Zoetis Inc. · NYSE:ZTS
Zoetis — Q2 2023 Earnings Presentation
15 slides from Zoetis's earnings presentation, Aug 8, 2023
Slide 1: Second Quarter 2023 Financial Results
Second Quarter 2023 Financial Results August 8, 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
SECOND QUARTER FINANCIAL RESULTS Key Takeaways Strong 2Q Global Growth • Generated 9% operational1 revenue growth and a 12% operational increase in adjusted net income2, with U.S. revenue increasing 7% and International revenue up 11% operationally. • Companion animal revenue grew 11% operationally,
Slide 5: Wetteny Joseph, Chief Financial Officer
Wetteny Joseph Executive Vice President and Chief Financial Officer
Slide 6: Income Statement Highlights
SECOND QUARTER FINANCIAL RESULTS Income Statement Highlights Second Quarter 2023* 2022* Change Revenue $2,180 $2,052 6% Reported Net Income 671 529 27% Reported Diluted Earnings Per Share $1.45 $1.12 29% Adjusted Net Income1 652 567 15% Adjusted Diluted Earnings Per Share1,2 $1.41 $1.20 18% * Millio
Slide 7: Adjusted Income Statement Highlights
SECOND QUARTER FINANCIAL RESULTS Adjusted Income Statement Highlights Second Quarter Foreign 2023* 2022* Change Exchange Operational1 Revenue $2,180 $2,052 6% (3)% 9% Adjusted Cost of Sales2 602 620 (3)% (9)% 6% as a percent of revenue3 27.6% 30.2% NA NA NA Adjusted SG&A Expenses2 549 522 5% (3)% 8%
Slide 8: U.S. Segment Performance
SECOND QUARTER FINANCIAL RESULTS U.S. Segment Performance Second Quarter 2023* 2022* Change Revenue $1,165 $1,091 7% Companion Animal 959 895 7% Livestock 206 196 5% Cost of Sales 214 198 8% Gross Profit 951 893 6% Gross Margin 81.6% 81.9% NA Operating Expenses 212 207 2% Other (Income)/Deductions -
Slide 9: International Segment Performance
SECOND QUARTER FINANCIAL RESULTS International Segment Performance Second Quarter Foreign 2023* 2022* Change Exchange Operational1 Revenue $995 $943 6% (5)% 11% Companion Animal 530 471 13% (4)% 17% Livestock 465 472 (1)% (5)% 4% Cost of Sales 315 288 9% (11)% 20% Gross Profit 680 655 4% (2)% 6% Gro
Slide 10: International Segment Performance by Country
SECOND QUARTER FINANCIAL RESULTS International Segment Performance Second Quarter Foreign 2023* 2022* Change Exchange Operational1 Total International $995.4 $943.2 6% (5)% 11% Australia 81.7 80.1 2% (9)% 11% Brazil 91.5 85.9 7% (3)% 10% Canada 69.5 66.8 4% (7)% 11% Chile 39.1 34.2 14% 1% 13% China
Slide 11: Financial Guidance
SECOND QUARTER FINANCIAL RESULTS Financial Guidance Selected Line Items (millions of dollars, except per share amounts) Full Year 2023 Revenue $8,500 to $8,650 Operational growth1 6% to 8% Adjusted cost of sales as a percentage of revenue2 Approximately 29% Adjusted SG&A expenses2 $2,060 to $2,100 A
Slide 12: Q&A
Q&A
Slide 13: Appendix
Appendix
Slide 14: Reconciliation of Reported Growth to Non-GAAP Financial Measures
SECOND QUARTER FINANCIAL RESULTS Reconciliation Of Reported Growth To Non-GAAP Financial Measures Three months ended June 30, 2023* 2022* Change Foreign Exchange Operational1 Revenue by Product Category Key Dermatology $355 $315 13% (1)% 14% Diagnostics (companion animal) 92 83 11% (1)% 12% Key Derm
Slide 15: Zoetis
zoetis