Zoetis Inc. · NYSE:ZTS
Zoetis — Q3 2024 Earnings Presentation
23 slides from Zoetis's earnings presentation, Nov 4, 2024
Slide 1: Third Quarter 2024 Financial Results
Third Quarter 2024 Financial Results November 4, 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
THIRD QUARTER 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 Third Quarter Results
THIRD QUARTER FINANCIAL RESULTS Excellent Third Quarter Results Revenue Adj. Net Income2 Adj. Diluted EPS2 $2.4B $716M $1.58 14% 15% 17% operationally YoY1 operationally YoY1 operationally YoY1 6% Price | 8% Volume Key Highlights Growth fueled by Librela and Solensia ® ® Successful completion Simpar
Slide 5: Investments for Growth
THIRD QUARTER FINANCIAL RESULTS Investments for Growth Advancements in Science-Driven Innovation This Quarter Apoquel ® Revolution ® Valcor™ Fostera ® Poulvac Chew able Plus Gold PCV Maternavac ® 4 Apoquel Chewable, the Revolution Plus Valcor approved in Fostera Gold PCV Poulvac Maternavac 4, a firs
Slide 6: Raises 2024 Guidance for Revenue and Adjusted EPS
THIRD QUARTER FINANCIAL RESULTS Raises 2024 Guidance for Revenue and Adjusted EPS Revenue Adj. Diluted EPS1 Key Updates • Continued strong performance from $9.20B - $9.30B $5.86 - $5.92 Simparica and Key Dermatology franchises Prior guidance: $9.10B to $9.25B Prior guidance: $ 5.78 to $5.88 • Contin
Slide 7: Third Quarter Segment Highlights
THIRD QUARTER FINANCIAL RESULTS Third Quarter Segment Highlights United States U.S. Segment Revenue U.S. Companion Animal Revenue U.S. Livestock Revenue $1.3B $1.1B $0.3B 15% growth Year over Year (YOY) 18% growth YOY 5% growth YOY International Int'l. Segment Revenue Int'l. Companion Animal Revenue
Slide 8: Key Franchise Performance: OA Pain mAb Franchise
THIRD QUARTER FINANCIAL RESULTS Key Franchise Performance Osteoarthritis (OA) Pain mAb Franchise 97%1 • Librela and Solensia delivered 97% operational revenue growth globally • Globally, 40% of dogs suffer from OA pain, representing long-term growth potential • Librela penetration ~90% globally • So
Slide 9: Key Franchise Performance: Simparica Franchise
THIRD QUARTER FINANCIAL RESULTS Key Franchise Performance 27%1 Simparica Franchise • Simparica franchise continues to deliver impressive results, growing 27% operationally this quarter • Simparica Trio reported revenue of $268M this quarter, growing 30% operationally • Simparica Trio is the #1 vet-p
Slide 10: Key Franchise Performance: Key Dermatology Franchise
THIRD QUARTER FINANCIAL RESULTS Key Franchise Performance 16%1 Key Dermatology Franchise • Key Dermatology franchise reported revenue of $449M this quarter, growing 16% operationally • Apoquel was the largest driver in the U.S., fueled by growth in Apoquel Chewable and from retail channel • Momentum
Slide 11: Future growth opportunity for Simparica Trio
THIRD QUARTER FINANCIAL RESULTS Future growth U.S. Canine Parasiticides Potential Addressable Market opportunity for Simparica Trio Total U.S. Dogs 2024 ~88 million • Isoxazoline combos category is among the fastest growing in animal health, with plenty of runway for continued growth 2024 • Since th
Slide 12: Our Continued Commitment to Value Creation
THIRD 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 faster Invest in innovation Increase adjusted net Return excess capital than the market and growth capabilities income faster than revenue
Slide 13: Financial Results and Guidance
Financial Results and Guidance 13
Slide 14: Income Statement Highlights
THIRD QUARTER FINANCIAL RESULTS Income Statement Highlights Third Quarter 2024* 2023* Change Revenue $2,388 $2,151 11% Reported Net Income $682 $596 14% Reported Diluted Earnings Per Share $1.50 $1.29 16% Adjusted Net Income1 716 629 14% Adjusted Diluted Earnings Per Share1 $1.58 $1.36 16% * Million
Slide 15: Adjusted Income Statement Highlights
THIRD QUARTER FINANCIAL RESULTS Adjusted Income Statement Highlights Third Quarter Foreign 2024* 2023* Change Exchange Operational1 Revenue $2,388 $2,151 11% (3)% 14% Adjusted Cost of Sales2 699 635 10% (4)% 14% as a percent of revenue3 29.3% 29.5% NA NA NA Adjusted SG&A Expenses2 560 521 7% (2)% 9%
Slide 16: U.S. Segment Performance
THIRD QUARTER FINANCIAL RESULTS U.S. Segment Performance Third Quarter 2024* 2023* Change Revenue $1,346 $1,174 15% Companion Animal 1,068 908 18% Livestock 278 266 5% Cost of Sales 258 228 13% Gross Profit 1,088 946 15% Gross Margin 80.8% 80.6% NA Operating Expenses 199 202 (1)% Other (Income)/Dedu
Slide 17: International Segment Performance
THIRD QUARTER FINANCIAL RESULTS International Segment Performance Third Quarter Foreign 2024* 2023* Change Exchange Operational1 Revenue $1,021 $956 7% (6)% 13% Companion Animal 541 506 7% (4)% 11% Livestock 480 450 7% (8)% 15% Cost of Sales 321 306 5% (8)% 13% Gross Profit 700 650 8% (5)% 13% Gross
Slide 18: International Segment Performance by Market
THIRD QUARTER FINANCIAL RESULTS International Segment Performance Third Quarter Foreign 2024* 2023* Change Exchange Operational1 Total International $1,021 $956 7% (6)% 13% Australia 83 84 (1)% —% (1)% Brazil 101 101 —% (14)% 14% Canada 66 63 5% (3)% 8% Chile 31 31 —% (6)% 6% China 61 69 (12)% —% (1
Slide 19: Financial Guidance
THIRD QUARTER FINANCIAL RESULTS Financial Guidance Full Year 2024 Selected Line Items Full Year 2024 as of August 6, 2024 (millions of dollars, except per share amounts) as of November 4, 2024 (Prior Guidance) Revenue $9,200 to $9,300 $9,100 to $9,250 Operational growth1 10% to 11% 9% to 11% Adjuste
Slide 20: Q&A
Q&A 20
Slide 21: Appendix
Appendix 21
Slide 22: 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, Foreign 2024* 2023* Change Exchange Operational1 Revenue by Product Category Key Dermatology $449 $393 14% (2)% 16% Key Dermatology (international) 146 133 10% (3)% 13% O
Slide 23: Zoetis
zoetis