Q2 2024 Zoetis Inc Earnings Call Transcript
Key Points
- Zoetis Inc (ZTS) reported an 11% operational revenue growth and an 18% operational growth in adjusted net income for Q2 2024.
- The company saw balanced segment growth with 12% growth in the US and 10% operational revenue growth internationally.
- Zoetis Inc (ZTS) leads the industry in R&D investment, bringing over 300 science-driven innovations to market.
- The Librela product for osteoarthritis pain in dogs grew 142% operationally, showcasing strong market adoption.
- Zoetis Inc (ZTS) announced a Board-approved $6 billion share repurchase program, reflecting confidence in its growth trajectory.
- The adjusted gross margin declined by 70 basis points on a reported basis, impacted by unfavorable foreign exchange rates.
- The company faces macroeconomic headwinds, particularly in China, affecting both companion animal and livestock segments.
- Adjusted operating expenses increased by 9% operationally, driven by higher SG&A and R&D costs.
- The sale of the medicated feed additives portfolio, which generated approximately $400 million in revenue in 2023, may impact future revenue streams.
- Despite strong performance, Zoetis Inc (ZTS) acknowledges that subsequent quarters may not have the same level of operating leverage due to the timing of investments.
Welcome to the second-quarter 2024 financial results conference call and webcast for Zoetis. Hosting the call today is Steve Frank, Vice President of Investor Relations for Zoetis.
The presentation materials and additional financial tables are currently posted on the Investor Relations section of zoetis.com. The presentation slides can be managed by you, the viewer, and will not be forwarded automatically. In addition, a replay of this call will be available approximately two hours after the conclusion of the call via dial-in or on the Investor Relations section of zoetis.com. (Operator Instructions) It is my pleasure to turn the floor over to Steve Frank. Steve, you may begin.
Thank you, operator. Good morning, everyone, and welcome to the Zoetis second-quarter 2024 earnings call. I am joined today by Kristin Peck, our Chief Executive Officer; and Wetteny Joseph, our Chief Financial Officer. Before we begin, I'll remind you that the slides presented on this call are available on the Investor
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