Zoetis Announces Third Quarter 2024 Results
Zoetis (NYSE:ZTS) reported strong Q3 2024 results with revenue of $2.4 billion, up 11% year-over-year, and net income of $682 million ($1.50 per diluted share), increasing 14%. The company achieved 14% operational revenue growth, with U.S. revenue up 15% to $1.3 billion and International revenue growing 13% operationally to $1.0 billion. Companion animal products showed 15% global operational growth, while livestock products grew 11%. Based on strong performance, Zoetis raised its full-year 2024 guidance, projecting revenue between $9.200-$9.300 billion (10-11% operational growth) and adjusted EPS of $5.86-$5.92.
Zoetis (NYSE:ZTS) ha riportato risultati solidi per il terzo trimestre del 2024, con un fatturato di 2,4 miliardi di dollari, in aumento dell'11% rispetto all'anno precedente, e un utile netto di 682 milioni di dollari (1,50 dollari per azione diluita), in crescita del 14%. L'azienda ha registrato una crescita del fatturato operativo del 14%, con un incremento del 15% del fatturato negli Stati Uniti, pari a 1,3 miliardi di dollari, e una crescita operativa del fatturato internazionale del 13%, arrivando a 1,0 miliardi di dollari. I prodotti per animali da compagnia hanno mostrato una crescita operativa globale del 15%, mentre i prodotti per il bestiame sono aumentati dell'11%. Sulla base di questa solida performance, Zoetis ha rivisto al rialzo le previsioni per l'intero anno 2024, prevedendo un fatturato compreso tra 9,200 e 9,300 miliardi di dollari (10-11% di crescita operativa) e un utile per azione rettificato di 5,86-5,92 dollari.
Zoetis (NYSE:ZTS) reportó resultados sólidos para el tercer trimestre de 2024, con ingresos de 2.4 mil millones de dólares, un aumento del 11% en comparación con el año anterior, y un ingreso neto de 682 millones de dólares (1.50 dólares por acción diluida), un incremento del 14%. La compañía logró un crecimiento del 14% en ingresos operativos, con ingresos en EE. UU. que aumentaron un 15% a 1.3 mil millones de dólares y un crecimiento del 13% en ingresos internacionales operativos, alcanzando 1.0 mil millones de dólares. Los productos para animales de compañía mostraron un crecimiento operativo global del 15%, mientras que los productos para ganado crecieron un 11%. Basándose en su sólido desempeño, Zoetis elevó su guía para todo el año 2024, proyectando ingresos entre 9,200 y 9,300 millones de dólares (crecimiento operativo del 10-11%) y un EPS ajustado de 5.86 a 5.92 dólares.
Zoetis (NYSE:ZTS)는 2024년 3분기 강력한 실적을 보고하였으며, 수익은 24억 달러로 지난해 대비 11% 증가하였고, 순이익은 6억 8천 2백만 달러 (희석 주당 1.50달러)로 14% 증가하였습니다. 이 회사는 미국에서 수익이 15% 증가하여 13억 달러에 이르고, 국제 수익 또한 운영 기준으로 13% 증가하여 10억 달러에 도달하는 등, 14%의 운영 수익 성장을 달성하였습니다. 반려동물 제품은 전 세계적으로 15% 성장하였고, 가축 제품은 11% 성장하였습니다. 이러한 강력한 실적을 바탕으로 Zoetis는 2024년 전체 연도 가이던스를 상향 조정하였으며, 수익을 92억에서 93억 달러 (운영 성장률 10-11%) 사이로 예상하며, 조정된 주당 순이익은 5.86-5.92달러로 전망하고 있습니다.
Zoetis (NYSE:ZTS) a rapporté des résultats solides pour le troisième trimestre de 2024, avec un chiffre d'affaires de 2,4 milliards de dollars, en hausse de 11 % par rapport à l'année précédente, et un bénéfice net de 682 millions de dollars (1,50 $ par action diluée), en hausse de 14 %. La société a enregistré une croissance de 14 % de ses revenus opérationnels, avec des revenus aux États-Unis augmentant de 15 % pour atteindre 1,3 milliard de dollars et des revenus internationaux croissant opérationnellement de 13 % pour atteindre 1,0 milliard de dollars. Les produits pour animaux de compagnie ont affiché une croissance opérationnelle mondiale de 15 %, tandis que les produits pour le bétail ont augmenté de 11 %. Sur la base de cette solide performance, Zoetis a relevé ses prévisions pour l'année entière 2024, projetant des revenus compris entre 9,200 et 9,300 milliards de dollars (croissance opérationnelle de 10-11 %) et un bénéfice par action ajusté de 5,86 à 5,92 $.
Zoetis (NYSE:ZTS) hat starke Ergebnisse für das dritte Quartal 2024 bekannt gegeben, mit einem Umsatz von 2,4 Milliarden US-Dollar, was einem Anstieg von 11 % im Vergleich zum Vorjahr entspricht, und einem Nettogewinn von 682 Millionen US-Dollar (1,50 US-Dollar pro verwässerter Aktie), was einer Steigerung von 14 % entspricht. Das Unternehmen erzielte ein operatives Umsatzwachstum von 14 %, wobei die US-Umsätze um 15 % auf 1,3 Milliarden US-Dollar stiegen und die internationalen Umsätze operativ um 13 % auf 1,0 Milliarden US-Dollar wuchsen. Die Produkte für Haustiere zeigten ein globales operatives Wachstum von 15 %, während die Tierproduktionen um 11 % zunahmen. Basierend auf der starken Leistung hat Zoetis die Prognose für das Gesamtjahr 2024 angehoben und erwartet einen Umsatz zwischen 9,200 und 9,300 Milliarden US-Dollar (10-11 % operatives Wachstum) und einen bereinigten Gewinn pro Aktie von 5,86 bis 5,92 US-Dollar.
- Revenue increased 11% to $2.4 billion in Q3 2024
- Net income grew 14% to $682 million
- U.S. segment revenue up 15% to $1.3 billion
- International revenue grew 13% operationally
- Raised full-year 2024 guidance
- None.
Insights
Zoetis delivered an impressive Q3 2024 performance with
The raised full-year guidance, projecting revenue of
The companion animal segment's stellar performance, with
The livestock segment's resilience, posting
-
Reports Revenue of
$2.4 Billion 11% , and Net Income of$682 Million $1.50 14% and16% , Respectively, on a Reported Basis for Third Quarter 2024
-
Delivers
14% Operational Growth in Revenue and15% Operational Growth in Adjusted Net Income for Third Quarter 2024
-
Reports Adjusted Net Income of
$716 Million $1.58
-
Raises Full Year 2024 Revenue Guidance to
$9.20 0$9.30 0 Billion10% to11% , with Diluted EPS on an Adjusted Basis of$5.86 $5.92
-
Updates Full Year Operational Growth in Adjusted Net Income to
13.5% to14.5%
The company reported revenue of
Adjusted net income2 for the third quarter of 2024 was
EXECUTIVE COMMENTARY
“Building on the strong momentum from the first half of the year, we are proud to have delivered another excellent quarter, fueled by our diverse, durable, and science-driven portfolio and our customer obsession that underscore our market leadership," said Kristin Peck, Chief Executive Officer of Zoetis. “We achieved
QUARTERLY HIGHLIGHTS
Zoetis organizes and manages its commercial operations across two segments:
-
Revenue in the
U.S. segment was$1.3 billion 15% compared with the third quarter of 2023. Sales of companion animal products increased18% , driven by the company's monoclonal antibody (mAb) products for osteoarthritis (OA) pain, Librela® for dogs and Solensia® for cats. Also contributing to growth in the quarter was Simparica Trio®, the company's flea, tick and heartworm combination product, as well as the company's key dermatology portfolio, including Apoquel® and Cytopoint®. Sales of livestock products increased5% in the quarter. Growth in cattle products was driven primarily by volume, due to improved supply of ceftiofur.
-
Revenue in the International segment was
$1.0 billion 7% increase on a reported basis and an increase of13% operationally compared with the third quarter of 2023. Sales of companion animal products grew7% on a reported basis and11% operationally, driven by Simparica® and Simparica Trio, key dermatology products, Apoquel and Cytopoint, and OA pain products, Librela for dogs and Solensia for cats. Sales of livestock products grew7% on a reported basis and15% operationally. Growth of the company's cattle and poultry products was driven largely by price increases across the broader international segment, as well as the timing of certain customer purchases. Sales of fish products grew due to increased demand for vaccines inNorway .
INVESTMENTS IN GROWTH
Zoetis continues to advance innovation and care for animals across the globe. Since its last quarterly earnings announcement, the company received approval in
In livestock, the company gained approval in
In September, Zoetis expanded its India Capability Center in
Zoetis Completes Sale of Medicated Feed Additive Portfolio to Phibro Animal Health
On Thursday, October 31, Zoetis completed the divestiture of its medicated feed additive (MFA) product portfolio, certain water-soluble products and related assets to Phibro Animal Health. This transaction demonstrates Zoetis’ disciplined capital allocation strategy to focus its investments on areas with the highest growth potential that are aligned to its core capabilities, including vaccine, biologic and genetic programs in livestock.
FINANCIAL GUIDANCE
Zoetis is raising its full year 2024 guidance for revenue and adjusted EPS due to the company's strong first three quarters and the underlying strength in companion animal.
-
Revenue between
$9.20 0 billion$9.30 0 billion10% to11% ) -
Reported net income between
$2.43 5 billion$2.45 0 billion -
Adjusted net income between
$2.67 0 billion$2.69 5 billion13.5% to14.5% ) -
Reported diluted EPS of
$5.33 $5.39 -
Adjusted diluted EPS between
$5.86 $5.92
This guidance reflects foreign exchange rates as of mid-October. 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 third quarter 2024 results, discuss financial guidance and respond to questions from financial analysts. Investors and the public may access the live webcast and corresponding slides by visiting the Zoetis website at http://investor.zoetis.com/events-presentations. A replay of the webcast will be archived and made available on November 4, 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 and divestiture-related costs and certain significant items.
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; expectations regarding competing products; expectations regarding timing and financial impact of divestitures; 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; foreign exchange rates, 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 |
|
|
|
Nine Months Ended |
|
|
||||||||||
September 30, |
|
|
|
September 30, |
|
|
|||||||||||
|
2024 |
|
|
|
2023 |
|
% Change |
|
|
2024 |
|
|
2023 |
|
|
% Change |
|
Revenue |
$ |
2,388 |
|
|
$ |
2,151 |
|
11 |
|
$ |
6,939 |
|
$ |
6,331 |
|
|
10 |
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Cost of sales |
|
701 |
|
|
|
638 |
|
10 |
|
|
2,012 |
|
|
1,833 |
|
|
10 |
Selling, general and administrative expenses |
|
565 |
|
|
|
525 |
|
8 |
|
|
1,693 |
|
|
1,586 |
|
|
7 |
Research and development expenses |
|
167 |
|
|
|
152 |
|
10 |
|
|
500 |
|
|
440 |
|
|
14 |
Amortization of intangible assets |
|
35 |
|
|
|
38 |
|
(8) |
|
|
107 |
|
|
112 |
|
|
(4) |
Restructuring charges and certain acquisition and divestiture-related costs |
|
5 |
|
|
|
16 |
|
(69) |
|
|
51 |
|
|
45 |
|
|
13 |
Interest expense, net of capitalized interest |
|
57 |
|
|
|
59 |
|
(3) |
|
|
174 |
|
|
180 |
|
|
(3) |
Other (income)/deductions–net |
|
(16 |
) |
|
|
6 |
|
* |
|
|
1 |
|
|
(151 |
) |
|
* |
Income before provision for taxes on income |
|
874 |
|
|
|
717 |
|
22 |
|
|
2,401 |
|
|
2,286 |
|
|
5 |
Provision for taxes on income |
|
182 |
|
|
|
121 |
|
50 |
|
|
486 |
|
|
469 |
|
|
4 |
Net income before allocation to noncontrolling interests |
|
692 |
|
|
|
596 |
|
16 |
|
|
1,915 |
|
|
1,817 |
|
|
5 |
Less: Net income/(loss) attributable to noncontrolling interests |
|
10 |
|
|
|
— |
|
* |
|
|
10 |
|
|
(2 |
) |
|
* |
Net income attributable to Zoetis Inc. |
$ |
682 |
|
|
$ |
596 |
|
14 |
|
$ |
1,905 |
|
$ |
1,819 |
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Earnings per share—basic |
$ |
1.51 |
|
|
$ |
1.29 |
|
17 |
|
$ |
4.18 |
|
$ |
3.94 |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Earnings per share—diluted |
$ |
1.50 |
|
|
$ |
1.29 |
|
16 |
|
$ |
4.18 |
|
$ |
3.93 |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Weighted-average shares used to calculate earnings per share |
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic |
|
452.9 |
|
|
|
460.3 |
|
|
|
|
455.4 |
|
|
461.9 |
|
|
|
Diluted |
|
453.5 |
|
|
|
461.4 |
|
|
|
|
456.1 |
|
|
463.0 |
|
|
|
(a) The condensed consolidated statements of income present the three and nine months ended September 30, 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 September 30, 2024 |
||||||||||||||||||
|
|
GAAP
|
|
Purchase
|
|
Acquisition and
|
|
Certain
|
|
Non-GAAP
|
|||||||||
Cost of sales |
|
$ |
701 |
|
$ |
(1 |
) |
|
$ |
— |
|
|
$ |
(1 |
) |
|
$ |
699 |
|
Gross profit |
|
|
1,687 |
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
1,689 |
|
Selling, general and administrative expenses |
|
|
565 |
|
|
(3 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
560 |
|
Research and development expenses |
|
|
167 |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
166 |
|
Amortization of intangible assets |
|
|
35 |
|
|
(30 |
) |
|
|
— |
|
|
|
— |
|
|
|
5 |
|
Restructuring charges and certain acquisition and divestiture-related costs |
|
|
5 |
|
|
— |
|
|
|
(7 |
) |
|
|
2 |
|
|
|
— |
|
Income before provision for taxes on income |
|
|
874 |
|
|
35 |
|
|
|
7 |
|
|
|
1 |
|
|
|
917 |
|
Provision for taxes on income |
|
|
182 |
|
|
8 |
|
|
|
2 |
|
|
|
(1 |
) |
|
|
191 |
|
Net income attributable to Zoetis |
|
|
682 |
|
|
27 |
|
|
|
5 |
|
|
|
2 |
|
|
|
716 |
|
Earnings per common share attributable to Zoetis–diluted |
|
|
1.50 |
|
|
0.06 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
1.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Three Months Ended September 30, 2023 |
|||||||||||||||||
|
|
GAAP
|
|
Purchase
|
|
Acquisition
|
|
Certain
|
|
Non-GAAP
|
|||||||||
Cost of sales |
|
$ |
638 |
|
$ |
(1 |
) |
|
$ |
— |
|
|
$ |
(2 |
) |
|
$ |
635 |
|
Gross profit |
|
|
1,513 |
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
1,516 |
|
Selling, general and administrative expenses |
|
|
525 |
|
|
(4 |
) |
|
|
— |
|
|
|
— |
|
|
|
521 |
|
Research and development expenses |
|
|
152 |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
151 |
|
Amortization of intangible assets |
|
|
38 |
|
|
(33 |
) |
|
|
— |
|
|
|
— |
|
|
|
5 |
|
Restructuring charges and certain acquisition and divestiture-related costs |
|
|
16 |
|
|
— |
|
|
|
(3 |
) |
|
|
(13 |
) |
|
|
— |
|
Other (income)/deductions–net |
|
|
6 |
|
|
— |
|
|
|
— |
|
|
|
(8 |
) |
|
|
(2 |
) |
Income before provision for taxes on income |
|
|
717 |
|
|
39 |
|
|
|
3 |
|
|
|
23 |
|
|
|
782 |
|
Provision for taxes on income |
|
|
121 |
|
|
9 |
|
|
|
— |
|
|
|
23 |
|
|
|
153 |
|
Net income attributable to Zoetis |
|
|
596 |
|
|
30 |
|
|
|
3 |
|
|
|
— |
|
|
|
629 |
|
Earnings per common share attributable to Zoetis–diluted |
|
|
1.29 |
|
|
0.06 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
1.36 |
|
(a) The condensed consolidated statements of income present the three months ended September 30, 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. RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION CERTAIN LINE ITEMS (UNAUDITED) (millions of dollars, except per share data) |
||||||||||||||||||||
|
Nine Months Ended September 30, 2024 |
|||||||||||||||||||
|
|
GAAP
|
|
Purchase
|
|
Acquisition
|
|
Certain
|
|
Non-GAAP
|
||||||||||
Cost of sales |
|
$ |
2,012 |
|
|
$ |
(3 |
) |
|
$ |
— |
|
|
$ |
(1 |
) |
|
$ |
2,008 |
|
Gross profit |
|
|
4,927 |
|
|
|
3 |
|
|
|
— |
|
|
|
1 |
|
|
|
4,931 |
|
Selling, general and administrative expenses |
|
|
1,693 |
|
|
|
(9 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
1,682 |
|
Research and development expenses |
|
|
500 |
|
|
|
(2 |
) |
|
|
— |
|
|
|
— |
|
|
|
498 |
|
Amortization of intangible assets |
|
|
107 |
|
|
|
(93 |
) |
|
|
— |
|
|
|
— |
|
|
|
14 |
|
Restructuring charges and certain acquisition and divestiture-related costs |
|
|
51 |
|
|
|
— |
|
|
|
(12 |
) |
|
|
(39 |
) |
|
|
— |
|
Other (income)/deductions–net |
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
(35 |
) |
|
|
(34 |
) |
Income before provision for taxes on income |
|
|
2,401 |
|
|
|
107 |
|
|
|
12 |
|
|
|
77 |
|
|
|
2,597 |
|
Provision for taxes on income |
|
|
486 |
|
|
|
24 |
|
|
|
3 |
|
|
|
13 |
|
|
|
526 |
|
Net income attributable to Zoetis |
|
|
1,905 |
|
|
|
83 |
|
|
|
9 |
|
|
|
64 |
|
|
|
2,061 |
|
Earnings per common share attributable to Zoetis–diluted |
|
|
4.18 |
|
|
|
0.18 |
|
|
|
0.02 |
|
|
|
0.14 |
|
|
|
4.52 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Nine Months Ended September 30, 2023 |
||||||||||||||||||
|
|
GAAP
|
|
Purchase
|
|
Acquisition
|
|
Certain
|
|
Non-GAAP
|
||||||||||
Cost of sales |
|
$ |
1,833 |
|
|
$ |
(10 |
) |
|
$ |
— |
|
|
$ |
(2 |
) |
|
$ |
1,821 |
|
Gross profit |
|
|
4,498 |
|
|
|
10 |
|
|
|
— |
|
|
|
2 |
|
|
|
4,510 |
|
Selling, general and administrative expenses |
|
|
1,586 |
|
|
|
(18 |
) |
|
|
— |
|
|
|
— |
|
|
|
1,568 |
|
Research and development expenses |
|
|
440 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
439 |
|
Amortization of intangible assets |
|
|
112 |
|
|
|
(95 |
) |
|
|
— |
|
|
|
— |
|
|
|
17 |
|
Restructuring charges and certain acquisition and divestiture-related costs |
|
|
45 |
|
|
|
— |
|
|
|
(8 |
) |
|
|
(37 |
) |
|
|
— |
|
Other (income)/deductions–net |
|
|
(151 |
) |
|
|
— |
|
|
|
— |
|
|
|
84 |
|
|
|
(67 |
) |
Income before provision for taxes on income |
|
|
2,286 |
|
|
|
124 |
|
|
|
8 |
|
|
|
(45 |
) |
|
|
2,373 |
|
Provision for taxes on income |
|
|
469 |
|
|
|
26 |
|
|
|
1 |
|
|
|
(9 |
) |
|
|
487 |
|
Net income attributable to Zoetis |
|
|
1,819 |
|
|
|
98 |
|
|
|
7 |
|
|
|
(36 |
) |
|
|
1,888 |
|
Earnings per common share attributable to Zoetis–diluted |
|
|
3.93 |
|
|
|
0.21 |
|
|
|
0.02 |
|
|
|
(0.08 |
) |
|
|
4.08 |
|
(a) The condensed consolidated statements of income present the nine months ended September 30, 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 and divestiture-related costs include the following: |
|||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
September 30, |
|
September 30, |
||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Acquisition-related costs(a) |
$ |
— |
|
$ |
3 |
|
$ |
1 |
|
$ |
7 |
Divestiture-related costs(b) |
|
7 |
|
|
— |
|
|
11 |
|
|
— |
Restructuring charges(c) |
|
— |
|
|
— |
|
|
— |
|
|
1 |
Total acquisition and divestiture-related costs—pre-tax |
|
7 |
|
|
3 |
|
|
12 |
|
|
8 |
Income taxes(d) |
|
2 |
|
|
— |
|
|
3 |
|
|
1 |
Total acquisition and divestiture-related costs—net of tax |
$ |
5 |
|
$ |
3 |
|
$ |
9 |
|
$ |
7 |
(a) Acquisition-related costs represent external, incremental costs that directly relate to transacting and integrating businesses, included in Restructuring charges and certain acquisition and divestiture-related costs. |
|||||||||||
(b) Divestiture-related costs represent external, incremental costs that directly relate to divesting and disintegrating businesses, included in Restructuring charges and certain acquisition and divestiture-related costs. |
|||||||||||
(c) Restructuring charges represent employee termination costs directly related to acquisitions and divestitures, included in Restructuring charges and certain acquisition and divestiture-related costs. |
|||||||||||
(d) 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 |
|
Nine Months Ended |
||||||||||
|
September 30, |
|
September 30, |
||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Other restructuring charges and cost-reduction/productivity initiatives(a) |
$ |
(2 |
) |
|
$ |
12 |
|
$ |
39 |
|
$ |
36 |
|
Certain asset impairment charges(b) |
|
— |
|
|
|
11 |
|
|
11 |
|
|
21 |
|
Loss on assets held for sale(c) |
|
— |
|
|
|
— |
|
|
22 |
|
|
— |
|
Net gain on sale of business(d) |
|
— |
|
|
|
— |
|
|
— |
|
|
(101 |
) |
Other |
|
3 |
|
|
|
— |
|
|
5 |
|
|
(1 |
) |
Total certain significant items—pre-tax |
|
1 |
|
|
|
23 |
|
|
77 |
|
|
(45 |
) |
Income taxes(e) |
|
(1 |
) |
|
|
23 |
|
|
13 |
|
|
(9 |
) |
Total certain significant items—net of tax |
$ |
2 |
|
|
$ |
— |
|
$ |
64 |
|
$ |
(36 |
) |
(a) For the nine months ended September 30, 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 and divestiture-related costs. |
|||||||||||||
For the three and nine months ended September 30, 2023, primarily consisted of employee termination and exit costs related to organizational structure refinements and other cost-reduction and productivity initiatives, included in Restructuring charges and certain acquisition and divestiture-related costs. |
|||||||||||||
(b) For the nine months ended September 30, 2024, represents certain asset impairment charges related to our aquaculture business, included in Other (income)/deductions–net. |
|||||||||||||
For the three and nine months ended September 30, 2023, represents certain asset impairment charges related to our precision animal health and diagnostics businesses, included in Other (income)/deductions–net. |
|||||||||||||
(c) Represents a loss on assets held for sale related to the planned sale of our medicated feed additive product portfolio, certain water soluble products and related assets, included in Other (income)/deductions–net. |
|||||||||||||
(d) Primarily represents a net gain on the sale of a majority interest in our pet insurance business, included in Other (income)/deductions–net. |
|||||||||||||
(e) 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. For the three and nine months ended September 30, 2023, also includes a benefit from the tax loss on the divestiture of Performance Livestock Analytics, partially offset by a tax expense related to changes to prior years' tax positions with regard to the one-time mandatory deemed repatriation tax under the Tax Cuts and Jobs Act. |
|||||||||||||
ZOETIS INC. ADJUSTED SELECTED COSTS, EXPENSES AND INCOME(a) (UNAUDITED) (millions of dollars) |
||||||||||||||||||
|
|
Three Months Ended |
|
|
|
|
|
|
|
|||||||||
|
|
September 30, |
|
% Change |
||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Total |
|
|
Foreign
|
|
Operational(b) |
|||
Adjusted cost of sales |
|
$ |
699 |
|
|
$ |
635 |
|
|
10 |
% |
|
|
(4 |
)% |
|
14 |
% |
as a percent of revenue |
|
|
29.3 |
% |
|
|
29.5 |
% |
|
NA |
|
|
NA |
|
NA |
|||
Adjusted SG&A expenses |
|
|
560 |
|
|
|
521 |
|
|
7 |
% |
|
|
(2 |
)% |
|
9 |
% |
Adjusted R&D expenses |
|
|
166 |
|
|
|
151 |
|
|
10 |
% |
|
|
— |
% |
|
10 |
% |
Adjusted net income attributable to Zoetis |
|
|
716 |
|
|
|
629 |
|
|
14 |
% |
|
|
(1 |
)% |
|
15 |
% |
|
|
Nine Months Ended |
|
|
|
|
|
|
|
||||||||||
|
|
September 30, |
|
% Change |
|||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Total |
|
|
Foreign
|
|
Operational(b) |
||||
Adjusted cost of sales |
|
$ |
2,008 |
|
|
$ |
1,821 |
|
|
10 |
% |
|
|
1 |
% |
|
9 |
% |
|
as a percent of revenue |
|
|
28.9 |
% |
|
|
28.8 |
% |
|
NA |
|
|
NA |
|
NA |
||||
Adjusted SG&A expenses |
|
|
1,682 |
|
|
|
1,568 |
|
|
7 |
% |
|
|
(2 |
)% |
|
9 |
% |
|
Adjusted R&D expenses |
|
|
498 |
|
|
|
439 |
|
|
13 |
% |
|
|
(1 |
)% |
|
14 |
% |
|
Adjusted net income attributable to Zoetis |
|
|
2,061 |
|
|
|
1,888 |
|
|
9 |
% |
|
|
(7 |
)% |
|
16 |
% |
|
(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
|
Full Year 2024
|
Revenue |
|
|
Operational growth(a) |
|
|
Adjusted cost of sales as a percentage of revenue(b) |
Approximately |
Approximately |
Adjusted SG&A expenses(b) |
|
|
Adjusted R&D expenses(b) |
|
|
Adjusted interest expense and other (income)/deductions-net(b) |
Approximately |
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 and divestiture-related costs(d) |
|
|
The guidance as of November 4, 2024 reflects foreign exchange rates as of mid-October 2024. The prior guidance as of August 6, 2024 reflects foreign exchange rates as of late July 2024. |
||
Reconciliations of 2024 reported guidance to 2024 adjusted guidance as of November 4, 2024 follows: |
|||||
(millions of dollars, except per share amounts) |
Reported |
Certain significant items and acquisition and divestiture-related costs(d) |
Purchase accounting |
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, divestitures and other charges. |
|||||
ZOETIS INC. CONSOLIDATED REVENUE BY SEGMENT(a) AND SPECIES (UNAUDITED) (millions of dollars) |
||||||||||||||||
|
|
Three Months Ended |
|
|
||||||||||||
|
|
September 30, |
|
% Change |
||||||||||||
|
|
|
2024 |
|
|
2023 |
|
Total |
|
|
Foreign
|
|
Operational(b) |
|||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
1,609 |
|
$ |
1,414 |
|
14 |
% |
|
|
(1 |
)% |
|
15 |
% |
Livestock |
|
|
758 |
|
|
716 |
|
6 |
% |
|
|
(5 |
)% |
|
11 |
% |
Contract Manufacturing & Human Health |
|
|
21 |
|
|
21 |
|
— |
% |
|
|
(2 |
)% |
|
2 |
% |
Total Revenue |
|
$ |
2,388 |
|
$ |
2,151 |
|
11 |
% |
|
|
(3 |
)% |
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
1,068 |
|
$ |
908 |
|
18 |
% |
|
|
— |
% |
|
18 |
% |
Livestock |
|
|
278 |
|
|
266 |
|
5 |
% |
|
|
— |
% |
|
5 |
% |
Total |
|
$ |
1,346 |
|
$ |
1,174 |
|
15 |
% |
|
|
— |
% |
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
International: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
541 |
|
$ |
506 |
|
7 |
% |
|
|
(4 |
)% |
|
11 |
% |
Livestock |
|
|
480 |
|
|
450 |
|
7 |
% |
|
|
(8 |
)% |
|
15 |
% |
Total International Revenue |
|
$ |
1,021 |
|
$ |
956 |
|
7 |
% |
|
|
(6 |
)% |
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Dogs and Cats |
|
$ |
1,551 |
|
$ |
1,354 |
|
15 |
% |
|
|
(1 |
)% |
|
16 |
% |
Horses |
|
|
58 |
|
|
60 |
|
(3 |
)% |
|
|
(2 |
)% |
|
(1 |
)% |
Total Companion Animal Revenue |
|
$ |
1,609 |
|
$ |
1,414 |
|
14 |
% |
|
|
(1 |
)% |
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Livestock: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Cattle |
|
$ |
391 |
|
$ |
374 |
|
5 |
% |
|
|
(4 |
)% |
|
9 |
% |
Poultry |
|
|
139 |
|
|
127 |
|
9 |
% |
|
|
(7 |
)% |
|
16 |
% |
Swine |
|
|
131 |
|
|
129 |
|
2 |
% |
|
|
(7 |
)% |
|
9 |
% |
Fish |
|
|
70 |
|
|
57 |
|
23 |
% |
|
|
(3 |
)% |
|
26 |
% |
Sheep and other |
|
|
27 |
|
|
29 |
|
(7 |
)% |
|
|
(1 |
)% |
|
(6 |
)% |
Total Livestock Revenue |
|
$ |
758 |
|
$ |
716 |
|
6 |
% |
|
|
(5 |
)% |
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(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 SEGMENT(a) AND SPECIES (UNAUDITED) (millions of dollars) |
||||||||||||||||
|
Nine Months Ended |
|
|
|||||||||||||
|
|
September 30, |
|
% Change |
||||||||||||
|
|
|
2024 |
|
|
2023 |
|
Total |
|
|
Foreign Exchange |
|
Operational(b) |
|||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
4,708 |
|
$ |
4,128 |
|
14 |
% |
|
|
(2 |
)% |
|
16 |
% |
Livestock |
|
|
2,172 |
|
|
2,145 |
|
1 |
% |
|
|
(5 |
)% |
|
6 |
% |
Contract Manufacturing & Human Health |
|
|
59 |
|
|
58 |
|
2 |
% |
|
|
— |
% |
|
2 |
% |
Total Revenue |
|
$ |
6,939 |
|
$ |
6,331 |
|
10 |
% |
|
|
(2 |
)% |
|
12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
3,046 |
|
$ |
2,588 |
|
18 |
% |
|
|
— |
% |
|
18 |
% |
Livestock |
|
|
771 |
|
|
756 |
|
2 |
% |
|
|
— |
% |
|
2 |
% |
Total |
|
$ |
3,817 |
|
$ |
3,344 |
|
14 |
% |
|
|
— |
% |
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
International: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
1,662 |
|
$ |
1,540 |
|
8 |
% |
|
|
(4 |
)% |
|
12 |
% |
Livestock |
|
|
1,401 |
|
|
1,389 |
|
1 |
% |
|
|
(7 |
)% |
|
8 |
% |
Total International Revenue |
|
$ |
3,063 |
|
$ |
2,929 |
|
5 |
% |
|
|
(5 |
)% |
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Dogs and Cats |
|
$ |
4,516 |
|
$ |
3,931 |
|
15 |
% |
|
|
(1 |
)% |
|
16 |
% |
Horses |
|
|
192 |
|
|
197 |
|
(3 |
)% |
|
|
(3 |
)% |
|
— |
% |
Total Companion Animal Revenue |
|
$ |
4,708 |
|
$ |
4,128 |
|
14 |
% |
|
|
(2 |
)% |
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Livestock: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Cattle |
|
$ |
1,132 |
|
$ |
1,102 |
|
3 |
% |
|
|
(4 |
)% |
|
7 |
% |
Poultry |
|
|
410 |
|
|
397 |
|
3 |
% |
|
|
(7 |
)% |
|
10 |
% |
Swine |
|
|
388 |
|
|
404 |
|
(4 |
)% |
|
|
(6 |
)% |
|
2 |
% |
Fish |
|
|
177 |
|
|
158 |
|
12 |
% |
|
|
(2 |
)% |
|
14 |
% |
Sheep and other |
|
|
65 |
|
|
84 |
|
(23 |
)% |
|
|
(3 |
)% |
|
(20 |
)% |
Total Livestock Revenue |
|
$ |
2,172 |
|
$ |
2,145 |
|
1 |
% |
|
|
(5 |
)% |
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(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 |
|
|
|
|
|
|
|
||||||||
|
|
September 30, |
|
% Change |
||||||||||||
|
|
|
2024 |
|
|
2023 |
|
Total |
|
|
Foreign
|
|
Operational(a) |
|||
Total International |
|
$ |
1,021 |
|
$ |
956 |
|
7 |
% |
|
|
(6 |
)% |
|
13 |
% |
|
|
|
83 |
|
|
84 |
|
(1 |
)% |
|
|
— |
% |
|
(1 |
)% |
|
|
|
101 |
|
|
101 |
|
— |
% |
|
|
(14 |
)% |
|
14 |
% |
|
|
|
66 |
|
|
63 |
|
5 |
% |
|
|
(3 |
)% |
|
8 |
% |
|
|
|
31 |
|
|
31 |
|
— |
% |
|
|
(6 |
)% |
|
6 |
% |
|
|
|
61 |
|
|
69 |
|
(12 |
)% |
|
|
— |
% |
|
(12 |
)% |
|
|
|
36 |
|
|
34 |
|
6 |
% |
|
|
2 |
% |
|
4 |
% |
|
|
|
57 |
|
|
50 |
|
14 |
% |
|
|
1 |
% |
|
13 |
% |
|
|
|
31 |
|
|
26 |
|
19 |
% |
|
|
(3 |
)% |
|
22 |
% |
|
|
|
33 |
|
|
34 |
|
(3 |
)% |
|
|
(6 |
)% |
|
3 |
% |
|
|
|
39 |
|
|
42 |
|
(7 |
)% |
|
|
(8 |
)% |
|
1 |
% |
|
|
|
35 |
|
|
30 |
|
17 |
% |
|
|
3 |
% |
|
14 |
% |
|
|
|
80 |
|
|
78 |
|
3 |
% |
|
|
1 |
% |
|
2 |
% |
Other developed markets |
|
|
148 |
|
|
127 |
|
17 |
% |
|
|
(1 |
)% |
|
18 |
% |
Other emerging markets |
|
|
220 |
|
|
187 |
|
18 |
% |
|
|
(19 |
)% |
|
37 |
% |
|
Nine Months Ended |
|
|
|
|
|
|
|
||||||||
|
|
September 30, |
|
% Change |
||||||||||||
|
|
|
2024 |
|
|
2023 |
|
Total |
|
|
Foreign
|
|
Operational(a) |
|||
Total International |
|
$ |
3,063 |
|
$ |
2,929 |
|
5 |
% |
|
|
(5 |
)% |
|
10 |
% |
|
|
|
239 |
|
|
248 |
|
(4 |
)% |
|
|
(2 |
)% |
|
(2 |
)% |
|
|
|
301 |
|
|
276 |
|
9 |
% |
|
|
(3 |
)% |
|
12 |
% |
|
|
|
202 |
|
|
183 |
|
10 |
% |
|
|
(1 |
)% |
|
11 |
% |
|
|
|
93 |
|
|
109 |
|
(15 |
)% |
|
|
(5 |
)% |
|
(10 |
)% |
|
|
|
205 |
|
|
255 |
|
(20 |
)% |
|
|
(3 |
)% |
|
(17 |
)% |
|
|
|
111 |
|
|
102 |
|
9 |
% |
|
|
— |
% |
|
9 |
% |
|
|
|
166 |
|
|
148 |
|
12 |
% |
|
|
— |
% |
|
12 |
% |
|
|
|
95 |
|
|
87 |
|
9 |
% |
|
|
— |
% |
|
9 |
% |
|
|
|
109 |
|
|
120 |
|
(9 |
)% |
|
|
(10 |
)% |
|
1 |
% |
|
|
|
129 |
|
|
119 |
|
8 |
% |
|
|
3 |
% |
|
5 |
% |
|
|
|
100 |
|
|
94 |
|
6 |
% |
|
|
— |
% |
|
6 |
% |
|
|
|
230 |
|
|
209 |
|
10 |
% |
|
|
2 |
% |
|
8 |
% |
Other developed markets |
|
|
413 |
|
|
374 |
|
10 |
% |
|
|
(2 |
)% |
|
12 |
% |
Other emerging markets |
|
|
670 |
|
|
605 |
|
11 |
% |
|
|
(23 |
)% |
|
34 |
% |
(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 |
|
|
||||||||||||||
|
|
September 30, |
|
% Change |
||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Total |
|
|
Foreign Exchange |
|
Operational(b) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
1,346 |
|
|
$ |
1,174 |
|
|
15 |
% |
|
|
— |
% |
|
15 |
% |
Cost of Sales |
|
|
258 |
|
|
|
228 |
|
|
13 |
% |
|
|
— |
% |
|
13 |
% |
Gross Profit |
|
|
1,088 |
|
|
|
946 |
|
|
15 |
% |
|
|
— |
% |
|
15 |
% |
Gross Margin |
|
|
80.8 |
% |
|
|
80.6 |
% |
|
|
|
|
|
|
|
|||
Operating Expenses |
|
|
199 |
|
|
|
202 |
|
|
(1 |
)% |
|
|
— |
% |
|
(1 |
)% |
Other (income)/deductions-net |
|
|
— |
|
|
|
— |
|
|
* |
|
|
* |
|
* |
|||
|
|
$ |
889 |
|
|
$ |
744 |
|
|
19 |
% |
|
|
— |
% |
|
19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
International: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
1,021 |
|
|
$ |
956 |
|
|
7 |
% |
|
|
(6 |
)% |
|
13 |
% |
Cost of Sales |
|
|
321 |
|
|
|
306 |
|
|
5 |
% |
|
|
(8 |
)% |
|
13 |
% |
Gross Profit |
|
|
700 |
|
|
|
650 |
|
|
8 |
% |
|
|
(5 |
)% |
|
13 |
% |
Gross Margin |
|
|
68.6 |
% |
|
|
68.0 |
% |
|
|
|
|
|
|
|
|||
Operating Expenses |
|
|
157 |
|
|
|
156 |
|
|
1 |
% |
|
|
(6 |
)% |
|
7 |
% |
Other (income)/deductions-net |
|
|
1 |
|
|
|
1 |
|
|
— |
% |
|
|
13 |
% |
|
(13 |
)% |
International Earnings |
|
$ |
542 |
|
|
$ |
493 |
|
|
10 |
% |
|
|
(5 |
)% |
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Reportable Segments |
|
$ |
1,431 |
|
|
$ |
1,237 |
|
|
16 |
% |
|
|
(2 |
)% |
|
18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other business activities(c) |
|
|
(137 |
) |
|
|
(124 |
) |
|
10 |
% |
|
|
|
|
|
||
Reconciling Items: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Corporate(d) |
|
|
(306 |
) |
|
|
(258 |
) |
|
19 |
% |
|
|
|
|
|
||
Purchase accounting adjustments(e) |
|
|
(35 |
) |
|
|
(39 |
) |
|
(10 |
)% |
|
|
|
|
|
||
Acquisition and divestiture-related costs(f) |
|
|
(7 |
) |
|
|
(3 |
) |
|
* |
|
|
|
|
|
|||
Certain significant items(g) |
|
|
(1 |
) |
|
|
(23 |
) |
|
(96 |
)% |
|
|
|
|
|
||
Other unallocated(h) |
|
|
(71 |
) |
|
|
(73 |
) |
|
(3 |
)% |
|
|
|
|
|
||
Total Earnings(i) |
|
$ |
874 |
|
|
$ |
717 |
|
|
22 |
% |
|
|
|
|
|
||
(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 and divestiture-related costs include costs associated with acquiring and integrating newly acquired businesses, such as transaction costs and integration costs, as well as costs associated with divesting and disintegrating a portion of our business. |
||||||||||||||||||
(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, as well as a loss on assets held for sale and the impact of divestiture 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. |
||||||||||||||||||
ZOETIS INC. SEGMENT(a) EARNINGS (UNAUDITED) (millions of dollars) |
||||||||||||||||||
|
|
Nine Months Ended |
|
|
||||||||||||||
|
|
September 30, |
|
% Change |
||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Total |
|
|
Foreign Exchange |
|
Operational(b) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
3,817 |
|
|
$ |
3,344 |
|
|
14 |
% |
|
|
— |
% |
|
14 |
% |
Cost of Sales |
|
|
707 |
|
|
|
645 |
|
|
10 |
% |
|
|
— |
% |
|
10 |
% |
Gross Profit |
|
|
3,110 |
|
|
|
2,699 |
|
|
15 |
% |
|
|
— |
% |
|
15 |
% |
Gross Margin |
|
|
81.5 |
% |
|
|
80.7 |
% |
|
|
|
|
|
|
|
|||
Operating Expenses |
|
|
593 |
|
|
|
602 |
|
|
(1 |
)% |
|
|
— |
% |
|
(1 |
)% |
Other (income)/deductions-net |
|
|
— |
|
|
|
— |
|
|
* |
|
|
* |
|
* |
|||
|
|
$ |
2,517 |
|
|
$ |
2,097 |
|
|
20 |
% |
|
|
— |
% |
|
20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
International: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
3,063 |
|
|
$ |
2,929 |
|
|
5 |
% |
|
|
(5 |
)% |
|
10 |
% |
Cost of Sales |
|
|
976 |
|
|
|
912 |
|
|
7 |
% |
|
|
(3 |
)% |
|
10 |
% |
Gross Profit |
|
|
2,087 |
|
|
|
2,017 |
|
|
3 |
% |
|
|
(8 |
)% |
|
11 |
% |
Gross Margin |
|
|
68.1 |
% |
|
|
68.9 |
% |
|
|
|
|
|
|
|
|||
Operating Expenses |
|
|
491 |
|
|
|
473 |
|
|
4 |
% |
|
|
(4 |
)% |
|
8 |
% |
Other (income)/deductions-net |
|
|
1 |
|
|
|
1 |
|
|
— |
% |
|
|
(39 |
)% |
|
39 |
% |
International Earnings |
|
$ |
1,595 |
|
|
$ |
1,543 |
|
|
3 |
% |
|
|
(9 |
)% |
|
12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Reportable Segments |
|
$ |
4,112 |
|
|
$ |
3,640 |
|
|
13 |
% |
|
|
(3 |
)% |
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other business activities(c) |
|
|
(411 |
) |
|
|
(354 |
) |
|
16 |
% |
|
|
|
|
|
||
Reconciling Items: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Corporate(d) |
|
|
(893 |
) |
|
|
(722 |
) |
|
24 |
% |
|
|
|
|
|
||
Purchase accounting adjustments(e) |
|
|
(107 |
) |
|
|
(124 |
) |
|
(14 |
)% |
|
|
|
|
|
||
Acquisition and divestiture-related costs(f) |
|
|
(12 |
) |
|
|
(8 |
) |
|
50 |
% |
|
|
|
|
|
||
Certain significant items(g) |
|
|
(77 |
) |
|
|
45 |
|
|
* |
|
|
|
|
|
|||
Other unallocated(h) |
|
|
(211 |
) |
|
|
(191 |
) |
|
10 |
% |
|
|
|
|
|
||
Total Earnings(i) |
|
$ |
2,401 |
|
|
$ |
2,286 |
|
|
5 |
% |
|
|
|
|
|
||
(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 and divestiture-related costs include costs associated with acquiring and integrating newly acquired businesses, such as transaction costs and integration costs, as well as costs associated with divesting and disintegrating a portion of our business. |
||||||||||||||||||
(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, as well as a loss on assets held for sale and the impact of divestiture gains and losses. |
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(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. |
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(i) Defined as income before provision for taxes on income. |
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* Calculation not meaningful. |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20241101893520/en/
Media Contacts:
Jennifer Albano
1-862-399-0810 (o)
jennifer.albano@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.
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