Zoetis Announces Second Quarter 2024 Results
-
Reports Revenue of
$2.4 Billion , Growing 8%, and Net Income of$624 Million , or$1.37 per Diluted Share, Decreasing 7% and 6%, Respectively, on a Reported Basis for Second Quarter 2024
- Delivers 11% Operational Growth in Revenue and 18% Operational Growth in Adjusted Net Income for Second Quarter 2024
-
Reports Adjusted Net Income of
$711 Million , or Adjusted Diluted EPS of$1.56 , for Second Quarter 2024
-
Raises Full Year 2024 Revenue Guidance to
$9.100 -$9.250 Billion , with Diluted EPS of$5.35 to$5.45 on a Reported Basis, or$5.78 to$5.88 on an Adjusted Basis
- Increases Full Year 2024 Operational Revenue Growth to 9% to 11% and Full-Year Operational Growth in Adjusted Net Income to 13.5% to 15.5%
The company reported revenue of
Adjusted net income2 for the second quarter of 2024 was
EXECUTIVE COMMENTARY
“We had another outstanding quarter, demonstrating the strong demand for our trusted, innovative products, our ability to capture and expand markets, and the dedication of our purpose-driven colleagues," said
"Our excellent first half across key franchises, including osteoarthritis (OA) pain, Simparica and key dermatology, is a testament to our commitment to deliver breakthrough innovations that address our customers' unmet needs and our differentiated execution. I look forward to continuing our momentum into the second half of the year where we will remain focused on executing our strategy, building trust and preference for our best-in-class products and delivering value to shareholders.”
QUARTERLY HIGHLIGHTS
-
Revenue in the
U.S. segment was$1.3 billion , an increase of 12% compared with the second quarter of 2023. Sales of companion animal products increased 13%, driven by the company's monoclonal antibody (mAb) products for osteoarthritis (OA) pain, Librela® for dogs and Solensia® for cats. Also contributing to growth in the quarter wasSimparica Trio ®, the company's flea, tick and heartworm combination product as well as the company's key dermatology portfolio, including Apoquel® and Cytopoint®. Sales of livestock products increased 11% in the quarter. Growth in both cattle and swine products was driven primarily by a soft prior year comparison due to the timing of supply of ceftiofur.
-
Revenue in the International segment was
$1.0 billion , reflecting a 4% increase on a reported basis and an increase of 10% operationally compared with the second quarter of 2023. Sales of companion animal products grew 7% on a reported basis and 12% operationally. Growth in the quarter was driven by the company’s companion animal products, including Simparica® andSimparica Trio , key dermatology products, Apoquel and Cytopoint, as well as OA pain products, Librela for dogs and Solensia for cats. Sales of livestock products were flat on a reported basis and grew 8% operationally. Growth of the company's cattle and poultry products was driven largely by price increases in hyperinflationary markets. Sales of fish products grew due to increased demand for vaccines inNorway .
INVESTMENTS IN GROWTH
The company also received approval in
The company is further strengthening its Diagnostic offerings with the anticipated launch of a new premium point-of-care hematology analyzer, Vetscan® Opticell™, in the second half of 2024. As the newest addition to the Diagnostics suite, it offers veterinary healthcare teams significant time, cost and space savings – leading to better patient outcomes and a more efficient clinic. The innovative AI-powered classification technology will offer a more advanced option for Complete Blood Count (CBC) analysis, providing lab-quality accuracy at the point-of-care.
In June,
FINANCIAL GUIDANCE
-
Revenue between
$9.100 billion to$9.250 billion (operational growth of 9% to 11%) -
Reported net income between
$2.450 billion to$2.490 billion -
Adjusted net income between
$2.640 billion to$2.690 billion (operational growth of 13.5% to 15.5%) -
Reported diluted EPS of
$5.35 to$5.45 -
Adjusted diluted EPS between
$5.78 to$5.88
This guidance reflects foreign exchange rates as of late July. 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 and divestiture-related costs and certain significant items.
DISCLOSURE NOTICES
Forward-Looking Statements: This press release contains forward-looking statements, which reflect the current views of
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
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||||||||||||||||||
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|||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME(a) |
|||||||||||||||||||
(UNAUDITED) |
|||||||||||||||||||
(millions of dollars, except per share data) |
|||||||||||||||||||
|
|
||||||||||||||||||
Three Months Ended |
|
|
|
Six Months Ended |
|
|
|||||||||||||
|
|
|
|
|
|
|
|||||||||||||
|
2024 |
|
|
2023 |
|
|
% Change |
|
|
2024 |
|
|
2023 |
|
|
% Change |
|||
Revenue |
$ |
2,361 |
|
$ |
2,180 |
|
|
8 |
|
$ |
4,551 |
|
$ |
4,180 |
|
|
9 |
||
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of sales |
|
668 |
|
|
607 |
|
|
10 |
|
|
1,311 |
|
|
1,195 |
|
|
10 |
||
Selling, general and administrative expenses |
|
581 |
|
|
556 |
|
|
4 |
|
|
1,128 |
|
|
1,061 |
|
|
6 |
||
Research and development expenses |
|
171 |
|
|
146 |
|
|
17 |
|
|
333 |
|
|
288 |
|
|
16 |
||
Amortization of intangible assets |
|
35 |
|
|
37 |
|
|
(5) |
|
|
72 |
|
|
74 |
|
|
(3) |
||
Restructuring charges and certain acquisition and divestiture-related costs |
|
42 |
|
|
8 |
|
|
* |
|
|
46 |
|
|
29 |
|
|
59 |
||
Interest expense, net of capitalized interest |
|
59 |
|
|
58 |
|
|
2 |
|
|
117 |
|
|
121 |
|
|
(3) |
||
Other (income)/deductions–net |
|
25 |
|
|
(104 |
) |
|
* |
|
|
17 |
|
|
(157 |
) |
|
* |
||
Income before provision for taxes on income |
|
780 |
|
|
872 |
|
|
(11) |
|
|
1,527 |
|
|
1,569 |
|
|
(3) |
||
Provision for taxes on income |
|
156 |
|
|
202 |
|
|
(23) |
|
|
304 |
|
|
348 |
|
|
(13) |
||
Net income before allocation to noncontrolling interests |
|
624 |
|
|
670 |
|
|
(7) |
|
|
1,223 |
|
|
1,221 |
|
|
— |
||
Less: Net loss attributable to noncontrolling interests |
|
— |
|
|
(1 |
) |
|
* |
|
|
— |
|
|
(2 |
) |
|
* |
||
Net income attributable to |
$ |
624 |
|
$ |
671 |
|
|
(7) |
|
$ |
1,223 |
|
$ |
1,223 |
|
|
— |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share—basic |
$ |
1.37 |
|
$ |
1.45 |
|
|
(6) |
|
$ |
2.68 |
|
$ |
2.64 |
|
|
2 |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share—diluted |
$ |
1.37 |
|
$ |
1.45 |
|
|
(6) |
|
$ |
2.67 |
|
$ |
2.64 |
|
|
1 |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares used to calculate earnings per share |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
455.5 |
|
|
461.9 |
|
|
|
|
|
456.7 |
|
|
462.7 |
|
|
|
||
Diluted |
|
456.0 |
|
|
462.9 |
|
|
|
|
|
457.4 |
|
|
463.8 |
|
|
|
||
(a) The condensed consolidated statements of income present the three and six 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 Accounting Adjustments |
|
Acquisition
|
|
Certain
|
|
Non-GAAP
|
||||||||||
Cost of sales |
|
$ |
668 |
|
|
$ |
(1 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
667 |
|
Gross profit |
|
|
1,693 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
1,694 |
|
Selling, general and administrative expenses |
|
|
581 |
|
|
|
(3 |
) |
|
|
— |
|
|
|
— |
|
|
|
578 |
|
Amortization of intangible assets |
|
|
35 |
|
|
|
(31 |
) |
|
|
— |
|
|
|
— |
|
|
|
4 |
|
Restructuring charges and certain acquisition and divestiture-related costs |
|
|
42 |
|
|
|
— |
|
|
|
(5 |
) |
|
|
(37 |
) |
|
|
— |
|
Other (income)/deductions–net |
|
|
25 |
|
|
|
— |
|
|
|
— |
|
|
|
(33 |
) |
|
|
(8 |
) |
Income before provision for taxes on income |
|
|
780 |
|
|
|
35 |
|
|
|
5 |
|
|
|
70 |
|
|
|
890 |
|
Provision for taxes on income |
|
|
156 |
|
|
|
8 |
|
|
|
1 |
|
|
|
14 |
|
|
|
179 |
|
Net income attributable to |
|
|
624 |
|
|
|
27 |
|
|
|
4 |
|
|
|
56 |
|
|
|
711 |
|
Earnings per common share attributable to Zoetis–diluted |
|
|
1.37 |
|
|
|
0.06 |
|
|
|
0.01 |
|
|
|
0.12 |
|
|
|
1.56 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
|
GAAP
|
|
Purchase Accounting Adjustments |
|
Acquisition
|
|
Certain
|
|
Non-GAAP
|
||||||||||
Cost of sales |
|
$ |
607 |
|
|
$ |
(5 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
602 |
|
Gross profit |
|
|
1,573 |
|
|
|
5 |
|
|
|
— |
|
|
|
— |
|
|
|
1,578 |
|
Selling, general and administrative expenses |
|
|
556 |
|
|
|
(7 |
) |
|
|
— |
|
|
|
— |
|
|
|
549 |
|
Amortization of intangible assets |
|
|
37 |
|
|
|
(31 |
) |
|
|
— |
|
|
|
— |
|
|
|
6 |
|
Restructuring charges and certain acquisition and divestiture-related costs |
|
|
8 |
|
|
|
— |
|
|
|
(4 |
) |
|
|
(4 |
) |
|
|
— |
|
Other (income)/deductions–net |
|
|
(104 |
) |
|
|
— |
|
|
|
— |
|
|
|
94 |
|
|
|
(10 |
) |
Income before provision for taxes on income |
|
|
872 |
|
|
|
43 |
|
|
|
4 |
|
|
|
(90 |
) |
|
|
829 |
|
Provision for taxes on income |
|
|
202 |
|
|
|
9 |
|
|
|
1 |
|
|
|
(34 |
) |
|
|
178 |
|
Net income attributable to |
|
|
671 |
|
|
|
34 |
|
|
|
3 |
|
|
|
(56 |
) |
|
|
652 |
|
Earnings per common share attributable to Zoetis–diluted |
|
|
1.45 |
|
|
|
0.07 |
|
|
|
0.01 |
|
|
|
(0.12 |
) |
|
|
1.41 |
|
(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) |
||||||||||||||||||||
|
|
Six Months Ended |
||||||||||||||||||
|
|
GAAP
|
|
Purchase Accounting Adjustments |
|
Acquisition
|
|
Certain
|
|
Non-GAAP
|
||||||||||
Cost of sales |
|
$ |
1,311 |
|
|
$ |
(2 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,309 |
|
Gross profit |
|
|
3,240 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
3,242 |
|
Selling, general and administrative expenses |
|
|
1,128 |
|
|
|
(6 |
) |
|
|
— |
|
|
|
— |
|
|
|
1,122 |
|
Research and development expenses |
|
|
333 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
332 |
|
Amortization of intangible assets |
|
|
72 |
|
|
|
(63 |
) |
|
|
— |
|
|
|
— |
|
|
|
9 |
|
Restructuring charges and certain acquisition and divestiture-related costs |
|
|
46 |
|
|
|
— |
|
|
|
(5 |
) |
|
|
(41 |
) |
|
|
— |
|
Other (income)/deductions–net |
|
|
17 |
|
|
|
— |
|
|
|
— |
|
|
|
(35 |
) |
|
|
(18 |
) |
Income before provision for taxes on income |
|
|
1,527 |
|
|
|
72 |
|
|
|
5 |
|
|
|
76 |
|
|
|
1,680 |
|
Provision for taxes on income |
|
|
304 |
|
|
|
16 |
|
|
|
1 |
|
|
|
14 |
|
|
|
335 |
|
Net income attributable to |
|
|
1,223 |
|
|
|
56 |
|
|
|
4 |
|
|
|
62 |
|
|
|
1,345 |
|
Earnings per common share attributable to Zoetis–diluted |
|
|
2.67 |
|
|
|
0.12 |
|
|
|
0.01 |
|
|
|
0.14 |
|
|
|
2.94 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Six Months Ended |
||||||||||||||||||
|
|
GAAP
|
|
Purchase Accounting Adjustments |
|
Acquisition
|
|
Certain
|
|
Non-GAAP
|
||||||||||
Cost of sales |
|
$ |
1,195 |
|
|
$ |
(9 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,186 |
|
Gross profit |
|
|
2,985 |
|
|
|
9 |
|
|
|
— |
|
|
|
— |
|
|
|
2,994 |
|
Selling, general and administrative expenses |
|
|
1,061 |
|
|
|
(14 |
) |
|
|
— |
|
|
|
— |
|
|
|
1,047 |
|
Amortization of intangible assets |
|
|
74 |
|
|
|
(62 |
) |
|
|
— |
|
|
|
— |
|
|
|
12 |
|
Restructuring charges and certain acquisition and divestiture-related costs |
|
|
29 |
|
|
|
— |
|
|
|
(5 |
) |
|
|
(24 |
) |
|
|
— |
|
Other (income)/deductions–net |
|
|
(157 |
) |
|
|
— |
|
|
|
— |
|
|
|
92 |
|
|
|
(65 |
) |
Income before provision for taxes on income |
|
|
1,569 |
|
|
|
85 |
|
|
|
5 |
|
|
|
(68 |
) |
|
|
1,591 |
|
Provision for taxes on income |
|
|
348 |
|
|
|
17 |
|
|
|
1 |
|
|
|
(32 |
) |
|
|
334 |
|
Net income attributable to |
|
|
1,223 |
|
|
|
68 |
|
|
|
4 |
|
|
|
(36 |
) |
|
|
1,259 |
|
Earnings per common share attributable to Zoetis–diluted |
|
|
2.64 |
|
|
|
0.14 |
|
|
|
0.01 |
|
|
|
(0.08 |
) |
|
|
2.71 |
|
(a) The condensed consolidated statements of income present the six 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 and divestiture-related costs include the following: |
||||||||||||
|
|||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
|||||||||
|
|
|
|
|
|||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||
|
Acquisition-related costs(a) |
$ |
1 |
|
$ |
3 |
|
$ |
1 |
|
$ |
4 |
|
|
Divestiture-related costs(b) |
|
4 |
|
|
— |
|
|
4 |
|
|
— |
|
|
Restructuring charges(c) |
|
— |
|
|
1 |
|
|
— |
|
|
1 |
|
|
Total acquisition and divestiture-related costs—pre-tax |
|
5 |
|
|
4 |
|
|
5 |
|
|
5 |
|
|
Income taxes(d) |
|
1 |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
Total acquisition and divestiture-related costs—net of tax |
$ |
4 |
|
$ |
3 |
|
$ |
4 |
|
$ |
4 |
|
(a) |
Acquisition-related costs represent external, incremental costs that directly relate to transacting and integrating businesses, included in Restructuring charges and certain acquisition and divestiture-related costs. |
||||||||||||
(b) |
Divestiture-related costs represent external, incremental costs that directly relate to divesting and disintegrating businesses, included in Restructuring charges and certain acquisition and divestiture-related costs. |
||||||||||||
(c) |
Restructuring charges represent employee termination costs directly related to acquisitions and divestitures, included in Restructuring charges and certain acquisition and divestiture-related costs. |
||||||||||||
(d) |
Included in Provision for taxes on income. Income taxes include the tax effect of the associated pre-tax amounts, calculated by determining the jurisdictional location of the pre-tax amounts and applying that jurisdiction's applicable tax rate. |
(2) |
Certain significant items include the following: |
||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Other restructuring charges and cost-reduction/productivity initiatives(a) |
$ |
37 |
|
$ |
4 |
|
|
$ |
41 |
|
$ |
24 |
|
||
Certain asset impairment charges(b) |
|
11 |
|
|
10 |
|
|
|
11 |
|
|
10 |
|
||
Loss on assets held for sale(c) |
|
22 |
|
|
— |
|
|
|
22 |
|
|
— |
|
||
Net gain on sale of business(d) |
|
— |
|
|
(101 |
) |
|
|
— |
|
|
(101 |
) |
||
Other |
|
— |
|
|
(3 |
) |
|
|
2 |
|
|
(1 |
) |
||
Total certain significant items—pre-tax |
|
70 |
|
|
(90 |
) |
|
|
76 |
|
|
(68 |
) |
||
Income taxes(e) |
|
14 |
|
|
(34 |
) |
|
|
14 |
|
|
(32 |
) |
||
Total certain significant items—net of tax |
$ |
56 |
|
$ |
(56 |
) |
|
$ |
62 |
|
$ |
(36 |
) |
||
(a) |
For the three and six months ended |
||||||||||||||
For the three and six months ended |
|||||||||||||||
(b) |
For the three and six months ended |
||||||||||||||
For the three and six months ended |
|||||||||||||||
(c) |
Represents a loss on assets held for sale related to the planned sale of our medicated feed additive product portfolio, certain water soluble products and related assets, included in Other (income)/deductions–net. |
||||||||||||||
(d) |
Represents a net gain on the sale of a majority interest in our pet insurance business, included in Other (income)/deductions–net. |
||||||||||||||
(e) |
Included in Provision for taxes on income. Income taxes include the tax effect of the associated pre-tax amounts, calculated by determining the jurisdictional location of the pre-tax amounts and applying that jurisdiction's applicable tax rate. For the three and six months ended |
|
||||||||||||||||||
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 |
|
$ |
667 |
|
|
$ |
602 |
|
|
11 |
% |
|
|
3 |
% |
|
8 |
% |
as a percent of revenue |
|
|
28.3 |
% |
|
|
27.6 |
% |
|
NA |
|
|
NA |
|
NA |
|||
Adjusted SG&A expenses |
|
|
578 |
|
|
|
549 |
|
|
5 |
% |
|
|
(2 |
)% |
|
7 |
% |
Adjusted R&D expenses |
|
|
171 |
|
|
|
146 |
|
|
17 |
% |
|
|
— |
% |
|
17 |
% |
Adjusted net income attributable to |
|
|
711 |
|
|
|
652 |
|
|
9 |
% |
|
|
(9 |
)% |
|
18 |
% |
|
|
Six Months Ended |
|
|
|
|
|
|
|
|||||||||
|
|
|
|
% Change |
||||||||||||||
|
|
2024 |
|
2023 |
|
Total |
|
|
Foreign
|
|
Operational(b) |
|||||||
Adjusted cost of sales |
|
$ |
1,309 |
|
|
$ |
1,186 |
|
|
10 |
% |
|
|
3 |
% |
|
7 |
% |
as a percent of revenue |
|
|
28.8 |
% |
|
|
28.4 |
% |
|
NA |
|
|
NA |
|
NA |
|||
Adjusted SG&A expenses |
|
|
1,122 |
|
|
|
1,047 |
|
|
7 |
% |
|
|
(1 |
)% |
|
8 |
% |
Adjusted R&D expenses |
|
|
332 |
|
|
|
288 |
|
|
15 |
% |
|
|
— |
% |
|
15 |
% |
Adjusted net income attributable to |
|
|
1,345 |
|
|
|
1,259 |
|
|
7 |
% |
|
|
(10 |
)% |
|
17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
(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) |
9% to 11% |
Adjusted cost of sales as a percentage of revenue(b) |
Approximately 29.3% |
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 20.5% |
Adjusted diluted EPS(b) |
|
Adjusted net income(b) |
|
Operational growth(a)(c) |
13.5% to 15.5% |
Certain significant items and acquisition and divestiture-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 |
~ 29.4% |
|
~ (0.1%) |
~ 29.3% |
SG&A expenses |
|
|
~ |
|
R&D expenses |
|
|
~ |
|
Interest expense and other (income)/deductions-net |
~ |
~ |
|
~ |
Effective tax rate |
20.0% to 20.5% |
|
|
20.0% to 20.5% |
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, divestitures and other charges. |
|
||||||||||||||||
CONSOLIDATED REVENUE BY SEGMENT(a) AND SPECIES |
||||||||||||||||
(UNAUDITED) |
||||||||||||||||
(millions of dollars) |
||||||||||||||||
|
|
Three Months Ended |
|
|
||||||||||||
|
|
|
|
% Change |
||||||||||||
|
|
2024 |
|
2023 |
|
Total |
|
|
Foreign Exchange |
|
Operational(b) |
|||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
1,649 |
|
$ |
1,489 |
|
11 |
% |
|
|
(1 |
)% |
|
12 |
% |
Livestock |
|
|
694 |
|
|
671 |
|
3 |
% |
|
|
(6 |
)% |
|
9 |
% |
|
|
|
18 |
|
|
20 |
|
(10 |
)% |
|
|
(1 |
)% |
|
(9 |
)% |
Total Revenue |
|
$ |
2,361 |
|
$ |
2,180 |
|
8 |
% |
|
|
(3 |
)% |
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
1,080 |
|
$ |
959 |
|
13 |
% |
|
|
— |
% |
|
13 |
% |
Livestock |
|
|
228 |
|
|
206 |
|
11 |
% |
|
|
— |
% |
|
11 |
% |
Total |
|
$ |
1,308 |
|
$ |
1,165 |
|
12 |
% |
|
|
— |
% |
|
12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
International: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
569 |
|
$ |
530 |
|
7 |
% |
|
|
(5 |
)% |
|
12 |
% |
Livestock |
|
|
466 |
|
|
465 |
|
— |
% |
|
|
(8 |
)% |
|
8 |
% |
Total International Revenue |
|
$ |
1,035 |
|
$ |
995 |
|
4 |
% |
|
|
(6 |
)% |
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Dogs and Cats |
|
$ |
1,581 |
|
$ |
1,424 |
|
11 |
% |
|
|
(2 |
)% |
|
13 |
% |
Horses |
|
|
68 |
|
|
65 |
|
5 |
% |
|
|
(1 |
)% |
|
6 |
% |
Total Companion Animal Revenue |
|
$ |
1,649 |
|
$ |
1,489 |
|
11 |
% |
|
|
(1 |
)% |
|
12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Livestock: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Cattle |
|
$ |
350 |
|
$ |
329 |
|
6 |
% |
|
|
(6 |
)% |
|
12 |
% |
Poultry |
|
|
132 |
|
|
131 |
|
1 |
% |
|
|
(6 |
)% |
|
7 |
% |
Swine |
|
|
130 |
|
|
133 |
|
(2 |
)% |
|
|
(7 |
)% |
|
5 |
% |
Fish |
|
|
62 |
|
|
52 |
|
19 |
% |
|
|
(1 |
)% |
|
20 |
% |
Sheep and other |
|
|
20 |
|
|
26 |
|
(23 |
)% |
|
|
(2 |
)% |
|
(21 |
)% |
Total Livestock Revenue |
|
$ |
694 |
|
$ |
671 |
|
3 |
% |
|
|
(6 |
)% |
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(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 SEGMENT(a) AND SPECIES |
||||||||||||||||
(UNAUDITED) |
||||||||||||||||
(millions of dollars) |
||||||||||||||||
|
|
Six Months Ended |
|
|
||||||||||||
|
|
|
|
% Change |
||||||||||||
|
|
2024 |
|
2023 |
|
Total |
|
|
Foreign Exchange |
|
Operational(b) |
|||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
3,099 |
|
$ |
2,714 |
|
14 |
% |
|
|
(2 |
)% |
|
16 |
% |
Livestock |
|
|
1,414 |
|
|
1,429 |
|
(1 |
)% |
|
|
(5 |
)% |
|
4 |
% |
|
|
|
38 |
|
|
37 |
|
3 |
% |
|
|
— |
% |
|
3 |
% |
Total Revenue |
|
$ |
4,551 |
|
$ |
4,180 |
|
9 |
% |
|
|
(3 |
)% |
|
12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
1,978 |
|
$ |
1,680 |
|
18 |
% |
|
|
— |
% |
|
18 |
% |
Livestock |
|
|
493 |
|
|
490 |
|
1 |
% |
|
|
— |
% |
|
1 |
% |
Total |
|
$ |
2,471 |
|
$ |
2,170 |
|
14 |
% |
|
|
— |
% |
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
International: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
1,121 |
|
$ |
1,034 |
|
8 |
% |
|
|
(5 |
)% |
|
13 |
% |
Livestock |
|
|
921 |
|
|
939 |
|
(2 |
)% |
|
|
(7 |
)% |
|
5 |
% |
Total International Revenue |
|
$ |
2,042 |
|
$ |
1,973 |
|
3 |
% |
|
|
(6 |
)% |
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Dogs and Cats |
|
$ |
2,965 |
|
$ |
2,577 |
|
15 |
% |
|
|
(2 |
)% |
|
17 |
% |
Horses |
|
|
134 |
|
|
137 |
|
(2 |
)% |
|
|
(2 |
)% |
|
— |
% |
Total Companion Animal Revenue |
|
$ |
3,099 |
|
$ |
2,714 |
|
14 |
% |
|
|
(2 |
)% |
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Livestock: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Cattle |
|
$ |
741 |
|
$ |
728 |
|
2 |
% |
|
|
(4 |
)% |
|
6 |
% |
Poultry |
|
|
271 |
|
|
270 |
|
— |
% |
|
|
(7 |
)% |
|
7 |
% |
Swine |
|
|
257 |
|
|
275 |
|
(7 |
)% |
|
|
(6 |
)% |
|
(1 |
)% |
Fish |
|
|
107 |
|
|
101 |
|
6 |
% |
|
|
(1 |
)% |
|
7 |
% |
Sheep and other |
|
|
38 |
|
|
55 |
|
(31 |
)% |
|
|
(4 |
)% |
|
(27 |
)% |
Total Livestock Revenue |
|
$ |
1,414 |
|
$ |
1,429 |
|
(1 |
)% |
|
|
(5 |
)% |
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(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 Exchange |
|
Operational(a) |
|||||
|
|
$ |
1,035 |
|
$ |
995 |
|
4 |
% |
|
|
(6 |
)% |
|
10 |
% |
|
|
|
83 |
|
|
82 |
|
1 |
% |
|
|
(1 |
)% |
|
2 |
% |
|
|
|
99 |
|
|
91 |
|
9 |
% |
|
|
(1 |
)% |
|
10 |
% |
|
|
|
75 |
|
|
70 |
|
7 |
% |
|
|
(1 |
)% |
|
8 |
% |
|
|
|
31 |
|
|
39 |
|
(21 |
)% |
|
|
(4 |
)% |
|
(17 |
)% |
|
|
|
68 |
|
|
84 |
|
(19 |
)% |
|
|
(3 |
)% |
|
(16 |
)% |
|
|
|
34 |
|
|
34 |
|
— |
% |
|
|
(2 |
)% |
|
2 |
% |
|
|
|
58 |
|
|
53 |
|
9 |
% |
|
|
(1 |
)% |
|
10 |
% |
|
|
|
36 |
|
|
35 |
|
3 |
% |
|
|
1 |
% |
|
2 |
% |
|
|
|
39 |
|
|
47 |
|
(17 |
)% |
|
|
(13 |
)% |
|
(4 |
)% |
|
|
|
46 |
|
|
38 |
|
21 |
% |
|
|
11 |
% |
|
10 |
% |
|
|
|
33 |
|
|
31 |
|
6 |
% |
|
|
(2 |
)% |
|
8 |
% |
|
|
|
73 |
|
|
63 |
|
16 |
% |
|
|
3 |
% |
|
13 |
% |
Other developed markets |
|
|
138 |
|
|
125 |
|
10 |
% |
|
|
(2 |
)% |
|
12 |
% |
Other emerging markets |
|
|
222 |
|
|
203 |
|
9 |
% |
|
|
(25 |
)% |
|
34 |
% |
|
|
Six Months Ended |
|
|
|
|
|
|
|
|||||||
|
|
|
|
% Change |
||||||||||||
|
|
2024 |
|
2023 |
|
Total |
|
|
Foreign Exchange |
|
Operational(a) |
|||||
|
|
$ |
2,042 |
|
$ |
1,973 |
|
3 |
% |
|
|
(6 |
)% |
|
9 |
% |
|
|
|
156 |
|
|
164 |
|
(5 |
)% |
|
|
(3 |
)% |
|
(2 |
)% |
|
|
|
200 |
|
|
175 |
|
14 |
% |
|
|
3 |
% |
|
11 |
% |
|
|
|
136 |
|
|
120 |
|
13 |
% |
|
|
(1 |
)% |
|
14 |
% |
|
|
|
62 |
|
|
78 |
|
(21 |
)% |
|
|
(4 |
)% |
|
(17 |
)% |
|
|
|
144 |
|
|
186 |
|
(23 |
)% |
|
|
(3 |
)% |
|
(20 |
)% |
|
|
|
75 |
|
|
68 |
|
10 |
% |
|
|
(1 |
)% |
|
11 |
% |
|
|
|
109 |
|
|
98 |
|
11 |
% |
|
|
— |
% |
|
11 |
% |
|
|
|
64 |
|
|
61 |
|
5 |
% |
|
|
1 |
% |
|
4 |
% |
|
|
|
76 |
|
|
86 |
|
(12 |
)% |
|
|
(12 |
)% |
|
— |
% |
|
|
|
90 |
|
|
77 |
|
17 |
% |
|
|
11 |
% |
|
6 |
% |
|
|
|
65 |
|
|
64 |
|
2 |
% |
|
|
— |
% |
|
2 |
% |
|
|
|
150 |
|
|
131 |
|
15 |
% |
|
|
4 |
% |
|
11 |
% |
Other developed markets |
|
|
265 |
|
|
247 |
|
7 |
% |
|
|
(1 |
)% |
|
8 |
% |
Other emerging markets |
|
|
450 |
|
|
418 |
|
8 |
% |
|
|
(25 |
)% |
|
33 |
% |
(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 Exchange |
|
Operational(b) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
1,308 |
|
|
$ |
1,165 |
|
|
12 |
% |
|
|
— |
% |
|
12 |
% |
Cost of Sales |
|
|
232 |
|
|
|
214 |
|
|
8 |
% |
|
|
— |
% |
|
8 |
% |
Gross Profit |
|
|
1,076 |
|
|
|
951 |
|
|
13 |
% |
|
|
— |
% |
|
13 |
% |
Gross Margin |
|
|
82.3 |
% |
|
|
81.6 |
% |
|
|
|
|
|
|
|
|||
Operating Expenses |
|
|
204 |
|
|
|
212 |
|
|
(4 |
)% |
|
|
— |
% |
|
(4 |
)% |
Other (income)/deductions-net |
|
|
— |
|
|
|
— |
|
|
* |
|
|
* |
|
* |
|||
|
|
$ |
872 |
|
|
$ |
739 |
|
|
18 |
% |
|
|
— |
% |
|
18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
International: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
1,035 |
|
|
$ |
995 |
|
|
4 |
% |
|
|
(6 |
)% |
|
10 |
% |
Cost of Sales |
|
|
342 |
|
|
|
315 |
|
|
9 |
% |
|
|
— |
% |
|
9 |
% |
Gross Profit |
|
|
693 |
|
|
|
680 |
|
|
2 |
% |
|
|
(9 |
)% |
|
11 |
% |
Gross Margin |
|
|
67.0 |
% |
|
|
68.3 |
% |
|
|
|
|
|
|
|
|||
Operating Expenses |
|
|
175 |
|
|
|
166 |
|
|
5 |
% |
|
|
(4 |
)% |
|
9 |
% |
Other (income)/deductions-net |
|
|
— |
|
|
|
(1 |
) |
|
* |
|
|
* |
|
* |
|||
International Earnings |
|
$ |
518 |
|
|
$ |
515 |
|
|
1 |
% |
|
|
(10 |
)% |
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Reportable Segments |
|
$ |
1,390 |
|
|
$ |
1,254 |
|
|
11 |
% |
|
|
(4 |
)% |
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other business activities(c) |
|
|
(142 |
) |
|
|
(116 |
) |
|
22 |
% |
|
|
|
|
|
||
Reconciling Items: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Corporate(d) |
|
|
(299 |
) |
|
|
(256 |
) |
|
17 |
% |
|
|
|
|
|
||
Purchase accounting adjustments(e) |
|
|
(35 |
) |
|
|
(43 |
) |
|
(19 |
)% |
|
|
|
|
|
||
Acquisition and divestiture-related costs(f) |
|
|
(5 |
) |
|
|
(4 |
) |
|
25 |
% |
|
|
|
|
|
||
Certain significant items(g) |
|
|
(70 |
) |
|
|
90 |
|
|
* |
|
|
|
|
|
|||
Other unallocated(h) |
|
|
(59 |
) |
|
|
(53 |
) |
|
11 |
% |
|
|
|
|
|
||
Total Earnings(i) |
|
$ |
780 |
|
|
$ |
872 |
|
|
(11 |
)% |
|
|
|
|
|
||
(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 and divestiture-related costs include costs associated with acquiring and integrating newly acquired businesses, such as transaction costs and integration costs, as well as costs associated with divesting and disintegrating a portion of our business. |
||||||||||||||||||
(g) Certain significant items includes substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such items primarily include certain asset impairment charges, restructuring charges and implementation costs associated with cost-reduction/productivity initiatives that are not associated with an acquisition, as well as a loss on assets held for sale and the impact of divestiture gains and losses. |
||||||||||||||||||
(h) Includes overhead expenses associated with our global manufacturing and supply operations not directly attributable to an operating segment, as well as certain procurement costs. |
||||||||||||||||||
(i) Defined as income before provision for taxes on income. |
||||||||||||||||||
* Calculation not meaningful. |
|
||||||||||||||||||
SEGMENT(a) EARNINGS |
||||||||||||||||||
(UNAUDITED) |
||||||||||||||||||
(millions of dollars) |
||||||||||||||||||
|
|
Six Months Ended |
|
|
||||||||||||||
|
|
|
|
% Change |
||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Total |
|
|
Foreign Exchange |
|
Operational(b) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
2,471 |
|
|
$ |
2,170 |
|
|
14 |
% |
|
|
— |
% |
|
14 |
% |
Cost of Sales |
|
|
449 |
|
|
|
417 |
|
|
8 |
% |
|
|
— |
% |
|
8 |
% |
Gross Profit |
|
|
2,022 |
|
|
|
1,753 |
|
|
15 |
% |
|
|
— |
% |
|
15 |
% |
Gross Margin |
|
|
81.8 |
% |
|
|
80.8 |
% |
|
|
|
|
|
|
|
|||
Operating Expenses |
|
|
394 |
|
|
|
400 |
|
|
(2 |
)% |
|
|
— |
% |
|
(2 |
)% |
Other (income)/deductions-net |
|
|
— |
|
|
|
— |
|
|
* |
|
|
* |
|
* |
|||
|
|
$ |
1,628 |
|
|
$ |
1,353 |
|
|
20 |
% |
|
|
— |
% |
|
20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
International: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
2,042 |
|
|
$ |
1,973 |
|
|
3 |
% |
|
|
(6 |
)% |
|
9 |
% |
Cost of Sales |
|
|
655 |
|
|
|
606 |
|
|
8 |
% |
|
|
— |
% |
|
8 |
% |
Gross Profit |
|
|
1,387 |
|
|
|
1,367 |
|
|
1 |
% |
|
|
(9 |
)% |
|
10 |
% |
Gross Margin |
|
|
67.9 |
% |
|
|
69.3 |
% |
|
|
|
|
|
|
|
|||
Operating Expenses |
|
|
334 |
|
|
|
317 |
|
|
5 |
% |
|
|
(4 |
)% |
|
9 |
% |
Other (income)/deductions-net |
|
|
— |
|
|
|
— |
|
|
* |
|
|
* |
|
* |
|||
International Earnings |
|
$ |
1,053 |
|
|
$ |
1,050 |
|
|
— |
% |
|
|
(10 |
)% |
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Reportable Segments |
|
$ |
2,681 |
|
|
$ |
2,403 |
|
|
12 |
% |
|
|
(4 |
)% |
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other business activities(c) |
|
|
(274 |
) |
|
|
(230 |
) |
|
19 |
% |
|
|
|
|
|
||
Reconciling Items: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Corporate(d) |
|
|
(587 |
) |
|
|
(464 |
) |
|
27 |
% |
|
|
|
|
|
||
Purchase accounting adjustments(e) |
|
|
(72 |
) |
|
|
(85 |
) |
|
(15 |
)% |
|
|
|
|
|
||
Acquisition and divestiture-related costs(f) |
|
|
(5 |
) |
|
|
(5 |
) |
|
— |
% |
|
|
|
|
|
||
Certain significant items(g) |
|
|
(76 |
) |
|
|
68 |
|
|
* |
|
|
|
|
|
|||
Other unallocated(h) |
|
|
(140 |
) |
|
|
(118 |
) |
|
19 |
% |
|
|
|
|
|
||
Total Earnings(i) |
|
$ |
1,527 |
|
|
$ |
1,569 |
|
|
(3 |
)% |
|
|
|
|
|
||
(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 and divestiture-related costs include costs associated with acquiring and integrating newly acquired businesses, such as transaction costs and integration costs, as well as costs associated with divesting and disintegrating a portion of our business. |
||||||||||||||||||
(g) Certain significant items includes substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such items primarily include certain asset impairment charges, restructuring charges and implementation costs associated with cost-reduction/productivity initiatives that are not associated with an acquisition, as well as a loss on assets held for sale and the impact of divestiture gains and losses. |
||||||||||||||||||
(h) Includes overhead expenses associated with our global manufacturing and supply operations not directly attributable to an operating segment, as well as certain procurement costs. |
||||||||||||||||||
(i) Defined as income before provision for taxes on income. |
||||||||||||||||||
* Calculation not meaningful. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240805847620/en/
Media Contacts:
1-862-399-0810 (o)
jennifer.albano@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: