Zoetis Reports Fourth Quarter and Full Year 2021 Results
For Q4 2021, Zoetis reported $2.0 billion in revenue, marking a 9% increase year-over-year. Net income rose to $414 million or $0.87 per diluted share. For the full year, revenue reached $7.8 billion, a 16% growth, with net income at $2.0 billion or $4.27 per share. Zoetis anticipates 2022 revenues between $8.325 billion to $8.475 billion, projecting operational growth of 9% to 11%. The company achieved significant sales growth in its companion animal products, despite declines in livestock products due to competition and pricing pressures.
- Q4 2021 revenue increased by 9% year-over-year to $2.0 billion.
- Full year 2021 revenue rose by 16% to $7.8 billion.
- Adjusted net income for Q4 2021 was $474 million ($1.00 per diluted share), reflecting an 8% increase.
- Adjusted net income for full year 2021 reached $2.2 billion ($4.70 per diluted share), a 21% increase.
- Zoetis expects operational growth in revenue of 9% to 11% for 2022.
- Sales in livestock products declined by 13% in Q4 2021 due to generic competition and consumer market weakness.
- Cattle product sales faced declines because of generic competition and market pressures.
-
For Fourth Quarter 2021, Zoetis Reports Revenue of
$2.0 Billion 9% , and Net Income of$414 Million $0.87 -
Reports Adjusted Net Income of
$474 Million $1.00 -
Delivers
9% Operational Growth in Revenue and5% Operational Growth in Adjusted Net Income for Fourth Quarter 2021
-
Reports Adjusted Net Income of
-
For Full Year 2021, Zoetis Reports Revenue of
$7.8 Billion 16% , and Net Income of$2.0 Billion $4.27 -
Reports Adjusted Net Income of
$2.2 Billion $4.70 -
Delivers
15% Operational Growth in Revenue and19% Operational Growth in Adjusted Net Income for Full Year 2021
-
Reports Adjusted Net Income of
-
Provides Full Year 2022 Revenue Guidance of
$8.32 5$8.47 5 Billion$4.75 $4.87 $5.09 $5.19
The company reported revenue of
Adjusted net income1 for the fourth quarter of 2021 was
On an operational2 basis, revenue for the fourth quarter of 2021 increased
For full year 2021, the company reported revenue of
Adjusted net income for full year 2021 was
On an operational basis, revenue for full year 2021 increased
EXECUTIVE COMMENTARY
“In 2021, Zoetis delivered its strongest performance ever, thanks to our innovative, diverse and durable portfolio, and the talent and commitment of our colleagues,” said
“Looking forward, we believe this momentum sets us up for a strong 2022. We expect to continue growing revenue faster than the market in the coming year, driven by continued strength in petcare; expansion of our diagnostics portfolio internationally; and significant growth in both livestock and companion animal product sales in emerging markets, including
QUARTERLY HIGHLIGHTS
Zoetis organizes and manages its commercial operations across two regional segments:
-
Revenue in the
U.S. segment was$1.04 0 billion9% compared with the fourth quarter of 2020. Sales of companion animal products increased20% , driven by growth across the company’s parasiticides portfolio, includingSimparica Trio ® for dogs. The key dermatology portfolio also significantly contributed to growth across both the Apoquel® and Cytopoint® brands. Sales of livestock products declined13% in the quarter. Sales of cattle products declined as a result of generic competition for Draxxin® and continued weakness in beef and dairy consumer markets. The company’s poultry portfolio declined due to the expanded use of lower cost alternatives and generic competition for Zoamix®, the company’s alternative to antibiotics in medicated feed additives. Sales of swine products declined due to pricing pressure on anti-infectives and vaccines.
-
Revenue in the International segment was
$902 million 8% on a reported and operational basis compared with the fourth quarter of 2020. Sales of companion animal products increased22% on a reported basis and23% operationally. Growth resulted from increased sales in the key dermatology portfolio across both the Apoquel and Cytopoint brands, as well as from the company’s recently launched monoclonal antibody (mAb) products for control of osteoarthritis pain, Librela® for dogs and Solensia® for cats. The parasiticides portfolio, including the Simparica®/Simparica Trio and Revolution®/Stronghold® franchises, also contributed to growth, as well as the broader in-line portfolio which benefited from increased pet ownership and standards of care. Sales of livestock products declined1% on a reported basis and2% operationally. Sales of cattle products declined due to generic competition for Draxxin. Sales of swine products decreased in the quarter as a result of declining pork prices due to increased supply inChina . Growth in the company’s fish portfolio was primarily the result of increased sales of the Alpha Flux® sea lice treatment product and Alpha Ject LiVac® SRS vaccine. Growth in poultry was driven by market expansion and demand generation efforts in key geographies including theMiddle East andChina .
INVESTMENTS IN GROWTH
Zoetis continues to gain market approvals for its innovative mAb therapies. Since its last quarterly earnings announcement, the company received approval in the
Additionally, the company introduced lifecycle innovations for key companion animal products from its dermatology and parasiticide portfolios. In December, Zoetis received marketing authorization in the EU and the
On the livestock side of the business, Zoetis introduced new digital and data analytic solutions to help its
FINANCIAL GUIDANCE
Zoetis is providing full year 2022 guidance, which includes:
-
Revenue between
$8.32 5 billion$8.47 5 billion -
Reported diluted EPS between
$4.75 $4.87 -
Adjusted diluted EPS between
$5.09 $5.19
This guidance reflects foreign exchange rates as of late January. 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
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 70 years innovating ways to predict, prevent, detect, and treat animal illness, Zoetis continues to stand by those raising and caring for animals worldwide – from livestock farmers to veterinarians and pet owners. 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 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.
2 Operational growth (a non-GAAP financial measure) is defined as growth excluding the impact of foreign exchange.
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; supply chain; R&D costs, timing and likelihood of success; expectations regarding products, product approvals or products under development, expected timing of product launches; the impact of the coronavirus (COVID-19) global pandemic and any recovery therefrom on our business, supply chain, customers and employees; 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 rate 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 Annual Report on Form 10-K for the fiscal year ended
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. Reconciliation of non-GAAP financial measures and 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 in the 'Investors' section of our website at www.zoetis.com, on our Facebook page at http://www.facebook.com/zoetis and on Twitter@zoetis. We encourage investors and potential investors to consult our website regularly and to follow us on Facebook and Twitter for important information about us.
ZTS-IR
ZTS-FIN
|
||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME(a) |
||||||||||||||||||||
(UNAUDITED) |
||||||||||||||||||||
(millions of dollars, except per share data) |
||||||||||||||||||||
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
||||||||||||||
2021 |
|
2020 |
|
% Change |
|
2021 |
|
2022 |
|
% Change |
||||||||||
Revenue |
$ |
1,967 |
|
|
$ |
1,807 |
|
|
9 |
|
$ |
7,776 |
|
|
$ |
6,675 |
|
|
16 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cost of sales |
|
600 |
|
|
|
601 |
|
|
— |
|
|
2,303 |
|
|
|
2,057 |
|
|
12 |
|
Selling, general and administrative expenses |
|
593 |
|
|
|
520 |
|
|
14 |
|
|
2,001 |
|
|
|
1,726 |
|
|
16 |
|
Research and development expenses |
|
138 |
|
|
|
133 |
|
|
4 |
|
|
508 |
|
|
|
463 |
|
|
10 |
|
Amortization of intangible assets |
|
40 |
|
|
|
40 |
|
|
— |
|
|
161 |
|
|
|
160 |
|
|
1 |
|
Restructuring charges and certain acquisition-related costs |
|
4 |
|
|
|
3 |
|
|
33 |
|
|
43 |
|
|
|
25 |
|
|
72 |
|
Interest expense |
|
54 |
|
|
|
58 |
|
|
(7) |
|
|
224 |
|
|
|
231 |
|
|
(3) |
|
Other (income)/deductions–net |
|
32 |
|
|
|
32 |
|
|
— |
|
|
48 |
|
|
|
17 |
|
|
* |
|
Income before provision for taxes on income |
|
506 |
|
|
|
420 |
|
|
20 |
|
|
2,488 |
|
|
|
1,996 |
|
|
25 |
|
Provision for taxes on income |
|
93 |
|
|
|
62 |
|
|
50 |
|
|
454 |
|
|
|
360 |
|
|
26 |
|
Net income before allocation to noncontrolling interests |
|
413 |
|
|
|
358 |
|
|
15 |
|
|
2,034 |
|
|
|
1,636 |
|
|
24 |
|
Less: Net loss attributable to noncontrolling interests |
|
(1 |
) |
|
|
(1 |
) |
|
— |
|
|
(3 |
) |
|
|
(2 |
) |
|
50 |
|
Net income attributable to Zoetis |
$ |
414 |
|
|
$ |
359 |
|
|
15 |
|
$ |
2,037 |
|
|
$ |
1,638 |
|
|
24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Earnings per share—basic |
$ |
0.88 |
|
|
$ |
0.75 |
|
|
17 |
|
$ |
4.29 |
|
|
$ |
3.44 |
|
|
25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Earnings per share—diluted |
$ |
0.87 |
|
|
$ |
0.75 |
|
|
16 |
|
$ |
4.27 |
|
|
$ |
3.42 |
|
|
25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted-average shares used to calculate earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Basic |
|
473.1 |
|
|
|
475.6 |
|
|
|
|
|
474.3 |
|
|
|
475.5 |
|
|
|
|
Diluted |
|
475.6 |
|
|
|
478.7 |
|
|
|
|
|
476.7 |
|
|
|
478.6 |
|
|
|
|
| (a) |
The Condensed Consolidated Statements of Income present the three and twelve months ended |
|
* Calculation not meaningful. |
||
|
||||||||||||||||||
RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION |
||||||||||||||||||
CERTAIN LINE ITEMS |
||||||||||||||||||
(UNAUDITED) |
||||||||||||||||||
(millions of dollars, except per share data) |
||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||
|
GAAP
|
|
Purchase
|
|
Acquisition-
|
|
Certain
Items(2) |
|
Non-GAAP
|
|||||||||
Cost of sales |
$ |
600 |
|
$ |
(1 |
) |
|
$ |
— |
|
|
$ |
(1 |
) |
|
$ |
598 |
|
Gross profit |
|
1,367 |
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
1,369 |
|
Selling, general and administrative expenses |
|
593 |
|
|
(7 |
) |
|
|
— |
|
|
|
— |
|
|
|
586 |
|
Research and development expenses |
|
138 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
138 |
|
Amortization of intangible assets |
|
40 |
|
|
(34 |
) |
|
|
— |
|
|
|
— |
|
|
|
6 |
|
Restructuring charges and certain acquisition-related costs |
|
4 |
|
|
— |
|
|
|
(4 |
) |
|
|
— |
|
|
|
— |
|
Other (income)/deductions–net |
|
32 |
|
|
— |
|
|
|
— |
|
|
|
(28 |
) |
|
|
4 |
|
Income before provision for taxes on income |
|
506 |
|
|
42 |
|
|
|
4 |
|
|
|
29 |
|
|
|
581 |
|
Provision for taxes on income |
|
93 |
|
|
9 |
|
|
|
1 |
|
|
|
5 |
|
|
|
108 |
|
Net income attributable to Zoetis |
|
414 |
|
|
33 |
|
|
|
3 |
|
|
|
24 |
|
|
|
474 |
|
Earnings per common share attributable to Zoetis–diluted |
|
0.87 |
|
|
0.07 |
|
|
|
0.01 |
|
|
|
0.05 |
|
|
|
1.00 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended |
|||||||||||||||||
|
GAAP
|
|
Purchase
|
|
Acquisition-
|
|
Certain
|
|
Non-GAAP
|
|||||||||
Cost of sales |
$ |
601 |
|
$ |
(2 |
) |
|
$ |
— |
|
|
$ |
(15 |
) |
|
$ |
584 |
|
Gross profit |
|
1,206 |
|
|
2 |
|
|
|
— |
|
|
|
15 |
|
|
|
1,223 |
|
Selling, general and administrative expenses |
|
520 |
|
|
(7 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
511 |
|
Research and development expenses |
|
133 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
133 |
|
Amortization of intangible assets |
|
40 |
|
|
(34 |
) |
|
|
— |
|
|
|
— |
|
|
|
6 |
|
Restructuring charges and certain acquisition-related costs |
|
3 |
|
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
|
— |
|
Other (income)/deductions–net |
|
32 |
|
|
— |
|
|
|
— |
|
|
|
(22 |
) |
|
|
10 |
|
Income before provision for taxes on income |
|
420 |
|
|
43 |
|
|
|
3 |
|
|
|
39 |
|
|
|
505 |
|
Provision for taxes on income |
|
62 |
|
|
9 |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
68 |
|
Net income attributable to Zoetis |
|
359 |
|
|
34 |
|
|
|
4 |
|
|
|
41 |
|
|
|
438 |
|
Earnings per common share attributable to Zoetis–diluted |
|
0.75 |
|
|
0.07 |
|
|
|
0.01 |
|
|
|
0.08 |
|
|
|
0.91 |
|
| (a) |
The Condensed Consolidated Statements of Income present the three months ended |
|
(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). |
||
|
||||||||||||||||||
RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION |
||||||||||||||||||
CERTAIN LINE ITEMS |
||||||||||||||||||
(UNAUDITED) |
||||||||||||||||||
(millions of dollars, except per share data) |
||||||||||||||||||
|
Twelve Months Ended |
|||||||||||||||||
|
GAAP
|
|
Purchase
|
|
Acquisition-
|
|
Certain
|
|
Non-GAAP
|
|||||||||
Cost of sales |
$ |
2,303 |
|
$ |
(6 |
) |
|
$ |
— |
|
|
$ |
(8 |
) |
|
$ |
2,289 |
|
Gross profit |
|
5,473 |
|
|
6 |
|
|
|
— |
|
|
|
8 |
|
|
|
5,487 |
|
Selling, general and administrative expenses |
|
2,001 |
|
|
(30 |
) |
|
|
— |
|
|
|
— |
|
|
|
1,971 |
|
Research and development expenses |
|
508 |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
507 |
|
Amortization of intangible assets |
|
161 |
|
|
(138 |
) |
|
|
— |
|
|
|
— |
|
|
|
23 |
|
Restructuring charges and certain acquisition-related costs |
|
43 |
|
|
— |
|
|
|
(12 |
) |
|
|
(31 |
) |
|
|
— |
|
Other (income)/deductions–net |
|
48 |
|
|
— |
|
|
|
— |
|
|
|
(34 |
) |
|
|
14 |
|
Income before provision for taxes on income |
|
2,488 |
|
|
175 |
|
|
|
12 |
|
|
|
73 |
|
|
|
2,748 |
|
Provision for taxes on income |
|
454 |
|
|
39 |
|
|
|
2 |
|
|
|
16 |
|
|
|
511 |
|
Net income attributable to Zoetis |
|
2,037 |
|
|
136 |
|
|
|
10 |
|
|
|
57 |
|
|
|
2,240 |
|
Earnings per common share attributable to Zoetis–diluted |
|
4.27 |
|
|
0.29 |
|
|
|
0.02 |
|
|
|
0.12 |
|
|
|
4.70 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Twelve Months Ended |
|||||||||||||||||
|
GAAP
|
|
Purchase
|
|
Acquisition-
|
|
Certain Significant Items(2) |
|
Non-GAAP
|
|||||||||
Cost of sales |
$ |
2,057 |
|
$ |
(8 |
) |
|
$ |
— |
|
|
$ |
(19 |
) |
|
$ |
2,030 |
|
Gross profit |
|
4,618 |
|
|
8 |
|
|
|
— |
|
|
|
19 |
|
|
|
4,645 |
|
Selling, general and administrative expenses |
|
1,726 |
|
|
(54 |
) |
|
|
— |
|
|
|
(13 |
) |
|
|
1,659 |
|
Research and development expenses |
|
463 |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
462 |
|
Amortization of intangible assets |
|
160 |
|
|
(135 |
) |
|
|
— |
|
|
|
— |
|
|
|
25 |
|
Restructuring charges and certain acquisition-related costs |
|
25 |
|
|
— |
|
|
|
(18 |
) |
|
|
(7 |
) |
|
|
— |
|
Other (income)/deductions–net |
|
17 |
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
|
|
13 |
|
Income before provision for taxes on income |
|
1,996 |
|
|
198 |
|
|
|
18 |
|
|
|
43 |
|
|
|
2,255 |
|
Provision for taxes on income |
|
360 |
|
|
56 |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
413 |
|
Net income attributable to Zoetis |
|
1,638 |
|
|
142 |
|
|
|
19 |
|
|
|
45 |
|
|
|
1,844 |
|
Earnings per common share attributable to Zoetis–diluted |
|
3.42 |
|
|
0.30 |
|
|
|
0.04 |
|
|
|
0.09 |
|
|
|
3.85 |
|
| (a) |
The Condensed Consolidated Statements of Income present the twelve months ended |
|
(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). |
||
|
||||||||||||||
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
|
|
Twelve Months Ended
|
|||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||
Integration costs(a) |
$ |
4 |
|
$ |
2 |
|
|
$ |
10 |
|
$ |
17 |
|
|
Restructuring charges(b) |
|
— |
|
|
1 |
|
|
|
2 |
|
|
1 |
|
|
Total acquisition-related costs—pre-tax |
|
4 |
|
|
3 |
|
|
|
12 |
|
|
18 |
|
|
Income taxes(c) |
|
1 |
|
|
(1 |
) |
|
|
2 |
|
|
(1 |
) |
|
Total acquisition-related costs—net of tax |
$ |
3 |
|
$ |
4 |
|
|
$ |
10 |
|
$ |
19 |
||
(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) |
Represents employee termination costs, included in Restructuring charges and certain acquisition-related costs. |
|
(c) |
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 twelve months ended |
(2) Certain significant items include the following: |
||||||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
|||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||
Operational efficiency initiative(a) |
$ |
— |
|
$ |
— |
|
|
$ |
— |
|
$ |
(18 |
) |
|
Supply network strategy(b) |
|
1 |
|
|
— |
|
|
|
3 |
|
|
4 |
|
|
Other restructuring charges and cost-reduction/productivity initiatives(c) |
|
1 |
|
|
— |
|
|
|
21 |
|
|
7 |
|
|
Certain asset impairment charges(d) |
|
27 |
|
|
37 |
|
|
|
46 |
|
|
37 |
|
|
Net loss on sale of assets(e) |
|
— |
|
|
— |
|
|
|
3 |
|
|
— |
|
|
Other(f) |
|
— |
|
|
2 |
|
|
|
— |
|
|
13 |
|
|
Total certain significant items—pre-tax |
|
29 |
|
|
39 |
|
|
|
73 |
|
|
43 |
|
|
Income taxes(g) |
|
5 |
|
|
(2 |
) |
|
|
16 |
|
|
(2 |
) |
|
Total certain significant items—net of tax |
$ |
24 |
|
$ |
41 |
|
|
$ |
57 |
|
$ |
45 |
||
(a) |
Represents a net gain resulting from net cash proceeds received pursuant to an agreement related to the 2016 sale of certain |
|
(b) |
Represents product transfer costs, included in Cost of sales, related to cost-reduction and productivity initiatives. |
|
(c) |
For the twelve months ended |
|
|
For the twelve months ended |
|
(d) |
For the three months ended |
|
|
For the twelve months ended |
|
|
|
|
|
For the three and twelve months ended |
|
|
|
|
(e) |
Represents a net loss related to the sale of certain assets of our poultry automation business located in the |
|
(f) |
For the three and twelve months ended |
|
(g) |
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 twelve months ended |
|
||||||||||||||||
ADJUSTED SELECTED COSTS AND EXPENSES(a) |
||||||||||||||||
(UNAUDITED) |
||||||||||||||||
(millions of dollars) |
||||||||||||||||
|
|
Three Months Ended
|
|
% Change |
||||||||||||
|
|
2021 |
|
2020 |
|
Total |
|
|
Foreign
|
|
Operational(b) |
|||||
Adjusted cost of sales |
|
$ |
598 |
|
|
$ |
584 |
|
|
2 |
% |
|
|
(3)% |
|
|
As a percent of revenue |
|
|
30.4 |
% |
|
|
32.3 |
% |
|
NA |
|
|
NA |
|
NA |
|
Adjusted SG&A expenses |
|
|
586 |
|
|
|
511 |
|
|
15 |
% |
|
|
—% |
|
|
Adjusted R&D expenses |
|
|
138 |
|
|
|
133 |
|
|
4 |
% |
|
|
|
|
|
Adjusted net income attributable to Zoetis |
|
|
474 |
|
|
|
438 |
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Twelve Months Ended
|
|
% Change |
||||||||||||
|
|
2021 |
|
2020 |
|
Total |
|
|
Foreign
|
|
Operational(b) |
|||||
Adjusted cost of sales |
|
$ |
2,289 |
|
|
$ |
2,030 |
|
|
13 |
% |
|
|
|
|
|
As a percent of revenue |
|
|
29.4 |
% |
|
|
30.4 |
% |
|
NA |
|
|
NA |
|
NA |
|
Adjusted SG&A expenses |
|
|
1,971 |
|
|
|
1,659 |
|
|
19 |
% |
|
|
|
|
|
Adjusted R&D expenses |
|
|
507 |
|
|
|
462 |
|
|
10 |
% |
|
|
|
|
|
Adjusted net income attributable to Zoetis |
|
|
2,240 |
|
|
|
1,844 |
|
|
21 |
% |
|
|
|
|
|
(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 growth (a non-GAAP financial measure) is defined as growth excluding the impact of foreign exchange. |
|
||
2022 GUIDANCE |
||
Selected Line Items (millions of dollars, except per share amounts) |
Foreign Exchange
|
Full Year 2022 |
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) |
|
Approximately |
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
Reconciliations of 2022 reported guidance to 2022 adjusted guidance follows:
| (millions of dollars, except per share amounts) | Reported | Certain significant items and acquisition-related costs(d) |
Purchase accounting |
Adjusted(b) |
| Cost of sales as a percentage of revenue | ~ |
~ ( |
~ ( |
~ |
| SG&A expenses | ~ |
|||
| R&D expenses | ~ |
|||
| Interest expense and other (income)/deductions | ~ |
~ |
||
| Effective tax rate | ~ |
~ |
||
| Diluted EPS | ~ |
|||
| Net income attributable to Zoetis | ~ |
| (a) | Operational growth (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 growth to the most directly comparable |
|
(d) |
Primarily includes certain nonrecurring costs related to acquisitions and other charges. |
|
|||||||||||||||
CONSOLIDATED REVENUE BY SEGMENT(a) AND SPECIES |
|||||||||||||||
(UNAUDITED) |
|||||||||||||||
(millions of dollars) |
|||||||||||||||
|
|
Three Months Ended
|
|
% Change |
|||||||||||
|
|
2021 |
|
2020 |
|
Total |
|
Foreign
|
|
Operational(b) |
|||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
1,182 |
|
$ |
978 |
|
21 |
% |
|
— |
% |
|
21 |
% |
Livestock |
|
|
760 |
|
|
806 |
|
(6 |
)% |
|
— |
% |
|
(6 |
)% |
|
|
|
25 |
|
|
23 |
|
9 |
% |
|
(3 |
)% |
|
12 |
% |
Total Revenue |
|
$ |
1,967 |
|
$ |
1,807 |
|
9 |
% |
|
— |
% |
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
763 |
|
$ |
634 |
|
20 |
% |
|
— |
% |
|
20 |
% |
Livestock |
|
|
277 |
|
|
318 |
|
(13 |
)% |
|
— |
% |
|
(13 |
)% |
Total |
|
$ |
1,040 |
|
$ |
952 |
|
9 |
% |
|
— |
% |
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
International |
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
419 |
|
$ |
344 |
|
22 |
% |
|
(1 |
)% |
|
23 |
% |
Livestock |
|
|
483 |
|
|
488 |
|
(1 |
)% |
|
1 |
% |
|
(2 |
)% |
Total International Revenue |
|
$ |
902 |
|
$ |
832 |
|
8 |
% |
|
— |
% |
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal: |
|
|
|
|
|
|
|
|
|
|
|||||
Dogs and Cats |
|
$ |
1,107 |
|
$ |
913 |
|
21 |
% |
|
— |
% |
|
21 |
% |
Horses |
|
|
75 |
|
|
65 |
|
15 |
% |
|
— |
% |
|
15 |
% |
Total Companion Animal Revenue |
|
$ |
1,182 |
|
$ |
978 |
|
21 |
% |
|
— |
% |
|
21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
Livestock: |
|
|
|
|
|
|
|
|
|
|
|||||
Cattle |
|
$ |
413 |
|
$ |
451 |
|
(8 |
)% |
|
— |
% |
|
(8 |
)% |
Swine |
|
|
155 |
|
|
167 |
|
(7 |
)% |
|
1 |
% |
|
(8 |
)% |
Poultry |
|
|
118 |
|
|
125 |
|
(6 |
)% |
|
(1 |
)% |
|
(5 |
)% |
Fish |
|
|
55 |
|
|
47 |
|
17 |
% |
|
3 |
% |
|
14 |
% |
Sheep and other |
|
|
19 |
|
|
16 |
|
19 |
% |
|
10 |
% |
|
9 |
% |
Total Livestock Revenue |
|
$ |
760 |
|
$ |
806 |
|
(6 |
)% |
|
— |
% |
|
(6 |
)% |
(a) |
For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K. |
|
(b) |
Operational revenue growth (a non-GAAP financial measure) is defined as revenue growth excluding the impact of foreign exchange. |
|
||||||||||||||||
CONSOLIDATED REVENUE BY SEGMENT(a) AND SPECIES |
||||||||||||||||
(UNAUDITED) |
||||||||||||||||
(millions of dollars) |
||||||||||||||||
|
|
Twelve Months Ended
|
|
% Change |
||||||||||||
|
|
2021 |
|
2020 |
|
Total |
|
|
Foreign
|
|
Operational(b) |
|||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
4,689 |
|
$ |
3,652 |
|
28 |
% |
|
|
1 |
% |
|
27 |
% |
Livestock |
|
|
3,005 |
|
|
2,940 |
|
2 |
% |
|
|
1 |
% |
|
1 |
% |
|
|
|
82 |
|
|
83 |
|
(1 |
)% |
|
|
— |
% |
|
(1 |
)% |
Total Revenue |
|
$ |
7,776 |
|
$ |
6,675 |
|
16 |
% |
|
|
1 |
% |
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
2,990 |
|
$ |
2,391 |
|
25 |
% |
|
|
— |
% |
|
25 |
% |
Livestock |
|
|
1,052 |
|
|
1,166 |
|
(10 |
)% |
|
|
— |
% |
|
(10 |
)% |
Total |
|
$ |
4,042 |
|
$ |
3,557 |
|
14 |
% |
|
|
— |
% |
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
International |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
1,699 |
|
$ |
1,261 |
|
35 |
% |
|
|
5 |
% |
|
30 |
% |
Livestock |
|
|
1,953 |
|
|
1,774 |
|
10 |
% |
|
|
2 |
% |
|
8 |
% |
Total International Revenue |
|
$ |
3,652 |
|
$ |
3,035 |
|
20 |
% |
|
|
3 |
% |
|
17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Dogs and Cats |
|
|
4,426 |
|
|
3,437 |
|
29 |
% |
|
|
2 |
% |
|
27 |
% |
Horses |
|
|
263 |
|
|
215 |
|
22 |
% |
|
|
2 |
% |
|
20 |
% |
Total Companion Animal Revenue |
|
$ |
4,689 |
|
$ |
3,652 |
|
28 |
% |
|
|
1 |
% |
|
27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Livestock: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Cattle |
|
$ |
1,557 |
|
$ |
1,558 |
|
— |
% |
|
|
1 |
% |
|
(1 |
)% |
Swine |
|
|
659 |
|
|
621 |
|
6 |
% |
|
|
2 |
% |
|
4 |
% |
Poultry |
|
|
507 |
|
|
537 |
|
(6 |
)% |
|
|
— |
% |
|
(6 |
)% |
Fish |
|
|
187 |
|
|
148 |
|
26 |
% |
|
|
3 |
% |
|
23 |
% |
Sheep and other |
|
|
95 |
|
|
76 |
|
25 |
% |
|
|
10 |
% |
|
15 |
% |
Total Livestock Revenue |
|
$ |
3,005 |
|
$ |
2,940 |
|
2 |
% |
|
|
1 |
% |
|
1 |
% |
(a) |
For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K. |
|
(b) |
Operational revenue growth (a non-GAAP financial measure) is defined as revenue growth excluding the impact of foreign exchange. |
|
||||||||||||||||
CONSOLIDATED REVENUE BY KEY INTERNATIONAL MARKETS |
||||||||||||||||
(UNAUDITED) |
||||||||||||||||
(millions of dollars) |
||||||||||||||||
|
|
Three Months Ended
|
|
% Change |
||||||||||||
|
|
2021 |
|
2020 |
|
Total |
|
|
Foreign
|
|
Operational(a) |
|||||
|
|
$ |
902.3 |
|
$ |
832.8 |
|
8 |
% |
|
|
— |
% |
|
8 |
% |
|
|
|
62.8 |
|
|
53.4 |
|
18 |
% |
|
|
2 |
% |
|
16 |
% |
|
|
|
84.1 |
|
|
77.0 |
|
9 |
% |
|
|
— |
% |
|
9 |
% |
|
|
|
63.0 |
|
|
66.1 |
|
(5 |
)% |
|
|
4 |
% |
|
(9 |
)% |
|
|
|
36.1 |
|
|
28.3 |
|
28 |
% |
|
|
(1 |
)% |
|
29 |
% |
|
|
|
68.4 |
|
|
68.0 |
|
1 |
% |
|
|
5 |
% |
|
(4 |
)% |
|
|
|
34.7 |
|
|
35.3 |
|
(2 |
)% |
|
|
(2 |
)% |
|
— |
% |
|
|
|
48.0 |
|
|
46.5 |
|
3 |
% |
|
|
(2 |
)% |
|
5 |
% |
|
|
|
27.9 |
|
|
27.8 |
|
— |
% |
|
|
(2 |
)% |
|
2 |
% |
|
|
|
46.3 |
|
|
43.9 |
|
5 |
% |
|
|
(7 |
)% |
|
12 |
% |
|
|
|
34.8 |
|
|
32.2 |
|
8 |
% |
|
|
4 |
% |
|
4 |
% |
|
|
|
31.1 |
|
|
29.5 |
|
5 |
% |
|
|
(2 |
)% |
|
7 |
% |
|
|
|
61.2 |
|
|
52.5 |
|
17 |
% |
|
|
5 |
% |
|
12 |
% |
Other Developed |
|
|
117.1 |
|
|
105.9 |
|
11 |
% |
|
|
1 |
% |
|
10 |
% |
Other Emerging |
|
|
186.8 |
|
|
166.4 |
|
12 |
% |
|
|
(4 |
)% |
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Twelve Months Ended
|
|
% Change |
||||||||||||
|
|
2021 |
|
2020 |
|
Total |
|
|
Foreign
|
|
Operational(a) |
|||||
|
|
$ |
3,651.9 |
|
$ |
3,035.4 |
|
20 |
% |
|
|
3 |
% |
|
17 |
% |
|
|
|
258.8 |
|
|
207.2 |
|
25 |
% |
|
|
11 |
% |
|
14 |
% |
|
|
|
311.5 |
|
|
258.3 |
|
21 |
% |
|
|
(7 |
)% |
|
28 |
% |
|
|
|
231.5 |
|
|
209.8 |
|
10 |
% |
|
|
7 |
% |
|
3 |
% |
|
|
|
136.3 |
|
|
100.1 |
|
36 |
% |
|
|
2 |
% |
|
34 |
% |
|
|
|
357.3 |
|
|
265.7 |
|
34 |
% |
|
|
9 |
% |
|
25 |
% |
|
|
|
132.4 |
|
|
117.7 |
|
12 |
% |
|
|
5 |
% |
|
7 |
% |
|
|
|
183.0 |
|
|
158.6 |
|
15 |
% |
|
|
5 |
% |
|
10 |
% |
|
|
|
115.2 |
|
|
90.5 |
|
27 |
% |
|
|
6 |
% |
|
21 |
% |
|
|
|
186.2 |
|
|
177.2 |
|
5 |
% |
|
|
(2 |
)% |
|
7 |
% |
|
|
|
132.6 |
|
|
115.8 |
|
15 |
% |
|
|
6 |
% |
|
9 |
% |
|
|
|
127.7 |
|
|
112.2 |
|
14 |
% |
|
|
6 |
% |
|
8 |
% |
|
|
|
234.4 |
|
|
177.9 |
|
32 |
% |
|
|
9 |
% |
|
23 |
% |
Other Developed |
|
|
467.0 |
|
|
388.2 |
|
20 |
% |
|
|
6 |
% |
|
14 |
% |
Other Emerging |
|
|
778.0 |
|
|
656.2 |
|
19 |
% |
|
|
(3 |
)% |
|
22 |
% |
(a) |
Operational revenue growth (a non-GAAP financial measure) is defined as revenue growth excluding the impact of foreign exchange. |
|
||||||||||||||||||
SEGMENT(a) EARNINGS |
||||||||||||||||||
(UNAUDITED) |
||||||||||||||||||
(millions of dollars) |
||||||||||||||||||
|
|
Three Months Ended
|
|
% Change |
||||||||||||||
|
|
2021 |
|
2020 |
|
Total |
|
|
Foreign
|
|
Operational(b) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
1,040 |
|
|
$ |
952 |
|
|
9 |
% |
|
|
— |
% |
|
9 |
% |
Cost of sales |
|
|
213 |
|
|
|
194 |
|
|
10 |
% |
|
|
— |
% |
|
10 |
% |
Gross profit |
|
|
827 |
|
|
|
758 |
|
|
9 |
% |
|
|
— |
% |
|
9 |
% |
Gross margin |
|
|
79.5 |
% |
|
|
79.6 |
% |
|
|
|
|
|
|
|
|||
Operating expenses |
|
|
197 |
|
|
|
184 |
|
|
7 |
% |
|
|
— |
% |
|
7 |
% |
Other (income)/deductions-net |
|
|
2 |
|
|
|
3 |
|
|
(33 |
)% |
|
|
— |
% |
|
(33 |
)% |
|
|
$ |
628 |
|
|
$ |
571 |
|
|
10 |
% |
|
|
— |
% |
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
International: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
902 |
|
|
$ |
832 |
|
|
8 |
% |
|
|
— |
% |
|
8 |
% |
Cost of sales |
|
|
273 |
|
|
|
274 |
|
|
— |
% |
|
|
(2 |
)% |
|
2 |
% |
Gross profit |
|
|
629 |
|
|
|
558 |
|
|
13 |
% |
|
|
2 |
% |
|
11 |
% |
Gross margin |
|
|
69.7 |
% |
|
|
67.1 |
% |
|
|
|
|
|
|
|
|||
Operating expenses |
|
|
173 |
|
|
|
146 |
|
|
18 |
% |
|
|
(1 |
)% |
|
19 |
% |
Other (income)/deductions-net |
|
|
— |
|
|
|
6 |
|
|
* |
|
|
* |
|
* |
|||
International Earnings |
|
$ |
456 |
|
|
$ |
406 |
|
|
12 |
% |
|
|
2 |
% |
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Reportable Segments |
|
$ |
1,084 |
|
|
$ |
977 |
|
|
11 |
% |
|
|
1 |
% |
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other business activities(c) |
|
|
(105 |
) |
|
|
(108 |
) |
|
(3 |
)% |
|
|
|
|
|
||
Reconciling Items: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Corporate(d) |
|
|
(308 |
) |
|
|
(276 |
) |
|
12 |
% |
|
|
|
|
|
||
Purchase accounting adjustments(e) |
|
|
(42 |
) |
|
|
(43 |
) |
|
(2 |
)% |
|
|
|
|
|
||
Acquisition-related costs(f) |
|
|
(4 |
) |
|
|
(3 |
) |
|
33 |
% |
|
|
|
|
|
||
Certain significant items(g) |
|
|
(29 |
) |
|
|
(39 |
) |
|
(26 |
)% |
|
|
|
|
|
||
Other unallocated(h) |
|
|
(90 |
) |
|
|
(88 |
) |
|
2 |
% |
|
|
|
|
|
||
Total Earnings(i) |
|
$ |
506 |
|
|
$ |
420 |
|
|
20 |
% |
|
|
|
|
|
||
(a) |
For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K. |
|
(b) |
Operational growth (a non-GAAP financial measure) is defined as growth excluding the impact of foreign exchange. |
|
(c) |
Other business activities reflect 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 expense, certain compensation costs, certain procurement 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 restructuring charges and implementation costs associated with a shift in our organizational structure and cost-reduction/productivity initiatives that are not associated with an acquisition, certain asset impairment charges, costs associated with the operational efficiency initiative and supply network strategy, and the impact of divestiture-related gains and losses. |
|
(h) |
Includes overhead expenses associated with our 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. |
||
|
||||||||||||||||||
SEGMENT(a) EARNINGS |
||||||||||||||||||
(UNAUDITED) |
||||||||||||||||||
(millions of dollars) |
||||||||||||||||||
|
|
Twelve Months Ended
|
|
% Change |
||||||||||||||
|
|
2021 |
|
2020 |
|
Total |
|
|
Foreign Exchange |
|
Operational(b) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
4,042 |
|
|
$ |
3,557 |
|
|
14 |
% |
|
|
— |
% |
|
14 |
% |
Cost of sales |
|
|
788 |
|
|
|
709 |
|
|
11 |
% |
|
|
— |
% |
|
11 |
% |
Gross profit |
|
|
3,254 |
|
|
|
2,848 |
|
|
14 |
% |
|
|
— |
% |
|
14 |
% |
Gross margin |
|
|
80.5 |
% |
|
|
80.1 |
% |
|
|
|
|
|
|
|
|||
Operating expenses |
|
|
681 |
|
|
|
602 |
|
|
13 |
% |
|
|
— |
% |
|
13 |
% |
Other (income)/deductions-net |
|
|
4 |
|
|
|
7 |
|
|
(43 |
)% |
|
|
— |
% |
|
(43 |
)% |
|
|
$ |
2,569 |
|
|
$ |
2,239 |
|
|
15 |
% |
|
|
— |
% |
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
International: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
3,652 |
|
|
$ |
3,035 |
|
|
20 |
% |
|
|
3 |
% |
|
17 |
% |
Cost of sales |
|
|
1,106 |
|
|
|
971 |
|
|
14 |
% |
|
|
1 |
% |
|
13 |
% |
Gross profit |
|
|
2,546 |
|
|
|
2,064 |
|
|
23 |
% |
|
|
4 |
% |
|
19 |
% |
Gross margin |
|
|
69.7 |
% |
|
|
68.0 |
% |
|
|
|
|
|
|
|
|||
Operating expenses |
|
|
602 |
|
|
|
510 |
|
|
18 |
% |
|
|
3 |
% |
|
15 |
% |
Other (income)/deductions-net |
|
|
(4 |
) |
|
|
7 |
|
|
* |
|
|
* |
|
* |
|||
International Earnings |
|
$ |
1,948 |
|
|
$ |
1,547 |
|
|
26 |
% |
|
|
5 |
% |
|
21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Reportable Segments |
|
$ |
4,517 |
|
|
$ |
3,786 |
|
|
19 |
% |
|
|
2 |
% |
|
17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other business activities(c) |
|
|
(406 |
) |
|
|
(372 |
) |
|
9 |
% |
|
|
|
|
|
||
Reconciling Items: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Corporate(d) |
|
|
(1,052 |
) |
|
|
(879 |
) |
|
20 |
% |
|
|
|
|
|
||
Purchase accounting adjustments(e) |
|
|
(175 |
) |
|
|
(198 |
) |
|
(12 |
)% |
|
|
|
|
|
||
Acquisition-related costs(f) |
|
|
(12 |
) |
|
|
(18 |
) |
|
(33 |
)% |
|
|
|
|
|
||
Certain significant items(g) |
|
|
(73 |
) |
|
|
(43 |
) |
|
70 |
% |
|
|
|
|
|
||
Other unallocated(h) |
|
|
(311 |
) |
|
|
(280 |
) |
|
11 |
% |
|
|
|
|
|
||
Total Earnings(i) |
|
$ |
2,488 |
|
|
$ |
1,996 |
|
|
25 |
% |
|
|
|
|
|
||
(a) |
For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K. |
|
(b) |
Operational growth (a non-GAAP financial measure) is defined as growth excluding the impact of foreign exchange. |
|
(c) |
Other business activities reflect 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 expense, certain compensation costs, certain procurement 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 a shift in our organizational structure and cost-reduction/productivity initiatives that are not associated with an acquisition, costs associated with the operational efficiency initiative and supply network strategy, and the impact of divestiture-related gains and losses. |
|
(h) |
Includes overhead expenses associated with our 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/20220214005852/en/
Media:
1-973-443-2742 (o)
william.price@zoetis.com
1-973-443-2777 (o)
kristen.seely@zoetis.com
Investors:
1-973-822-7141 (o)
steve.frank@zoetis.com
1-973-822-7154 (o)
keith.gaub@zoetis.com
Source:
FAQ
What were Zoetis' Q4 2021 earnings results?
How did Zoetis perform in 2021?
What is Zoetis' revenue guidance for 2022?
What operational growth does Zoetis expect in 2022?
What factors contributed to Zoetis' performance in 2021?
