Summary
Zoetis Inc. reported revenues of $1,114 million for the three months ended June 30, 2013, a slight increase of 2% compared to the same period in the prior year. Net income attributable to Zoetis Inc. for the quarter was $128 million, or $0.26 per diluted share, a decrease from $173 million, or $0.35 per diluted share, in the prior year. This decline was significantly influenced by increased Selling, General, and Administrative (SG&A) expenses, partially due to one-time costs associated with becoming a standalone public company. The six-month period ending June 30, 2013, showed a similar trend with revenues of $2,204 million, up 3% year-over-year, while net income attributable to Zoetis Inc. decreased to $268 million from $284 million in the prior year. The company's financial results are heavily impacted by its recent separation from Pfizer Inc., which included an Initial Public Offering (IPO) in February 2013 and a full separation via an exchange offer completed in June 2013. Significant costs related to this separation, including increased SG&A and restructuring charges, are influencing profitability, alongside operational growth in key segments like the U.S.
Financial Highlights
49 data points| Revenue | $1.11B |
| Cost of Revenue | $416.00M |
| Gross Profit | $698.00M |
| SG&A Expenses | $399.00M |
| Operating Expenses | $947.00M |
| Interest Expense | $32.00M |
| Net Income | $128.00M |
| EPS (Basic) | $0.26 |
| EPS (Diluted) | $0.26 |
| Shares Outstanding (Basic) | 500.00M |
| Shares Outstanding (Diluted) | 500.22M |
Key Highlights
- 1Revenue increased by 2% to $1,114 million for Q2 2013, and by 3% to $2,204 million for the first six months of 2013, driven by operational growth, particularly in the U.S. segment.
- 2Net income attributable to Zoetis Inc. decreased by 26% to $128 million ($0.26/share) for Q2 2013 and by 6% to $268 million ($0.54/share) for the first six months of 2013, impacted by higher operating expenses.
- 3Selling, General, and Administrative (SG&A) expenses rose significantly (16% for Q2, 11% for YTD) due to one-time costs associated with the company's transition to a standalone public entity.
- 4The company completed its full separation from Pfizer Inc. in June 2013, following its Initial Public Offering (IPO) in February 2013.
- 5Zoetis issued $3.65 billion in senior notes in January 2013 to fund its separation and capital structure.
- 6Restructuring charges and acquisition-related costs showed a significant decrease, largely due to the reversal of a previously established reserve related to European operations.
- 7The company continues to monitor potential impacts of environmental regulations and disease outbreaks on its business, particularly concerning antibacterial use in livestock.