Raises Full Year Revenue and Maintains Adjusted EBITDA Guidance Excluding Aqua Divestiture
- Second Quarter 2024 Financial Results
- Revenue of $1,184 million
- Reported Net Loss of $50 million, Adjusted Net Income of $147 million
- Adjusted EBITDA of $275 million, or 23.2% of Revenue
- Reported EPS of $(0.10), Adjusted EPS of $0.30
- Net leverage ratio of 5.6x Adjusted EBITDA
- Year over year growth rates are meaningfully impacted by a shift in customer purchasing related to the ERP Blackout in 2023, with an estimated $90 to $110 million of revenue shift from the second quarter of 2023 into the first quarter of 2023
- Updating full year 2024 financial guidance to reflect aqua divestiture and expected contribution from Bovaer and Zenrelia:
- Revenue of $4,410 to $4,460 million, with organic constant currency growth raised to 3% to 4%
- Reported Net Income of $314 to $352 million; Reported EPS of $0.63 to $0.71
- Adjusted EBITDA of $900 to $940 million; Adjusted EPS of $0.88 to $0.96
- Completed sale of aqua business in July, resulting in $1.2 billion of debt paydown in the third quarter of 2024
- Zenrelia, a JAK inhibitor targeting control of pruritus and atopic dermatitis in dogs, has been submitted to the FDA, initiating the final 60-day administrative review period with approval expected in late September
GREENFIELD, Ind (August 8, 2024) - Elanco Animal Health Incorporated (NYSE: ELAN) today reported financial results for the second quarter of 2024, provided guidance for the third quarter of 2024, and updated guidance for the full year 2024.
"Elanco made significant progress on the three strategic outcomes of our IPP strategy in the second quarter – grow revenue, deliver innovation and improve cash. The second quarter represents our fourth consecutive quarter of underlying constant currency revenue growth, with 4% year-to-date growth driven by both pet health and farm animal. Our portfolio continues to strengthen with contributions from new products as a key factor in our base stabilization and overall growth, led by Experior, Adtab and Credelio Plus. Our first half results have allowed us to raise our full year revenue guidance and maintain our adjusted EBITDA guidance, excluding aqua, and maintain adjusted EPS guidance with lower interest and tax expense fully offsetting aqua,” said Jeff Simmons, Elanco President and CEO. “We are pleased with the meaningful progress to reduce our leverage following the completion of the aqua transaction. We are encouraged by our late-stage pipeline progress, including the completion of the FDA review of Bovaer and the final FDA submission for Zenrelia, keeping us on track towards the expected $600 to $700 million of revenue contribution in 2025. Looking forward, we remain confident in the blockbuster potential of Bovaer, Zenrelia and Credelio Quattro, and expect their contribution will improve profitability and operating cash flow to drive continued deleveraging and increased value creation over time.”
