Summary
Zoetis Inc. reported $2.00 billion in revenue for the first quarter of 2023, a slight increase of 1% year-over-year, or 4% on an operational basis, excluding foreign exchange impacts. While the company experienced overall revenue growth driven by price increases and new product volume, a slight decrease in overall net income attributable to Zoetis Inc. to $552 million from $595 million in the prior year was observed. This decline was influenced by increased cost of sales, selling, general, and administrative expenses, and research and development spending. Despite the dip in net income, the company's operational performance remains robust, with positive revenue growth and substantial operating cash flow generation of $549 million. The balance sheet shows a healthy liquidity position with $2.1 billion in cash and cash equivalents. Zoetis also continues its commitment to shareholder returns through dividends and share repurchases, with $2.3 billion remaining on its authorized repurchase program.
Financial Highlights
51 data points| Revenue | $2.00B |
| Cost of Revenue | $588.00M |
| Gross Profit | $1.41B |
| SG&A Expenses | $505.00M |
| Interest Expense | $63.00M |
| Net Income | $551.00M |
| EPS (Basic) | $1.19 |
| EPS (Diluted) | $1.19 |
| Shares Outstanding (Basic) | 463.50M |
| Shares Outstanding (Diluted) | 464.60M |
Key Highlights
- 1Total revenue increased by 1% to $2.00 billion, with operational revenue growing by 4%, driven by price increases and new product volume.
- 2Net income attributable to Zoetis Inc. decreased by 7% to $552 million ($1.19 diluted EPS) compared to $595 million ($1.26 diluted EPS) in the prior year.
- 3Cost of Sales, SG&A, and R&D expenses all increased as a percentage of revenue, impacting profitability.
- 4Operating cash flow remained strong, generating $549 million in the first quarter of 2023.
- 5Cash and cash equivalents stood at $2.109 billion as of March 31, 2023, though down from $3.581 billion at the end of 2022.
- 6The company paid $174 million in dividends and repurchased $283 million in treasury stock during the quarter.
- 7International segment revenue saw operational growth of 10%, driven by companion animal and livestock products, partially offset by a 7% foreign exchange headwind.