Summary
Zoetis Inc. reported a modest increase in revenue for the first quarter of 2015, reaching $1,102 million, up from $1,097 million in the prior year period. This growth was primarily driven by operational performance, excluding foreign exchange impacts, with strengths noted in the U.S. and CLAR (Canada/Latin America) regions, particularly in livestock products like premium cattle offerings and medicated feed additives, as well as companion animal parasiticides. The acquisition of Abbott Animal Health's assets also contributed to the companion animal segment. Net income attributable to Zoetis Inc. saw a 6% increase to $165 million, resulting in diluted earnings per share of $0.33, up from $0.31 in the first quarter of 2014. Despite revenue growth, the company faced headwinds from unfavorable foreign exchange rates, which negatively impacted overall reported revenue by 6%. Cost of sales increased by 4%, primarily due to product mix and higher global manufacturing and supply costs. Selling, general, and administrative expenses remained relatively flat, while Research and Development expenses saw an 8% decrease. The company also announced a comprehensive operational efficiency program post-quarter end, aiming for significant cost savings and SKU reduction.
Financial Highlights
53 data points| Revenue | $1.10B |
| Cost of Revenue | $394.00M |
| Gross Profit | $708.00M |
| SG&A Expenses | $354.00M |
| Operating Expenses | $871.00M |
| Interest Expense | $28.00M |
| Net Income | $165.00M |
| EPS (Basic) | $0.33 |
| EPS (Diluted) | $0.33 |
| Shares Outstanding (Basic) | 501.10M |
| Shares Outstanding (Diluted) | 503.20M |
Key Highlights
- 1Total revenue for Q1 2015 increased slightly to $1,102 million from $1,097 million in Q1 2014.
- 2Net income attributable to Zoetis Inc. rose by 6% to $165 million, with diluted EPS growing to $0.33 from $0.31 year-over-year.
- 3Operational revenue growth (excluding foreign exchange impact) was 6%, driven by strong performance in the U.S. and CLAR segments, particularly in livestock and companion animal products.
- 4The acquisition of Abbott Animal Health assets positively contributed to the companion animal segment.
- 5Unfavorable foreign exchange rates negatively impacted reported revenue growth by 6%.
- 6Cost of sales increased by 4% due to product mix and higher manufacturing/supply costs.
- 7Zoetis announced a significant operational efficiency program post-quarter end to streamline operations and reduce costs.