Summary
Zoetis Inc. reported revenue of $2,220 million for the first quarter of 2025, a slight increase of 1% compared to $2,190 million in the prior year period. On an operational basis, excluding foreign exchange impacts, revenue grew by 5%. This growth was driven by a 4% increase in pricing and a 4% volume increase from key franchises, partially offset by a 4% decrease related to the divestiture of its medicated feed additive (MFA) portfolio. Net income attributable to Zoetis Inc. rose by 5% to $631 million, or $1.41 per diluted share, up from $599 million, or $1.31 per diluted share, in the first quarter of 2024. The company's effective tax rate increased to 22.1% from 19.8%, impacting profitability. The company experienced a notable shift in its revenue mix, with companion animal products showing robust growth (up 7% overall, 9% operationally) while livestock products saw a decline (down 10% overall, 5% operationally). This is largely attributable to the MFA divestiture impacting livestock sales. Geographically, the U.S. segment saw a 2% revenue increase driven by companion animal products, while the International segment's revenue was flat overall but grew 7% operationally, with both companion animal and livestock segments contributing positively on an operational basis. The company continued its share repurchase program, buying back $443 million worth of stock in the quarter.
Financial Highlights
50 data points| Revenue | $2.22B |
| Cost of Revenue | $622.00M |
| Gross Profit | $1.60B |
| SG&A Expenses | $563.00M |
| Interest Expense | $54.00M |
| Net Income | $631.00M |
| EPS (Basic) | $1.41 |
| EPS (Diluted) | $1.41 |
| Shares Outstanding (Basic) | 447.60M |
| Shares Outstanding (Diluted) | 448.00M |
Key Highlights
- 1Total revenue increased 1% to $2.22 billion, with a 5% increase on an operational basis, driven by price and volume growth in key franchises.
- 2Net income attributable to Zoetis Inc. rose 5% to $631 million, resulting in diluted EPS of $1.41, an increase from $1.31 in the prior year.
- 3Companion animal product revenue grew 7% to $1.55 billion, outpacing the decline in livestock product revenue, which fell 10% to $645 million, partly due to the MFA divestiture.
- 4The U.S. segment revenue increased 2% to $1.18 billion, primarily driven by companion animal products.
- 5The International segment revenue remained flat at $1.01 billion, but showed a 7% operational growth.
- 6Cost of sales as a percentage of revenue improved to 28.0% from 29.4%, benefiting from price increases, the MFA divestiture, and favorable foreign exchange.
- 7Zoetis continued its share repurchase program, buying back approximately $443 million in stock during the first quarter of 2025.