A weaker start to 2023 shouldn’t be a concern and, given that the full-year guidance has been maintained, Virbac should be able to compensate in the subsequent quarters. Both its segments are well positioned to achieve healthy medium-to-long term growth, which should find impetus from the ongoing R&D investment and Chinese expansion plans. Moreover, Dechra’s (the firm’s peer) potential takeover at a high premium to its undisturbed valuation bodes well for Virbac’s ongoing re-rating.
