Zoetis Inc. Annual Report, Year Ended Dec 31, 2024

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.