Elanco Animal Health Incorporated · NYSE:ELAN
Elanco Animal Health — Q1 2025 Earnings Presentation
31 slides from Elanco Animal Health's earnings presentation, May 7, 2025
Slide 1: 2025 Earnings – First Quarter
2025 Earnings – First Quarter D May 7, 2025
Slide 2: Notices and Disclaimers
2025 | Q1 Earnings Notices and Disclaimers Forward-Looking Statements. This presentation contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements concerning product launches and revenue from such products, our 2025 full year and
Slide 3: On Today’s Call
2025 | Q1 Earnings On Today’s Call Jeff Simmons Todd Young Elanco Animal Health Elanco Animal Health President and Executive Vice President, Chief Executive Officer Chief Financial Officer 3
Slide 4: Accelerating Growth Through Delivering Our Diverse Portfolio
2025 | Q1 Earnings Accelerating Growth Strong Q1 Exceeding Expectations Through Delivering Revenue, Adj. EBITDA, and Adj. EPS all above guidance ranges; 4% Our Diverse Portfolio organic CC3 revenue growth of Innovation Innovation Tracking Above Expectations Q1 innovation revenue contribution of $198
Slide 5: Intervention Actions, FX & Business Execution Mitigating Potential Tariff Impacts
2025 | Q1 Earnings Ability to Maintain Adj. EBITDA Guidance With or Without Pharma Exemption Intervention Actions, FX & Business Execution Mitigating Potential Tariff Impacts Mitigating Actions Current State Potential Risk Scenarios Being Implemented Expect ~$16-$20M impact to Adj. Pharma exemptio
Slide 6: 4% Organic Constant Currency Revenue Growth
2025 | Q1 Earnings Q1 2024 to Q1 2025 Revenue Bridge 4% Organic Constant Currency Revenue Growth Revenue $ millions 4% 1% Growth1 7% Growth Growth1 $(31) 17% 2% Growth Growth1 $1,205 $(25) 3% 5% Growth $1,193 Decline VET: 0% reported; +8% excl. Bayer stocking comparison RETAIL: (6)% Jan-Feb (21)% |
Slide 7: Innovation Sales Target Raised: Now Expected to Deliver $660-$740M
2025 | Q1 Earnings 2025 Innovation Sales Target Raised: Now Expected to $660-$740M Deliver an Incremental Q1 Actuals $660-$740 Million $198M $461M Q4 Actuals $140M Pet Big 6 Innovation Q1 Health early in launch $275M curve with portfolio $133M exceeding the $72M Farm corporate gross Animal Q1 margin
Slide 8: Updates on Select Major Innovation Products
2025 | Q1 Earnings Updates on Select Major Innovation Products • Achieved use in ~11,000 U.S. clinics, • Achieved ~10% dollar share of the broad- • Growth is accelerating, with Q1 sales representing penetration of over 35%, with spectrum sales into U.S. vet clinics in Q11 doubling year over year ful
Slide 9: Deliver Consistent, High-Impact Innovation
2025 | Q1 Earnings Deliver Consistent, High-Impact Innovation Credelio Quattro Experior AdTab Strong early Fast adoption from Growth accelerating; performance; market heifer clearance approved and share and portfolio lift continuing launched in the UK ahead of expectations in April 2025 IPP Po Innov
Slide 10: Financial Results
Financial Results First Quarter 2025 10
Slide 11: Impact of Price, Rate, and Volume on Revenue
2025 | Q1 Earnings First Quarter 2025 Impact of Price, Rate, and Volume on Revenue Organic1 Aqua Organic CC2 $ Millions Revenue Price FX Rate Volume Volume Total Change Pet Health $635 2% (2)% (1)% 0% (1)% 1% Cattle $272 (3)% 11% 14% Poultry $189 (4)% (4)% 0% Swine $85 (2)% 1% 3% Aqua $0 (100)% Farm
Slide 12: Revenue by Geography and Species
2025 | Q1 Earnings First Quarter 2025 Revenue by Geography and Species Organic CC1 $ Millions 2025 2024 Change (%) Change (%) US Pet Health $323 $333 (3)% (3)% Int’l Pet Health $312 $306 2% 5% Total Pet Health $635 $639 (1)% 1% US Farm Animal $230 $197 17% 17% Int’l Farm Animal1 $316 $360 (12)% 2% T
Slide 13: Adjusted Income Statement Highlights
2025 | Q1 Earnings First Quarter 2025 Adjusted1 Income Statement Highlights Including Impact from Aqua Divestiture $ millions, except per share values 2025 2024 Change ($)2 Change (%)2 Revenue $1,193 $1,205 $(12) (1)% Cost of Sales $508 $515 $(7) (1)% Adjusted Gross Profit $685 $690 $(5) (1)% Adjust
Slide 14: Adjusted EBITDA and Adjusted EPS Drivers
2025 | Q1 Earnings First Quarter 2025 Adjusted EBITDA and Adjusted EPS Drivers Q1 Adjusted EBITDA Q1 Adjusted EPS $ millions +$8 vs. Prior Year $0.02 Excluding Aqua & FX $0.37 ~$(14) $0.04 ~$(0.03) $294 ~$(11) $0.34 $276 ~$(0.02) $0.02 Q1 2024 Aqua FX Gross Operating Q1 2025 Q1 2024 Aqua FX EBITDA I
Slide 15: Key Balance Sheet and Cash Flow Metrics
2025 | Q1 Earnings Key Balance Sheet and Cash Flow Metrics Debt Balances as of March 31, 2025 $ millions Operating Cash Flow (OCF) of $(4)M Cash usage reflects typical seasonality Days Sales Outstanding2 at 75 days Year over year decrease of 3 days reflects improved working capital management Q1 Net
Slide 16: Financial Guidance
Financial Guidance Second Quarter and Full Year 2025 16
Slide 17: Financial Guidance
2025 | Q1 Earnings 2025 Full Year Financial February May Comments Guidance Revenue $4,445 - $4,510 $4,510 - $4,580 Revenue raise driven by FX Reported Net (Loss) $(25) - $7 $(35) - $(7) Income $ millions, except per share values Adjusted EBITDA1 $830 - $870 $830 - $870 Unchanged from prior guide Rep
Slide 18: Maintaining Adj. EBITDA and Adj. EPS Guidance
2025 | Q1 Earnings February Guidance to May Guidance Bridge Maintaining Adj. EBITDA and Adj. EPS Guidance 2025 Adj. EBITDA 2025 Adj. EPS ~$25-30 ~$25 ~Flat ~$0.01 ~$16-$20 ~$(0.01) $0.80- $0.80- ~$10 ~$25 $0.86 $830- $830- $0.86 $870 $870 February Business Tariffs Royalty FX Macro May February Adj E
Slide 19: Financial Guidance Second Quarter 2025
2025 | Q1 Earnings Second Quarter 2025 Financial Q2 Guidance Comments Guidance Revenue $1,175 - $1,195 Expect 4%-6% organic CC2 growth Reported Net Loss $(22) - $(3) $ millions, except Adjusted EBITDA1 $200 - $220 Includes operating expenses up ~11% CC per share values Reported Diluted EPS $(0.04) -
Slide 20: Elanco’s Strategic Trajectory: Powerful 2025 & Beyond
Elanco’s Strategic Trajectory: Powerful 2025 & Beyond Momentum into 2025 2021-2024 Poised for Sustainable Revenue Growth Innovation Delivered & Multiple potential blockbusters Enhanced in market and a stabilizing base 2019-2021 Capabilities to drive growth Balanced Mix & Accelerating contribution fr
Slide 21: Appendix
Appendix Reference slides and GAAP reported to non-GAAP adjusted reconciliations 21
Slide 22: Seven Potential Blockbusters Expected to Fuel Revenue Growth in 2025 and Beyond
2025 | Q1 Earnings n Po tio Seven Potential Blockbusters Expected to Fuel rtf a Innov olio Customer Revenue Growth in 2025 and Beyond Pr oductivity Peak Sales Asset Market Focus Species Approval1 Launch2 Opportunity3 Commentary First-in-class; Combo clearance Experior U.S. Beef approval to drive exp
Slide 23: Financial Guidance Full Year 2025
2025 | Q1 Earnings Full Year 2025 Financial February May Guidance Total Revenue $4,445 – $4,510 $4,510 – $4,580 & Additional Adjusted Gross Margin1 53.9% – 54.6% 54.2% – 54.7% Assumptions Operating Expenses $1,700 – $1,720 $1,735 – $1,750 Adjusted EBITDA1 $830 – $870 $830 – $870 $ millions, except A
Slide 24: Adjusted EBITDA Reconciliation
2025 | Q1 Earnings First Quarter 2025 Adjusted 2025 2024 EBITDA Reported Net Income $67 $32 Reconciliation Net Interest Expense $40 $66 Income Tax Benefit $(7) $(20) $ millions Depreciation and Amortization $161 $165 EBITDA $261 $243 Non-GAAP Adjustments Cost of Sales $1 $0 Asset Impairment, Restruc
Slide 25: Reconciliation of GAAP Reported to Non-GAAP Adjusted Income Statement Items
2025 | Q1 Earnings First Quarter 2025 Reconciliation 2025 2024 of GAAP GAAP Adjusted Non- GAAP Adjusted Non- Reported to Reported Items GAAP Reported Items GAAP Non-GAAP Cost of Sales $509 $1 $508 $515 $0 $515 Adjusted Amortization of Intangible Assets $128 $128 $0 $133 $133 $0 Income Asset Impairme
Slide 26: Details of Adjustments to Certain GAAP Reported Measures
2025 | Q1 Earnings First Quarter 2025 Details of For the three months ended March 31, 2025 and 2024: Adjustments to (1) Adjustments of $9 million for the three months ended March 31, 2025, included $7 million of upfront Certain GAAP payments made in relation to new licensing arrangements. Adjustment
Slide 27: EBITDA Guidance Reconciliation Full Year 2025
2025 | Q1 Earnings Full Year 2025 EBITDA Reported Net Loss $(35) - $(7) Guidance Approx. $210 w/ Reconciliation Net Interest Expense Royalty Monetization Income Tax Benefit $(22) - $(4) $ millions Depreciation and Amortization Approx. $650 EBITDA $803 - $852 Non-GAAP Adjustments Cost of Sales Approx
Slide 28: EPS Guidance Reconciliation Full Year 2025
2025 | Q1 Earnings Full Year 2025 EPS Guidance Reported Loss per Share $(0.07) - $(0.01) Reconciliation Cost of Sales Approx. $0.00 Amortization of Intangible Assets Approx. $1.04 Asset Impairment, Restructuring, and Other Special Charges $0.03 - $0.05 Other Expense, Net $0.02 - $0.03 Royalty Moneti
Slide 29: EBITDA Guidance Reconciliation Second Quarter 2025
2025 | Q1 Earnings Second Quarter 2025 EBITDA Guidance Reported Net Loss $(22) - $(3) Reconciliation Net Interest Expense Approx. $50 $ millions Income Tax Expense $(0) - $7 Depreciation and Amortization Approx. $165 EBITDA $193 - $218 Non-GAAP Adjustments Asset Impairment, Restructuring, and Other
Slide 30: EPS Guidance Reconciliation Second Quarter 2025
2025 | Q1 Earnings Second Quarter 2025 EPS Guidance Reconciliation Reported Loss per Share $(0.04) - $(0.01) Amortization of Intangible Assets Approx. $0.26 Asset Impairment, Restructuring, and Other Special Charges $0.00 - $0.01 Other Expense, Net Approx. $0.01 Royalty Monetization Approx. $0.00 Su
Slide 31: © 2025 Elanco or its affiliates
© 2025 Elanco or its affiliates