Zoetis Inc. · NYSE:ZTS
Zoetis — Q3 2022 Earnings Presentation
15 slides from Zoetis's earnings presentation, Nov 3, 2022
Slide 1: Third Quarter 2022 Financial Results
Third Quarter 2022 Financial Results November 3, 2022
Slide 2: Forward-looking Statements and Non-GAAP Financial Information
Forward-looking Non-GAAP Financial Statements Information This presentation contains forward-looking statements, which reflect the current views of We use non-GAAP* financial measures, such as adjusted net income, adjusted diluted Zoetis with respect to: business plans or prospects, future operating
Slide 3: Kristin Peck, Chief Executive Officer
Kristin Peck Chief Executive Officer
Slide 4: Key Takeaways
THIRD QUARTER FINANCIAL RESULTS Key Takeaways Global Growth in 3Q • Generated 5% operational1 revenue growth and 2% operational1 increase in adjusted net income2, with revenue in the U.S. increasing 2% and International up 8% operationally. • Companion animal revenue grew 10% operationally, as we co
Slide 5: Wetteny Joseph, Chief Financial Officer
Wetteny Joseph Executive Vice President and Chief Financial Officer
Slide 6: Income Statement Highlights
THIRD QUARTER FINANCIAL RESULTS Income Statement Highlights Third Quarter 2022* 2021* Change Revenue $2,002 $1,990 1% Reported Net Income 529 552 (4)% Reported Diluted Earnings Per Share $1.13 $1.16 (3)% Adjusted Net Income1 566 597 (5)% Adjusted Diluted Earnings Per Share1,2 $1.21 $1.25 (3)% * Mill
Slide 7: Adjusted Income Statement Highlights
THIRD QUARTER FINANCIAL RESULTS Adjusted Income Statement Highlights Third Quarter Foreign 2022* 2021* Change Exchange Operational1 Revenue $2,002 $1,990 1% (4)% 5% Adjusted Cost of Sales2 605 583 4% (2)% 6% as a percent of revenue3 30.2% 29.3% NA NA NA Adjusted SG&A Expenses2 493 496 (1)% (4)% 3% A
Slide 8: U.S. Segment Performance
THIRD QUARTER FINANCIAL RESULTS U.S. Segment Performance Third Quarter 2022* 2021* Change Revenue $1,090 $1,065 2% Companion Animal 819 775 6% Livestock 271 290 (7)% Cost of Sales 204 199 3% Gross Profit 886 866 2% Gross Margin 81.3% 81.3% NA Operating Expenses 206 183 13% Other (Income)/Deductions
Slide 9: International Segment Performance
THIRD QUARTER FINANCIAL RESULTS International Segment Performance Third Quarter Foreign 2022* 2021* Change Exchange Operational1 Revenue $889 $904 (2)% (10)% 8% Companion Animal 452 427 6% (11)% 17% Livestock 437 477 (8)% (8)% —% Cost of Sales 256 273 (6)% (7)% 1% Gross Profit 633 631 —% (11)% 11% G
Slide 10: International Segment Performance
THIRD QUARTER FINANCIAL RESULTS International Segment Performance Third Quarter Foreign 2022* 2021* Change Exchange Operational1 Total International $888.8 $903.4 (2)% (10)% 8% Australia 79.5 69.8 14% (8)% 22% Brazil 70.6 78.1 (10)% (1)% (9)% Canada 56.5 55.3 2% (4)% 6% Chile 30.9 32.6 (5)% (2)% (3)
Slide 11: Financial Guidance
THIRD QUARTER FINANCIAL RESULTS Financial Guidance Selected Line Items (millions of dollars, except per share amounts) Full Year 2022 Revenue $8,000 to $8,075 Operational growth1 7% to 8% Adjusted cost of sales as a percentage of revenue2 Approximately 30% Adjusted SG&A expenses2 $1,970 to $2,000 Ad
Slide 12: Q&A
Q&A
Slide 13: Appendix
Appendix
Slide 14: Reconciliation Of Reported Growth To Non-GAAP Financial Measures
THIRD QUARTER FINANCIAL RESULTS Reconciliation Of Reported Growth To Non-GAAP Financial Measures Three months ended September 30, 2022* 2021* Change Foreign Exchange Operational1 Revenue by Product Category Key Dermatology $343 $321 7% (4)% 11% Diagnostics (companion animal) 78 89 (12)% (3)% (9)% Re
Slide 15: Zoetis
zoetis