Zoetis Reports Fourth Quarter and Full Year 2023 Results
-
For Fourth Quarter 2023,
Zoetis Reports Revenue of$2.2 Billion , Growing 8%, and Net Income of$525 Million , or$1.14 per Diluted Share, Increasing 14% and 15%, Respectively, on a Reported Basis- Delivers 8% Operational Growth in Revenue and 6% Operational Growth in Adjusted Net Income for Fourth Quarter 2023
-
Reports Adjusted Net Income of
$569 Million , or Adjusted Diluted EPS of$1.24 , for Fourth Quarter 2023
-
For Full Year 2023, Zoetis Reports Revenue of
$8.5 Billion , Growing 6%, and Net Income of$2.3 Billion , or$5.07 per Diluted Share, Increasing 11% and 13%, Respectively, on a Reported Basis- Delivers 7% Operational Growth in Revenue and Adjusted Net Income for Full Year 2023
-
Reports Adjusted Net Income of
$2.5 Billion , or Adjusted Diluted EPS of$5.32 for Full Year 2023
-
Provides Full Year 2024 Revenue Guidance of
$9.075 -$9.225 Billion , with Diluted EPS of$5.34 to$5.44 on a Reported Basis, or$5.74 to$5.84 on an Adjusted Basis- Expects to Deliver 7% to 9% Operational Growth in Revenue
The company reported revenue of
Adjusted net income2 for the fourth quarter of 2023 was
For full year 2023, the company reported revenue of
Adjusted net incomefor full year 2023 was
EXECUTIVE COMMENTARY
“Zoetis delivered another strong performance in 2023 thanks to our diverse portfolio across markets and species and our dedicated colleagues,” said
“We are excited by the momentum of Librela in the
QUARTERLY HIGHLIGHTS
Zoetis organizes and manages its commercial operations across two regional segments:
-
Revenue in the
U.S. segment was$1.2 billion , an increase of 9% compared with the fourth quarter of 2022. Sales of companion animal products increased 10%, driven by the company’s monoclonal antibody (mAb) products for osteoarthritis (OA) pain, Librela™ for dogs and Solensia® for cats, as well as the company's flea, tick and heartworm combination product for dogs,Simparica Trio ®. Also contributing to growth in the quarter was the company's dermatology portfolio, including Apoquel® and Cytopoint®. Sales of livestock products increased 4% in the quarter. Growth in the poultry product portfolio was the result of favorable rotations back to certain medicated feed additives (MFAs) and the expanded use of Zoamix®. Sales of both swine and cattle products increased in the quarter, primarily as a result of increased supply of vaccines that were limited in the same quarter the year prior.
-
Revenue in the International segment was
$982 million , reflecting a 9% increase on a reported basis and an increase of 8% operationally compared with the fourth quarter of 2022. Sales of companion animal products grew 13% on a reported basis and 10% operationally. Growth in the quarter was driven by the company’s monoclonal antibody products for OA pain, Librela for dogs and Solensia for cats, as well as key dermatology products, Apoquel and Cytopoint. Also contributing to growth in the quarter were Simparica® andSimparica Trio . Sales of livestock products increased 5% on a reported basis and 7% operationally. Growth in both the company’s cattle and poultry product portfolios were driven largely by price increases across the broader international segment. The fish product portfolio grew as a result of a new vaccine launch inNorway . Sales in the sheep product portfolio declined due to unfavorable market conditions inAustralia and New Zealand , while sales in the swine product portfolio decreased inChina primarily due to unfavorable market conditions and a difficult comparative period versus the same quarter of the prior year.
INVESTMENTS IN GROWTH
Zoetis continues to advance innovation and care for animals across the globe. Since its last quarterly earnings announcement, Solensia (frunevetmab injection), the first injectable monoclonal antibody for the alleviation of pain associated with osteoarthritis in cats, received approval in
On the livestock side of the business, Zoetis received approval in
Zoetis also continues to grow key product franchises through additional claim extensions in major markets. In the fourth quarter,
FINANCIAL GUIDANCE
Zoetis is providing full year 2024 guidance, which includes:
-
Revenue between
$9.075 billion to$9.225 billion (operational growth of 7% to 9%) -
Reported net income between
$2.468 billion to$2.513 billion -
Adjusted net income between
$2.650 billion to$2.700 billion (operational growth of 9% to 11%) -
Reported diluted EPS between
$5.34 to$5.44 -
Adjusted diluted EPS between
$5.74 to$5.84
This guidance reflects foreign exchange rates as of late
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; R&D costs; timing and likelihood of success; expectations regarding products, product approvals or products under development and expected timing of product launches; disruptions in our global supply chain; expectations regarding the performance of acquired companies and our ability to integrate new businesses; expectations regarding the financial impact of acquisitions; future use of cash, dividend payments and share repurchases; tax rates and tax regimes and any changes thereto; and other future events. These statements are not guarantees of future performance or actions. Forward-looking statements are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, or if management's underlying assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Zoetis expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A further list and description of risks, uncertainties and other matters can be found in our most recent Annual Report on Form 10-K, including in the sections thereof captioned “Forward-Looking Statements and Factors That May Affect Future Results” and “Item 1A. Risk Factors,” in our Quarterly Reports on Form 10-Q and in our Current Reports on Form 8-K. These filings and subsequent filings are available online at www.sec.gov, www.zoetis.com, or on request from Zoetis.
Use of Non-GAAP Financial Measures: We use non-GAAP financial measures, such as adjusted net income, adjusted diluted earnings per share and operational results (which exclude the impact of foreign exchange), to assess and analyze our results and trends and to make financial and operational decisions. We believe these non-GAAP financial measures are also useful to investors because they provide greater transparency regarding our operating performance. The non-GAAP financial measures included in this press release should not be considered alternatives to measurements required by GAAP, such as net income, operating income, and earnings per share, and should not be considered measures of liquidity. These non-GAAP financial measures are unlikely to be comparable with non-GAAP information provided by other companies. Reconciliations of non-GAAP financial measures and the most directly comparable GAAP financial measures are included in the tables accompanying this press release and are posted on our website at www.zoetis.com.
Internet Posting of Information: We routinely post information that may be important to investors on the 'Investor Relations' section of our website at www.zoetis.com, as well as on LinkedIn, Facebook, X (formerly Twitter) and YouTube. We encourage investors and potential investors to consult our website regularly and to follow us on social media for company news and information.
ZTS-COR
ZTS-IR
ZTS-FIN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME(a) (UNAUDITED) (millions of dollars, except per share data) |
|||||||||||||||||||||
|
Three Months Ended |
|
% Change |
|
Twelve Months Ended |
|
% Change |
||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
||||
Revenue |
$ |
2,213 |
|
|
$ |
2,040 |
|
|
8 |
|
|
$ |
8,544 |
|
|
$ |
8,080 |
|
|
6 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of sales |
|
728 |
|
|
|
653 |
|
|
11 |
|
|
|
2,561 |
|
|
|
2,454 |
|
|
4 |
|
Selling, general and administrative expenses |
|
565 |
|
|
|
514 |
|
|
10 |
|
|
|
2,151 |
|
|
|
2,009 |
|
|
7 |
|
Research and development expenses |
|
174 |
|
|
|
148 |
|
|
18 |
|
|
|
614 |
|
|
|
539 |
|
|
14 |
|
Amortization of intangible assets |
|
37 |
|
|
|
35 |
|
|
6 |
|
|
|
149 |
|
|
|
150 |
|
|
(1 |
) |
Restructuring charges and certain acquisition-related costs |
|
8 |
|
|
|
2 |
|
|
* |
|
|
53 |
|
|
|
11 |
|
|
* |
||
Interest expense |
|
59 |
|
|
|
62 |
|
|
(5 |
) |
|
|
239 |
|
|
|
221 |
|
|
8 |
|
Other (income)/deductions–net |
|
(8 |
) |
|
|
34 |
|
|
* |
|
|
(159 |
) |
|
|
40 |
|
|
* |
||
Income before provision for taxes on income |
|
650 |
|
|
|
592 |
|
|
10 |
|
|
|
2,936 |
|
|
|
2,656 |
|
|
11 |
|
Provision for taxes on income |
|
127 |
|
|
|
132 |
|
|
(4 |
) |
|
|
596 |
|
|
|
545 |
|
|
9 |
|
Net income before allocation to noncontrolling interests |
|
523 |
|
|
|
460 |
|
|
14 |
|
|
|
2,340 |
|
|
|
2,111 |
|
|
11 |
|
Less: Net loss attributable to noncontrolling interests |
|
(2 |
) |
|
|
(1 |
) |
|
* |
|
|
(4 |
) |
|
|
(3 |
) |
|
33 |
|
|
Net income attributable to Zoetis |
$ |
525 |
|
|
$ |
461 |
|
|
14 |
|
|
$ |
2,344 |
|
|
$ |
2,114 |
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per share—basic |
$ |
1.14 |
|
|
$ |
0.99 |
|
|
15 |
|
|
$ |
5.08 |
|
|
$ |
4.51 |
|
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per share—diluted |
$ |
1.14 |
|
|
$ |
0.99 |
|
|
15 |
|
|
$ |
5.07 |
|
|
$ |
4.49 |
|
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average shares used to calculate earnings per share |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
459.0 |
|
|
|
465.6 |
|
|
|
|
|
461.2 |
|
|
|
468.9 |
|
|
|
||
Diluted |
|
460.1 |
|
|
|
466.8 |
|
|
|
|
|
462.3 |
|
|
|
470.4 |
|
|
|
||
(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 Reported(a) |
|
Purchase Accounting Adjustments |
|
Acquisition- Related Costs(1) |
|
Certain Significant Items(2) |
|
Non-GAAP Adjusted(b) |
||||||||||
Cost of sales |
$ |
728 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(1 |
) |
|
$ |
727 |
|
Gross profit |
|
1,485 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1,486 |
|
Selling, general and administrative expenses |
|
565 |
|
|
|
(3 |
) |
|
|
— |
|
|
|
— |
|
|
|
562 |
|
Research and development expenses |
|
174 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
174 |
|
Amortization of intangible assets |
|
37 |
|
|
|
(32 |
) |
|
|
— |
|
|
|
— |
|
|
|
5 |
|
Restructuring charges and certain acquisition-related costs |
|
8 |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(7 |
) |
|
|
— |
|
Other (income)/deductions–net |
|
(8 |
) |
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
|
|
(12 |
) |
Income before provision for taxes on income |
|
650 |
|
|
|
35 |
|
|
|
1 |
|
|
|
12 |
|
|
|
698 |
|
Provision for taxes on income |
|
127 |
|
|
|
6 |
|
|
|
1 |
|
|
|
(3 |
) |
|
|
131 |
|
Net income attributable to Zoetis |
|
525 |
|
|
|
29 |
|
|
|
— |
|
|
|
15 |
|
|
|
569 |
|
Earnings per common share attributable to Zoetis–diluted |
|
1.14 |
|
|
|
0.07 |
|
|
|
— |
|
|
|
0.03 |
|
|
|
1.24 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
||||||||||||||||||
|
GAAP Reported(a) |
|
Purchase Accounting Adjustments |
|
Acquisition- Related Costs(1) |
|
Certain Significant Items(2) |
|
Non-GAAP Adjusted(b) |
||||||||||
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 |
|
(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 Reported(a) |
|
Purchase Accounting Adjustments |
|
Acquisition- Related Costs(1) |
|
Certain Significant Items(2) |
|
Non-GAAP Adjusted(b) |
||||||||||
Cost of sales |
$ |
2,561 |
|
|
$ |
(10 |
) |
|
$ |
— |
|
|
$ |
(3 |
) |
|
$ |
2,548 |
|
Gross profit |
|
5,983 |
|
|
|
10 |
|
|
|
— |
|
|
|
3 |
|
|
|
5,996 |
|
Selling, general and administrative expenses |
|
2,151 |
|
|
|
(21 |
) |
|
|
— |
|
|
|
— |
|
|
|
2,130 |
|
Research and development expenses |
|
614 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
613 |
|
Amortization of intangible assets |
|
149 |
|
|
|
(127 |
) |
|
|
— |
|
|
|
— |
|
|
|
22 |
|
Restructuring charges and certain acquisition-related costs |
|
53 |
|
|
|
— |
|
|
|
(9 |
) |
|
|
(44 |
) |
|
|
— |
|
Other (income)/deductions–net |
|
(159 |
) |
|
|
— |
|
|
|
— |
|
|
|
80 |
|
|
|
(79 |
) |
Income before provision for taxes on income |
|
2,936 |
|
|
|
159 |
|
|
|
9 |
|
|
|
(33 |
) |
|
|
3,071 |
|
Provision for taxes on income |
|
596 |
|
|
|
32 |
|
|
|
2 |
|
|
|
(12 |
) |
|
|
618 |
|
Net income attributable to Zoetis |
|
2,344 |
|
|
|
127 |
|
|
|
7 |
|
|
|
(21 |
) |
|
|
2,457 |
|
Earnings per common share attributable to Zoetis–diluted |
|
5.07 |
|
|
|
0.28 |
|
|
|
0.02 |
|
|
|
(0.05 |
) |
|
|
5.32 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Twelve Months Ended |
||||||||||||||||||
|
GAAP Reported(a) |
|
Purchase Accounting Adjustments |
|
Acquisition- Related Costs(1) |
|
Certain Significant Items(2) |
|
Non-GAAP Adjusted(b) |
||||||||||
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 |
|
(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 |
|||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Transaction costs(a) |
$ |
— |
|
$ |
1 |
|
$ |
4 |
|
$ |
1 |
|
Integration costs(b) |
|
— |
|
|
— |
|
|
3 |
|
|
4 |
|
Restructuring charges(c) |
|
1 |
|
|
— |
|
|
2 |
|
|
— |
|
Total acquisition-related costs—pre-tax |
|
1 |
|
|
1 |
|
|
9 |
|
|
5 |
|
Income taxes(d) |
|
1 |
|
|
— |
|
|
2 |
|
|
1 |
|
Total acquisition-related costs—net of tax |
$ |
— |
|
$ |
1 |
|
$ |
7 |
|
$ |
4 |
|
(a) Transaction costs represent 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) Restructuring charges represent 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 |
|||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Other restructuring charges and cost-reduction/productivity initiatives(a) |
$ |
8 |
|
|
$ |
1 |
|
|
$ |
44 |
|
|
$ |
8 |
|
|
Certain asset impairment charges(b) |
|
3 |
|
|
|
41 |
|
|
|
24 |
|
|
|
47 |
|
|
Net gain on sale of businesses(c) |
|
— |
|
|
|
— |
|
|
|
(101 |
) |
|
|
— |
|
|
Other |
|
1 |
|
|
|
4 |
|
|
|
— |
|
|
|
1 |
|
|
Total certain significant items—pre-tax |
|
12 |
|
|
|
46 |
|
|
|
(33 |
) |
|
|
56 |
|
|
Income taxes(d) |
|
(3 |
) |
|
|
(3 |
) |
|
|
(12 |
) |
|
|
(3 |
) |
|
Total certain significant items—net of tax |
$ |
15 |
|
|
$ |
49 |
|
|
$ |
(21 |
) |
|
$ |
59 |
|
|
(a) For the three and twelve months ended |
||||||||||||||||
For the twelve months ended |
||||||||||||||||
(b) For the twelve months ended |
||||||||||||||||
For the three and twelve months ended |
||||||||||||||||
(c) Primarily represents a net gain on the sale of a majority interest in our pet insurance business, included in Other (income)/deductions–net. |
||||||||||||||||
(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. Income taxes in Certain significant items also includes:
|
||||||||||||||||
ADJUSTED SELECTED COSTS AND EXPENSES(a) (UNAUDITED) (millions of dollars) |
||||||||||||||||||
|
|
Three Months Ended |
|
% Change |
||||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
Total |
|
|
Foreign Exchange |
|
Operational(b) |
|||
Adjusted cost of sales |
|
$ |
727 |
|
|
$ |
650 |
|
|
12 |
% |
|
|
3 |
% |
|
9 |
% |
As a percent of revenue |
|
|
32.9 |
% |
|
|
31.9 |
% |
|
NA |
|
|
NA |
|
NA |
|||
Adjusted SG&A expenses |
|
|
562 |
|
|
|
507 |
|
|
11 |
% |
|
|
1 |
% |
|
10 |
% |
Adjusted R&D expenses |
|
|
174 |
|
|
|
147 |
|
|
18 |
% |
|
|
1 |
% |
|
17 |
% |
Adjusted net income attributable to Zoetis |
|
|
569 |
|
|
|
539 |
|
|
6 |
% |
|
|
— |
% |
|
6 |
% |
|
|
|
|
|
||||||||||||||
|
|
Twelve Months Ended |
|
% Change |
||||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
Total |
|
|
Foreign Exchange |
|
Operational(b) |
|||
Adjusted cost of sales |
|
$ |
2,548 |
|
|
$ |
2,440 |
|
|
4 |
% |
|
|
(4 |
)% |
|
8 |
% |
As a percent of revenue |
|
|
29.8 |
% |
|
|
30.2 |
% |
|
NA |
|
|
NA |
|
NA |
|||
Adjusted SG&A expenses |
|
|
2,130 |
|
|
|
1,980 |
|
|
8 |
% |
|
|
(1 |
)% |
|
9 |
% |
Adjusted R&D expenses |
|
|
613 |
|
|
|
538 |
|
|
14 |
% |
|
|
— |
% |
|
14 |
% |
Adjusted net income attributable to Zoetis |
|
|
2,457 |
|
|
|
2,297 |
|
|
7 |
% |
|
|
— |
% |
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
(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. |
||||||||||||||||||
2024 GUIDANCE |
|
Selected Line Items (millions of dollars, except per share amounts) |
Full Year 2024 |
Revenue |
|
Operational growth (a) |
7% to 9% |
Adjusted cost of sales as a percentage of revenue(b) |
Approximately 29.5% |
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) |
20.0% to 21.0% |
Adjusted diluted EPS(b) |
|
Adjusted net income(b) |
|
Operational growth (a)(c) |
9% to 11% |
Certain significant items and acquisition-related costs(d) |
|
The guidance reflects foreign exchange rates as of late |
Reconciliations of 2024 reported guidance to 2024 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 |
~ 29.6% |
|
~ (0.1%) |
~ 29.5% |
|
SG&A expenses |
|
|
~ |
|
|
R&D expenses |
|
|
~ |
|
|
Interest expense and other (income)/deductions |
~ |
~ |
|
~ |
|
Effective tax rate |
20.0% to 21.0% |
|
|
20.0% to 21.0% |
|
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 |
|||||||||||
|
|
|
2023 |
|
|
2022 |
|
Total |
|
Foreign Exchange |
|
Operational(b) |
|||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
1,448 |
|
$ |
1,303 |
|
1 |
% |
|
1 |
% |
|
10 |
% |
Livestock |
|
|
745 |
|
|
710 |
|
5 |
% |
|
(1 |
)% |
|
6 |
% |
|
|
|
20 |
|
|
27 |
|
(26 |
)% |
|
1 |
% |
|
(27 |
)% |
Total Revenue |
|
$ |
2,213 |
|
$ |
2,040 |
|
8 |
% |
|
— |
% |
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
941 |
|
$ |
853 |
|
10 |
% |
|
— |
% |
|
10 |
% |
Livestock |
|
|
270 |
|
|
259 |
|
4 |
% |
|
— |
% |
|
4 |
% |
Total |
|
$ |
1,211 |
|
$ |
1,112 |
|
9 |
% |
|
— |
% |
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
International |
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
507 |
|
$ |
450 |
|
13 |
% |
|
3 |
% |
|
10 |
% |
Livestock |
|
|
475 |
|
|
451 |
|
5 |
% |
|
(2 |
)% |
|
7 |
% |
Total International Revenue |
|
$ |
982 |
|
$ |
901 |
|
9 |
% |
|
1 |
% |
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal: |
|
|
|
|
|
|
|
|
|
|
|||||
Dogs and Cats |
|
$ |
1,360 |
|
$ |
1,224 |
|
11 |
% |
|
1 |
% |
|
10 |
% |
Horses |
|
|
88 |
|
|
79 |
|
11 |
% |
|
— |
% |
|
11 |
% |
Total Companion Animal Revenue |
|
$ |
1,448 |
|
$ |
1,303 |
|
11 |
% |
|
1 |
% |
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
Livestock: |
|
|
|
|
|
|
|
|
|
|
|||||
Cattle |
|
$ |
401 |
|
$ |
377 |
|
6 |
% |
|
(1 |
)% |
|
7 |
% |
Swine |
|
|
139 |
|
|
138 |
|
1 |
% |
|
1 |
% |
|
— |
% |
Poultry |
|
|
127 |
|
|
115 |
|
10 |
% |
|
(3 |
)% |
|
13 |
% |
Fish |
|
|
62 |
|
|
61 |
|
2 |
% |
|
(3 |
)% |
|
5 |
% |
Sheep and other |
|
|
16 |
|
|
19 |
|
(16 |
)% |
|
1 |
% |
|
(17 |
)% |
Total Livestock Revenue |
|
$ |
745 |
|
$ |
710 |
|
5 |
% |
|
(1 |
)% |
|
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 |
||||||||||||
|
|
|
2023 |
|
|
2022 |
|
Total |
|
|
Foreign Exchange |
|
Operational(b) |
|||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
5,576 |
|
$ |
5,203 |
|
7 |
% |
|
|
(1 |
)% |
|
8 |
% |
Livestock |
|
|
2,890 |
|
|
2,791 |
|
4 |
% |
|
|
(2 |
)% |
|
6 |
% |
|
|
|
78 |
|
|
86 |
|
(9 |
)% |
|
|
1 |
% |
|
(10 |
)% |
Total Revenue |
|
$ |
8,544 |
|
$ |
8,080 |
|
6 |
% |
|
|
(1 |
)% |
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
3,529 |
|
$ |
3,341 |
|
6 |
% |
|
|
— |
% |
|
6 |
% |
Livestock |
|
|
1,026 |
|
|
972 |
|
6 |
% |
|
|
— |
% |
|
6 |
% |
Total |
|
$ |
4,555 |
|
$ |
4,313 |
|
6 |
% |
|
|
— |
% |
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
International |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
2,047 |
|
$ |
1,862 |
|
10 |
% |
|
|
(2 |
)% |
|
12 |
% |
Livestock |
|
|
1,864 |
|
|
1,819 |
|
2 |
% |
|
|
(5 |
)% |
|
7 |
% |
Total International Revenue |
|
$ |
3,911 |
|
$ |
3,681 |
|
6 |
% |
|
|
(3 |
)% |
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Dogs and Cats |
|
$ |
5,291 |
|
$ |
4,939 |
|
7 |
% |
|
|
(1 |
)% |
|
8 |
% |
Horses |
|
|
285 |
|
|
264 |
|
8 |
% |
|
|
(1 |
)% |
|
9 |
% |
Total Companion Animal Revenue |
|
$ |
5,576 |
|
$ |
5,203 |
|
7 |
% |
|
|
(1 |
)% |
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Livestock: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Cattle |
|
$ |
1,503 |
|
$ |
1,440 |
|
4 |
% |
|
|
(3 |
)% |
|
7 |
% |
Swine |
|
|
543 |
|
|
565 |
|
(4 |
)% |
|
|
(2 |
)% |
|
(2 |
)% |
Poultry |
|
|
524 |
|
|
476 |
|
10 |
% |
|
|
(3 |
)% |
|
13 |
% |
Fish |
|
|
220 |
|
|
212 |
|
4 |
% |
|
|
(4 |
)% |
|
8 |
% |
Sheep and other |
|
|
100 |
|
|
98 |
|
2 |
% |
|
|
(6 |
)% |
|
8 |
% |
Total Livestock Revenue |
|
$ |
2,890 |
|
$ |
2,791 |
|
4 |
% |
|
|
(2 |
)% |
|
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 KEY INTERNATIONAL MARKETS (UNAUDITED) (millions of dollars) |
||||||||||||||||
|
|
Three Months Ended |
|
% Change |
||||||||||||
|
|
|
2023 |
|
|
2022 |
|
Total |
|
|
Foreign Exchange |
|
Operational(a) |
|||
|
|
$ |
982.1 |
|
$ |
901.3 |
|
9 |
% |
|
|
1 |
% |
|
8 |
% |
|
|
|
75.0 |
|
|
64.2 |
|
17 |
% |
|
|
(2 |
)% |
|
19 |
% |
|
|
|
117.2 |
|
|
96.2 |
|
22 |
% |
|
|
7 |
% |
|
15 |
% |
|
|
|
71.1 |
|
|
65.2 |
|
9 |
% |
|
|
(2 |
)% |
|
11 |
% |
|
|
|
31.4 |
|
|
34.8 |
|
(10 |
)% |
|
|
1 |
% |
|
(11 |
)% |
|
|
|
64.7 |
|
|
91.4 |
|
(29 |
)% |
|
|
(1 |
)% |
|
(28 |
)% |
|
|
|
40.5 |
|
|
35.1 |
|
15 |
% |
|
|
8 |
% |
|
7 |
% |
|
|
|
54.1 |
|
|
44.0 |
|
23 |
% |
|
|
8 |
% |
|
15 |
% |
|
|
|
33.9 |
|
|
25.6 |
|
32 |
% |
|
|
9 |
% |
|
23 |
% |
|
|
|
38.0 |
|
|
36.1 |
|
5 |
% |
|
|
(4 |
)% |
|
9 |
% |
|
|
|
43.3 |
|
|
35.6 |
|
22 |
% |
|
|
14 |
% |
|
8 |
% |
|
|
|
27.3 |
|
|
21.3 |
|
28 |
% |
|
|
9 |
% |
|
19 |
% |
|
|
|
67.9 |
|
|
60.3 |
|
13 |
% |
|
|
9 |
% |
|
4 |
% |
Other Developed |
|
|
138.3 |
|
|
114.6 |
|
21 |
% |
|
|
4 |
% |
|
17 |
% |
Other Emerging |
|
|
179.4 |
|
|
176.9 |
|
1 |
% |
|
|
(13 |
)% |
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Twelve Months Ended |
|
% Change |
||||||||||||
|
|
|
2023 |
|
|
2022 |
|
Total |
|
|
Foreign Exchange |
|
Operational(a) |
|||
|
|
$ |
3,911.2 |
|
$ |
3,680.8 |
|
6 |
% |
|
|
(3 |
)% |
|
9 |
% |
|
|
|
322.7 |
|
|
288.7 |
|
12 |
% |
|
|
(5 |
)% |
|
17 |
% |
|
|
|
392.7 |
|
|
329.5 |
|
19 |
% |
|
|
4 |
% |
|
15 |
% |
|
|
|
254.6 |
|
|
237.5 |
|
7 |
% |
|
|
(5 |
)% |
|
12 |
% |
|
|
|
140.2 |
|
|
141.1 |
|
(1 |
)% |
|
|
1 |
% |
|
(2 |
)% |
|
|
|
320.0 |
|
|
382.4 |
|
(16 |
)% |
|
|
(5 |
)% |
|
(11 |
)% |
|
|
|
142.4 |
|
|
126.1 |
|
13 |
% |
|
|
2 |
% |
|
11 |
% |
|
|
|
202.4 |
|
|
176.3 |
|
15 |
% |
|
|
3 |
% |
|
12 |
% |
|
|
|
120.8 |
|
|
111.2 |
|
9 |
% |
|
|
3 |
% |
|
6 |
% |
|
|
|
157.9 |
|
|
173.1 |
|
(9 |
)% |
|
|
(8 |
)% |
|
(1 |
)% |
|
|
|
162.4 |
|
|
136.2 |
|
19 |
% |
|
|
13 |
% |
|
6 |
% |
|
|
|
121.6 |
|
|
117.8 |
|
3 |
% |
|
|
1 |
% |
|
2 |
% |
|
|
|
277.0 |
|
|
234.5 |
|
18 |
% |
|
|
(1 |
)% |
|
19 |
% |
Other Developed |
|
|
512.2 |
|
|
468.4 |
|
9 |
% |
|
|
(2 |
)% |
|
11 |
% |
Other Emerging |
|
|
784.3 |
|
|
758.0 |
|
3 |
% |
|
|
(13 |
)% |
|
16 |
% |
(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 |
||||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
Total |
|
|
Foreign Exchange |
|
Operational(b) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
1,211 |
|
|
$ |
1,112 |
|
|
9 |
% |
|
|
— |
% |
|
9 |
% |
Cost of sales |
|
|
255 |
|
|
|
216 |
|
|
18 |
% |
|
|
— |
% |
|
18 |
% |
Gross profit |
|
|
956 |
|
|
|
896 |
|
|
7 |
% |
|
|
— |
% |
|
7 |
% |
Gross margin |
|
|
78.9 |
% |
|
|
80.6 |
% |
|
|
|
|
|
|
|
|||
Operating expenses |
|
|
184 |
|
|
|
187 |
|
|
(2 |
)% |
|
|
— |
% |
|
(2 |
)% |
Other (income)/deductions-net |
|
|
6 |
|
|
|
(12 |
) |
|
* |
|
|
* |
|
* |
|||
|
|
$ |
766 |
|
|
$ |
721 |
|
|
6 |
% |
|
|
— |
% |
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
International: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
982 |
|
|
$ |
901 |
|
|
9 |
% |
|
|
1 |
% |
|
8 |
% |
Cost of sales |
|
|
322 |
|
|
|
274 |
|
|
18 |
% |
|
|
1 |
% |
|
17 |
% |
Gross profit |
|
|
660 |
|
|
|
627 |
|
|
5 |
% |
|
|
— |
% |
|
5 |
% |
Gross margin |
|
|
67.2 |
% |
|
|
69.6 |
% |
|
|
|
|
|
|
|
|||
Operating expenses |
|
|
165 |
|
|
|
155 |
|
|
6 |
% |
|
|
1 |
% |
|
5 |
% |
Other (income)/deductions-net |
|
|
1 |
|
|
|
2 |
|
|
* |
|
|
* |
|
* |
|||
International Earnings |
|
$ |
494 |
|
|
$ |
470 |
|
|
5 |
% |
|
|
— |
% |
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Reportable Segments |
|
$ |
1,260 |
|
|
$ |
1,191 |
|
|
6 |
% |
|
|
— |
% |
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other business activities(c) |
|
|
(142 |
) |
|
|
(109 |
) |
|
30 |
% |
|
|
|
|
|
||
Reconciling Items: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Corporate(d) |
|
|
(320 |
) |
|
|
(302 |
) |
|
6 |
% |
|
|
|
|
|
||
Purchase accounting adjustments(e) |
|
|
(35 |
) |
|
|
(40 |
) |
|
(13 |
)% |
|
|
|
|
|
||
Acquisition-related costs(f) |
|
|
(1 |
) |
|
|
(1 |
) |
|
— |
% |
|
|
|
|
|
||
Certain significant items(g) |
|
|
(12 |
) |
|
|
(46 |
) |
|
(74 |
)% |
|
|
|
|
|
||
Other unallocated(h) |
|
|
(100 |
) |
|
|
(101 |
) |
|
(1 |
)% |
|
|
|
|
|
||
Total Earnings(i) |
|
$ |
650 |
|
|
$ |
592 |
|
|
10 |
% |
|
|
|
|
|
||
(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 income and expense, certain compensation costs and other costs not charged to our operating segments. |
||||||||||||||||||
(e) Purchase accounting adjustments include certain charges related to the amortization of fair value adjustments to inventory, intangible assets and property, plant and equipment not charged to our operating segments. |
||||||||||||||||||
(f) Acquisition-related costs include costs associated with acquiring and integrating newly acquired businesses, such as transaction costs and integration costs. |
||||||||||||||||||
(g) Certain significant items includes substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such items primarily include certain asset impairment charges, restructuring charges and implementation costs associated with cost-reduction/productivity initiatives that are not associated with an acquisition and the impact of divestiture-related gains and losses. |
||||||||||||||||||
(h) Includes overhead expenses associated with our global manufacturing and supply operations not directly attributable to an operating segment, as well as certain procurement costs. |
||||||||||||||||||
(i) Defined as income before provision for taxes on income. |
||||||||||||||||||
* Calculation not meaningful. |
||||||||||||||||||
SEGMENT(a) EARNINGS (UNAUDITED) (millions of dollars) |
||||||||||||||||||
|
|
Twelve Months Ended |
|
% Change |
||||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
Total |
|
|
Foreign Exchange |
|
Operational(b) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
4,555 |
|
|
$ |
4,313 |
|
|
6 |
% |
|
|
— |
% |
|
6 |
% |
Cost of sales |
|
|
900 |
|
|
|
803 |
|
|
12 |
% |
|
|
— |
% |
|
12 |
% |
Gross profit |
|
|
3,655 |
|
|
|
3,510 |
|
|
4 |
% |
|
|
— |
% |
|
4 |
% |
Gross margin |
|
|
80.2 |
% |
|
|
81.4 |
% |
|
|
|
|
|
|
|
|||
Operating expenses |
|
|
786 |
|
|
|
765 |
|
|
3 |
% |
|
|
— |
% |
|
3 |
% |
Other (income)/deductions-net |
|
|
6 |
|
|
|
(18 |
) |
|
* |
|
|
* |
|
* |
|||
|
|
$ |
2,863 |
|
|
$ |
2,763 |
|
|
4 |
% |
|
|
— |
% |
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
International: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
3,911 |
|
|
$ |
3,681 |
|
|
6 |
% |
|
|
(3 |
)% |
|
9 |
% |
Cost of sales |
|
|
1,234 |
|
|
|
1,083 |
|
|
14 |
% |
|
|
(5 |
)% |
|
19 |
% |
Gross profit |
|
|
2,677 |
|
|
|
2,598 |
|
|
3 |
% |
|
|
(2 |
)% |
|
5 |
% |
Gross margin |
|
|
68.4 |
% |
|
|
70.6 |
% |
|
|
|
|
|
|
|
|||
Operating expenses |
|
|
638 |
|
|
|
611 |
|
|
4 |
% |
|
|
(4 |
)% |
|
8 |
% |
Other (income)/deductions-net |
|
|
2 |
|
|
|
(3 |
) |
|
* |
|
|
* |
|
* |
|||
International Earnings |
|
$ |
2,037 |
|
|
$ |
1,990 |
|
|
2 |
% |
|
|
(2 |
)% |
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Reportable Segments |
|
$ |
4,900 |
|
|
$ |
4,753 |
|
|
3 |
% |
|
|
(1 |
)% |
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other business activities(c) |
|
|
(496 |
) |
|
|
(424 |
) |
|
17 |
% |
|
|
|
|
|
||
Reconciling Items: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Corporate(d) |
|
|
(1,042 |
) |
|
|
(1,073 |
) |
|
(3 |
)% |
|
|
|
|
|
||
Purchase accounting adjustments(e) |
|
|
(159 |
) |
|
|
(160 |
) |
|
(1 |
)% |
|
|
|
|
|
||
Acquisition-related costs(f) |
|
|
(9 |
) |
|
|
(5 |
) |
|
80 |
% |
|
|
|
|
|
||
Certain significant items(g) |
|
|
33 |
|
|
|
(56 |
) |
|
* |
|
|
|
|
|
|||
Other unallocated(h) |
|
|
(291 |
) |
|
|
(379 |
) |
|
(23 |
)% |
|
|
|
|
|
||
Total Earnings(i) |
|
$ |
2,936 |
|
|
$ |
2,656 |
|
|
11 |
% |
|
|
|
|
|
||
(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 income and expense, certain compensation costs and other costs not charged to our operating segments. |
||||||||||||||||||
(e) Purchase accounting adjustments include certain charges related to the amortization of fair value adjustments to inventory, intangible assets and property, plant and equipment not charged to our operating segments. |
||||||||||||||||||
(f) Acquisition-related costs include costs associated with acquiring and integrating newly acquired businesses, such as transaction costs and integration costs. |
||||||||||||||||||
(g) Certain significant items includes substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such items primarily include certain asset impairment charges, restructuring charges and implementation costs associated with cost-reduction/productivity initiatives that are not associated with an acquisition and the impact of divestiture-related gains and losses. |
||||||||||||||||||
(h) Includes overhead expenses associated with our global manufacturing and supply operations not directly attributable to an operating segment, as well as certain procurement costs. |
||||||||||||||||||
(i) Defined as income before provision for taxes on income. |
||||||||||||||||||
* Calculation not meaningful. |
||||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240212731050/en/
Media:
1-973-945-4333 (o)
jenielle.alonso@zoetis.com
1-973-975-5176 (o)
laura.panza@zoetis.com
Investor:
1-973-822-7141 (o)
steve.frank@zoetis.com
1-973-443-2792 (o)
nick.soonthornchai@zoetis.com
Source: