Zoetis Reports Fourth Quarter and Full Year 2022 Results
Zoetis reported its financial results for Q4 and the full year of 2022, achieving a revenue of $2.0 billion for Q4, up 4% year-over-year. The company’s net income for Q4 was $461 million, equating to $0.99 per diluted share. For the full year, Zoetis posted revenues of $8.1 billion, also reflecting a 4% increase, with net income reaching $2.1 billion or $4.49 per diluted share. Looking ahead, Zoetis expects 2023 revenue between $8.575 billion and $8.725 billion, with an operational growth forecast of 6% to 8%. Key growth drivers included companion animal products, although livestock product sales faced challenges from competition and supply issues.
- Q4 2022 net income increased to $461 million, up 11% year-over-year.
- Adjusted net income for Q4 2022 rose to $539 million, indicating a 27% operational growth.
- For the full year 2022, adjusted net income showed an 11% operational increase.
- Guidance for 2023 revenue projects a growth of 6% to 8%.
- Sales of livestock products in Q4 2022 declined by 6%.
- Cattle product sales decreased due to supply re-stocking and generic competition.
- Poultry product sales fell because of lower-cost alternatives.
-
For Fourth Quarter 2022, Zoetis Reports Revenue of
$2.0 Billion 4% , and Net Income of$461 Million $0.99 -
Delivers
9% Operational Growth in Revenue and27% Operational Growth in Adjusted Net Income for Fourth Quarter 2022 -
Reports Adjusted Net Income of
$539 Million $1.15
-
Delivers
-
For Full Year 2022, Zoetis Reports Revenue of
$8.1 Billion 4% , and Net Income of$2.1 Billion $4.49 -
Delivers
8% Operational Growth in Revenue and11% Operational Growth in Adjusted Net Income for Full Year 2022 -
Reports Adjusted Net Income of
$2.3 Billion $4.88
-
Delivers
-
Provides Full Year 2023 Revenue Guidance of
$8.57 5$8.72 5 Billion$5.03 $5.14 $5.34 $5.44 -
Expects to Deliver
6% to8% Operational Growth in Revenue
-
Expects to Deliver
The company reported revenue of
Adjusted net income for the fourth quarter of 2022 was
For full year 2022, the company reported revenue of
Adjusted net income for full year 2022 was
EXECUTIVE COMMENTARY
“In 2022, Zoetis delivered another strong year of performance thanks to our diverse portfolio, global scale and talented colleagues,” said
"Looking ahead, we are well-positioned with the strategy and capabilities to expand in large and growing product areas like parasiticides, dermatology products, monoclonal antibodies, vaccines and diagnostics, while still investing in comprehensive solutions across the continuum of animal care. We are committed to continuing our track record of value creation and above-market performance even in the face of today’s economic uncertainty, and we are guiding to full-year operational growth of
QUARTERLY HIGHLIGHTS
Zoetis organizes and manages its commercial operations across two regional segments:
-
Revenue in the
U.S. segment was$1.11 2 billion7% compared with the fourth quarter of 2021. Sales of companion animal products increased12% , driven by growth in the company’s parasiticide portfolio, primarilySimparica Trio ® for dogs. The company’s key dermatology portfolio also contributed to growth across both the Apoquel® and Cytopoint® brands. Sales of livestock products declined6% in the quarter. Sales of cattle products declined as a result of supply re-stocking in the third quarter of 2022 and generic competition for Draxxin®. 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 also decreased modestly in the quarter.
-
Revenue in the International segment was
$901 million 12% operationally compared with the fourth quarter of 2021. Sales of companion animal products grew7% on a reported basis and21% operationally. Contributing to growth in the quarter was the company’s parasiticide portfolio, primarily Revolution® and Simparica®, as well as key dermatology products including the recently launched chewable version of Apoquel. Also contributing to growth in the quarter were the company’s monoclonal antibody products for osteoarthritis pain, Librela® for dogs and Solensia® for cats. Sales of livestock products declined7% on a reported basis and increased4% operationally. Growth in the company’s fish portfolio was the result of increased sales of vaccines across key salmon markets, includingNorway andChile . Sales of the company’s poultry portfolio grew due to market expansion and demand generation efforts in several key geographies, while sales of sheep products grew due to the acquisition ofJurox inAustralia . Growth in fish, poultry and sheep was partially offset by reduced sales in the company’s swine and cattle portfolios due primarily to supply constraints.
INVESTMENTS IN GROWTH
Zoetis continues to grow key product franchises through new product approvals and incremental claim extensions. On the companion animal side of the business,
In
In Diagnostics, Zoetis expanded its multi-purpose Vetscan Imagyst™ platform in the
FINANCIAL GUIDANCE
Zoetis is providing full year 2023 guidance, which includes:
-
Revenue between
$8.57 5 billion$8.72 5 billion6% to8% )
-
Reported net income between
$2.34 5 billion$2.40 0 billion
-
Adjusted net income between
$2.49 0 billion$2.54 0 billion7% to9% )
-
Reported diluted EPS between
$5.03 $5.14
-
Adjusted diluted EPS between
$5.34 $5.44
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 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 growth (a non-GAAP financial measure) is defined as growth 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.
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; disruptions in our global supply chain; the impact of the coronavirus (COVID-19) global pandemic and any recovery therefrom on our business, supply chain, customers and employees; 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 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 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 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-COR
ZTS-IR
ZTS-FIN
|
|||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME(a) (UNAUDITED) (millions of dollars, except per share data)
|
|||||||||||
|
Three Months Ended
|
|
%
|
|
Twelve Months Ended
|
|
%
|
||||
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
|
||
Revenue |
|
|
|
|
4 |
|
|
|
|
|
4 |
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
653 |
|
600 |
|
9 |
|
2,454 |
|
2,303 |
|
7 |
Selling, general and administrative expenses |
514 |
|
593 |
|
(13) |
|
2,009 |
|
2,001 |
|
— |
Research and development expenses |
148 |
|
138 |
|
7 |
|
539 |
|
508 |
|
6 |
Amortization of intangible assets |
35 |
|
40 |
|
(13) |
|
150 |
|
161 |
|
(7) |
Restructuring charges and certain acquisition-related costs |
2 |
|
4 |
|
(50) |
|
11 |
|
43 |
|
(74) |
Interest expense |
62 |
|
54 |
|
15 |
|
221 |
|
224 |
|
(1) |
Other (income)/deductions–net |
34 |
|
32 |
|
6 |
|
40 |
|
48 |
|
(17) |
Income before provision for taxes on income |
592 |
|
506 |
|
17 |
|
2,656 |
|
2,488 |
|
7 |
Provision for taxes on income |
132 |
|
93 |
|
42 |
|
545 |
|
454 |
|
20 |
Net income before allocation to noncontrolling interests |
460 |
|
413 |
|
11 |
|
2,111 |
|
2,034 |
|
4 |
Less: Net loss attributable to noncontrolling interests |
(1) |
|
(1) |
|
— |
|
(3) |
|
(3) |
|
— |
Net income attributable to Zoetis |
|
|
|
|
11 |
|
|
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share—basic |
|
|
|
|
13 |
|
|
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share—diluted |
|
|
|
|
14 |
|
|
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used to calculate earnings per share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
465.6 |
|
473.1 |
|
|
|
468.9 |
|
474.3 |
|
|
Diluted |
466.8 |
|
475.6 |
|
|
|
470.4 |
|
476.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The Condensed Consolidated Statements of Income present the three and twelve months ended |
|||||||||||
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
|
|
Non-GAAP
|
|||||||||
Cost of sales |
$ |
653 |
|
$ |
(3 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
650 |
|
Gross profit |
|
1,387 |
|
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
1,390 |
|
Selling, general and administrative expenses |
|
514 |
|
|
(7 |
) |
|
|
— |
|
|
|
— |
|
|
|
507 |
|
Research and development expenses |
|
148 |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
147 |
|
Amortization of intangible assets |
|
35 |
|
|
(29 |
) |
|
|
— |
|
|
|
— |
|
|
|
6 |
|
Restructuring charges and certain acquisition-related costs |
|
2 |
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
— |
|
Other (income)/deductions–net |
|
34 |
|
|
— |
|
|
|
— |
|
|
|
(45 |
) |
|
|
(11 |
) |
Income before provision for taxes on income |
|
592 |
|
|
40 |
|
|
|
1 |
|
|
|
46 |
|
|
|
679 |
|
Provision for taxes on income |
|
132 |
|
|
12 |
|
|
|
— |
|
|
|
(3 |
) |
|
|
141 |
|
Net income attributable to Zoetis |
|
461 |
|
|
28 |
|
|
|
1 |
|
|
|
49 |
|
|
|
539 |
|
Earnings per common share attributable to Zoetis–diluted |
|
0.99 |
|
|
0.06 |
|
|
|
— |
|
|
|
0.10 |
|
|
|
1.15 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended |
|||||||||||||||||
|
GAAP
|
|
Purchase
|
|
Acquisition-
|
|
Certain
|
|
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 |
|
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 |
|
(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 |
$ |
2,454 |
|
$ |
(6 |
) |
|
$ |
— |
|
|
$ |
(8 |
) |
|
$ |
2,440 |
|
Gross profit |
|
5,626 |
|
|
6 |
|
|
|
— |
|
|
|
8 |
|
|
|
5,640 |
|
Selling, general and administrative expenses |
|
2,009 |
|
|
(29 |
) |
|
|
— |
|
|
|
— |
|
|
|
1,980 |
|
Research and development expenses |
|
539 |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
538 |
|
Amortization of intangible assets |
|
150 |
|
|
(124 |
) |
|
|
— |
|
|
|
— |
|
|
|
26 |
|
Restructuring charges and certain acquisition-related costs |
|
11 |
|
|
— |
|
|
|
(5 |
) |
|
|
(6 |
) |
|
|
— |
|
Other (income)/deductions–net |
|
40 |
|
|
— |
|
|
|
— |
|
|
|
(42 |
) |
|
|
(2 |
) |
Income before provision for taxes on income |
|
2,656 |
|
|
160 |
|
|
|
5 |
|
|
|
56 |
|
|
|
2,877 |
|
Provision for taxes on income |
|
545 |
|
|
40 |
|
|
|
1 |
|
|
|
(3 |
) |
|
|
583 |
|
Net income attributable to Zoetis |
|
2,114 |
|
|
120 |
|
|
|
4 |
|
|
|
59 |
|
|
|
2,297 |
|
Earnings per common share attributable to Zoetis–diluted |
|
4.49 |
|
|
0.26 |
|
|
|
0.01 |
|
|
|
0.12 |
|
|
|
4.88 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
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 |
|
(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
|
||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
Transaction costs(a) |
$ |
1 |
|
$ |
— |
|
$ |
1 |
|
$ |
— |
Integration costs(b) |
|
— |
|
|
4 |
|
|
4 |
|
|
10 |
Restructuring charges(c) |
|
— |
|
|
— |
|
|
— |
|
|
2 |
Total acquisition-related costs—pre-tax |
|
1 |
|
|
4 |
|
|
5 |
|
|
12 |
Income taxes(d) |
|
— |
|
|
1 |
|
|
1 |
|
|
2 |
Total acquisition-related costs—net of tax |
$ |
1 |
|
$ |
3 |
|
$ |
4 |
|
$ |
10 |
(a) Represents external costs directly related to acquiring businesses and primarily includes expenditures for banking, legal, accounting and other similar services. Included in Restructuring charges and certain acquisition-related costs. |
|||||||||||
| (b) 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. | |||||||||||
(c) Represents exit and employee termination costs, included in Restructuring charges and certain acquisition-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
|
|
Twelve Months Ended
|
||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
Other restructuring charges and cost-reduction/productivity initiatives(a) |
$ |
1 |
|
|
$ |
2 |
|
$ |
8 |
|
|
$ |
24 |
Certain asset impairment charges(b) |
|
41 |
|
|
|
27 |
|
|
47 |
|
|
|
46 |
Net loss on sale of assets(c) |
|
— |
|
|
|
— |
|
|
— |
|
|
|
3 |
Other |
|
4 |
|
|
|
— |
|
|
1 |
|
|
|
— |
Total certain significant items—pre-tax |
|
46 |
|
|
|
29 |
|
|
56 |
|
|
|
73 |
Income taxes(d) |
|
(3 |
) |
|
|
5 |
|
|
(3 |
) |
|
|
16 |
Total certain significant items—net of tax |
$ |
49 |
|
|
$ |
24 |
|
$ |
59 |
|
|
$ |
57 |
(a) For the twelve months ended
For the twelve months ended |
|||||||||||||
(b) For the three and twelve months ended
For the twelve months ended
For the three months ended
For the twelve months ended
|
|||||||||||||
(c) Represents a net loss related to the sale of certain assets of our poultry automation business located in the |
|||||||||||||
(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. For the twelve months ended |
|||||||||||||
ADJUSTED SELECTED COSTS AND EXPENSES(a) (UNAUDITED) (millions of dollars)
|
||||||||||||||||||
|
|
Three Months Ended
|
|
% Change |
||||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
Total |
|
|
Foreign Exchange |
|
Operational(b) |
|||
Adjusted cost of sales |
|
$ |
650 |
|
|
$ |
598 |
|
|
9 |
% |
|
|
(2 |
) % |
|
11 |
% |
As a percent of revenue |
|
|
31.9 |
% |
|
|
30.4 |
% |
|
NA |
|
|
NA |
|
NA |
|||
Adjusted SG&A expenses |
|
|
507 |
|
|
|
586 |
|
|
(13 |
) % |
|
|
(4 |
) % |
|
(9 |
) % |
Adjusted R&D expenses |
|
|
147 |
|
|
|
138 |
|
|
7 |
% |
|
|
(3 |
) % |
|
10 |
% |
Adjusted net income attributable to Zoetis |
|
|
539 |
|
|
|
474 |
|
|
14 |
% |
|
|
(13 |
) % |
|
27 |
% |
|
|
|
|
|
||||||||||||||
|
|
Twelve Months Ended
|
|
% Change |
||||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
Total |
|
|
Foreign Exchange |
|
Operational(b) |
|||
Adjusted cost of sales |
|
$ |
2,440 |
|
|
$ |
2,289 |
|
|
7 |
% |
|
|
(1 |
) % |
|
8 |
% |
As a percent of revenue |
|
|
30.2 |
% |
|
|
29.4 |
% |
|
NA |
|
|
NA |
|
NA |
|||
Adjusted SG&A expenses |
|
|
1,980 |
|
|
|
1,971 |
|
|
— |
% |
|
|
(3 |
) % |
|
3 |
% |
Adjusted R&D expenses |
|
|
538 |
|
|
|
507 |
|
|
6 |
% |
|
|
(2 |
) % |
|
8 |
% |
Adjusted net income attributable to Zoetis |
|
|
2,297 |
|
|
|
2,240 |
|
|
3 |
% |
|
|
(8 |
) % |
|
11 |
% |
(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. |
||||||||||||||||||
2023 GUIDANCE
|
|
Selected Line Items (millions of dollars, except per share amounts) |
Full Year 2023 |
Revenue |
|
Operational growth(a) |
|
Adjusted cost of sales as a percentage of revenue(b) |
|
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 January. |
|
Reconciliations of 2023 reported guidance to 2023 adjusted guidance follows: |
||||
(millions of dollars, except per share amounts) |
Reported |
Certain significant
|
Purchase
|
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 |
|||||||||||
|
|
|
2022 |
|
|
2021 |
|
Total |
|
Foreign
|
|
Operational(b) |
|||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
1,303 |
|
$ |
1,182 |
|
10 |
% |
|
(5 |
) % |
|
15 |
% |
Livestock |
|
|
710 |
|
|
760 |
|
(7 |
) % |
|
(7 |
) % |
|
— |
% |
|
|
|
27 |
|
|
25 |
|
8 |
% |
|
(4 |
) % |
|
12 |
% |
Total Revenue |
|
$ |
2,040 |
|
$ |
1,967 |
|
4 |
% |
|
(5 |
) % |
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
853 |
|
$ |
763 |
|
12 |
% |
|
— |
% |
|
12 |
% |
Livestock |
|
|
259 |
|
|
277 |
|
(6 |
) % |
|
— |
% |
|
(6 |
) % |
Total |
|
$ |
1,112 |
|
$ |
1,040 |
|
7 |
% |
|
— |
% |
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
International |
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
450 |
|
$ |
419 |
|
7 |
% |
|
(14 |
) % |
|
21 |
% |
Livestock |
|
|
451 |
|
|
483 |
|
(7 |
) % |
|
(11 |
) % |
|
4 |
% |
Total International Revenue |
|
$ |
901 |
|
$ |
902 |
|
— |
% |
|
(12 |
) % |
|
12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal: |
|
|
|
|
|
|
|
|
|
|
|||||
Dogs and Cats |
|
$ |
1,224 |
|
$ |
1,107 |
|
11 |
% |
|
(4 |
) % |
|
15 |
% |
Horses |
|
|
79 |
|
|
75 |
|
5 |
% |
|
(6 |
) % |
|
11 |
% |
Total Companion Animal Revenue |
|
$ |
1,303 |
|
$ |
1,182 |
|
10 |
% |
|
(5 |
) % |
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
Livestock: |
|
|
|
|
|
|
|
|
|
|
|||||
Cattle |
|
$ |
377 |
|
$ |
413 |
|
(9 |
) % |
|
(5 |
) % |
|
(4 |
) % |
Swine |
|
|
138 |
|
|
155 |
|
(11 |
) % |
|
(8 |
) % |
|
(3 |
) % |
Poultry |
|
|
115 |
|
|
118 |
|
(3 |
) % |
|
(6 |
) % |
|
3 |
% |
Fish |
|
|
61 |
|
|
55 |
|
11 |
% |
|
(14 |
) % |
|
25 |
% |
Sheep and other |
|
|
19 |
|
|
19 |
|
— |
% |
|
(14 |
) % |
|
14 |
% |
Total Livestock Revenue |
|
$ |
710 |
|
$ |
760 |
|
(7 |
) % |
|
(7 |
) % |
|
— |
% |
(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 |
||||||||||||
|
|
|
2022 |
|
|
2021 |
|
Total |
|
|
Foreign
|
|
Operational(b) |
|||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
5,203 |
|
$ |
4,689 |
|
11 |
% |
|
|
(3 |
) % |
|
14 |
% |
Livestock |
|
|
2,791 |
|
|
3,005 |
|
(7 |
) % |
|
|
(5 |
) % |
|
(2 |
) % |
|
|
|
86 |
|
|
82 |
|
5 |
% |
|
|
(2 |
) % |
|
7 |
% |
Total Revenue |
|
$ |
8,080 |
|
$ |
7,776 |
|
4 |
% |
|
|
(4 |
) % |
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
3,341 |
|
$ |
2,990 |
|
12 |
% |
|
|
— |
% |
|
12 |
% |
Livestock |
|
|
972 |
|
|
1,052 |
|
(8 |
) % |
|
|
— |
% |
|
(8 |
) % |
Total |
|
$ |
4,313 |
|
$ |
4,042 |
|
7 |
% |
|
|
— |
% |
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
International |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
1,862 |
|
$ |
1,699 |
|
10 |
% |
|
|
(9 |
) % |
|
19 |
% |
Livestock |
|
|
1,819 |
|
|
1,953 |
|
(7 |
) % |
|
|
(7 |
) % |
|
— |
% |
Total International Revenue |
|
$ |
3,681 |
|
$ |
3,652 |
|
1 |
% |
|
|
(8 |
) % |
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Dogs and Cats |
|
$ |
4,939 |
|
$ |
4,426 |
|
12 |
% |
|
|
(3 |
) % |
|
15 |
% |
Horses |
|
|
264 |
|
|
263 |
|
— |
% |
|
|
(4 |
) % |
|
4 |
% |
Total Companion Animal Revenue |
|
$ |
5,203 |
|
$ |
4,689 |
|
11 |
% |
|
|
(3 |
) % |
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Livestock: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Cattle |
|
$ |
1,440 |
|
$ |
1,557 |
|
(8 |
) % |
|
|
(5 |
) % |
|
(3 |
) % |
Swine |
|
|
565 |
|
|
659 |
|
(14 |
) % |
|
|
(4 |
) % |
|
(10 |
) % |
Poultry |
|
|
476 |
|
|
507 |
|
(6 |
) % |
|
|
(4 |
) % |
|
(2 |
) % |
Fish |
|
|
212 |
|
|
187 |
|
13 |
% |
|
|
(9 |
) % |
|
22 |
% |
Sheep and other |
|
|
98 |
|
|
95 |
|
3 |
% |
|
|
(9 |
) % |
|
12 |
% |
Total Livestock Revenue |
|
$ |
2,791 |
|
$ |
3,005 |
|
(7 |
) % |
|
|
(5 |
) % |
|
(2 |
) % |
(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 |
||||||||||||
|
|
|
2022 |
|
|
2021 |
|
Total |
|
|
Foreign
|
|
Operational(a) |
|||
|
|
$ |
901.3 |
|
$ |
902.3 |
|
— |
% |
|
|
(12 |
) % |
|
12 |
% |
|
|
|
64.2 |
|
|
62.8 |
|
2 |
% |
|
|
(13 |
) % |
|
15 |
% |
|
|
|
96.2 |
|
|
84.1 |
|
14 |
% |
|
|
4 |
% |
|
10 |
% |
|
|
|
65.2 |
|
|
63.0 |
|
3 |
% |
|
|
(8 |
) % |
|
11 |
% |
|
|
|
34.8 |
|
|
36.1 |
|
(4 |
) % |
|
|
(5 |
) % |
|
1 |
% |
|
|
|
91.4 |
|
|
68.4 |
|
34 |
% |
|
|
(14 |
) % |
|
48 |
% |
|
|
|
35.1 |
|
|
34.7 |
|
1 |
% |
|
|
(16 |
) % |
|
17 |
% |
|
|
|
44.0 |
|
|
48.0 |
|
(8 |
) % |
|
|
(14 |
) % |
|
6 |
% |
|
|
|
25.6 |
|
|
27.9 |
|
(8 |
) % |
|
|
(14 |
) % |
|
6 |
% |
|
|
|
36.1 |
|
|
46.3 |
|
(22 |
) % |
|
|
(21 |
) % |
|
(1 |
) % |
|
|
|
35.6 |
|
|
34.8 |
|
2 |
% |
|
|
3 |
% |
|
(1 |
) % |
|
|
|
21.3 |
|
|
31.1 |
|
(32 |
) % |
|
|
(12 |
) % |
|
(20 |
) % |
|
|
|
60.3 |
|
|
61.2 |
|
(1 |
) % |
|
|
(18 |
) % |
|
17 |
% |
Other Developed |
|
|
114.6 |
|
|
117.1 |
|
(2 |
) % |
|
|
(16 |
) % |
|
14 |
% |
Other Emerging |
|
|
176.9 |
|
|
186.8 |
|
(5 |
) % |
|
|
(14 |
) % |
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Twelve Months Ended
|
|
% Change |
||||||||||||
|
|
|
2022 |
|
|
2021 |
|
Total |
|
|
Foreign
|
|
Operational(a) |
|||
|
|
$ |
3,680.8 |
|
$ |
3,651.9 |
|
1 |
% |
|
|
(8 |
) % |
|
9 |
% |
|
|
|
288.7 |
|
|
258.8 |
|
12 |
% |
|
|
(9 |
) % |
|
21 |
% |
|
|
|
329.5 |
|
|
311.5 |
|
6 |
% |
|
|
3 |
% |
|
3 |
% |
|
|
|
237.5 |
|
|
231.5 |
|
3 |
% |
|
|
(3 |
) % |
|
6 |
% |
|
|
|
141.1 |
|
|
136.3 |
|
4 |
% |
|
|
(4 |
) % |
|
8 |
% |
|
|
|
382.4 |
|
|
357.3 |
|
7 |
% |
|
|
(4 |
) % |
|
11 |
% |
|
|
|
126.1 |
|
|
132.4 |
|
(5 |
) % |
|
|
(12 |
) % |
|
7 |
% |
|
|
|
176.3 |
|
|
183.0 |
|
(4 |
) % |
|
|
(12 |
) % |
|
8 |
% |
|
|
|
111.2 |
|
|
115.2 |
|
(3 |
) % |
|
|
(11 |
) % |
|
8 |
% |
|
|
|
173.1 |
|
|
186.2 |
|
(7 |
) % |
|
|
(16 |
) % |
|
9 |
% |
|
|
|
136.2 |
|
|
132.6 |
|
3 |
% |
|
|
— |
% |
|
3 |
% |
|
|
|
117.8 |
|
|
127.7 |
|
(8 |
) % |
|
|
(11 |
) % |
|
3 |
% |
|
|
|
234.5 |
|
|
234.4 |
|
— |
% |
|
|
(11 |
) % |
|
11 |
% |
Other Developed |
|
|
468.4 |
|
|
467.0 |
|
— |
% |
|
|
(11 |
) % |
|
11 |
% |
Other Emerging |
|
|
758.0 |
|
|
778.0 |
|
(3 |
) % |
|
|
(12 |
) % |
|
9 |
% |
(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 |
||||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
Total |
|
|
Foreign
|
|
Operational(b) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
1,112 |
|
|
$ |
1,040 |
|
|
7 |
% |
|
|
— |
% |
|
7 |
% |
Cost of sales |
|
|
216 |
|
|
|
213 |
|
|
1 |
% |
|
|
— |
% |
|
1 |
% |
Gross profit |
|
|
896 |
|
|
|
827 |
|
|
8 |
% |
|
|
— |
% |
|
8 |
% |
Gross margin |
|
|
80.6 |
% |
|
|
79.5 |
% |
|
|
|
|
|
|
|
|||
Operating expenses |
|
|
187 |
|
|
|
197 |
|
|
(5 |
) % |
|
|
— |
% |
|
(5 |
) % |
Other (income)/deductions-net |
|
|
(12 |
) |
|
|
2 |
|
|
* |
|
|
* |
|
* |
|||
|
|
$ |
721 |
|
|
$ |
628 |
|
|
15 |
% |
|
|
— |
% |
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
International: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
901 |
|
|
$ |
902 |
|
|
— |
% |
|
|
(12 |
) % |
|
12 |
% |
Cost of sales |
|
|
274 |
|
|
|
273 |
|
|
— |
% |
|
|
(8 |
) % |
|
8 |
% |
Gross profit |
|
|
627 |
|
|
|
629 |
|
|
— |
% |
|
|
(13 |
) % |
|
13 |
% |
Gross margin |
|
|
69.6 |
% |
|
|
69.7 |
% |
|
|
|
|
|
|
|
|||
Operating expenses |
|
|
155 |
|
|
|
173 |
|
|
(10 |
) % |
|
|
(10 |
) % |
|
— |
% |
Other (income)/deductions-net |
|
|
2 |
|
|
|
— |
|
|
* |
|
|
* |
|
* |
|||
International Earnings |
|
$ |
470 |
|
|
$ |
456 |
|
|
3 |
% |
|
|
(14 |
) % |
|
17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Reportable Segments |
|
$ |
1,191 |
|
|
$ |
1,084 |
|
|
10 |
% |
|
|
(6 |
) % |
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other business activities(c) |
|
|
(109 |
) |
|
|
(105 |
) |
|
4 |
% |
|
|
|
|
|
||
Reconciling Items: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Corporate(d) |
|
|
(302 |
) |
|
|
(308 |
) |
|
(2 |
) % |
|
|
|
|
|
||
Purchase accounting adjustments(e) |
|
|
(40 |
) |
|
|
(42 |
) |
|
(5 |
) % |
|
|
|
|
|
||
Acquisition-related costs(f) |
|
|
(1 |
) |
|
|
(4 |
) |
|
(75 |
) % |
|
|
|
|
|
||
Certain significant items(g) |
|
|
(46 |
) |
|
|
(29 |
) |
|
59 |
% |
|
|
|
|
|
||
Other unallocated(h) |
|
|
(101 |
) |
|
|
(90 |
) |
|
12 |
% |
|
|
|
|
|
||
Total Earnings(i) |
|
$ |
592 |
|
|
$ |
506 |
|
|
17 |
% |
|
|
|
|
|
||
(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 |
||||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
Total |
|
|
Foreign
|
|
Operational(b) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
4,313 |
|
|
$ |
4,042 |
|
|
7 |
% |
|
|
— |
% |
|
7 |
% |
Cost of sales |
|
|
803 |
|
|
|
788 |
|
|
2 |
% |
|
|
— |
% |
|
2 |
% |
Gross profit |
|
|
3,510 |
|
|
|
3,254 |
|
|
8 |
% |
|
|
— |
% |
|
8 |
% |
Gross margin |
|
|
81.4 |
% |
|
|
80.5 |
% |
|
|
|
|
|
|
|
|||
Operating expenses |
|
|
765 |
|
|
|
681 |
|
|
12 |
% |
|
|
— |
% |
|
12 |
% |
Other (income)/deductions-net |
|
|
(18 |
) |
|
|
4 |
|
|
* |
|
|
* |
|
* |
|||
|
|
$ |
2,763 |
|
|
$ |
2,569 |
|
|
8 |
% |
|
|
— |
% |
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
International: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
3,681 |
|
|
$ |
3,652 |
|
|
1 |
% |
|
|
(8 |
) % |
|
9 |
% |
Cost of sales |
|
|
1,083 |
|
|
|
1,106 |
|
|
(2 |
) % |
|
|
(5 |
) % |
|
3 |
% |
Gross profit |
|
|
2,598 |
|
|
|
2,546 |
|
|
2 |
% |
|
|
(10 |
) % |
|
12 |
% |
Gross margin |
|
|
70.6 |
% |
|
|
69.7 |
% |
|
|
|
|
|
|
|
|||
Operating expenses |
|
|
611 |
|
|
|
602 |
|
|
1 |
% |
|
|
(8 |
) % |
|
9 |
% |
Other (income)/deductions-net |
|
|
(3 |
) |
|
|
(4 |
) |
|
(25 |
) % |
|
|
28 |
% |
|
(53 |
) % |
International Earnings |
|
$ |
1,990 |
|
|
$ |
1,948 |
|
|
2 |
% |
|
|
(10 |
) % |
|
12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Reportable Segments |
|
$ |
4,753 |
|
|
$ |
4,517 |
|
|
5 |
% |
|
|
(5 |
) % |
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other business activities(c) |
|
|
(424 |
) |
|
|
(406 |
) |
|
4 |
% |
|
|
|
|
|
||
Reconciling Items: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Corporate(d) |
|
|
(1,073 |
) |
|
|
(1,052 |
) |
|
2 |
% |
|
|
|
|
|
||
Purchase accounting adjustments(e) |
|
|
(160 |
) |
|
|
(175 |
) |
|
(9 |
) % |
|
|
|
|
|
||
Acquisition-related costs(f) |
|
|
(5 |
) |
|
|
(12 |
) |
|
(58 |
) % |
|
|
|
|
|
||
Certain significant items(g) |
|
|
(56 |
) |
|
|
(73 |
) |
|
(23 |
) % |
|
|
|
|
|
||
Other unallocated(h) |
|
|
(379 |
) |
|
|
(311 |
) |
|
22 |
% |
|
|
|
|
|
||
Total Earnings(i) |
|
$ |
2,656 |
|
|
$ |
2,488 |
|
|
7 |
% |
|
|
|
|
|
||
(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 | ||||||||||||||||||
(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/20230213005363/en/
Media:
1-973-443-2742 (o)
william.price@zoetis.com
1-973-443-2777 (o)
kristen.seely@zoetis.com
Investor:
1-973-822-7141 (o)
steve.frank@zoetis.com
1-973-443-2792 (o)
nick.soonthornchai@zoetis.com
Source:
FAQ
What were Zoetis' Q4 2022 revenue and net income figures?
How did Zoetis perform in full year 2022?
What is the revenue guidance for Zoetis in 2023?
What operational growth does Zoetis expect for 2023?
What contributed to Zoetis' revenue growth in Q4 2022?
