- Third Quarter 2023 Financial Results
- Revenue of $1,068 million, representing 4% reported growth or 5% excluding the impact of foreign exchange rates
- Reported Net Loss of $1,096 million, inclusive of a non-cash goodwill impairment charge of $1,042 million primarily related to increased long-term treasury rates
- Adjusted EBITDA of $214 million, or 20.0% of Revenue
- Reported EPS of $(2.22) inclusive of a $(2.10) per share impact of goodwill impairment charge, Adjusted EPS of $0.18
- Net leverage ratio of 5.7x Adjusted EBITDA
- Updating full year 2023 guidance to reflect third quarter outperformance offset by expected unfavorable impact of foreign exchange rates:
- Revenue of $4,360 to $4,400 million, constant currency growth improves to flat to 1%
- Reported Net Loss of $1,174 to $1,204 million, Reported diluted EPS of $(2.43) to $(2.37)
- Adjusted EPS of $0.88 to $0.94, Adjusted EBITDA of $965 to $1,000 million
- Net leverage ratio expected at 5.5x to 5.8x Adjusted EBITDA at year-end 2023
GREENFIELD, Ind (November 7, 2023) - Elanco Animal Health Incorporated (NYSE: ELAN) today reported financial results for the third quarter of 2023, provided guidance for the fourth quarter of 2023, and updated guidance for the full year 2023.
“Elanco delivered a strong third quarter across both pet health and farm animal, with revenue, adjusted EBITDA, and adjusted EPS growth. Constant currency revenue growth of 5 percent was driven by accelerating contribution from innovation, stabilizing core volumes, price growth and improved market conditions in Europe. In constant currency, Pet Health grew 6% and Farm Animal grew 4%, enabled by our differentiated global omnichannel execution, strategic leverage of our diverse portfolio, and our enhanced capabilities and leadership,” said Jeff Simmons, Elanco President and CEO. “Our innovation pipeline remains on track, with potential blockbuster products Credelio Quattro, Bovaer and our differentiated JAK inhibitor for canine dermatology, which upon approval will be known as Zenrelia, all on a path toward U.S. approval in the first half of 2024. We are also investing in important commercial capabilities and expanded share of voice to drive our current portfolio and expected launches in 2024.”
“For the full year, we are tightening our guidance ranges to reflect third quarter outperformance and the continued strengthening of the U.S. dollar. We are increasing the midpoint of our guidance range for constant currency revenue growth, and for adjusted EBITDA and adjusted EPS despite increased headwinds from foreign exchange rates. We expect constant currency revenue growth to continue in the fourth quarter and in 2024.”
