Zoetis Inc. · NYSE:ZTS
Zoetis — Q3 2023 Earnings Presentation
15 slides from Zoetis's earnings presentation, Nov 2, 2023
Slide 1: Third Quarter 2023 Financial Results
Third Quarter 2023 Financial Results November 2, 2023
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 Strong 3Q Global Growth • Generated 8% operational1 revenue growth and a 13% operational increase in adjusted net income2, with U.S. revenue increasing 8% and International revenue up 8% operationally. • Companion animal revenue grew 11% operationally, d
Slide 5: Wetteny Joseph, Executive Vice President and 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 2023* 2022* Change Revenue $2,151 $2,002 7% Reported Net Income 596 529 13% Reported Diluted Earnings Per Share $1.29 $1.13 14% Adjusted Net Income1 629 566 11% Adjusted Diluted Earnings Per Share1 $1.36 $1.21 12% * Millions o
Slide 7: Adjusted Income Statement Highlights
THIRD QUARTER FINANCIAL RESULTS Adjusted Income Statement Highlights Third Quarter Foreign 2023* 2022* Change Exchange Operational1 Revenue $2,151 $2,002 7% (1)% 8% Adjusted Cost of Sales2 635 605 5% —% 5% as a percent of revenue3 29.5% 30.2% NA NA NA Adjusted SG&A Expenses2 521 493 6% 1% 5% Adjuste
Slide 8: U.S. Segment Performance
THIRD QUARTER FINANCIAL RESULTS U.S. Segment Performance Third Quarter 2023* 2022* Change Revenue $1,174 $1,090 8% Companion Animal 908 819 11% Livestock 266 271 (2)% Cost of Sales 228 204 12% Gross Profit 946 886 7% Gross Margin 80.6% 81.3% NA Operating Expenses 202 206 (2)% Other (Income)/Deductio
Slide 9: International Segment Performance
THIRD QUARTER FINANCIAL RESULTS International Segment Performance Third Quarter Foreign 2023* 2022* Change Exchange Operational1 Revenue $956 $889 8% —% 8% Companion Animal 506 452 12% —% 12% Livestock 450 437 3% (2)% 5% Cost of Sales 306 256 20% 1% 19% Gross Profit 650 633 3% (1)% 4% Gross Margin 6
Slide 10: International Segment Performance
THIRD QUARTER FINANCIAL RESULTS International Segment Performance Third Quarter Foreign 2023* 2022* Change Exchange Operational1 Total International $956.2 $888.8 8% —% 8% Australia 84.2 79.5 6% (5)% 11% Brazil 100.0 70.6 42% 8% 34% Canada 63.9 56.5 13% (3)% 16% Chile 30.5 30.9 (1)% 2% (3)% China 69
Slide 11: Financial Guidance
THIRD QUARTER FINANCIAL RESULTS Financial Guidance Selected Line Items (millions of dollars, except per share amounts) Full Year 2023 Revenue $8,475 to $8,550 Operational growth1 6.5% to 7.5% Adjusted cost of sales as a percentage of revenue2 Approximately 29% Adjusted SG&A expenses2 $2,095 to $2,11
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, 2023* 2022* Change Foreign Exchange Operational1 Revenue by Product Category Key Dermatology $393 $343 15% 1% 14% Diagnostics (companion animal) 90 78 15% 1% 14% Key Derm
Slide 15: Zoetis
zoetis