Zoetis Announces First Quarter 2024 Results
Zoetis Inc. (NYSE:ZTS) reported a successful first quarter of 2024 with revenue of $2.2 billion, a 10% increase YoY. Net income was $599 million, or $1.31 per diluted share, up 9% and 10%, respectively. Adjusted net income was $634 million, or $1.38 per diluted share. The company updated its full-year 2024 revenue guidance to $9.050 - $9.200 billion, showing operational revenue growth of 8.5% to 10.5%. Zoetis continues to invest in innovation and growth, expanding product franchises globally.
Zoetis reported a revenue increase of 10% YoY in the first quarter of 2024, reaching $2.2 billion.
The company's net income saw a 9% increase, with $599 million reported for the first quarter of 2024.
Adjusted net income grew by 15%, totaling $634 million for the first quarter of 2024.
Full-year 2024 revenue guidance was updated to $9.050 - $9.200 billion, with operational revenue growth expected to be between 8.5% to 10.5%.
Zoetis continues to invest in innovation, gaining regulatory approvals for new products globally.
Sales of livestock products declined by 7% in the U.S. segment for the first quarter of 2024.
Sales of livestock products in the International segment declined by 4% on a reported basis, driven by unfavorable market conditions and generic competition.
The company reported a net impact of $35 million for purchase accounting adjustments and acquisition-related costs for the first quarter of 2024.
Sales of sheep products decreased due to unexpected weather conditions and supply constraints in Australia.
Sales of swine products decreased primarily due to unfavorable market conditions in China and generic competition.
Insights
Zoetis' first quarter 2024 financial results highlight a robust performance, particularly in the companion animal segment, which saw a 20% operational revenue growth influenced by strong sales in pet parasiticides, pain management and dermatology products. This exceptional growth in the U.S. market, pegged at 16%, suggests a concentrated demand in higher-margin segments which is a promising sign for investor confidence.
However, the livestock segment's decline of 7% in the U.S. and mixed international results—growth in cattle and poultry but decline in sheep and swine products—point to a more volatile market that may reflect broader agricultural trends and market competition pressures. While the operational growth figures are impressive, the reported net income and EPS growth are modest, which might indicate rising operational costs or other financial adjustments impacting the bottom line.
The update in 2024 revenue guidance, including an operational growth of 8.5% to 10.5% and the projected growth in adjusted net income of 13% to 15%, are indicative of strong company performance despite potential challenges in the global economy. Particularly notable is the increase in guidance reflecting both inflation-related price adjustments in Argentina and robust companion animal sales.
Zoetis' strategic investments, such as the acquisition of a manufacturing site in Melbourne and the expansion of the distribution center in Lee's Summit, point to a long-term focus on supply chain efficiency and market share consolidation. The sale of the MFA portfolio may also exemplify a strategic re-focusing of resources towards more lucrative areas in the animal health sector. As a retail investor, it is essential to consider the balance between the company's operational growth and potential market volatilities in the livestock segment.
From a market perspective, Zoetis' emphasis on the companion animal products is aligned with a noticeable trend of increased pet ownership and the humanization of pets, which has likely contributed to the growth in this segment. The operational growth in this area, particularly in the U.S., is a testament to how well Zoetis is capitalizing on this trend. On the contrary, the livestock product decline may reflect a shorter-term cyclical downturn but could also signal long-term shifts in consumption patterns or competition from generic alternatives.
The company's innovative product pipeline and recent product approvals, such as Protivity in the U.K. and synthetics like Synovex Choice, serve to fortify its market position. The external focus on innovative solutions like Revolution Plus for cats, which defends against four types of ticks, could enhance its competitive edge in the international market where pet owners are becoming increasingly aware of animal healthcare.
For investors, the company's geographic diversification and investment in innovation are likely positive signs. However, it will be essential to monitor how Zoetis navigates the global economic challenges, such as inflation and currency fluctuations, which have prompted updates to their revenue guidance. Also, the sell-off of the MFA portfolio, while streamlining operations, suggests a strategic pivot which investors should watch closely for its impact on revenue streams moving forward.
-
Reports Revenue of
$2.2 Billion 10% , and Net Income of$599 Million $1.31 9% and10% , Respectively, on a Reported Basis for First Quarter 2024 -
Delivers
12% Operational Growth in Revenue and15% Operational Growth in Adjusted Net Income for First Quarter 2024 -
Reports Adjusted Net Income of
$634 Million $1.38 -
Updates Full Year 2024 Revenue Guidance to
$9.05 0$9.20 0 Billion$5.34 $5.44 $5.71 $5.81 -
Increases Full Year 2024 Operational Revenue Growth to
8.5% to10.5% and Full-Year Operational Growth in Adjusted Net Income to13% to15%
The company reported revenue of
Adjusted net income2 for the first quarter of 2024 was
EXECUTIVE COMMENTARY
“I am incredibly proud of our outstanding first quarter, once again proving our ability to grow revenue faster than the market. It is a testament to the strength of our diverse portfolio and our dedicated colleagues," said Kristin Peck, Chief Executive Officer of Zoetis. “We achieved
“As the leader in animal health, we understand our customers' needs. Our innovation continues to be our differentiator, and we'll continue to lead the way by investing in areas of unmet need to advance care for animals. The strength of the human-animal bond and the growing demand for a secure and sustainable food supply reinforce the essential nature of the animal health industry and our innovative portfolio. We will continue to deliver strong growth in 2024, while investing for the future."
QUARTERLY HIGHLIGHTS
Zoetis organizes and manages its commercial operations across two segments:
-
Revenue in the
U.S. segment was$1.2 billion 16% compared with the first quarter of 2023. Sales of companion animal products increased25% , due to growth in key franchises including Simparica Trio®, the company's flea, tick and heartworm combination product, the company's key dermatology portfolio, including Apoquel® and Cytopoint®, and the company's osteoarthritis (OA) pain products, Librela® for dogs and Solensia® for cats. Growth in the quarter was also due in part to a favorable comparative period in the prior year that was negatively impacted by distributor de-stocking and timing of promotional activity. Sales of livestock products declined7% in the quarter. Sales of cattle products declined due to a difficult comparable period versus the same quarter last year.
-
Revenue in the International segment was
$1.0 billion 3% increase on a reported basis and an increase of8% operationally compared with the first quarter of 2023. Sales of companion animal products grew10% on a reported basis and14% operationally. Growth in the quarter was driven by the company’s OA pain products, Librela for dogs and Solensia for cats, as well as its key dermatology products, Apoquel and Cytopoint. Also contributing to growth in the quarter was Simparica Trio. Sales of livestock products declined4% on a reported basis and grew2% operationally. Growth of both the company's cattle and poultry products were driven largely by price increases across the broader international segment. Sales of sheep products declined due to unexpected weather conditions and supply constraints inAustralia . Sales of swine products decreased primarily due to unfavorable market conditions inChina and generic competition.
INVESTMENTS IN GROWTH
Zoetis continues to advance innovation and care for animals across the globe. Since its last quarterly earnings announcement, the company gained approval in
Zoetis also continues to grow key product franchises through additional claim extensions in major markets. Synovex Choice® was approved for an additional claim in the
Additionally, the company recently signed an agreement to purchase a manufacturing site in
FINANCIAL GUIDANCE
Zoetis is updating its full year reported 2024 guidance for foreign exchange, with an increase to operational growth due to inflation-related price increases in
-
Revenue between
$9.05 0 billion$9.20 0 billion8.5% to10.5% ) -
Reported net income between
$2.45 0 billion$2.49 5 billion -
Adjusted net income between
$2.62 0 billion$2.67 0 billion13% to15% ) -
Reported diluted EPS of
$5.34 $5.44 -
Adjusted diluted EPS between
$5.71 $5.81
This guidance reflects foreign exchange rates as of late April. Additional details on guidance are included in the financial tables and will be discussed on the company's conference call this morning.
WEBCAST & CONFERENCE CALL DETAILS
Zoetis will host a webcast and conference call at 8:30 a.m. (ET) today, during which company executives will review first quarter 2024 results, discuss financial guidance and respond to questions from financial analysts. Investors and the public may access the live webcast by visiting the Zoetis website at http://investor.zoetis.com/events-presentations. A replay of the webcast will be archived and made available on May 2, 2024.
About Zoetis
As the world’s leading animal health company, Zoetis is driven by a singular purpose: to nurture our world and humankind by advancing care for animals. After innovating ways to predict, prevent, detect, and treat animal illness for more than 70 years, Zoetis continues to stand by those raising and caring for animals worldwide – from veterinarians and pet owners to livestock farmers and ranchers. The company’s leading portfolio and pipeline of medicines, vaccines, diagnostics and technologies make a difference in over 100 countries. A Fortune 500 company, Zoetis generated revenue of
1 Operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange.
2 Adjusted net income and its components and adjusted diluted earnings per share (non-GAAP financial measures) are defined as reported net income and reported diluted earnings per share, excluding purchase accounting adjustments, acquisition-related costs and certain significant items.
3 Bonqat® is a trademark owned by Orion Corporation. It is manufactured by Orion Corporation and exclusively distributed in
DISCLOSURE NOTICES
Forward-Looking Statements: This press release contains forward-looking statements, which reflect the current views of Zoetis with respect to: business plans or prospects, future operating or financial performance, future guidance, future operating models; R&D costs; timing and likelihood of success; expectations regarding products, product approvals or products under development and expected timing of product launches; disruptions in our global supply chain; expectations regarding the performance of acquired companies and our ability to integrate new businesses; expectations regarding the financial impact of acquisitions; future use of cash, dividend payments and share repurchases; tax rates and tax regimes and any changes thereto; and other future events. These statements are not guarantees of future performance or actions. Forward-looking statements are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, or if management's underlying assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Zoetis expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A further list and description of risks, uncertainties and other matters can be found in our most recent Annual Report on Form 10-K, including in the sections thereof captioned “Forward-Looking Statements and Factors That May Affect Future Results” and “Item 1A. Risk Factors,” in our Quarterly Reports on Form 10-Q and in our Current Reports on Form 8-K. These filings and subsequent filings are available online at www.sec.gov, www.zoetis.com, or on request from Zoetis.
Use of Non-GAAP Financial Measures: We use non-GAAP financial measures, such as adjusted net income, adjusted diluted earnings per share and operational results (which exclude the impact of foreign exchange), to assess and analyze our results and trends and to make financial and operational decisions. We believe these non-GAAP financial measures are also useful to investors because they provide greater transparency regarding our operating performance. The non-GAAP financial measures included in this press release should not be considered alternatives to measurements required by GAAP, such as net income, operating income, and earnings per share, and should not be considered measures of liquidity. These non-GAAP financial measures are unlikely to be comparable with non-GAAP information provided by other companies. Reconciliations of non-GAAP financial measures and the most directly comparable GAAP financial measures are included in the tables accompanying this press release and are posted on our website at www.zoetis.com.
Internet Posting of Information: We routinely post information that may be important to investors on the 'Investor Relations' section of our website at www.zoetis.com, as well as on LinkedIn, Facebook, X (formerly Twitter) and YouTube. We encourage investors and potential investors to consult our website regularly and to follow us on social media for company news and information.
ZTS-COR
ZTS-IR
ZTS-FIN
ZOETIS INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME(a) (UNAUDITED) (millions of dollars, except per share data) |
|||||||||
|
Three Months Ended |
|
|
||||||
March 31, |
|
|
|||||||
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
Revenue |
$ |
2,190 |
|
|
$ |
2,000 |
|
|
10 |
Costs and expenses: |
|
|
|
|
|
||||
Cost of sales |
|
643 |
|
|
|
588 |
|
|
9 |
Selling, general and administrative expenses |
|
547 |
|
|
|
505 |
|
|
8 |
Research and development expenses |
|
162 |
|
|
|
142 |
|
|
14 |
Amortization of intangible assets |
|
37 |
|
|
|
37 |
|
|
— |
Restructuring charges and certain acquisition-related costs |
|
4 |
|
|
|
21 |
|
|
(81) |
Interest expense, net of capitalized interest |
|
58 |
|
|
|
63 |
|
|
(8) |
Other (income)/deductions–net |
|
(8 |
) |
|
|
(53 |
) |
|
(85) |
Income before provision for taxes on income |
|
747 |
|
|
|
697 |
|
|
7 |
Provision for taxes on income |
|
148 |
|
|
|
146 |
|
|
1 |
Net income before allocation to noncontrolling interests |
|
599 |
|
|
|
551 |
|
|
9 |
Less: Net loss attributable to noncontrolling interests |
|
— |
|
|
|
(1 |
) |
|
* |
Net income attributable to Zoetis Inc. |
$ |
599 |
|
|
$ |
552 |
|
|
9 |
|
|
|
|
|
|
||||
Earnings per share—basic |
$ |
1.31 |
|
|
$ |
1.19 |
|
|
10 |
|
|
|
|
|
|
||||
Earnings per share—diluted |
$ |
1.31 |
|
|
$ |
1.19 |
|
|
10 |
|
|
|
|
|
|
||||
Weighted-average shares used to calculate earnings per share |
|
|
|
|
|
||||
Basic |
|
458.0 |
|
|
|
463.5 |
|
|
|
Diluted |
|
458.8 |
|
|
|
464.6 |
|
|
|
(a) The condensed consolidated statements of income present the three months ended March 31, 2024 and 2023. Subsidiaries operating outside |
|||||||||
| * Calculation not meaningful. | |||||||||
ZOETIS INC. RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION CERTAIN LINE ITEMS (UNAUDITED) (millions of dollars, except per share data) |
||||||||||||||||||||
|
Three Months Ended March 31, 2024 |
|||||||||||||||||||
|
|
GAAP
|
|
Purchase
|
|
Acquisition-
|
|
Certain
|
|
Non-GAAP
|
||||||||||
Cost of sales |
|
$ |
643 |
|
|
$ |
(1 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
642 |
|
Gross profit |
|
|
1,547 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
1,548 |
|
Selling, general and administrative expenses |
|
|
547 |
|
|
|
(3 |
) |
|
|
— |
|
|
|
— |
|
|
|
544 |
|
Research and development expenses |
|
|
162 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
161 |
|
Amortization of intangible assets |
|
|
37 |
|
|
|
(32 |
) |
|
|
— |
|
|
|
— |
|
|
|
5 |
|
Restructuring charges and certain acquisition-related costs |
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
|
|
— |
|
Other (income)/deductions–net |
|
|
(8 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
(10 |
) |
Income before provision for taxes on income |
|
|
747 |
|
|
|
37 |
|
|
|
— |
|
|
|
6 |
|
|
|
790 |
|
Provision for taxes on income |
|
|
148 |
|
|
|
8 |
|
|
|
— |
|
|
|
— |
|
|
|
156 |
|
Net income attributable to Zoetis |
|
|
599 |
|
|
|
29 |
|
|
|
— |
|
|
|
6 |
|
|
|
634 |
|
Earnings per common share attributable to Zoetis–diluted |
|
|
1.31 |
|
|
|
0.06 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
1.38 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended March 31, 2023 |
||||||||||||||||||
|
|
GAAP
|
|
Purchase
|
|
Acquisition-
|
|
Certain
|
|
Non-GAAP
|
||||||||||
Cost of sales |
|
$ |
588 |
|
|
$ |
(4 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
584 |
|
Gross profit |
|
|
1,412 |
|
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
1,416 |
|
Selling, general and administrative expenses |
|
|
505 |
|
|
|
(7 |
) |
|
|
— |
|
|
|
— |
|
|
|
498 |
|
Amortization of intangible assets |
|
|
37 |
|
|
|
(31 |
) |
|
|
— |
|
|
|
— |
|
|
|
6 |
|
Restructuring charges and certain acquisition-related costs |
|
|
21 |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(20 |
) |
|
|
— |
|
Other (income)/deductions–net |
|
|
(53 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
(55 |
) |
Income before provision for taxes on income |
|
|
697 |
|
|
|
42 |
|
|
|
1 |
|
|
|
22 |
|
|
|
762 |
|
Provision for taxes on income |
|
|
146 |
|
|
|
8 |
|
|
|
— |
|
|
|
2 |
|
|
|
156 |
|
Net income attributable to Zoetis |
|
|
552 |
|
|
|
34 |
|
|
|
1 |
|
|
|
20 |
|
|
|
607 |
|
Earnings per common share attributable to Zoetis–diluted |
|
|
1.19 |
|
|
|
0.07 |
|
|
|
— |
|
|
|
0.05 |
|
|
|
1.31 |
|
(a) The condensed consolidated statements of income present the three months ended March 31, 2024 and 2023. Subsidiaries operating outside |
||||||||||||||||||||
| (b) Non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS are not, and should not be viewed as, substitutes for |
||||||||||||||||||||
| See Notes to Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for notes (1) and (2). | ||||||||||||||||||||
ZOETIS INC. NOTES TO RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION CERTAIN LINE ITEMS (UNAUDITED) (millions of dollars) |
|||||
(1) Acquisition-related costs include the following: |
|||||
|
Three Months Ended |
||||
|
March 31, |
||||
|
|
2024 |
|
|
2023 |
Integration costs(a) |
$ |
— |
|
$ |
1 |
Total acquisition-related costs—pre-tax |
|
— |
|
|
1 |
Income taxes(b) |
|
— |
|
|
— |
Total acquisition-related costs—net of tax |
$ |
— |
|
$ |
1 |
(a) Integration costs represent external, incremental costs directly related to integrating acquired businesses and primarily include expenditures for consulting and the integration of systems and processes. Included in Restructuring charges and certain acquisition-related costs. |
|||||
(b) Included in Provision for taxes on income. Income taxes include the tax effect of the associated pre-tax amounts, calculated by determining the jurisdictional location of the pre-tax amounts and applying that jurisdiction's applicable tax rate. |
|||||
|
|||||
(2) Certain significant items include the following: |
|||||
|
Three Months Ended |
||||
|
March 31, |
||||
|
|
2024 |
|
|
2023 |
Other restructuring charges and cost-reduction/productivity initiatives(a) |
$ |
4 |
|
$ |
20 |
Other |
|
2 |
|
|
2 |
Total certain significant items—pre-tax |
|
6 |
|
|
22 |
Income taxes(b) |
|
— |
|
|
2 |
Total certain significant items—net of tax |
$ |
6 |
|
$ |
20 |
(a) For the three months ended March 31, 2024, primarily consisted of employee termination costs related to organizational structure refinements, partially offset by a reversal of certain employee termination costs as a result of a change in strategy from our 2015 operational efficiency initiative, included in Restructuring charges and certain acquisition-related costs. |
|||||
For the three months ended March 31, 2023, primarily consisted of employee termination costs related to organizational structure refinements, included in Restructuring charges and certain acquisition-related costs. |
|||||
(b) Included in Provision for taxes on income. Income taxes include the tax effect of the associated pre-tax amounts, calculated by determining the jurisdictional location of the pre-tax amounts and applying that jurisdiction's applicable tax rate. |
|||||
ZOETIS INC. ADJUSTED SELECTED COSTS, EXPENSES AND INCOME(a) (UNAUDITED) (millions of dollars) |
||||||||||||||||||
|
|
Three Months Ended |
|
|
|
|
|
|
|
|||||||||
|
|
March 31, |
|
% Change |
||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Total |
|
|
Foreign
|
|
Operational(b) |
|||
Adjusted cost of sales |
|
$ |
642 |
|
|
$ |
584 |
|
|
10 |
% |
|
|
4 |
% |
|
6 |
% |
as a percent of revenue |
|
|
29.3 |
% |
|
|
29.2 |
% |
|
NA |
|
|
NA |
|
NA |
|||
Adjusted SG&A expenses |
|
|
544 |
|
|
|
498 |
|
|
9 |
% |
|
|
(1 |
)% |
|
10 |
% |
Adjusted R&D expenses |
|
|
161 |
|
|
|
142 |
|
|
13 |
% |
|
|
— |
% |
|
13 |
% |
Adjusted net income attributable to Zoetis |
|
|
634 |
|
|
|
607 |
|
|
4 |
% |
|
|
(11 |
)% |
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
(a) Adjusted cost of sales, adjusted selling, general, and administrative (SG&A) expenses, adjusted research and development (R&D) expenses, and adjusted net income (non-GAAP financial measures) are defined as the corresponding reported |
||||||||||||||||||
(b) Operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange. |
||||||||||||||||||
ZOETIS INC. 2024 GUIDANCE |
||
Selected Line Items (millions of dollars, except per share amounts) |
Full Year 2024 |
|
Revenue |
|
|
Operational growth(a) |
|
|
Adjusted cost of sales as a percentage of revenue(b) |
Approximately |
|
Adjusted SG&A expenses(b) |
|
|
Adjusted R&D expenses(b) |
|
|
Adjusted interest expense and other (income)/deductions-net(b) |
Approximately |
|
Effective tax rate on adjusted income(b) |
|
|
Adjusted diluted EPS(b) |
|
|
Adjusted net income(b) |
|
|
Operational growth(a)(c) |
|
|
Certain significant items and acquisition-related costs(d) |
|
|
The guidance reflects foreign exchange rates as of late April 2024. |
|
|
Reconciliations of 2024 reported guidance to 2024 adjusted guidance follows: |
|||||
(millions of dollars, except per share amounts) |
Reported |
Certain significant
|
Purchase
|
Adjusted(c) |
|
Cost of sales as a percentage of revenue |
~ |
|
~ ( |
~ |
|
SG&A expenses |
|
|
~ |
|
|
R&D expenses |
|
|
~ |
|
|
Interest expense and other (income)/deductions-net |
~ |
~ |
|
~ |
|
Effective tax rate |
|
|
|
|
|
Diluted EPS |
|
~ |
~ |
|
|
Net income attributable to Zoetis |
|
|
~ |
|
|
(a) Operational results (a non-GAAP financial measure) excludes the impact of foreign exchange. |
|||||
(b) Adjusted net income and its components and adjusted diluted EPS are defined as reported |
|||||
(c) We do not provide a reconciliation of forward-looking non-GAAP adjusted net income operational results to the most directly comparable |
|||||
(d) Primarily includes certain nonrecurring costs related to acquisitions and other charges. |
|||||
ZOETIS INC. CONSOLIDATED REVENUE BY SEGMENT(a) AND SPECIES (UNAUDITED) (millions of dollars) |
||||||||||||||||
|
Three Months Ended |
|
|
|||||||||||||
|
|
March 31, |
|
% Change |
||||||||||||
|
|
|
2024 |
|
|
2023 |
|
Total |
|
|
Foreign
|
|
Operational(b) |
|||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
1,450 |
|
$ |
1,225 |
|
18 |
% |
|
|
(2 |
)% |
|
20 |
% |
Livestock |
|
|
720 |
|
|
758 |
|
(5 |
)% |
|
|
(4 |
)% |
|
(1 |
)% |
Contract Manufacturing & Human Health |
|
|
20 |
|
|
17 |
|
18 |
% |
|
|
2 |
% |
|
16 |
% |
Total Revenue |
|
$ |
2,190 |
|
$ |
2,000 |
|
10 |
% |
|
|
(2 |
)% |
|
12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
898 |
|
$ |
721 |
|
25 |
% |
|
|
— |
% |
|
25 |
% |
Livestock |
|
|
265 |
|
|
284 |
|
(7 |
)% |
|
|
— |
% |
|
(7 |
)% |
Total |
|
$ |
1,163 |
|
$ |
1,005 |
|
16 |
% |
|
|
— |
% |
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
International: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
552 |
|
$ |
504 |
|
10 |
% |
|
|
(4 |
)% |
|
14 |
% |
Livestock |
|
|
455 |
|
|
474 |
|
(4 |
)% |
|
|
(6 |
)% |
|
2 |
% |
Total International Revenue |
|
$ |
1,007 |
|
$ |
978 |
|
3 |
% |
|
|
(5 |
)% |
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Dogs and Cats |
|
$ |
1,384 |
|
$ |
1,153 |
|
20 |
% |
|
|
(2 |
)% |
|
22 |
% |
Horses |
|
|
66 |
|
|
72 |
|
(8 |
)% |
|
|
(2 |
)% |
|
(6 |
)% |
Total Companion Animal Revenue |
|
$ |
1,450 |
|
$ |
1,225 |
|
18 |
% |
|
|
(2 |
)% |
|
20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Livestock: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Cattle |
|
$ |
391 |
|
$ |
399 |
|
(2 |
)% |
|
|
(3 |
)% |
|
1 |
% |
Poultry |
|
|
139 |
|
|
139 |
|
— |
% |
|
|
(6 |
)% |
|
6 |
% |
Swine |
|
|
127 |
|
|
142 |
|
(11 |
)% |
|
|
(4 |
)% |
|
(7 |
)% |
Fish |
|
|
45 |
|
|
49 |
|
(8 |
)% |
|
|
(2 |
)% |
|
(6 |
)% |
Sheep and other |
|
|
18 |
|
|
29 |
|
(38 |
)% |
|
|
(5 |
)% |
|
(33 |
)% |
Total Livestock Revenue |
|
$ |
720 |
|
$ |
758 |
|
(5 |
)% |
|
|
(4 |
)% |
|
(1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(a) For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K. |
||||||||||||||||
(b) Operational revenue results (a non-GAAP financial measure) is defined as revenue results excluding the impact of foreign exchange. |
||||||||||||||||
ZOETIS INC. CONSOLIDATED REVENUE BY KEY INTERNATIONAL MARKETS (UNAUDITED) (millions of dollars) |
||||||||||||||||
|
Three Months Ended |
|
|
|
|
|
|
|
||||||||
|
|
March 31, |
|
% Change |
||||||||||||
|
|
|
2024 |
|
|
2023 |
|
Total |
|
|
Foreign
|
|
Operational(a) |
|||
Total International |
|
$ |
1,007 |
|
$ |
978 |
|
3 |
% |
|
|
(5 |
)% |
|
8 |
% |
|
|
|
73 |
|
|
82 |
|
(11 |
)% |
|
|
(4 |
)% |
|
(7 |
)% |
|
|
|
101 |
|
|
84 |
|
20 |
% |
|
|
7 |
% |
|
13 |
% |
|
|
|
61 |
|
|
50 |
|
22 |
% |
|
|
1 |
% |
|
21 |
% |
|
|
|
31 |
|
|
39 |
|
(21 |
)% |
|
|
(4 |
)% |
|
(17 |
)% |
|
|
|
76 |
|
|
102 |
|
(25 |
)% |
|
|
(3 |
)% |
|
(22 |
)% |
|
|
|
41 |
|
|
34 |
|
21 |
% |
|
|
1 |
% |
|
20 |
% |
|
|
|
51 |
|
|
45 |
|
13 |
% |
|
|
1 |
% |
|
12 |
% |
|
|
|
28 |
|
|
26 |
|
8 |
% |
|
|
2 |
% |
|
6 |
% |
|
|
|
37 |
|
|
39 |
|
(5 |
)% |
|
|
(9 |
)% |
|
4 |
% |
|
|
|
44 |
|
|
39 |
|
13 |
% |
|
|
10 |
% |
|
3 |
% |
|
|
|
32 |
|
|
33 |
|
(3 |
)% |
|
|
1 |
% |
|
(4 |
)% |
|
|
|
77 |
|
|
68 |
|
13 |
% |
|
|
4 |
% |
|
9 |
% |
Other developed markets |
|
|
127 |
|
|
122 |
|
4 |
% |
|
|
— |
% |
|
4 |
% |
Other emerging markets |
|
|
228 |
|
|
215 |
|
6 |
% |
|
|
(25 |
)% |
|
31 |
% |
(a) Operational revenue results (a non-GAAP financial measure) is defined as revenue results excluding the impact of foreign exchange. |
||||||||||||||||
ZOETIS INC. SEGMENT(a) EARNINGS (UNAUDITED) (millions of dollars) |
||||||||||||||||||
|
Three Months Ended |
|
|
|||||||||||||||
|
|
March 31, |
|
% Change |
||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Total |
|
|
Foreign
|
|
Operational(b) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
1,163 |
|
|
$ |
1,005 |
|
|
16 |
% |
|
|
— |
% |
|
16 |
% |
Cost of Sales |
|
|
217 |
|
|
|
203 |
|
|
7 |
% |
|
|
— |
% |
|
7 |
% |
Gross Profit |
|
|
946 |
|
|
|
802 |
|
|
18 |
% |
|
|
— |
% |
|
18 |
% |
Gross Margin |
|
|
81.3 |
% |
|
|
79.8 |
% |
|
|
|
|
|
|
|
|||
Operating Expenses |
|
|
190 |
|
|
|
188 |
|
|
1 |
% |
|
|
— |
% |
|
1 |
% |
Other (income)/deductions-net |
|
|
— |
|
|
|
— |
|
|
* |
|
|
* |
|
* |
|||
|
|
$ |
756 |
|
|
$ |
614 |
|
|
23 |
% |
|
|
— |
% |
|
23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
International: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
1,007 |
|
|
$ |
978 |
|
|
3 |
% |
|
|
(5 |
)% |
|
8 |
% |
Cost of Sales |
|
|
313 |
|
|
|
291 |
|
|
8 |
% |
|
|
1 |
% |
|
7 |
% |
Gross Profit |
|
|
694 |
|
|
|
687 |
|
|
1 |
% |
|
|
(7 |
)% |
|
8 |
% |
Gross Margin |
|
|
68.9 |
% |
|
|
70.2 |
% |
|
|
|
|
|
|
|
|||
Operating Expenses |
|
|
159 |
|
|
|
151 |
|
|
5 |
% |
|
|
(3 |
)% |
|
8 |
% |
Other (income)/deductions-net |
|
|
— |
|
|
|
1 |
|
|
* |
|
|
* |
|
* |
|||
International Earnings |
|
$ |
535 |
|
|
$ |
535 |
|
|
— |
% |
|
|
(9 |
)% |
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Reportable Segments |
|
$ |
1,291 |
|
|
$ |
1,149 |
|
|
12 |
% |
|
|
(4 |
)% |
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other business activities(c) |
|
|
(132 |
) |
|
|
(114 |
) |
|
16 |
% |
|
|
|
|
|
||
Reconciling Items: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Corporate(d) |
|
|
(288 |
) |
|
|
(208 |
) |
|
38 |
% |
|
|
|
|
|
||
Purchase accounting adjustments(e) |
|
|
(37 |
) |
|
|
(42 |
) |
|
(12 |
)% |
|
|
|
|
|
||
Acquisition-related costs(f) |
|
|
— |
|
|
|
(1 |
) |
|
* |
|
|
|
|
|
|||
Certain significant items(g) |
|
|
(6 |
) |
|
|
(22 |
) |
|
(73 |
)% |
|
|
|
|
|
||
Other unallocated(h) |
|
|
(81 |
) |
|
|
(65 |
) |
|
25 |
% |
|
|
|
|
|
||
Total Earnings(i) |
|
$ |
747 |
|
|
$ |
697 |
|
|
7 |
% |
|
|
|
|
|
||
(a) For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K. |
||||||||||||||||||
| (b) Operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange. | ||||||||||||||||||
(c) Other business activities includes the research and development costs managed by our research and development organization, as well as our contract manufacturing business and human health business. |
||||||||||||||||||
(d) Corporate includes, among other things, certain costs associated with information technology, administration expenses, interest income and expense, certain compensation costs and other costs not charged to our operating segments. |
||||||||||||||||||
| (e) Purchase accounting adjustments include certain charges related to the amortization of fair value adjustments to inventory, intangible assets and property, plant and equipment not charged to our operating segments. | ||||||||||||||||||
(f) Acquisition-related costs include costs associated with acquiring and integrating newly acquired businesses, such as transaction costs and integration costs. |
||||||||||||||||||
| (g) Certain significant items includes substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such items primarily include certain asset impairment charges, restructuring charges and implementation costs associated with cost-reduction/productivity initiatives that are not associated with an acquisition and the impact of divestiture-related gains and losses. | ||||||||||||||||||
| (h) Includes overhead expenses associated with our global manufacturing and supply operations not directly attributable to an operating segment, as well as certain procurement costs. | ||||||||||||||||||
(i) Defined as income before provision for taxes on income. |
||||||||||||||||||
* Calculation not meaningful. |
||||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240501236249/en/
Media Contacts:
Jenielle Alonso
1-973-945-4333 (o)
jenielle.alonso@zoetis.com
Laura Panza
1-973-975-5176 (o)
laura.panza@zoetis.com
Investor Contacts:
Steve Frank
1-973-822-7141 (o)
steve.frank@zoetis.com
Nick Soonthornchai
1-973-443-2792 (o)
nick.soonthornchai@zoetis.com
Source: Zoetis Inc.
FAQ
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