-
Reports Revenue of
$2.2 Billion , Growing 10%, and Net Income of$599 Million , or$1.31 per Diluted Share, Increasing 9% and 10%, Respectively, on a Reported Basis for First Quarter 2024 - Delivers 12% Operational Growth in Revenue and 15% Operational Growth in Adjusted Net Income for First Quarter 2024
-
Reports Adjusted Net Income of
$634 Million , or Adjusted Diluted EPS of$1.38 , for First Quarter 2024 -
Updates Full Year 2024 Revenue Guidance to
$9.050 -$9.200 Billion , with Diluted EPS of$5.34 to$5.44 on a Reported Basis, or$5.71 to$5.81 on an Adjusted Basis - Increases Full Year 2024 Operational Revenue Growth to 8.5% to 10.5% and Full-Year Operational Growth in Adjusted Net Income to 13% to 15%
The company reported revenue of
Adjusted net income2 for the first quarter of 2024 was
EXECUTIVE COMMENTARY
“I am incredibly proud of our outstanding first quarter, once again proving our ability to grow revenue faster than the market. It is a testament to the strength of our diverse portfolio and our dedicated colleagues," said
“As the leader in animal health, we understand our customers' needs. Our innovation continues to be our differentiator, and we'll continue to lead the way by investing in areas of unmet need to advance care for animals. The strength of the human-animal bond and the growing demand for a secure and sustainable food supply reinforce the essential nature of the animal health industry and our innovative portfolio. We will continue to deliver strong growth in 2024, while investing for the future."
QUARTERLY HIGHLIGHTS
-
Revenue in the
U.S. segment was$1.2 billion , an increase of 16% compared with the first quarter of 2023. Sales of companion animal products increased 25%, due to growth in key franchises includingSimparica Trio ®, the company's flea, tick and heartworm combination product, the company's key dermatology portfolio, including Apoquel® and Cytopoint®, and the company's osteoarthritis (OA) pain products, Librela® for dogs and Solensia® for cats. Growth in the quarter was also due in part to a favorable comparative period in the prior year that was negatively impacted by distributor de-stocking and timing of promotional activity. Sales of livestock products declined 7% in the quarter. Sales of cattle products declined due to a difficult comparable period versus the same quarter last year.
-
Revenue in the International segment was
$1.0 billion , reflecting a 3% increase on a reported basis and an increase of 8% operationally compared with the first quarter of 2023. Sales of companion animal products grew 10% on a reported basis and 14% operationally. Growth in the quarter was driven by the company’s OA pain products, Librela for dogs and Solensia for cats, as well as its key dermatology products, Apoquel and Cytopoint. Also contributing to growth in the quarter wasSimparica Trio . Sales of livestock products declined 4% on a reported basis and grew 2% operationally. Growth of both the company's cattle and poultry products were driven largely by price increases across the broader international segment. Sales of sheep products declined due to unexpected weather conditions and supply constraints inAustralia . Sales of swine products decreased primarily due to unfavorable market conditions inChina and generic competition.
INVESTMENTS IN GROWTH
Additionally, the company recently signed an agreement to purchase a manufacturing site in
FINANCIAL GUIDANCE
-
Revenue between
$9.050 billion to$9.200 billion (operational growth of 8.5% to 10.5%) -
Reported net income between
$2.450 billion to$2.495 billion -
Adjusted net income between
$2.620 billion to$2.670 billion (operational growth of 13% to 15%) -
Reported diluted EPS of
$5.34 to$5.44 -
Adjusted diluted EPS between
$5.71 to$5.81
This guidance reflects foreign exchange rates as of late April. Additional details on guidance are included in the financial tables and will be discussed on the company's conference call this morning.
WEBCAST & CONFERENCE CALL DETAILS
About
As the world’s leading animal health company,
1 Operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange.
2 Adjusted net income and its components and adjusted diluted earnings per share (non-GAAP financial measures) are defined as reported net income and reported diluted earnings per share, excluding purchase accounting adjustments, acquisition-related costs and certain significant items.
3 Bonqat® is a trademark owned by Orion Corporation. It is manufactured by Orion Corporation and exclusively distributed in
DISCLOSURE NOTICES
Forward-Looking Statements: This press release contains forward-looking statements, which reflect the current views of
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 |
|
|
||||||
|
|
|
|||||||
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
Revenue |
$ |
2,190 |
|
|
$ |
2,000 |
|
|
10 |
Costs and expenses: |
|
|
|
|
|
||||
Cost of sales |
|
643 |
|
|
|
588 |
|
|
9 |
Selling, general and administrative expenses |
|
547 |
|
|
|
505 |
|
|
8 |
Research and development expenses |
|
162 |
|
|
|
142 |
|
|
14 |
Amortization of intangible assets |
|
37 |
|
|
|
37 |
|
|
— |
Restructuring charges and certain acquisition-related costs |
|
4 |
|
|
|
21 |
|
|
(81) |
Interest expense, net of capitalized interest |
|
58 |
|
|
|
63 |
|
|
(8) |
Other (income)/deductions–net |
|
(8 |
) |
|
|
(53 |
) |
|
(85) |
Income before provision for taxes on income |
|
747 |
|
|
|
697 |
|
|
7 |
Provision for taxes on income |
|
148 |
|
|
|
146 |
|
|
1 |
Net income before allocation to noncontrolling interests |
|
599 |
|
|
|
551 |
|
|
9 |
Less: Net loss attributable to noncontrolling interests |
|
— |
|
|
|
(1 |
) |
|
* |
Net income attributable to |
$ |
599 |
|
|
$ |
552 |
|
|
9 |
|
|
|
|
|
|
||||
Earnings per share—basic |
$ |
1.31 |
|
|
$ |
1.19 |
|
|
10 |
|
|
|
|
|
|
||||
Earnings per share—diluted |
$ |
1.31 |
|
|
$ |
1.19 |
|
|
10 |
|
|
|
|
|
|
||||
Weighted-average shares used to calculate earnings per share |
|
|
|
|
|
||||
Basic |
|
458.0 |
|
|
|
463.5 |
|
|
|
Diluted |
|
458.8 |
|
|
|
464.6 |
|
|
|
(a)The condensed consolidated statements of income present the three months ended |
|||||||||
* 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
|
|
Non-GAAP
|
||||||||||
Cost of sales |
|
$ |
643 |
|
|
$ |
(1 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
642 |
|
Gross profit |
|
|
1,547 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
1,548 |
|
Selling, general and administrative expenses |
|
|
547 |
|
|
|
(3 |
) |
|
|
— |
|
|
|
— |
|
|
|
544 |
|
Research and development expenses |
|
|
162 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
161 |
|
Amortization of intangible assets |
|
|
37 |
|
|
|
(32 |
) |
|
|
— |
|
|
|
— |
|
|
|
5 |
|
Restructuring charges and certain acquisition-related costs |
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
|
|
— |
|
Other (income)/deductions–net |
|
|
(8 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
(10 |
) |
Income before provision for taxes on income |
|
|
747 |
|
|
|
37 |
|
|
|
— |
|
|
|
6 |
|
|
|
790 |
|
Provision for taxes on income |
|
|
148 |
|
|
|
8 |
|
|
|
— |
|
|
|
— |
|
|
|
156 |
|
Net income attributable to |
|
|
599 |
|
|
|
29 |
|
|
|
— |
|
|
|
6 |
|
|
|
634 |
|
Earnings per common share attributable to Zoetis–diluted |
|
|
1.31 |
|
|
|
0.06 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
1.38 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
GAAP
|
|
Purchase
|
|
Acquisition-
|
|
Certain
|
|
Non-GAAP
|
||||||||||
Cost of sales |
|
$ |
588 |
|
|
$ |
(4 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
584 |
|
Gross profit |
|
|
1,412 |
|
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
1,416 |
|
Selling, general and administrative expenses |
|
|
505 |
|
|
|
(7 |
) |
|
|
— |
|
|
|
— |
|
|
|
498 |
|
Amortization of intangible assets |
|
|
37 |
|
|
|
(31 |
) |
|
|
— |
|
|
|
— |
|
|
|
6 |
|
Restructuring charges and certain acquisition-related costs |
|
|
21 |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(20 |
) |
|
|
— |
|
Other (income)/deductions–net |
|
|
(53 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
(55 |
) |
Income before provision for taxes on income |
|
|
697 |
|
|
|
42 |
|
|
|
1 |
|
|
|
22 |
|
|
|
762 |
|
Provision for taxes on income |
|
|
146 |
|
|
|
8 |
|
|
|
— |
|
|
|
2 |
|
|
|
156 |
|
Net income attributable to |
|
|
552 |
|
|
|
34 |
|
|
|
1 |
|
|
|
20 |
|
|
|
607 |
|
Earnings per common share attributable to Zoetis–diluted |
|
|
1.19 |
|
|
|
0.07 |
|
|
|
— |
|
|
|
0.05 |
|
|
|
1.31 |
|
(a) The condensed consolidated statements of income present the three months ended |
||||||||||||||||||||
(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 |
||||
|
|
||||
|
|
2024 |
|
|
2023 |
Integration costs(a) |
$ |
— |
|
$ |
1 |
Total acquisition-related costs—pre-tax |
|
— |
|
|
1 |
Income taxes(b) |
|
— |
|
|
— |
Total acquisition-related costs—net of tax |
$ |
— |
|
$ |
1 |
(a) Integration costs represent external, incremental costs directly related to integrating acquired businesses and primarily include expenditures for consulting and the integration of systems and processes. Included in Restructuring charges and certain acquisition-related costs. |
|||||
(b) Included in Provision for taxes on income. Income taxes include the tax effect of the associated pre-tax amounts, calculated by determining the jurisdictional location of the pre-tax amounts and applying that jurisdiction's applicable tax rate. |
|||||
|
(2) Certain significant items include the following: |
|||||
|
Three Months Ended |
||||
|
|
||||
|
|
2024 |
|
|
2023 |
Other restructuring charges and cost-reduction/productivity initiatives(a) |
$ |
4 |
|
$ |
20 |
Other |
|
2 |
|
|
2 |
Total certain significant items—pre-tax |
|
6 |
|
|
22 |
Income taxes(b) |
|
— |
|
|
2 |
Total certain significant items—net of tax |
$ |
6 |
|
$ |
20 |
(a) For the three months ended |
|||||
For the three months ended |
|||||
(b) Included in Provision for taxes on income. Income taxes include the tax effect of the associated pre-tax amounts, calculated by determining the jurisdictional location of the pre-tax amounts and applying that jurisdiction's applicable tax rate. |
ADJUSTED SELECTED COSTS, EXPENSES AND INCOME(a) (UNAUDITED) (millions of dollars) |
||||||||||||||||||
|
|
Three Months Ended |
|
|
|
|
|
|
|
|||||||||
|
|
|
|
% Change |
||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Total |
|
|
Foreign
|
|
Operational(b) |
|||
Adjusted cost of sales |
|
$ |
642 |
|
|
$ |
584 |
|
|
10 |
% |
|
|
4 |
% |
|
6 |
% |
as a percent of revenue |
|
|
29.3 |
% |
|
|
29.2 |
% |
|
NA |
|
|
NA |
|
NA |
|||
Adjusted SG&A expenses |
|
|
544 |
|
|
|
498 |
|
|
9 |
% |
|
|
(1 |
)% |
|
10 |
% |
Adjusted R&D expenses |
|
|
161 |
|
|
|
142 |
|
|
13 |
% |
|
|
— |
% |
|
13 |
% |
Adjusted net income attributable to |
|
|
634 |
|
|
|
607 |
|
|
4 |
% |
|
|
(11 |
)% |
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
(a) Adjusted cost of sales, adjusted selling, general, and administrative (SG&A) expenses, adjusted research and development (R&D) expenses, and adjusted net income (non-GAAP financial measures) are defined as the corresponding reported |
||||||||||||||||||
(b) Operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange. |
2024 GUIDANCE |
||
Selected Line Items (millions of dollars, except per share amounts) |
Full Year 2024 |
|
Revenue |
|
|
Operational growth(a) |
8.5% to 10.5% |
|
Adjusted cost of sales as a percentage of revenue(b) |
Approximately 29.8% |
|
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) |
13% to 15% |
|
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
|
Purchase
|
Adjusted(c) |
|
Cost of sales as a percentage of revenue |
~ 29.9% |
|
~ (0.1%) |
~ 29.8% |
|
SG&A expenses |
|
|
~ |
|
|
R&D expenses |
|
|
~ |
|
|
Interest expense and other (income)/deductions-net |
~ |
~ |
|
~ |
|
Effective tax rate |
20.0% to 21.0% |
|
|
20.0% to 21.0% |
|
Diluted EPS |
|
~ |
~ |
|
|
Net income attributable to |
|
|
~ |
|
|
(a) Operational results (a non-GAAP financial measure) excludes the impact of foreign exchange. |
|||||
(b) Adjusted net income and its components and adjusted diluted EPS are defined as reported |
|||||
(c) We do not provide a reconciliation of forward-looking non-GAAP adjusted net income operational results to the most directly comparable |
|||||
(d) Primarily includes certain nonrecurring costs related to acquisitions and other charges. |
CONSOLIDATED REVENUE BY SEGMENT(a) AND SPECIES (UNAUDITED) (millions of dollars) |
||||||||||||||||
|
Three Months Ended |
|
|
|||||||||||||
|
|
|
|
% Change |
||||||||||||
|
|
|
2024 |
|
|
2023 |
|
Total |
|
|
Foreign
|
|
Operational(b) |
|||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
1,450 |
|
$ |
1,225 |
|
18 |
% |
|
|
(2 |
)% |
|
20 |
% |
Livestock |
|
|
720 |
|
|
758 |
|
(5 |
)% |
|
|
(4 |
)% |
|
(1 |
)% |
|
|
|
20 |
|
|
17 |
|
18 |
% |
|
|
2 |
% |
|
16 |
% |
Total Revenue |
|
$ |
2,190 |
|
$ |
2,000 |
|
10 |
% |
|
|
(2 |
)% |
|
12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
898 |
|
$ |
721 |
|
25 |
% |
|
|
— |
% |
|
25 |
% |
Livestock |
|
|
265 |
|
|
284 |
|
(7 |
)% |
|
|
— |
% |
|
(7 |
)% |
Total |
|
$ |
1,163 |
|
$ |
1,005 |
|
16 |
% |
|
|
— |
% |
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
International: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
552 |
|
$ |
504 |
|
10 |
% |
|
|
(4 |
)% |
|
14 |
% |
Livestock |
|
|
455 |
|
|
474 |
|
(4 |
)% |
|
|
(6 |
)% |
|
2 |
% |
Total International Revenue |
|
$ |
1,007 |
|
$ |
978 |
|
3 |
% |
|
|
(5 |
)% |
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Dogs and Cats |
|
$ |
1,384 |
|
$ |
1,153 |
|
20 |
% |
|
|
(2 |
)% |
|
22 |
% |
Horses |
|
|
66 |
|
|
72 |
|
(8 |
)% |
|
|
(2 |
)% |
|
(6 |
)% |
Total Companion Animal Revenue |
|
$ |
1,450 |
|
$ |
1,225 |
|
18 |
% |
|
|
(2 |
)% |
|
20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Livestock: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Cattle |
|
$ |
391 |
|
$ |
399 |
|
(2 |
)% |
|
|
(3 |
)% |
|
1 |
% |
Poultry |
|
|
139 |
|
|
139 |
|
— |
% |
|
|
(6 |
)% |
|
6 |
% |
Swine |
|
|
127 |
|
|
142 |
|
(11 |
)% |
|
|
(4 |
)% |
|
(7 |
)% |
Fish |
|
|
45 |
|
|
49 |
|
(8 |
)% |
|
|
(2 |
)% |
|
(6 |
)% |
Sheep and other |
|
|
18 |
|
|
29 |
|
(38 |
)% |
|
|
(5 |
)% |
|
(33 |
)% |
Total Livestock Revenue |
|
$ |
720 |
|
$ |
758 |
|
(5 |
)% |
|
|
(4 |
)% |
|
(1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(a) For a description of each segment, see |
||||||||||||||||
(b) Operational revenue results (a non-GAAP financial measure) is defined as revenue results excluding the impact of foreign exchange. |
CONSOLIDATED REVENUE BY KEY INTERNATIONAL MARKETS (UNAUDITED) (millions of dollars) |
||||||||||||||||
|
Three Months Ended |
|
|
|
|
|
|
|
||||||||
|
|
|
|
% Change |
||||||||||||
|
|
|
2024 |
|
|
2023 |
|
Total |
|
|
Foreign
|
|
Operational(a) |
|||
|
|
$ |
1,007 |
|
$ |
978 |
|
3 |
% |
|
|
(5 |
)% |
|
8 |
% |
|
|
|
73 |
|
|
82 |
|
(11 |
)% |
|
|
(4 |
)% |
|
(7 |
)% |
|
|
|
101 |
|
|
84 |
|
20 |
% |
|
|
7 |
% |
|
13 |
% |
|
|
|
61 |
|
|
50 |
|
22 |
% |
|
|
1 |
% |
|
21 |
% |
|
|
|
31 |
|
|
39 |
|
(21 |
)% |
|
|
(4 |
)% |
|
(17 |
)% |
|
|
|
76 |
|
|
102 |
|
(25 |
)% |
|
|
(3 |
)% |
|
(22 |
)% |
|
|
|
41 |
|
|
34 |
|
21 |
% |
|
|
1 |
% |
|
20 |
% |
|
|
|
51 |
|
|
45 |
|
13 |
% |
|
|
1 |
% |
|
12 |
% |
|
|
|
28 |
|
|
26 |
|
8 |
% |
|
|
2 |
% |
|
6 |
% |
|
|
|
37 |
|
|
39 |
|
(5 |
)% |
|
|
(9 |
)% |
|
4 |
% |
|
|
|
44 |
|
|
39 |
|
13 |
% |
|
|
10 |
% |
|
3 |
% |
|
|
|
32 |
|
|
33 |
|
(3 |
)% |
|
|
1 |
% |
|
(4 |
)% |
|
|
|
77 |
|
|
68 |
|
13 |
% |
|
|
4 |
% |
|
9 |
% |
Other developed markets |
|
|
127 |
|
|
122 |
|
4 |
% |
|
|
— |
% |
|
4 |
% |
Other emerging markets |
|
|
228 |
|
|
215 |
|
6 |
% |
|
|
(25 |
)% |
|
31 |
% |
(a) Operational revenue results (a non-GAAP financial measure) is defined as revenue results excluding the impact of foreign exchange. |
SEGMENT(a) EARNINGS (UNAUDITED) (millions of dollars) |
||||||||||||||||||
|
Three Months Ended |
|
|
|||||||||||||||
|
|
|
|
% Change |
||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Total |
|
|
Foreign
|
|
Operational(b) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
1,163 |
|
|
$ |
1,005 |
|
|
16 |
% |
|
|
— |
% |
|
16 |
% |
Cost of Sales |
|
|
217 |
|
|
|
203 |
|
|
7 |
% |
|
|
— |
% |
|
7 |
% |
Gross Profit |
|
|
946 |
|
|
|
802 |
|
|
18 |
% |
|
|
— |
% |
|
18 |
% |
Gross Margin |
|
|
81.3 |
% |
|
|
79.8 |
% |
|
|
|
|
|
|
|
|||
Operating Expenses |
|
|
190 |
|
|
|
188 |
|
|
1 |
% |
|
|
— |
% |
|
1 |
% |
Other (income)/deductions-net |
|
|
— |
|
|
|
— |
|
|
* |
|
|
* |
|
* |
|||
|
|
$ |
756 |
|
|
$ |
614 |
|
|
23 |
% |
|
|
— |
% |
|
23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
International: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
1,007 |
|
|
$ |
978 |
|
|
3 |
% |
|
|
(5 |
)% |
|
8 |
% |
Cost of Sales |
|
|
313 |
|
|
|
291 |
|
|
8 |
% |
|
|
1 |
% |
|
7 |
% |
Gross Profit |
|
|
694 |
|
|
|
687 |
|
|
1 |
% |
|
|
(7 |
)% |
|
8 |
% |
Gross Margin |
|
|
68.9 |
% |
|
|
70.2 |
% |
|
|
|
|
|
|
|
|||
Operating Expenses |
|
|
159 |
|
|
|
151 |
|
|
5 |
% |
|
|
(3 |
)% |
|
8 |
% |
Other (income)/deductions-net |
|
|
— |
|
|
|
1 |
|
|
* |
|
|
* |
|
* |
|||
International Earnings |
|
$ |
535 |
|
|
$ |
535 |
|
|
— |
% |
|
|
(9 |
)% |
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Reportable Segments |
|
$ |
1,291 |
|
|
$ |
1,149 |
|
|
12 |
% |
|
|
(4 |
)% |
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other business activities(c) |
|
|
(132 |
) |
|
|
(114 |
) |
|
16 |
% |
|
|
|
|
|
||
Reconciling Items: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Corporate(d) |
|
|
(288 |
) |
|
|
(208 |
) |
|
38 |
% |
|
|
|
|
|
||
Purchase accounting adjustments(e) |
|
|
(37 |
) |
|
|
(42 |
) |
|
(12 |
)% |
|
|
|
|
|
||
Acquisition-related costs(f) |
|
|
— |
|
|
|
(1 |
) |
|
* |
|
|
|
|
|
|||
Certain significant items(g) |
|
|
(6 |
) |
|
|
(22 |
) |
|
(73 |
)% |
|
|
|
|
|
||
Other unallocated(h) |
|
|
(81 |
) |
|
|
(65 |
) |
|
25 |
% |
|
|
|
|
|
||
Total Earnings(i) |
|
$ |
747 |
|
|
$ |
697 |
|
|
7 |
% |
|
|
|
|
|
||
(a) For a description of each segment, see |
||||||||||||||||||
(b) Operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange. | ||||||||||||||||||
(c) Other business activities includes the research and development costs managed by our research and development organization, as well as our contract manufacturing business and human health business. |
||||||||||||||||||
(d) Corporate includes, among other things, certain costs associated with information technology, administration expenses, interest income and expense, certain compensation costs and other costs not charged to our operating segments. |
||||||||||||||||||
(e) Purchase accounting adjustments include certain charges related to the amortization of fair value adjustments to inventory, intangible assets and property, plant and equipment not charged to our operating segments. | ||||||||||||||||||
(f) Acquisition-related costs include costs associated with acquiring and integrating newly acquired businesses, such as transaction costs and integration costs. |
||||||||||||||||||
(g) Certain significant items includes substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such items primarily include certain asset impairment charges, restructuring charges and implementation costs associated with cost-reduction/productivity initiatives that are not associated with an acquisition and the impact of divestiture-related gains and losses. | ||||||||||||||||||
(h) Includes overhead expenses associated with our global manufacturing and supply operations not directly attributable to an operating segment, as well as certain procurement costs. | ||||||||||||||||||
(i) Defined as income before provision for taxes on income. |
||||||||||||||||||
* Calculation not meaningful. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240501236249/en/
Media Contacts:
1-973-945-4333 (o)
jenielle.alonso@zoetis.com
1-973-975-5176 (o)
laura.panza@zoetis.com
Investor Contacts:
1-973-822-7141 (o)
steve.frank@zoetis.com
1-973-443-2792 (o)
nick.soonthornchai@zoetis.com
Source: