expenses -9,282 -9,845 -5.5%


The cost of financial debt includes the interest charges on borrowings for €9,134 million, as well as the interests on
lease liabilities, which amount to €1,985 thousand as of December 31, 2024.
The increase in the gross cost of financial debt by +€2.2 million is linked to the increase in debt in France to finance
the acquisition of Sasaeah in Japan.
The decrease in income from cash and cash equivalents was due to the decrease in investments in one of our
subsidiaries during the year following the distribution of dividends to the parent company.

Foreign exchange loss decreased significantly between 2023 and 2024, from €10.1 million to €5.0 million. This
change of more than €5 million is explained by two main factors:
• centralized foreign exchange management, for which foreign exchange loss decreased by more than €3 million
in 2024;
• the foreign exchange gain of €1.8 million induced by the hedging of the new JPY exposure relating to the intra-
group loan granted to Virbac Japan.
The Group's foreign exchange loss in 2024 is mainly due to its exposure to the Chilean peso, as in 2023.




42
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




A28. Income tax
2024 2023

Base Tax Base Tax
in € thousand

Profit before tax 207,793 174,153

Adjustment for tax credits -11,346 -13,976
Adjustment of non-recurring items 22,952 28,202

Profit before tax, after adjustments 219,399 188,380

Tax currently payable for French companies -19,064 -7,144
Tax currently payable for foreign companies -47,998 -44,691
Tax currently payable -67,062 -51,834

Deferred tax for French companies -198 -5,425
Deferred tax for foreign companies 4,782 3,740
Deferred tax 4,584 -1,686

Tax accounted for -62,478 -53,520

Restatement of adjustments on tax currently payable 6,581 3,330
Restatement of adjustments on deferred tax -5 -973
Depreciation of deferred tax assets — —

Tax after restatements -55,903 -51,163

Effective tax rate 25.48% 27.16%

Theoretical tax rate 25.83% 25.83%
Theoretical tax -56,671 -48,658

Difference between theoretical tax and recorded tax 5,808 4,862


The theoretical tax rate considered by the Group is the corporate tax rate in effect in France (including the
additional contribution of 3.3%).

The effective tax rate in 2024 is 25.48% compared to 27.16% in 2023.

This decrease is explained by a reduction in the contribution of entities located in countries where the statutory tax
rate is higher than that of the parent entity, in particular Australia, Brazil and New Zealand.

Restated profit before tax
The pre-tax profit and the tax charges have been the subject of the restatements described below in order to
determine the effective tax rate for the 2024 financial year.

Adjustment for tax credits
These are the main tax credits recognized into the operating profit from ordinary activities in accordance with
IAS 20. The amount corresponds to the research tax credit for French entities, as well as the research tax credit
equivalent in Chile, Brazil, Australia and New Zealand.

Adjustment for tax bases related to non-taxable items
This amount mainly includes:
• accounting income or expenses with no tax impact, including in particular permanent differences in entities in
France and abroad (-€11.7 million);
• as well as losses incurred by subsidiaries for which no deferred tax assets in connection with their tax loss
carryforwards are recognized as of December 31, 2024 (mainly Virbac Shanghai Trading and Virbac Japan), for
a total amount of -€11.2 million.

Tax after restatements
Adjustments to the tax charges are described below.

Neutralizing the adjustments for the tax currently payable
This amount mainly corresponds:
• to neutralizations of tax expenses without any accounting basis (-€0.1 million);
• to withholding tax and Ifric 23 provisions (-€6.5 million).

Neutralizing the adjustments for the deferred tax expense
This amount represents tax expenses or income without any accounting basis, namely the change in the bases or
rates of deferred tax assets and liabilities at the beginning of the financial year (change in estimates).



43
Impact of the new Pillar 2 regulations
As a reminder, the Finance Bill in France for 2024 transposed the European directive concerning global anti-base
erosion rules (“GLOBE” rules) and adopted the OECD Pillar 2 model rules.

The Group, falling within the scope of the new legislation, performed an assessment of its potential exposure to the
new legislation for fiscal year 2024. This assessment is based on the most recent tax filings, country-by-country
reporting and financial statements of the Group's constituent entities. Based on the assessment, as the Group
applies the “safe harbour rules” (i.e. de minimis test, the simplified effective tax rates above 15% and the
substance test), the Group does not have any exposure to the new legislation for fiscal year 2024.

The Group will reassess the potential exposure on a yearly basis in order to comply with the new requirement. The
Group is engaged with tax specialists to assist it with applying the new legislation.


A29. Bridge from net result to net result from ordinary activities
Revaluatio
Net result
Net IFRS Acquisition Restructuring Disposal of n of Non-current
from ordinary
result costs costs assets acquired tax expense
activity
inventories
in € thousand

Revenue from ordinary
1,397,380 — — — — — 1,397,380
activities

Current operating
profit before
depreciation of assets 231,821 — — — — 231,821
arising from
acquisitions

Depreciation of intangible
assets arising from -4,324 — — — — — -4,324
acquisitions

Operating profit from
227,497 — — — — 227,497
ordinary activities

Other non-current income
-10,422 8,122 1,861 -2,485 2,924 — —
and expenses

Operating result 217,075 8,122 1,861 -2,485 2,924 — 227,497

Financial income and
-9,282 — — — — — -9,282
expenses

Profit before tax 207,793 8,122 1,861 -2,485 2,924 — 218,215

Income tax -62,478 -2,225 -564 522 -895 -1,782 -67,422
Share from companies'
result accounted for by 467 — — — — — 467
the equity method

Result for the period 145,782 5,897 1,297 -1,964 2,029 -1,782 151,260


Net profit from ordinary activities equates to net profit restated for the following items:
• the “Other non-current income and charges” item, the details of which are presented in the A26 note;
• non-current tax, which includes the tax impact of “Other non-current income and expenses”, as well as all non-
recurring tax income and expenses.




44
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




For the record, the operating net profit for the 2023 financial year was as follows:
Net IFRS Cancellation of Revaluation of Net result
Restructuring Non-current
result price acquired from ordinary
1 costs tax expense
restated complement inventories activity
in € thousand

Revenue from ordinary
1,246,901 — — — — 1,246,901
activities

Current operating
profit before
depreciation of assets 188,142 — — — — 188,142
arising from
acquisitions

Depreciation of intangible
assets arising from -3,265 — — — — -3,265
acquisitions

Operating profit from
184,876 — — — — 184,876
ordinary activities

Other non-current income
-878 -925 997 807 — —
and expenses

Operating result 183,998 -925 997 807 — 184,876

Financial income and
-9,845 — — — — -9,845
expenses

Profit before tax 174,153 -925 997 807 — 175,031

Income tax -53,520 194 -269 -153 -816 -54,564
Share from companies'
result accounted for by 455 — — — — 455
the equity method

Result for the period 121,088 -731 728 654 -816 120,922




A30. Earnings per share
2024 2023


Profit attributable to the owners of the parent company €145,289,535 €121,967,044

Total number of shares 8,390,660 8,458,000
Impact of dilutive instruments, before dilution 8,372,978 8,421,787
Impact of dilutive instruments 6,329 15,426
Weighted average number of shares, after dilution 8,379,307 8,437,213

Profit attributable to the owners of the parent company, per share €17.35 €14.40

Profit attributable to the owners of the parent company, diluted per share €17.34 €14.38




A31. Operating segments
In accordance with IFRS 8, we provide information by segment as used internally by the Group executive
committee, which is now the Chief operating decision maker (CODM) following the change of governance in
December 2020.
Our level of segment information is the geographic sector. The breakdown by geographic area covers seven sectors,
according to the place of establishment of our assets:
• Europe;
• Latin America;
• North America;
• Far East Asia;
• Pacific;
• India, Africa & Middle-East.
It should be noted that following a managerial reorganization of our regions, India is now included in the India,
Africa and Middle East area (and no longer in Asia). France is now in the Europe area. The comparative information
as of December 31, 2023 has been restated below.

The Group’s operating activities are organized and managed separately, according to the nature of the markets.



45
The two market segments are companion animals (representing 62% of the sales as at December 31, 2024, that is
€860.1 million) and farm animals (representing 38% of the sales as at December 31,2024, that is €537.3 million)
but the latter is not considered an industry information level for the reasons listed below:

• nature of the products: the majority of the therapeutic segments are common to companion and farm animals
(antibiotics, parasiticides, etc.);
• manufacturing operations: the production chains are common to both segments and there is no significant
difference in sources of supply;
• customer type or category: the distinction is between the ethical (veterinary) and OTC (Over the counter)
sectors;
• internal organization: our management structures are organized by geographic zone. Throughout the Group,
there is no management structure based on market segments;
• distribution methods: the main distribution channels depend more on the country than the market segment. In
certain cases, the sales forces may be the same for both market segments;
• nature of the regulatory environment: the regulatory bodies governing Marketing authorizations are identical
regardless of the segment.

In the information presented below, the sectors therefore correspond to geographic zones (areas where our assets
are located). The results for Europe include the head office expenses and a substantial proportion of our research
and development expenses.

As at December 31, 2024
India,
Europe Latin North Far East Africa &
Pacific Total
America America Asia Middle-
in € thousand East

Revenue from ordinary activities 570,576 222,382 181,600 140,870 107,556 174,396 1,397,380
Current operating profit before
depreciation of assets arising from 90,988 37,962 4,850 15,463 30,429 52,129 231,821
1
acquisitions


Result attributable to the owners of
61,158 19,779 2,055 2,752 19,505 40,040 145,289
the parent company
Non-controlling interests — 2 -32 55 — 467 492

Group consolidated result 61,158 19,781 2,023 2,807 19,505 40,507 145,781
1
in order to present a better vision of our economic performance, we isolate the impact of depreciation charges on
intangible assets resulting from acquisition operations. Consequently, our income statement indicates current
operating income before amortization of assets resulting from acquisitions (see note A24)

India,
Latin North Far East Africa &
Europe Pacific Total
America America Asia Middle-
in € thousand East

Assets by geographic area 564,831 272,040 249,069 466,511 123,774 172,298 1,848,523
Intangible investment 8,525 72 1,341 119 144 146 10,347
Tangible investment 49,094 5,360 11,116 3,280 4,968 1,021 74,839



No customer represents more than 10% of total revenue.

In addition to the above information, we also present the revenue of the main countries whose revenue is
considered material in relation to their importance within the Group (more than 15% of Group revenue). In 2024,
no single country will account for more than 15% of the Group's consolidated sales, unlike in 2023, when France
accounted for almost 16% of Group sales.




46
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




As at December 31, 2023
India,
Europe Latin North Far East Africa &
Pacific Total
America America Asia Middle-
in € thousand East

Revenue from ordinary activities 518,906 213,631 164,927 79,499 115,666 154,272 1,246,901
Current operating profit before
depreciations of assets arising from 77,513 31,519 -5,573 1,120 39,164 44,399 188,142
1
acquisitions


Profit attributable to the owners of the
2 57,392 9,682 -10,130 -490 26,901 37,943 121,298
parent company
Non-controlling interests 1 17 -307 — — 79 -210

Consolidated profit 57,394 9,699 -10,437 -490 26,901 38,021 121,088
1
in order to present a better vision of our economic performance, we isolate the impact of depreciation charges on
intangible assets resulting from acquisition operations. Consequently, our income statement indicates current
operating income before amortization of assets resulting from acquisitions (see note A24)

India,
Europe Latin North Far East Africa &
Pacific Total
America America Asia Middle-
in € thousand East

Assets by geographic area restated 518,805 279,811 219,842 94,995 128,593 213,684 1,455,730
Intangible investment 12,347 349 3,534 310 10 116 16,666
Tangible investment 29,903 4,239 5,458 2,652 3,588 522 46,362




A32. Financial assets and liabilities

Breakdown of assets and liabilities measured at fair value
In accordance with IFRS 7, “Financial instruments - Disclosures”, measurements at fair value of financial assets and
liabilities must be classified according to a hierarchy which comprises the following levels:
• level 1: the fair value is based on (unadjusted) quoted prices in active markets for identical assets or liabilities;
• level 2: the fair value is based on data other than the quoted prices mentioned in level 1, which are directly or
indirectly observable for the asset or liability in question;
• level 3: the fair value is based on inputs relating to the asset or liability which are not based on observable
market data, but on internal data.

For financial asset and liability derivatives recognized at fair value, we use measurement techniques involving
observable market data (level 2), particularly for interest rate swaps, forward purchases and sales, or foreign
currency options. The model incorporates various inputs such as the spot and forward exchange rates or the
interest rate curve.

Financial assets
The different asset classes are as follows:




47
As at December 31, 2024
Financial assets
Financial Financial
at fair value
assets at assets at fair Fair value
through other Total
amortized value through hierarchy
comprehensive
cost income
income
in € thousand

Non-current derivative financial
— — 1,384 1,384 2
instruments
Other non-current financial assets 3,482 8,127 — 11,609 2
Trade receivables 196,081 — — 196,081 3
Other receivables 5,360 — — 5,360 3
Current derivative financial instruments — 2,766 1,508 4,274 2
Other current financial assets 37 — — 37 3
Cash and cash equivalents 146,212 3,419 — 149,631 1

Financial assets 351,172 14,312 2,892 368,376



As at December 31, 2023
Financial assets
Financial Financial
at fair value
assets at assets at fair Fair value
through other Total
amortized value through hierarchy
comprehensive
cost income
in € thousand income

Non-current derivative financial
— — 43 43 2
instruments
Other non-current financial assets 6,200 — — 6,200 3

Trade receivables 167,977 — — 167,977 3

Other receivables 8,160 — — 8,160 3
Current derivative financial instruments — 1,995 501 2,495 2
Other current financial assets 140 — — 140 3

Cash and cash equivalents 174,988 918 — 175,906 1

Financial assets 357,465 2,913 544 360,921


Financial assets at amortized cost
The financial assets valued at depreciated cost are non-debt derivative instruments (loans and receivables in
particular) whose contractual cash flows consist only of payments representative of the principal and interest on this
principal, and whose management model consists of holding the instrument in order to collect the contractual cash
flows.

This category includes other loans and receivables as well as deposits and guarantees (which appear in “Other
financial assets”), trade receivables (recorded for the initial amount of the invoice after deduction of provisions for
impairment) and other operational receivables excluding tax and social security receivables, as well as the cash and
cash equivalents with regard to items almost as liquid as cash, such as term deposits with a maturity of three
months or less at the time of purchase, and which are held by leading financial institutions.

The depreciated cost of these assets does not, at the closing date, show a significant difference in relation to their
fair value.

Financial assets at fair value through income statement
Interest or exchange rate derivative instruments designated as fair value hedges and financial derivatives not
designated as hedges are classified as financial assets at fair value through the income statement.
This category also includes marketable securities acquired by us for sale or redemption in the short term. They are
measured at fair value at the balance sheet date, and any fair value changes are recognized in income. The fair
values of marketable securities are mainly determined with reference to the market price (buying or selling price as
applicable).

Financial assets at fair value through other comprehensive income
The following are classified as financial assets at fair value by other comprehensive income: interest rate or
exchange rate derivative instruments qualified as hedging of future cash flows and fair value hedges (for the carry
forward/backward and time value portion of options). With regards to future flows, these hedging instruments are
put in place for future exchange exposures (budget) and for interest on the debt/investment at variable rates.
The transfer to profit or loss takes place when cash flows are realized and therefore upon the fall of the
instruments.




48
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




Financial liabilities
The different classes of financial liabilities are as follows:

As at December 31, 2024
Financial
Financial
liabilities at fair
Loans liabilities at
value through Fair value
and fair value Total
other hierarchy
debts through
comprehensive
income 1
in € thousand income

Non-current derivative financial instruments — — —
Other non-current financial liabilities 222,088 — — 222,088 3
Trade payables 174,574 — — 174,574 3
Other payables 104,529 — — 104,529 3
Current derivative financial instruments — 5,629 206 5,835 2
Bank overdrafts and accrued interests not yet
3,567 27 — 3,594 2
matured
Other current financial liabilities 48,548 — — 48,548 3

Financial liabilities 553,305 5,656 206 559,167



As at December 31, 2023
Financial
Financial
liabilities at
liabilities at
Loans and fair value Fair value
fair value Total
debts through other hierarchy
through
comprehensive
income 1
income
in € thousand

Non-current derivative financial instruments — — — —
Other non-current financial liabilities 40,690 — — 40,690 3
Trade payables 149,629 — — 149,629 3
Other payables 122,385 — — 122,385 3
Current derivative financial instruments — 1,589 608 2,196 2
Bank overdrafts and accrued interests not yet
2,517 31 — 2,547 2
matured
Other current financial liabilities 42,965 — — 42,965 3

Financial liabilities 358,186 1,620 608 360,412
1
hedge accounting is used to record changes in fair value in equity

As of December 31, 2024, the cost of gross financial indebtedness was €11,119 thousand, compared to
€8,882 thousand as of December 31, 2023.


A33. Risk management associated with financial assets and liabilities
Our financial risk management policy is controlled centrally by the Group’s Financial Affairs department and in
particular its Treasury and Financing department.
Strategies for financing, investment, and interest and exchange rate risk hedging are thus systematically reviewed
and monitored by the Financial Affairs department. The operations carried out by our local teams are also managed
and monitored by the Group’s Treasury and Financing department.
The holding of financial instruments is conducted with the sole purpose of reducing exposure to exchange rate and
interest rate risks and has no speculation purpose.

We hold derivative financial instruments only for the purpose of reducing our exposure to rate or exchange risks on
our balance sheet items and our firm or highly likely commitments.
When it comes to cash position flow hedging, based on backing and maturities, these flows can occur and affect
profit in the current-year or in subsequent years.

Credit risk

■ Risk factors
Credit risk may arise when we grant credit to customers on payment terms. The risk of insolvency, or even default
by some of them, may result in non-payment and thus negatively impact our income statement and net cash
position.
Trade receivables are subject to impairment, corresponding to the estimated expected losses, determined by
application of an impairment matrix (application of the simplified impairment model provided for by the IFRS 9



49
standard). This approach consists of applying an impairment rate to the respective debtors ageing categories, based
on the history of credit losses, adjusted, if applicable, to take into account elements of a prospective nature.
As of December 31, 2024, the Group’s maximum exposure to credit risk was €196,081 thousand, which represents
the amount of trade receivables as presented in our consolidated accounts.

The risk on sales between Group companies is not material, to the extent that we ensure that our subsidiaries have
the necessary financial structure to honor their liabilities.

■ Risk management mechanisms
We limit the negative consequences of this type of risk thanks to the very high fragmentation and dispersal of our
customers throughout all of the countries in which we operate. Our Treasury department recommends maximum
payment terms in accordance with the regulations in force, customary uses, the rating, the limits imposed by credit
insurance, and sets the customer credit limits to be applied by each operating entity. The Treasury and Financing
department manages and controls these credit aspects for the French entities for which it is directly responsible,
and recommends the same practices via guidelines and best practices for the Group. In addition, there is a master
credit group insurance contract that benefits or can benefit any of our subsidiaries when this type of risk has been
identified.

The following statements provide a breakdown of trade receivables by their maturity:

As at December 31, 2024
Receivables overdue for
Receivables
Impaired Total
due
< 3 months 3-6 months 6-12 months > 12 months
in € thousand

France 31,693 1,136 406 3 — 144 33,382
Europe (excluding France) 26,811 5,372 207 6 — 1,401 33,797
Latin America 38,664 4,588 266 — — 689 44,207
North America 20,305 1,780 4 20 — 29 22,138
Far East Asia 40,433 506 40 4 — 339 41,323
Pacific 11,427 208 7 — — 2 11,644
India, Africa & Middle-East 9,686 2,342 151 10 — 243 12,432

Trade receivables 179,018 15,933 1,082 44 — 2,847 198,923



As at December 31, 2023
Receivables overdue for
Receivables
Impaired Total
due
< 3 months 3-6 months 6-12 months > 12 months
in € thousand

France 26,291 946 270 — — 390 27,897
Europe (excluding France) 33,300 3,675 54 — — 1,418 38,447
Latin America 41,262 2,132 155 — — 581 44,130
North America 17,474 3,096 12 — — 5 20,588
Far East Asia 12,244 94 96 20 — 236 12,690
Pacific 10,204 5,562 316 19 — 6 16,106
India, Africa & Middle-East 9,349 1,193 112 101 2 185 10,943

Trade receivables 150,123 16,698 1,015 139 2 2,822 170,800


Receivables due and not settled are periodically analyzed and classified as bad debts whenever the risk that the
receivable will not be fully recovered appears. The amount of the provision recorded at closing is defined based on
the expected credit loss at maturity.

Bad debts are recognized as losses when identified as such.




50
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




Counter-party risk

■ Risk factors
We are exposed to counterparty risk within the context of the contracts and financial instruments which we
subscribe to, in the event that the debtor refuses to honor all or part of its commitment or finds itself ultimately
unable to do so.

■ Risk management mechanisms
We pay particular attention to the choice of financial institutions we use, and we are even more critical when it
comes to investing available cash.
Nevertheless, we consider our exposure to counterparty risk to be limited, considering the quality of our major
counterparties. In fact, investments are only made with first-class banking entities.
In regards of other financial assets and particularly liquid assets, when possible the cash position surpluses of the
subsidiaries are generally pooled by the parent company, which is in charge of managing them centrally, in the
form of short-term interest-bearing deposits. We only work with leading banking counterparties.

Liquidity risk

■ Risk factors
Liquidity is defined as our capacity to meet our financial payment deadlines as part of our current business and to
find new funding sources as needed, so as to maintain a continual balance between our income and expenditures.
As part of our operations, our program of recurring investments and active policy of external growth, we are thus
exposed to the risk of not being sufficiently liquid to fund our growth and development.

■ Risk management mechanisms
Our policy of pooling surplus cash positions and funding needs in all areas helps to refine our net position and to
optimize the management of investments and funding requirements, thus ensuring our ability to meet our financial
commitments and to maintain an optimal level of availability commensurate with our size and needs.

In respect to our specific review of the liquidity risk, we regularly carry out a detailed review of our outstanding
amounts, thus ensuring compliance with our financial covenant (debt covenant).
As of December 31, 2024, the ratio amounted to 0.59, which is below the contractual financial covenant threshold
of 3.75. This ratio is calculated by taking into account the application of the IFRS 16 standard (see notes A18).
During this same period, we primarily have a €350 million revolving credit line maturing in October 2028, which is
drawn for €187 million, unconfirmed lines of credit in the United States for US $37 million used for US $24 million
and a bank loan of 24.3 billion Chilean pesos.
We also have recourse factoring programs in Chile and non-recourse factoring programs in Europe allowing us to be
financed to the tune of US$ 14.9 million and € 6.1 million respectively as of December 31, 2024.

With regard to our prospects, our cash position and financial resources are sufficient to fund our cash position
requirements.

Fraud risks

■ Risk factors
We are exposed to cases of internal or external fraud that could result in financial losses and affect our reputation.

■ Risk management mechanisms
We are committed to strengthening internal control and give particular importance to making our teams aware of
these issues. Our head office teams regularly provide strong guidance and guidelines on this subject. Segregation of
duties, as well as a central, regional and local management control mechanism and the appointment of regional
controllers help strengthen control and reduce the probability of such practices occurring. Upon acquiring new
companies, we integrate them into these mechanisms for the prevention of unethical practices.
We have proceeded with training and roll-out of best practices processes that, among other things, are intended to
prevent the risk of fraud.
We have implemented a tool to check the consistency of the bank details/company tax ID number pair to increase
our payment chain security through automation of the control process, as well as to protect us from the risk of wire
fraud.
Virbac’s code of conduct underlines the Group’s commitment to pursue our activities in accordance with the law and
ethics, and also defines the nature of the relationships we wish to have with our partners.

Market risks

Exchange rate risk

■ Risk factors
The currency risk arises from the impact of fluctuations in exchange rates on our financial flows when carrying out
our activities. Due to our strong international presence, we are exposed to the foreign exchange risk on
transactions, and the foreign exchange risk on the conversion of the financial statements of our foreign subsidiaries.
We carry out transactions in currencies other than the euro, our reference currency. The exchange rate risk is
monitored using dashboards generated by the IT system (ERP). The items are updated based on ad hoc reports.




51
The majority of our exchange rate risk is centralized on the parent company, which invoices its subsidiaries in their
local currency. In the case of sales to countries with exotic currencies, the invoices are denominated in euros or
American dollars.
Taking into account our purchases and sales in other currencies, we are exposed to exchange rate risks mainly for
the following currencies: US dollar, pound sterling, Swiss franc and various currencies in Asia, the Pacific, and Latin
America.
Given our exchange rate risk exposure, currency fluctuations have a significant impact on our income statement,
both in terms of conversion and transaction risk.

■ Risk management mechanisms
In order to protect ourselves against unfavorable variations in the various currencies in which sales, purchases or
specific transactions are denominated, our policy is to hedge most of our significant and certain foreign exchange
positions (receivables, liabilities, dividends, intra-group loans), as well as our future sales and purchases.
Accordingly, we use various instruments available on the market and generally employ foreign exchange forwards
or options.

Derivative financial exchange instruments are presented below, at market value:


2024 2023
in € thousand

Fair value hedges -2,934 681
Cash flow hedges 1,302 -107
Net investment hedges — —
Derivatives not qualifying for hedges 72 -275

Derivative financial exchange instruments -1,560 299


The derivative instruments held at closure do not all qualify for hedging in the consolidated accounts. In such a
case, value variations directly impact the profit for the period.

Interest rate risk

■ Risk factors
Our income statement may be impacted by the interest rate risk. Indeed, unfavorable rate changes can thus have a
negative impact on our financing costs and future financial flows.
Our exposure to interest rate risk results from the fact that our main lines of credit are at variable rates; therefore,
the cost of debt may increase in the event of an increase in interest rates.
Our exposure to rate risk is mainly due to the revolving credit line indexed to the Euribor set up at Virbac as well as
the credit lines in the United States historically indexed to the Secured overnight financing rate (SOFR) and the loan
in Chile indexed to the TAB Nominal (Tasa activa bancaria). As of December 31, 2024, credit lines are mobilized for
€187 million in France, US $24 million in the United States and 24.3 billion Chilean pesos in Chile.

The current amount on the credit lines is the following:

2024 2023

Average real Average real
Book value Book value
in € thousand interest rate interest rate

Chile: Centrovet 7.9% 15,617 7.8% 23,113
France 1.4% 16,179 1.4% 18,113
Fixed rate debt 31,796 41,225

Chile: Virbac Chile 7.4% 23,690 10.4% 24,934
United States 5.0% 23,101 6.0% 16,289
France 3.3% 186,713 — —
Other 44
Variable rate debt 233,547 41,223

Bank overdrafts — 3,567 — 2,517

Loans and bank overdrafts 268,910 84,966


■ Risk management mechanisms
To manage these risks and optimize the cost of our debt, we monitor developments and market rate expectations,
and we limit our exposure by establishing interest rate hedges, with instruments available on the market such as
caps or swaps of interest rates (fixed rate) not exceeding the length and value of our actual commitments.

Interest rate derivatives are shown below, at market value:




52
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




2024 2023
in € thousand

Fair value hedges — —
Cash flow hedges 1,384 43
Net investment hedges — —
Derivatives not qualifying for hedges — —

Derivative financial rate instruments 1,384 43


Specific impacts from hedging exchange rate and interest rate risks

■ Risk factors
The purpose of hedge accounting is to offset the impact of the hedged item and of the hedging instrument in the
income statement. In order to qualify for hedge accounting, all hedging relationships must satisfy a series of
stringent conditions in terms of documentation, likelihood of occurrence, effectiveness of the hedge and
measurement reliability.

■ Risk management mechanisms
We only engage in hedging transactions designed to hedge actual or certain exposure; therefore, we do not create
any speculative risk.
Financial derivatives are designated as hedges when the hedging relationship can be demonstrated or documented.
The exchange rate derivatives used for cash flow hedging generally mature within one year at most.

Nominal Positive fair value Negative fair value

in € thousand 2024 2023 2024 2023 2024 2023

Forward exchange contract 252,073 159,835 3,815 2,255 5,618 1,648
OTC option exchange 71,062 61,534 460 240 217 549
Exchange instruments 323,135 221,369 4,275 2,495 5,835 2,197

Swap rate — — — — — —
Interest rate options — — — — — —
Cross currency swap 165,329 7,833 1,384 43 — —
Interest rate instruments 165,329 7,833 1,384 43 — —

Derivative financial
488,464 229,202 5,659 2,538 5,835 2,197
instruments


Supply risks
The raw materials used to manufacture our products are supplied by third parties. In certain cases, we also use
contract manufacturing organizations or industrial partners who have expertise in or master particular technologies.
As far as possible, we diversify our sources of supply by choosing several suppliers, while ensuring that these
various sources embody the characteristics of sufficient quality and reliability.
Nevertheless, there are, for certain supplies or certain technologies, situations where diversification is practically
impossible, which can result in a disruption to the supply or pressure on prices.

To limit these risks, we take a broad approach to identifying as many diversified suppliers as possible, and may in
certain cases secure our supply chain by acquiring the technologies and capacities we lack and that create an
excessive dependency. We also mitigate these risks by implementing the appropriate safety inventory policy.

In 2024, we pursued our security policy by adjusting safety stock levels, which enabled us to cope with certain
tensions. In an international context marked by numerous regional geopolitical tensions (conflict between Russia
and Ukraine, conflict in the Middle East, attacks on ships in the Red Sea, etc.), we are committed to implementing
measures to limit their impact (in particular the adverse impact on the costs) and monitoring the potential
consequences on our value chain.




53
A34. Composition of Virbac share capital
2023 Increase Decrease 2024


Number of authorized shares 8,458,000 — -67,340 8,390,660
Number of shares issued and fully paid 8,458,000 — -67,340 8,390,660
Number of shares issued and not fully paid — — — —
Outstanding shares 8,369,719 4,875 8,374,594
Treasury shares 88,281 — -72,215 16,066

Nominal value of shares €1.25 — — €1.25

Virbac share capital €10,572,500 — — €10,488,325




A35. Performance-related stock grant plans
The board of directors, in accordance with the authorization from the shareholders’ general meeting, granted
allocations of performance-related stocks to certain employees and directors at Virbac and its subsidiaries.

Fair value of performance-related stock grant plans
In accordance with IFRS 2, these plans were valued in our consolidated accounts based on the allocated shares’ fair
value on their allocation date.

In 2024, the 2021 performance-related stock grants plan, allocated on March 16, 2021, and valued at €1,453,538,
(i.e 6,225 shares at €233.50 each) was acquired by the beneficiaries in accordance with the plan structure.
Following the departure of certain beneficiaries, 1,350 shares also forfeited, resulting in a revenue of
€315 thousand.

On March 18, 2022, the board of directors decided to implement a new performance-related stock grants plan for a
total of 4,000 shares, granted in two installments:
• 900 shares whose distribution was decided on March 18, 2022, subject to approval by the annual shareholders'
meeting held on June 21, 2022 (for shares distributed to corporate officers) which effectively occurred, for a
total value of €302,850 (i.e 900 shares valued at €336.50) spread over a vesting period of 30 months;
• as well as 3,100 shares whose distribution was decided by the board of directors on September 13, 2022, for a
total valuation of €1,057,100 (i.e 3,100 shares valued at €341) spread over a vesting period of 28 months.
Following the change in September 2024 within the Group’s general management, the number of shares allocated
to corporate officers under this plan was reduced to 400. The net expense recorded in the income statement as of
December 31, 2024 for these two installments after adjustment of the number of securities is €436 thousand,
including contribution.

In addition, on March 18, 2022, the board of directors had also decided, subject to the approval of the shareholders'
meeting of June 21, 2022, which effectively occurred, to allocate a second 2022 performance-related stock grants
plan in three installments, with the shares allocated on July 1, 2022, for all three installments:
• an initial installment, representing 1,000 shares, valued at €336.50 (i.e a total of €336,500) over a vesting
period of 57 months;
• a second installment, representing 1,000 shares, valued at €336.50 (i.e a total of €336,500) over a vesting
period of 93 months;
• a third installment, representing 3,000 shares, valued at €336.50 (i.e a total of €1,009,500) over a vesting
period of 129 months.
Following the change in September 2024 within the Group’s general management, the entire provision previously
made under this plan was reversed.

On June 19, 2023, the board of directors decided to implement a new performance-related stock grants plan for a
total of 4,800 shares, granted in two installments:
• 1,390 shares whose distribution was decided on June 19, 2023, subject to approval by the annual
shareholders' meeting held on June 20, 2023 (for shares distributed to corporate officers), which effectively
occurred, for a total value of €391,980 (i.e., 1,390 shares valued at €282) spread over a vesting period of 33
months;
• as well as a second installment covering 3,410 shares valued at €285.50 (or €973,555 in total) spread over a
vesting period of 30 months.
Following the change in September 2024 within the Group’s general management, the number of shares allocated
to corporate officers under this plan was reduced to 590. The impact recorded on the income statement as of
December 31, 2024 after adjustment of the number of shares, for these two installments is €443 thousand,
including contribution.

On March 15, 2024, the board of directors decided to implement a new performance-related stock grants plan
comprising 5,000 shares, granted in two installments:
• 1,590 shares, the allocation of which was decided on March 15, 2024, subject to approval by the annual
shareholders' meeting held on June 21, 2024 (for shares distributed to corporate officers), which effectively
occurred, for an initial total value of €559,680 (i.e., 900 shares valued at €352) spread over a vesting period
of 33 months;



54
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




• as well as a second installment of 3,410 shares, the allocation of which was decided by the board of directors
on June 20, 2024, for a total valuation of €1,188,385 (i.e., 3,410 shares valued at €348.50) with a vesting
period of 30 months.
Following the change in September 2024 within the Group’s general management, the number of shares allocated
to corporate officers under this plan was reduced to 640. The net expense recorded in the 2024 financial year after
adjustment of the number of securities for these two installments is €339 thousand, including contribution.


A36. Dividends
In 2024, a €11,165 thousand dividend was distributed to the owners of the parent company, representing a €1.32
dividend per share.
For the financial year 2024, a proposal will be made to the shareholders’ meeting to allocate a net dividend of €1.45
per share, with a nominal value of €1.25, that is a global amount of €12,166 thousand.


A37. Workforce

Evolution of workforce by geographic area (at constant consolidation scope)
2024 2023 Variation


Europe 1,983 1,923 3.1%
Latin America 1,030 1,041 -1.1%
North America 547 533 2.6%
Far East Asia 572 524 9.2%
Pacific 339 326 4.0%
India, Africa & Middle-East 1,149 1,112 3.3%

Workforce 5,620 5,459 2.9%


It should be noted that following a managerial reorganization of our regions, India is now included in the India,
Africa and Middle East area (and no longer in Asia). France is now in the Europe area. The comparative information
as of December 31, 2023 has been restated accordingly.

Distribution of workforce by position (at constant consolidation scope)
2024 2023


Manufacturing 1,933 34.4% 1,852 33.9%
Administration 757 13.5% 745 13.6%
Business 2,285 40.7% 2,225 40.8%
Research & Development 645 11.5% 637 11.7%

Workforce 5,620 100.0% 5,459 100.0%

The workforce of new acquisitions is currently estimated at 45 employees for Mopsan, 550 employees for Sasaeah
and 150 employees for Globion.




55
A38. Information on related parties

Compensation of the members of the board of directors
2024 2023

Directors' Directors'
Compensation Compensation
fees fees

Marie-Hélène Dick €125,000 €31,000 €110,000 €27,000
Pierre Madelpuech — €31,000 — €27,000
Solène Madelpuech — €31,000 — €27,000
Philippe Capron — €34,000 — €30,000
Company OJB Conseil represented by Olivier Bohuon — €31,000 — €27,000
Company Cyrille Petit represented by Cyrille Petit — €31,000 — €27,000
Sylvie Gueguen — — — —
Non-voting advisor Company XYC Unipessoal Lda
— €13,000 — €24,000
represented by Xavier Yon

Non-voting advisor, Rodolphe Durand — €28,000 — €24,000


Total €125,000 €230,000 €110,000 €213,000



Compensation of the members of the general management

As at December 31, 2024 - Gross amounts due
Compensation linked to
Fixed compensation
terms of office for Variable Total
(including benefit
administrator on compensation compensation
in kind)
Group companies

1
Sebastien Huron €389,921 €33,750 €0 €423,671
Habib Ramdani €295,983 — €102,856 €398,839
Marc Bistuer €262,710 — €78,241 €340,951

Total €948,614 €33,750 €181,097 €1,163,461
1
the fixed compensation includes €84,800 due and paid for the non-competition indemnity for the 2024 financial
year. The entire non-competition indemnity was provisioned in the Group's accounts as of December 31, 2024, for
an amount of €500,000

As at December 31, 2023 - Gross amounts due
Compensation linked to
Fixed compensation
terms of office for Variable Total
(including benefits
administrator on compensation compensation
in kind)
Group companies

Sebastien Huron €395,221 €45,000 €233,200 €673,421
Habib Ramdani €246,263 — €97,958 €344,221
Marc Bistuer €252,115 — €76,424 €328,539

Total €893,599 €45,000 €407,582 €1,346,181


Compensation paid for the 2024 financial year represents fixed compensation paid in 2024, compensation paid in
2024 in relation to terms of office for directors in the Group companies, variable compensation paid in 2025 in
relation to 2024 and benefits in kind granted in 2024 (company car).

Calculation criteria for the variable portion
Each member of the general management has a variable compensation target, which is a percentage of his/her
fixed compensation.
The variable compensation for members of the general management is essentially based on the following
objectives:
• growth of revenue from ordinary activities;
• growth in operating profit from ordinary activities;
• the Group’s cash position and debt management;
• CSR-related targets.




56
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




Other benefits
In addition to the various compensation items, general management members enjoy the benefits described below.

■ Company vehicle
The chief executive officer as well as the deputy chief executive officers receive a company vehicle, in accordance
with the policy defined by the compensation committee.

■ Health insurance plan, maternity benefits, pension and retirement
The chief executive officer and the deputy chief executive officers have the same health insurance, maternity
benefits and pension and retirement plans as those provided to all the company’s executives, under the same
contribution and benefit conditions as those defined for the other company executives.

■ Unemployment insurance plan
The chief executive officer is covered by the private GSC (unemployment insurance for company's chief executive
officers) plan, which is based on the 70-for-one-year formula. The amount of the annual contributions over time
shall not exceed €15,000.
The deputy chief executive officers have the same unemployment insurance plan as that provided to the company’s
employees.

■ Forced retirement severance pay
The board of directors may decide to grant an indemnity in the event of the termination of the duties of a corporate
officer.
The compensation that Sébastien Huron, chief executive officer, could receive is determined on the basis of the
following objectives:
• insofar as the Group’s operating profit from ordinary activities to net revenue ratio is lower than 4% on
average over the last four financial half-years ended (for example: for a departure in May in year N: the period
taken into account to calculate the ratio is from January, 1 of year N-2 to December, 31 of year N-1), no
compensation will be due;
• insofar as the ratio of operating profit from ordinary activities to the Group’s net revenue is greater than or
equal to 4% on average over the last four closed accounting half-years (for example: for a departure in May in
year N: the period taken into account to calculate the ratio is from January, 1 of year N-2 to December, 31 of
year N-1), the compensation due will be €550,000; however, to the extent that the ratio of operating profit
from ordinary activities to the Group’s net revenue is greater than or equal to 7% on average over the last two
closed accounting half-years (for example: for a departure in August in year N: the period taken into account
to calculate the ratio is July, 1 of year N-1 to June, 30 of year N), the compensation will be increased to
€700,000.

Severance pay shall only be paid out in the event of a forced departure at the company’s initiative. Sébastien Huron
did not receive this compensation since he resigned from his duties.

Deputy chief executive officers do not receive any extra-legal severance pay, but may be entitled to severance pay
under their employment contract.

■ Non-competition payments
A non-competition commitment was provided for in the event of leaving office, in consideration of which a non-
competition payment is provided for.
In consideration of the non-competition obligation, Sébastien Huron will receive each month, during the entire
competition ban period, a payment in an amount equal to 80% of his fixed gross monthly compensation received
for the company’s last financial year-end (including directors’ fees and any other compensation related to his
functions within the Virbac group). This payment will be limited, for this eighteen-month period, to a maximum
gross amount of €500,000. Following his departure, Sébastien Huron received €84,800 in respect of the non-
competition indemnity, and the entire €500,000 was provisioned as of December 31, 2024.

Deputy chief executive officers are not subject to any non-competition commitments in connection with their office
or their employment contract and are therefore not entitled to receive any non-competition indemnity.

■ Performance-related stock grant plans
In accordance with the authorization of the shareholders’ meeting, certain employees and managers of Virbac and
its subsidiaries have received long-term compensation in the form of performance-related stock grants since 2006.
The performance conditions to be met for the acquisition of performance-related stock grants are measured against
the internal objectives of consolidated operating profit and the Group’s consolidated net debt at the close of the
second full financial year following the plan’s start date. These elements therefore take into account the Group’s
performance over more than two financial years.

The performance-related stock grant plans granted to members of the general management for the past five
financial years are as follows:




57
Number of shares Number of shares Number of shares Number of shares
2021 plan 2022 plan 2023 plan 2024 plan

1
Sebastien Huron 950 — — —
Habib Ramdani 475 250 350 400
Marc Bistuer 300 150 240 240

Total 1,725 400 590 640
1
Sébastien Huron was eligible for 5,500 free shares in respect of the 2022 plan, 800 in respect of the 2023 plan,
and 950 in respect of the 2024 plan. The amounts provisioned as of June 30, 2024 for these performance-related
stock grants for the former Group CEO were written off in full as of December 31, 2024


A39. Off-balance sheet commitments
■ Bonds or guarantees granted by Virbac or some of its subsidiaries
The status of the major bonds and guarantees granted is presented below:
Nature Validity limit date 2024 2023
in € thousand

Escrow payment related to the acquisition debt
Virbac Patagonia — — 3,383
of the non-controlling interests (HSA Group)
1
Virbac Uruguay Mortgage security on the industrial site Annual renewal 3,850 3,620

Guarantees given 3,850 7,003
1
guarantee granted as part of a long-term bank loan not drawn on the closing date

■ Contingent liabilities
Virbac and its subsidiaries are at times involved in litigation, or other legal proceedings, generally linked to disputes
related to intellectual property rights, disputes involving competition law and tax matters.
Each situation is analyzed under IAS 37 or Ifric 23 when it concerns relative uncertainty surrounding tax treatment
(see notes A16 and A19).
No provision is made when the company considers a liability to be potential, and information is provided in the
notes to the financial statements.

As of December 31, 2024, we have not identified any contingent liabilities.




58
CONSOLIDATED ACCOUNTS | FINANCIAL REPORT




A40. Scope of consolidation
Company name Locality Country 2024 2023

Control Consolidation Control Consolidation


France
Virbac (parent company) Carros France 100.00% Full 100.00% Full
Interlab Carros France 100.00% Full 100.00% Full
Virbac France Carros France 100.00% Full 100.00% Full
Virbac Nutrition Vauvert France 100.00% Full 100.00% Full
La Seyne-sur-
Virbac Diagnostics France 100.00% Full 100.00% Full
Mer
Alfamed Carros France 100.00% Full 100.00% Full

Europe (excluding France)
Virbac Belgium SA Wavre Belgium 100.00% Full 100.00% Full
1
Virbac Nederland BV Barneveld Netherlands 100.00% Full 100.00% Full
Virbac (Switzerland) AG Glattbrugg Switzerland 100.00% Full 100.00% Full
United
Virbac Ltd Bury St. Edmunds 100.00% Full 100.00% Full
Kingdom
Virbac SRL Milan Italy 100.00% Full 100.00% Full
Virbac Danmark A/S Kolding Denmark 100.00% Full 100.00% Full
Virbac Pharma Handelsgesellshaft mbH Bad Oldesloe Germany —% — 100.00% Full
Virbac Tierarzneimittel GmbH Bad Oldesloe Germany 100.00% Full 100.00% Full
Virbac SP zoo Warsaw Poland 100.00% Full 100.00% Full
Virbac Hungary Kft Budapest Hungary 100.00% Full 100.00% Full
Virbac Hellas SA Agios Stefanos Greece 100.00% Full 100.00% Full
Virbac Espana SA Barcelona Spain 100.00% Full 100.00% Full
Virbac Österreich GmbH Vienna Austria 100.00% Full 100.00% Full
Virbac de Portugal Laboratorios Lda Almerim Portugal 100.00% Full 100.00% Full
Virbac Hayvan Sagligi Limited §irketi Istanbul Türkiye 100.00% Full 100.00% Full
Virbac Ireland Ltd Dublin Ireland 100.00% Full 100.00% Full
Virbac Czech Republic s.r.o (former GS Czech
Praha 100.00% Full 100.00% Full
Partners) Republic
Mopsan Veteriner Ürünleri A.S Istanbul Türkiye 100.00% Full —% —

North America
1
Virbac Corporation Westlake United States 100.00% Full 100.00% Full
PP Manufacturing Corporation Framingham United States 100.00% Full 100.00% Full
Pharma 8 Llc Wilmington United States 70.00% Full 70.00% Full

1
pre-consolidated levels




59
Company name Locality Country 2024 2023

Control Consolidation Control Consolidation


Latin America
Virbac do Brasil Industria e Comercio 100.00% 100.00%
Sao Paulo Brazil Full Full
Ltda
Virbac Mexico SA de CV Guadalajara Mexico 100.00% Full 100.00% Full
Virbac Colombia Ltda Bogota Colombia 100.00% Full 100.00% Full
Laboratorios Virbac Costa Rica SA San Jose Costa Rica 100.00% Full 100.00% Full
Virbac Chile SpA Santiago Chile 100.00% Full 100.00% Full
Virbac Patagonia Ltda Santiago Chile 100.00% Full 100.00% Full
Holding Salud Animal SA Santiago Chile 100.00% Full 100.00% Full
Centro Veterinario y Agricola Limitada Santiago Chile 100.00% Full 100.00% Full
Farquimica SpA Santiago Chile —% Full 100.00% Full
Centrovet Inc Allegheny United States 100.00% Full 100.00% Full
Centrovet Argentina Buenos Aires Argentina 100.00% Full 100.00% Full
Virbac Uruguay SA Montevideo Uruguay 99.18% Full 99.17% Full
Virbac Latam Spa Santiago Chile 100.00% Full 100.00% Full

Far East Asia
Virbac Trading (Shanghai) Co. Ltd Shanghai China 100.00% Full 100.00% Full
Virbac H.K. Trading Limited Hong Kong Hong Kong 100.00% Full 100.00% Full
Asia Pharma Ltd Hong Kong Hong Kong 100.00% Full 100.00% Full
Virbac Korea Co. Ltd Seoul South Korea 100.00% Full 100.00% Full
Virbac (Thailand) Co. Ltd Bangkok Thailand 100.00% Full 100.00% Full
Virbac Taiwan Co. Ltd Taipei Taiwan 100.00% Full 100.00% Full
Virbac Philippines Inc. Taguig City Philippines 100.00% Full 100.00% Full
Virbac Japan Co. Ltd Osaka Japan 100.00% Full 100.00% Full
Virbac Asia Pacific Co. Ltd Bangkok Thailand 100.00% Full 100.00% Full
Virbac Vietnam Co. Ltd Ho Chi Minh Ville Vietnam 100.00% Full 100.00% Full
AVF Animal Health Co Ltd Hong Kong Hong Kong 50.00% 50.00%
Equity Equity
Hong-Kong
AVF Chemical Industrial Co Ltd China Jinan (Shandong) China 50.00% Equity 50.00% Equity
Shandong Weisheng Biotech Co., Ltd Jinan (Shandong) China 50.00% Equity 50.00% Equity
Sasaeah Holdings Co Ltd Tokyo Japan 100.00% Full —% —
Sasaeah Pharmaceutical Co Ltd Tokyo Japan 100.00% Full —% —
Fujita Pharmaceutical Co Ltd Tokyo Japan 100.00% Full —% —
Kyoto Biken Hanoi Laboratories Co Hung Yen Japan 85.00% Full —% —
Ltd
Kyoto Biken Laboratories Inc Kyoto Japan 100.00% Full —% —
Virbac Suzhou Pet Food Co Ltd Suzhou China 100.00% Full —% —

Pacific
1
Virbac (Australia) Pty Ltd Milperra Australia 100.00% Full 100.00% Full
Virbac New Zealand Limited Hamilton New Zealand 100.00% Full 100.00% Full

India, Africa & Middle-East
1
Virbac RSA (Proprietary) Ltd Centurion South Africa 100.00% Full 100.00% Full
Virbac Animal Health India Private 100.00% 100.00%
Mumbai India Full Full
Limited
Globion India Private Ltd Hyderabad India 100.00% Full 74.00% 0

1
pre-consolidated levels




60