Zoetis Inc. · NYSE:ZTS
Zoetis — Q1 2021 Earnings Presentation
13 slides from Zoetis's earnings presentation, May 6, 2021
Slide 1: First Quarter 2021 Financial Results
FIRST QUARTER 2021 FINANCIAL RESULTS May 6, 2021 1 1
Slide 2: Forward-Looking Statements; 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; expectations regarding products, product appr
Slide 3: Kristin Peck, Chief Executive Officer
KRISTIN PECK CHIEF EXECUTIVE OFFICER 3 3
Slide 4: Key Takeaways
KEY TAKEAWAYS STRONG GLOBAL GROWTH TO START 2021 • Generated 21% operational1 revenue growth and 34% operational1 increase in adjusted net income2, with significant growth in both companion animal and livestock • Companion animal product sales led the way with 34% operational revenue growth, as our
Slide 5: Glenn David, Chief Financial Officer
GLENN DAVID CHIEF FINANCIAL OFFICER 5 5
Slide 6: Income Statement Highlights
INCOME STATEMENT HIGHLIGHTS First Quarter 2021* 2020* Change Revenue $1,871 $1,534 22% Reported Net Income 559 423 32% Reported Diluted Earnings Per Share $1.17 $0.88 33% Adjusted Net Income1 603 455 33% Adjusted Diluted Earnings Per Share1,2 $1.26 $0.95 33% * Millions of dollars, except per share d
Slide 7: Adjusted Income Statement Highlights
ADJUSTED INCOME STATEMENT HIGHLIGHTS First Quarter Foreign 2021* 2020* Change Operational1 Exchange Revenue $1,871 $1,534 22% 1% 21% Adjusted Cost of Sales2 543 455 19% 3% 16% as a percent of revenue3 29.0% 29.7% NA NA NA Adjusted SG&A Expenses2 401 369 9% 1% 8% Adjusted R&D Expenses2 118 107 10% 1%
Slide 8: US Segment Performance
US SEGMENT PERFORMANCE First Quarter Foreign 2021* 2020* Change Operational1 Exchange Revenue $933 $786 19% —% 19% Companion Animal 658 499 32% —% 32% Livestock 275 287 (4)% —% (4)% Cost of Sales 184 167 10% —% 10% Gross Profit 749 619 21% —% 21% Gross Margin 80.3% 78.8% NA NA NA Operating Expenses
Slide 9: International Segment Performance
INTERNATIONAL SEGMENT PERFORMANCE First Quarter Foreign 2021* 2020* Change Operational1 Exchange Revenue $922 $728 27% 2% 25% Companion Animal 418 298 40% 3% 37% Livestock 504 430 17% —% 17% Cost of Sales 282 224 26% —% 26% Gross Profit 640 504 27% 2% 25% Gross Margin 69.4% 69.2% NA NA NA Operating
Slide 10: International Market Revenue
INTERNATIONAL MARKET REVENUE First Quarter Foreign 2021* 2020* Change Operational1 Exchange Total International 922.3 728.4 27% 2% 25% Australia 57.1 43.3 32% 15% 17% Brazil 73.6 62.8 17% (31)% 48% Canada 46.1 40.1 15% 4% 11% Chile 34.0 23.0 48% 5% 43% China 123.2 65.7 88% 13% 75% France 34.9 29.0 2
Slide 11: Financial Guidance
FINANCIAL GUIDANCE Selected Line Items (millions of dollars, except per share amounts) Full Year 2021 Revenue $7,500 to $7,625 Operational growth1 10.5% to 12% Adjusted cost of sales as a percentage of revenue2 Approximately 30% Adjusted SG&A expenses2 $1,820 to $1,870 Adjusted R&D expenses2 $500 to
Slide 12: Q&A
Q&A 12 12
Slide 13: Zoetis
zoetis