Early Access

10-KPeriod: FY2014

Zoetis Inc. Annual Report, Year Ended Dec 31, 2014

Filed February 27, 2015For Securities:ZTS

Summary

Zoetis Inc. (ZTS) reported strong performance for the fiscal year ended December 31, 2014, marking its first full year as an independent public company following its separation from Pfizer in early 2013. The company demonstrated robust revenue growth of 5% year-over-year, reaching $4.79 billion, driven by solid operational performance across its global segments, particularly in the United States and emerging markets. This growth was fueled by both increased sales volume and price increases, supported by a diverse product portfolio targeting both livestock and companion animals. Key financial highlights include a 16% increase in Net Income Attributable to Zoetis, reaching $583 million. The company also reported a strong adjusted net income of $790 million, indicating effective management of operational costs and strategic investments in research and development. Zoetis's strategic focus on expanding its presence in emerging markets and developing new products, coupled with its established market leadership and customer relationships, positions it well for continued growth. The company's diversified revenue streams and focus on innovation in animal health medicine and vaccines present a stable and promising outlook for investors.

Financial Statements
Beta
Revenue$4.79B
Cost of Revenue$1.72B
Gross Profit$3.07B
SG&A Expenses$1.64B
Interest Expense$117.00M
Net Income$587.00M
EPS (Basic)$1.16
EPS (Diluted)$1.16
Shares Outstanding (Basic)501.06M
Shares Outstanding (Diluted)502.02M

Key Highlights

  • 1Revenue increased by 5% to $4.79 billion in 2014, driven by operational growth across all segments, particularly the U.S. and emerging markets.
  • 2Net income attributable to Zoetis rose by 16% to $583 million.
  • 3Adjusted net income, a non-GAAP measure used by management, increased by 11% to $790 million.
  • 4Livestock product revenue grew by 6% operationally, driven by strong performance in cattle, swine, and poultry portfolios.
  • 5Companion animal product revenue increased by 3% operationally, bolstered by new product launches like Apoquel®.
  • 6The company maintained a significant focus on R&D, with expenses of $396 million in 2014, supporting both new product development and product lifecycle enhancements.
  • 7Zoetis continued its strategic expansion in emerging markets, which contributed 24% of total revenue in 2014.

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