- Third Quarter 2024 Financial Results
- Revenue of $1,030 million, organic constant currency growth of 1%
- Reported Net Income of $364 million, Adjusted Net Income of $66 million
- Adjusted EBITDA of $163 million, or 15.8% of Revenue
- Reported EPS of $0.73, Adjusted EPS of $0.13
- Net leverage ratio of 4.3x Adjusted EBITDA
- Pre-tax gain of $640 million from July 2024 divestiture of the aqua business
- Tightening full year 2024 financial guidance to reflect current assumptions:
- Revenue of $4,420 to $4,450 million, with organic constant currency growth of 3%
- Reported Net Income of $286 to $317 million; Reported EPS of $0.58 to $0.64
- Adjusted EBITDA of $900 to $930 million; Adjusted EPS of $0.89 to $0.95
- Received U.S. FDA approval for Zenrelia™ and Credelio Quattro™, bringing innovation to the largest pet health markets
- In 2025, innovation ramp expected to accelerate organic constant currency revenue growth to mid-single digits, with adjusted EBITDA growth, excluding the aqua divestiture, expected in the low single digits, with underlying mid-single growth offset by expected headwinds from U.K. CMO
GREENFIELD, Ind (November 7, 2024) - Elanco Animal Health Incorporated (NYSE: ELAN) today reported financial results for the third quarter of 2024, provided guidance for the fourth quarter of 2024, and tightened guidance for the full year 2024.
"Elanco’s expanding portfolio supported our fifth consecutive quarter of underlying organic constant currency revenue growth in the third quarter, and we continue to expect 3% organic constant currency growth for the full year. It’s exciting to see our Innovation, Portfolio and Productivity strategy come to life with new products driving growth, led by Experior®, Adtab™ and Zenrelia, and we expect this growth to accelerate to mid-single digits in 2025,” said Jeff Simmons, President and CEO of Elanco. “Our late-stage pipeline has largely moved into commercialization mode with the U.S. FDA approval and launch of Zenrelia, which is off to a great start in the U.S. and Brazil. Additionally, we received U.S. FDA approval for Credelio Quattro, positioning Elanco to bring positively differentiated products to the two largest pet health markets that will contribute to an expected return to growth for U.S. pet health in 2025. Finally, we continue to drive improved cash flow and deleveraging, finishing the third quarter with net leverage at 4.3x, down 1.3x compared to June 30th aided by the proceeds from the aqua divestiture and debt paydown from operations, with continued deleveraging expected in 2025."
Select Business Highlights Since the Last Earnings Call
- Received U.S. FDA approval for Zenrelia, a JAK inhibitor targeting control of pruritus and atopic dermatitis in dogs, with product launch in both the U.S. and Brazil in late September 2024. Additionally, the company has received approval for Zenrelia in Canada and Japan.
- Received U.S. FDA approval for Credelio Quattro, the first and only parasiticide for dogs to protect against fleas, ticks, heartworms, roundworms, hookworms and three different species of tapeworm, with product launch expected in the first quarter of 2025.
- Feeding of Bovaer®, a first-in-class methane reducing feed ingredient for dairy cattle, began and multiple consumer packaged goods companies signed agreements to buy inset carbon credits.
- Experior, an innovative feed ingredient for the reduction of ammonia gas emissions in cattle, received multiple combination clearance approvals from the U.S. FDA in October with Rumensin®, Tylan® and MGA®, allowing for broader expansion into heifers, which represent nearly 40% of the U.S. fed cattle population.
- Announced $130 million expansion of biologics manufacturing facility in Elwood, Kansas to enable further growth of the company's monoclonal antibody platform.
