Zoetis reported a strong Q1 2024 with 12% operational revenue growth and a 15% increase in adjusted net income operationally.
The U.S. market led with 16% growth, while international markets saw 8% operational growth.
Companion animal portfolio grew by 20% operationally, driven by demand for products like Librela, which saw a 189% operational increase globally.
Livestock products experienced a 1% operational decline.
Product Highlights
Librela and Solensia, innovative treatments for osteoarthritis pain in dogs and cats, contributed significantly to growth.
Over 18 million doses of Librela and Solensia have been distributed worldwide.
Zoetis launched Bonqat, the first FDA-approved product to alleviate anxiety in cats, addressing an under-medicalized market segment.
Strategic Initiatives
Zoetis continues to focus on innovation, having invested over $5 billion in R&D since its IPO, leading to more than 300 product lines.
Announced the sale of its global medicated feed additives and certain water-soluble product portfolios to Phibro Animal Health for $350 million, aiming to focus on areas with greater growth potential.
Financials
Q1 2024 revenue was $2.2 billion, a 10% reported and 12% operational increase. Adjusted net income grew by 4% reported and 15% operationally.
Price growth was a significant contributor across all species, with hyperinflationary markets like Argentina boosting overall price growth by 2%.
Companion animal diagnostics portfolio declined by 12% operationally due to a distribution model change in the U.S.
Livestock portfolio declined by 1% operationally, impacted by economic conditions in China and other market challenges.
Forward-Looking Statements
Zoetis raised its 2024 operational guidance, reflecting confidence in the resilience of the animal health market and the execution of strategic growth priorities.
Revenue expectations for 2024 are between $9.05 billion and $9.20 billion, representing 8.5% to 10.5% operational growth.
Adjusted net income for 2024 is projected to be in the range of $2.62 billion to $2.67 billion, indicating operational growth of 13% to 15%.
Market Leadership and Innovation
Zoetis highlighted its leadership in creating new markets through innovation, particularly in parasiticides, dermatology, and now osteoarthritis pain treatment, expanding the overall industry opportunity.
The company’s strategic focus on innovative solutions continues to drive growth and market expansion
