Zoetis Inc. · NYSE:ZTS
Zoetis — Q4 2024 Earnings Presentation
38 slides from Zoetis's earnings presentation, Feb 13, 2025
Slide 1: Fourth Quarter and Full Year 2024 Financial Results
Fourth Quarter and Full Year 2024 Financial Results February 13, 2025
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
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Presenters Strategy Financial and Business Performance Update Kristin Peck Wetteny Joseph Chief Executive Officer Executive Vice President and Chief Financial Officer 3
Slide 4: Excellent Full Year 2024 Results
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Excellent Full Year 2024 Results Revenue Adj. Net Income2 Adj. Diluted EPS2 $9.3B $2.7B $5.92 11% 15% 17% operationally1 YoY operationally1 YoY operationally1 YoY 6% Price | 5% Volume Key Highlights Diverse, innovative Simparica franchise OA pain franch
Slide 5: Investments for Growth
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Investments for Growth Advancements in Innovation in the Fourth Quarter Simparica Trio® Revolution® Librela® Synovex® Choice Poulvac® IB Plus and Primer Primer and QX Simparica Trio was Revolution Plus Librela expanded Synovex Choice and Poulvac IB Prim
Slide 6: Full Year 2024 Segment Highlights
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Full Year 2024 Segment Highlights United States U.S. Segment Revenue U.S. Companion Animal Revenue U.S. Livestock Revenue $5.1B $4.1B $1.0B 11% growth Year over Year (YOY) 15% growth YOY 1% decline YOY (4% organic operational growth2 YOY) International
Slide 7: Medicated Feed Additive Portfolio Divestiture
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Medicated Feed Additive Portfolio Divestiture Transaction Summary 2024 Revenue Attributable to • On October 31, 2024, Zoetis completed the divestiture of its medicated Divested Portfolio feed additive product portfolio, certain water-soluble products an
Slide 8: 2025 Guidance
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS 2025 Guidance Revenue Adj. Net Income1 $9,225M - $9,375M $2,700M - $2,750M Adj. Diluted EPS1 Organic Operational Growth2 $6.00 - $6.10 6% - 8% 6% - 8% Revenue Adj. Net Income1 Key Assumptions Demand for Key Franchises continues as Significant untapped o
Slide 9: Simparica Franchise
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Simparica Franchise Simparica Franchise Revenue • Simparica franchise grew 28% operationally in (Millions of dollars) 2024 • Nearly $1B in sales in the U.S. FY Revenue YoY 4Q Revenue YoY • Fueled by ongoing shift toward triple- $1,600 $400 combination t
Slide 10: Osteoarthritis (OA) Pain mAb Franchise
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Osteoarthritis (OA) OA Pain mAb Franchise Revenue Pain mAb Franchise (Millions of dollars) • OA pain franchise grew 80% operationally in FY Revenue YoY 4Q Revenue YoY 2024 $600 $200 • Librela’s U.S. launch is the most successful in 80%1 our history, cem
Slide 11: Key Dermatology Franchise
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Key Dermatology Key Derm Franchise Revenue Franchise (Millions of dollars) • Key dermatology franchise grew 17% FY Revenue YoY 4Q Revenue YoY operationally for the year $1,800 $600 17%1 • Posted 11% operational growth in Q4 – the first full quarter with
Slide 12: Continued Innovation Launching Across the Portfolio in 2025
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Continued Innovation Launching Across the Portfolio in 2025 Geographic Lifecycle Core Portfolio Expansion Innovation Launches • Expanding Librela and Solensia • New Simparica, Simparica Trio, • Launching poultry vector vaccines • Expanding Simparica Tri
Slide 13: While Advancing Our Multi-Year Disruptive Innovation Roadmap
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS While Advancing Our Multi-Year Disruptive Innovation Roadmap Expected approvals in the U.S. or a top 10 international market 0 – 12 months 12 – 36 months 36 – 60 months Long-acting canine OA mAb Long-acting canine Cytopoint** Derm expansion to feline an
Slide 14: Our Continued Commitment to Value Creation
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Our Continued Commitment to Value Creation Key components of our three to five-year outlook Grow revenue faster Invest in innovation Increase adjusted net Return excess capital than the market and growth capabilities income faster than revenue to shareh
Slide 15: Financial Results and Guidance
Financial Results and Guidance 15
Slide 16: Income Statement Highlights - Fourth Quarter
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Income Statement Highlights Fourth Quarter 2024* 2023* Change Revenue $2,317 $2,213 5% Reported Net Income 581 525 11% Reported Diluted Earnings Per Share $1.29 $1.14 13% Adjusted Net Income1 632 569 11% Adjusted Diluted Earnings Per Share1,2 $1.40 $1.2
Slide 17: Income Statement Highlights - Full Year
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Income Statement Highlights Full Year 2024* 2023* Change Revenue $9,256 $8,544 8% Reported Net Income 2,486 2,344 6% Reported Diluted Earnings Per Share $5.47 $5.07 8% Adjusted Net Income1 2,693 2,457 10% Adjusted Diluted Earnings Per Share1,2 $5.92 $5.
Slide 18: Adjusted Income Statement Highlights - Fourth Quarter
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Adjusted Income Statement Highlights Fourth Quarter Foreign 2024* 2023* Change Exchange Operational1 Revenue $2,317 $2,213 5% (1)% 6% Adjusted Cost of Sales2 706 727 (3)% (6)% 3% as a percent of revenue3 30.5% 32.9% NA NA NA Adjusted SG&A Expenses2 619
Slide 19: Adjusted Income Statement Highlights - Full Year
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Adjusted Income Statement Highlights Full Year Foreign 2024* 2023* Change Exchange Operational1 Revenue $9,256 $8,544 8% (3)% 11% Adjusted Cost of Sales2 2,714 2,548 7% (1)% 8% as a percent of revenue3 29.3% 29.8% NA NA N/A Adjusted SG&A Expenses2 2,301
Slide 20: U.S. Segment Performance - Fourth Quarter
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS U.S. Segment Performance Fourth Quarter 2024* 2023* Change Revenue $1,257 $1,211 4% Companion Animal 1,008 941 7% Livestock 249 270 (8)% Cost of Sales 229 255 (10)% Gross Profit 1,028 956 8% Gross Margin 81.8% 78.9% NA Operating Expenses 212 184 15% Oth
Slide 21: U.S. Segment Performance - Full Year
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS U.S. Segment Performance Full Year 2024* 2023* Change Revenue $5,074 $4,555 11% Companion Animal 4,054 3,529 15% Livestock 1,020 1,026 (1)% Cost of Sales 936 900 4% Gross Profit 4,138 3,655 13% Gross Margin 81.6% 80.2% NA Operating Expenses 805 786 2% O
Slide 22: International Segment Performance - Fourth Quarter
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS International Segment Performance Fourth Quarter Foreign 2024* 2023* Change Exchange Operational1 Revenue $1,039 $982 6% (4)% 10% Companion Animal 562 507 11% (2)% 13% Livestock 477 475 —% (6)% 6% Cost of Sales 336 322 4% (3)% 7% Gross Profit 703 660 7%
Slide 23: International Segment Performance - Full Year
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS International Segment Performance Full Year Foreign 2024* 2023* Change Exchange Operational1 Revenue $4,102 $3,911 5% (5)% 10% Companion Animal 2,224 2,047 9% (4)% 13% Livestock 1,878 1,864 1% (7)% 8% Cost of Sales 1,312 1,234 6% (3)% 9% Gross Profit 2,
Slide 24: International Segment Performance by Market - Fourth Quarter
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS International Segment Performance Fourth Quarter Foreign 2024* 2023* Change Exchange Operational1 Total International $1,039 $982 6% (4)% 10% Australia 80 75 7% 5% 2% Brazil 113 117 (3)% (13)% 10% Canada 75 72 4% (1)% 5% Chile 30 31 (3)% (2)% (1)% China
Slide 25: International Segment Performance by Market - Full Year
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS International Segment Performance Full Year Foreign 2024* 2023* Change Exchange Operational1 Total International $4,102 $3,911 5% (5)% 10% Australia 319 323 (1)% —% (1)% Brazil 414 393 5% (6)% 11% Canada 277 255 9% (1)% 10% Chile 123 140 (12)% (4)% (8)%
Slide 26: Financial Guidance
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Financial Guidance Selected Line Items (millions of dollars, except per share amounts) Full Year 2025 Revenue $9,225 to $9,375 Operational growth1 2% to 4% Organic operational growth2 6% to 8% Adjusted cost of sales as a percentage of revenue3 Approxima
Slide 27: Q&A
Q&A 27
Slide 28: Appendix
Appendix 28
Slide 29: Reconciliation Of Reported Growth To Non-GAAP Financial Measures
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Reconciliation Of Reported Growth To Non-GAAP Financial Measures Full year ended December 31, 2024* 2023* Change Foreign Exchange Operational1 Revenue by Product Category OA Pain mAbs $581 $321 81% 1% 80% Key Dermatology 1,640 1,412 16% (1)% 17% Key Der
Slide 30: Reconciliation Of Reported Growth To Non-GAAP Financial Measures
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Reconciliation Of Reported Growth To Non-GAAP Financial Measures Fourth Quarter ended December 31, 2024* 2023* Change Foreign Exchange Operational1 Revenue by Product Category Key Dermatology $417 $375 11% —% 11% Key Dermatology (international) 147 123
Slide 31: Reconciliation Of GAAP To Non-GAAP Financial Measures
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Reconciliation Of GAAP To Non-GAAP Financial Measures Reported Revenue Growth to Organic Operational Growth Full year ended December 31, Organic Operational 2024* 2023* Change Foreign Exchange Operational1 Divestitures Growth2 Livestock $2,898 $2,890 —%
Slide 32: Reconciliation Of Adjusted Net Income To Adjusted EBIT
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Reconciliation Of Adjusted Net Income To Adjusted EBIT Dollars in millions 2022 2023 2024 Adjusted net income attributable to Zoetis1 $2,297 $2,457 $2,693 Interest expense2 221 239 225 Interest income2 (50) (103) (106) Income taxes2 583 618 667 Adjusted
Slide 33: Reconciliation Of GAAP Reported To Non-GAAP Adjusted Information 2024
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Reconciliation Of GAAP Reported To Non-GAAP Adjusted Information 2024 Acquisition and GAAP1 Purchase Divestiture-Related Certain Significant Non-GAAP in USD millions, except per share data Reported Accounting Costs Items Adjusted2 Cost of sales $2,719 $
Slide 34: Reconciliation Of GAAP Reported To Non-GAAP Adjusted Information 2023
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Reconciliation Of GAAP Reported To Non-GAAP Adjusted Information 2023 Acquisition and GAAP1 Purchase Divestiture-Related Certain Significant Non-GAAP in USD millions, except per share data Reported Accounting Costs Items Adjusted2 Cost of sales $2,561 $
Slide 35: Reconciliation Of GAAP Reported To Non-GAAP Adjusted Information 2022
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Reconciliation Of GAAP Reported To Non-GAAP Adjusted Information 2022 Acquisition and GAAP1 Purchase Divestiture-Related Certain Significant Non-GAAP in USD millions, except per share data Reported Accounting Costs Items Adjusted2 Cost of sales $2,454 $
Slide 36: Reconciliation Of Adjusted Net Income Growth To Non-GAAP Financial Measures
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Reconciliation Of Adjusted Net Income Growth To Non-GAAP Financial Measures Adjusted Change From Foreign Dollars in millions Net Income1 Prior Year Exchange Operational2 2022 $2,297 3% (8)% 11% 2023 $2,457 7% —% 7% 2024 $2,693 10% (5)% 15% 1 Adjusted ne
Slide 37: Reconciliation Of GAAP To Non-GAAP Financial Measures
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Reconciliation Of GAAP To Non-GAAP Financial Measures Reported Revenue Growth to Organic Operational Growth Organic Change From Foreign Operational Dollars in millions Revenue Prior Year Exchange Operational1 Divestitures Growth2 2022 $8,080 4% (4)% 8%
Slide 38: Zoetis
zoetis