Summary
Zoetis Inc. reported strong financial performance for the fiscal year ended December 31, 2024, with total revenue reaching $9.26 billion, an increase of 8% year-over-year. This growth was driven by an 11% operational revenue increase, fueled by price adjustments (6%) and volume growth from new products and key dermatology products (3% and 2% respectively). The company's U.S. segment showed robust growth of 11%, while the International segment experienced a 5% increase in revenue, partially impacted by unfavorable foreign exchange. Companion animal products continue to be the primary revenue driver, accounting for approximately 68% of total revenue, with livestock products making up 31%. The company's top-selling products, Simparica/Simparica Trio and Apoquel/Apoquel Chewable, remain significant contributors to overall revenue. Zoetis demonstrated effective cost management, with cost of sales as a percentage of revenue decreasing to 29.4% due to price increases, favorable product mix, and lower inventory and freight costs. Selling, general, and administrative expenses also saw an 8% increase, largely attributed to investments in compensation, selling, and promotional activities. Research and development expenses grew by 12%, reflecting continued investment in innovation and portfolio progression. The company also completed the divestiture of its medicated feed additive product portfolio in October 2024, which will impact future revenue streams. Zoetis remains committed to returning value to shareholders, evidenced by its completed $3.5 billion share repurchase program and a new $6 billion authorization, underscoring confidence in its future performance.
Financial Highlights
53 data points| Revenue | $9.26B |
| Cost of Revenue | $2.72B |
| Gross Profit | $6.54B |
| SG&A Expenses | $2.32B |
| Interest Expense | $225.00M |
| Net Income | $2.50B |
| EPS (Basic) | $5.47 |
| EPS (Diluted) | $5.47 |
| Shares Outstanding (Basic) | 454.20M |
| Shares Outstanding (Diluted) | 454.85M |
Key Highlights
- 1Total revenue increased by 8% to $9.26 billion in 2024, driven by an 11% operational revenue increase.
- 2Companion animal products represent 68% of revenue, with livestock products at 31%, showcasing a strong focus on pet health.
- 3Key products like Simparica/Simparica Trio and Apoquel/Apoquel Chewable continue to be major revenue drivers.
- 4The U.S. segment delivered strong revenue growth of 11%, while the International segment grew by 5%.
- 5Cost of sales as a percentage of revenue improved to 29.4% due to price increases and favorable product mix.
- 6R&D expenses increased by 12% to $686 million, highlighting continued investment in innovation.
- 7The company completed a $3.5 billion share repurchase program and announced a new $6 billion authorization, signaling strong capital return to shareholders.