Zoetis Announces First Quarter 2024 Results

PARSIPPANY, N.J.–(BUSINESS WIRE)–Zoetis Inc. (NYSE:ZTS) today reported its financial results for the first quarter of 2024 and updated its guidance for full year 2024.

The company reported revenue of $2.2 billion for the first quarter of 2024, an increase of 10% compared with the first quarter of 2023. On an operational1 basis, revenue for the first quarter of 2024 increased 12% compared with the first quarter of 2023. Net income for the first quarter of 2024 was $599 million, or $1.31 per diluted share, an increase of 9% and 10%, respectively, on a reported basis.

Adjusted net income2 for the first quarter of 2024 was $634 million, or $1.38 per diluted share, an increase of 4% and 5%, respectively, on a reported basis, and an increase of 15% and 17%, respectively, on an operational basis. Adjusted net income for the first quarter of 2024 excludes the net impact of $35 million for purchase accounting adjustments, acquisition-related costs and certain significant items.

“I am incredibly proud of our outstanding first quarter, once again proving our ability to grow revenue faster than the market. It is a testament to the strength of our diverse portfolio and our dedicated colleagues,” said Kristin Peck, Chief Executive Officer of Zoetis. “We achieved 16% revenue growth in the U.S. and 8% operational revenue growth internationally, and our companion animal portfolio grew an impressive 20% operationally, fueled by our innovative franchises in pet parasiticides, osteoarthritis pain and dermatology. Our scientific breakthroughs have firmly established us as trusted and preferred partners to our customers, and we will continue to invest in the talent, pipeline and capabilities that will support future growth.”

“As the leader in animal health, we understand our customers’ needs. Our innovation continues to be our differentiator, and we’ll continue to lead the way by investing in areas of unmet need to advance care for animals. The strength of the human-animal bond and the growing demand for a secure and sustainable food supply reinforce the essential nature of the animal health industry and our innovative portfolio. We will continue to deliver strong growth in 2024, while investing for the future.”

Zoetis organizes and manages its commercial operations across two segments: United States (U.S.) and International. Within these segments, the company delivers a diverse portfolio of products for companion animals and livestock, tailored to local trends and customer needs. In the first quarter of 2024:

  • Revenue in the U.S. segment was $1.2 billion, an increase of 16% compared with the first quarter of 2023. Sales of companion animal products increased 25%, due to growth in key franchises including Simparica Trio®, the company’s flea, tick and heartworm combination product, the company’s key dermatology portfolio, including Apoquel® and Cytopoint®, and the company’s osteoarthritis (OA) pain products, Librela® for dogs and Solensia® for cats. Growth in the quarter was also due in part to a favorable comparative period in the prior year that was negatively impacted by distributor de-stocking and timing of promotional activity. Sales of livestock products declined 7% in the quarter. Sales of cattle products declined due to a difficult comparable period versus the same quarter last year.
  • Revenue in the International segment was $1.0 billion, reflecting a 3% increase on a reported basis and an increase of 8% operationally compared with the first quarter of 2023. Sales of companion animal products grew 10% on a reported basis and 14% operationally. Growth in the quarter was driven by the company’s OA pain products, Librela for dogs and Solensia for cats, as well as its key dermatology products, Apoquel and Cytopoint. Also contributing to growth in the quarter was Simparica Trio. Sales of livestock products declined 4% on a reported basis and grew 2% operationally. Growth of both the company’s cattle and poultry products were driven largely by price increases across the broader international segment. Sales of sheep products declined due to unexpected weather conditions and supply constraints in Australia. Sales of swine products decreased primarily due to unfavorable market conditions in China and generic competition.

Zoetis continues to advance innovation and care for animals across the globe. Since its last quarterly earnings announcement, the company gained approval in Brazil for Valcor (doramectin and levamisole injection), a prescription endectocide for the treatment and control of internal and external parasites in cattle. Protivity®, the first modified-live bacterial vaccine to offer protection against Mycoplasma bovis in healthy cattle, was approved in the U.K. In the U.S., Bonqat®3 (pregabalin oral solution) is now available to treat the alleviation of acute anxiety and fear associated with transportation and veterinary visits in cats, helping them have a fear-free visit.

Zoetis also continues to grow key product franchises through additional claim extensions in major markets. Synovex Choice® was approved for an additional claim in the U.S., to increase rate of weight gain in growing beef steers and heifers in the dry lot production phase. Also approved in the U.S., is a new implant, Synovex® Primer, that will be available for the dry lot market later in 2024. Excenel® RTU EZ (ceftiofur hydrochloride), received approval in Japan for new claims related to the treatment of cattle foot rot and puerperal fever (metritis). In companion animal, Revolution® Plus (selamectin/sarolaner), a topical combination product that treats ticks, fleas, ear mites, lice and gastrointestinal worms and prevents heartworm disease in cats, received approval in Canada for an additional claim related to the treatment and control of lone star tick infestations, making it the only parasiticide for cats on the market to defend against four types of ticks.

Additionally, the company recently signed an agreement to purchase a manufacturing site in Melbourne, Australia, that includes a currently leased site as well as additional space for expansion. The facility will be used to develop and manufacture vaccines for sheep, cattle, dogs, cats and horses and help ensure a long-term supply of products for Australia. In the U.S., Zoetis expanded its distribution center in Lee’s Summit, Mo., making it the company’s largest center as well as a hub for other distribution centers in the U.S., enhancing the company’s capacity to distribute its key product franchises. On April 28, 2024, Zoetis signed a deal to sell its medicated feed additive (MFA) portfolio and related assets, to focus its investments on other livestock solutions, including vaccine, biologic and genetic programs.

Zoetis is updating its full year reported 2024 guidance for foreign exchange, with an increase to operational growth due to inflation-related price increases in Argentina and the underlying strength in companion animal.

  • Revenue between $9.050 billion to $9.200 billion (operational growth of 8.5% to 10.5%)
  • Reported net income between $2.450 billion to $2.495 billion
  • Adjusted net income between $2.620 billion to $2.670 billion (operational growth of 13% to 15%)
  • Reported diluted EPS of $5.34 to $5.44
  • Adjusted diluted EPS between $5.71 to $5.81

This guidance reflects foreign exchange rates as of late April. Additional details on guidance are included in the financial tables and will be discussed on the company’s conference call this morning.

About Zoetis
As the world’s leading animal health company, Zoetis is driven by a singular purpose: to nurture our world and humankind by advancing care for animals. After innovating ways to predict, prevent, detect, and treat animal illness for more than 70 years, Zoetis continues to stand by those raising and caring for animals worldwide – from veterinarians and pet owners to livestock farmers and ranchers. The company’s leading portfolio and pipeline of medicines, vaccines, diagnostics and technologies make a difference in over 100 countries. A Fortune 500 company, Zoetis generated revenue of $8.5 billion in 2023 with approximately 14,100 employees. For more information, visit www.zoetis.com.