Zoetis Inc. · NYSE:ZTS
Zoetis — Q2 2024 Earnings Presentation
23 slides from Zoetis's earnings presentation, Aug 6, 2024
Slide 1: 2nd Quarter 2024 Financial Results
nd 2 Quarter 2024 Financial Results August 6, 2024
Slide 2: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements This presentation contains forward-looking statements, which reflect the current views of Zoetis with respect to: business plans or prospects, future operating or financial performance; future guidance, future operating models, R&D costs; timing and likelihood of success;
Slide 3: Presenters
SECOND QUARTER FINANCIAL RESULTS Presenters Strategy and Business / Financial Business Update Results and Guidance Kristin Peck Wetteny Joseph Chief Executive Officer Executive Vice President and 3 Chief Financial Officer
Slide 4: Outstanding Second Quarter Results
SECOND QUARTER FINANCIAL RESULTS Outstanding Second Quarter Results Revenue Adj. Net Income2 Adj. Diluted EPS2 $2.4B $711M $1.56 11% 18% 20% operationally over Q2 20231 operationally over Q2 20231 operationally over Q2 20231 8% PRICE | 3% VOLUME KEY HIGHLIGHTS Continued Simparica® Differentiated Key
Slide 5: Investments for Growth
SECOND QUARTER FINANCIAL RESULTS Investments for Growth Advancements in Science-Driven Innovation This Quarter Draxxin® KP: Alpha Ject Micro® 7 Simparica & Fostera® Gold PCV Vetscan® Opticell™: An injectable for the ISA: Simparica Trio® : MH: Announced planned treatment of bacterial A combination va
Slide 6: Raising 2024 Guidance
SECOND QUARTER FINANCIAL RESULTS Raising 2024 Guidance Revenue $9.10B - $9.25B Prior guidance: $9.05B to $9.20B Adj. Diluted $5.78 - $5.88 EPS1 Prior guidance: $5.71 to $5.81 9.0% - 11.0% Revenue Operational Prior guidance: 8.5% to 10.5% Growth2 13.5% - 15.5% Adj. Net Income 1 Prior guidance: 13% to
Slide 7: Second Quarter Segment Highlights
SECOND QUARTER FINANCIAL RESULTS Second Quarter Segment Highlights U.S. Segment Revenue International Segment Revenue $1.3B $1.0B 12% growth Year over Year 10% operational growth1 YOY (YOY) U.S. Companion International Companion Animal Revenue Animal Revenue $1.1B $0.6B 13% growth YOY 12% operationa
Slide 8: Key Franchise Performance: OA Pain mAb Franchise
SECOND QUARTER FINANCIAL RESULTS Key Franchise Performance Osteoarthritis (OA) Pain mAb Franchise 117%1 • Continued success in Librela performance with 142% operational growth1 this quarter • U.S. Librela launch remains on track with 2Q24 U.S. revenue of $53 million, up 33% from 1Q24 • Ongoing engag
Slide 9: Key Franchise Performance: Simparica Franchise
SECOND QUARTER FINANCIAL RESULTS Key Franchise Performance 22%1 Simparica Franchise • Simparica Trio revenue of $299 million in the quarter, with U.S. growth of 19% to $254 million • U.S. Simparica Trio 26% moving annual total (MAT) growth over the last 12 months, the majority with direct competitio
Slide 10: Key Franchise Performance: Key Dermatology Franchise
SECOND QUARTER FINANCIAL RESULTS Key Franchise Performance 18%1 Key Dermatology Franchise • U.S. dermatology clinic visits are increasing, which drives volume growth • Significant global market opportunity still exists • Apoquel® and Apoquel® Chewable benefit from channel shift to retail and home de
Slide 11: Q2 Spotlight – Significant Opportunity for Growth in Dermatology Market
SECOND QUARTER FINANCIAL RESULTS Apoquel is overwhelmingly endorsed by Q2 Spotlight – veterinarians globally with ~90% Global Vet Satisfaction in both Safety and Efficacy1 Significant Opportunity for Growth in 23 M dogs treated globally with Apoquel and Cytopoint, bolstered by over a decade Dermatol
Slide 12: Our continued commitment to value creation
SECOND QUARTER FINANCIAL RESULTS Our continued commitment to value creation Key drivers of our three to five-year outlook from May 2023 investor day Grow revenue Invest in innovation Increase adjusted Return excess faster than the and growth net income faster capital to market capabilities than reve
Slide 13: Financial Results and Guidance
Financial Results and Guidance
Slide 14: Income Statement Highlights
SECOND QUARTER FINANCIAL RESULTS Income Statement Highlights Second Quarter 2024* 2023* Change Revenue $2,361 $2,180 8% Reported Net Income $624 $671 (7)% Reported Diluted Earnings Per Share $1.37 $1.45 (6)% Adjusted Net Income1 711 652 9% Adjusted Diluted Earnings Per Share1 $1.56 $1.41 11% * Milli
Slide 15: Adjusted Income Statement Highlights
SECOND QUARTER FINANCIAL RESULTS Adjusted Income Statement Highlights Second Quarter Foreign 2024* 2023* Change Exchange Operational1 Revenue $2,361 $2,180 8% (3)% 11% Adjusted Cost of Sales2 667 602 11% 3% 8% as a percent of revenue3 28.3% 27.6% NA NA NA Adjusted SG&A Expenses2 578 549 5% (2)% 7% A
Slide 16: U.S. Segment Performance
SECOND QUARTER FINANCIAL RESULTS U.S. Segment Performance Second Quarter 2024* 2023* Change Revenue $1,308 $1,165 12% Companion Animal 1,080 959 13% Livestock 228 206 11% Cost of Sales 232 214 8% Gross Profit 1,076 951 13% Gross Margin 82.3% 81.6% NA Operating Expenses 204 212 (4)% Other (Income)/De
Slide 17: International Segment Performance
SECOND QUARTER FINANCIAL RESULTS International Segment Performance Second Quarter Foreign 2024* 2023* Change Exchange Operational1 Revenue $1,035 $995 4% (6)% 10% Companion Animal 569 530 7% (5)% 12% Livestock 466 465 —% (8)% 8% Cost of Sales 342 315 9% —% 9% Gross Profit 693 680 2% (9)% 11% Gross M
Slide 18: International Segment Performance by Country
SECOND QUARTER FINANCIAL RESULTS International Segment Performance Second Quarter Foreign 2024* 2023* Change Exchange Operational1 Total International $1,035 $995 4% (6)% 10% Australia 83 82 1% (1)% 2% Brazil 99 91 9% (1)% 10% Canada 75 70 7% (1)% 8% Chile 31 39 (21)% (4)% (17)% China 68 84 (19)% (3
Slide 19: Financial Guidance
SECOND QUARTER FINANCIAL RESULTS Financial Guidance Selected Line Items (millions of dollars, except per share amounts) Full Year 2024 Revenue $9,100 to $9,250 Operational growth1 9% to 11% Adjusted cost of sales as a percentage of revenue2 Approximately 29.3% Adjusted SG&A expenses2 $2,225 to $2,29
Slide 20: Q&A
Q&A
Slide 21: Appendix
Appendix
Slide 22: 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, Foreign 2024* 2023* Change Exchange Operational1 Revenue by Product Category Key Dermatology $414 $355 17% (1)% 18% Key Dermatology (international) 131 114 15% (4)% 19% OA pa
Slide 23: Zoetis
zoetis