(BFM Stock Exchange) – The results of the veterinary laboratory surprise the market thanks to a rise in power of its essential range in the distribution of sales.

The year 2024 was favorable to veterinary laboratories listed on the Paris Stock Exchange. In mid-March, Virbac announced very good annual results, notably publishing a record operating margin of 16.1%. Stifel had returned to this publication and qualified it as “reassuring”, in a note published earlier this week.

This Friday, March 21, Vétoquinol in turn delivered its results. Recall that the other veterinary laboratory listed on the stock market had unveiled a turnover 2024 with slight growth of 1.9% in published data. This modest growth combined with strong research and development expenditure could augur profitability pressure, explained at the start of the week TP ICAP Midcap.

Results above expectations

In the end, Vetoquinol appeased fears of the market, with annual results above expectations. In 2024, the veterinary laboratory unveiled a gross margin in net increase at 72% against 70.6% the previous year.

The mix-product favored by sales of strategic products, so-called “essential” at Vetoquinol, considered as the main growth engines, as well as the price increase participate in this progression. This made it possible to mitigate the effect of inflation observed on the purchase costs of raw materials and subcontracted products.

The “Essentials” range brings together a range of products that meet the most common needs of laboratory customers, vetoquinol.com/fr/publication/5810/view”>explains Vetoquinol.

“Simplification of the portfolio and promotion efforts on ‘essential’ products (61% of turnover) must continue to wear mix, favorable”, appreciates Oddo BHF.

The current operating profit before damping of intangible assets from acquisitions amounts to 89 million euros, and increased by 4.7% over one year. The corresponding margin follows the same path and increased by 40 base points (0.4 percentage point) at 16.5%.

Vetoquinol thus exceeds the expectations of Oddo BHF which tapped on an operating profit of 85.7 million euros and a margin of 15.3%.

The net profit of vetoquinol amounts to 58.7 million euros, and beats the design office projections by almost 10% (53.5 million euros).

“They delivered the best”

At the end of December 2024, the clear net cash position of vetoquinol increased by 55.2 million euros over one year, to 185.2 million euros, taking into account the IFRS 16 standard.

The cash position of the veterinary laboratory inspires financial intermediaries. TP ICAP MIDCAP believes that the vetoquinol war treasure guarantees “its independence, its autonomy” and allows it to “consider possible external growth opportunities” on so-called “essential” products as well as in the United States.

For Oddo BHF, the situation of Cash de Votoquinol “once again testifies to the very good discipline of need for working funds and capex (investment expenditure) of the group”.

“We feared the worst, they delivered the best,” said Sarah Thirion, the analyst in charge of the vetoquinol coverage for TP ICAP Midcap. And the market shares the opinion of the specialist, also pushing a large souf of relief. Vetoquinol jumped 14.65% to 85.30 euros.

Vetoquinol is not advancing encrypted perspectives for 2025. The group is content to announce that it continues to deploy its strategy “while being particularly attentive to the uncertainties born of recent geopolitical upheavals”.

TP ICAP Midcap recalls that the company has communicated on the prospect of an increase in turnover of the “essential” higher than that of the market, a rationalization of complementary products in the same order of magnitude as in 2024, (around 8 million euros), a profitability as well as a generation of sustained cash flow.