– моментальные уведомления о рынке акций
– моментальные уведомления о рынке акций
Reports Revenue of $2.0 Billion, Growing 6%, and Net Income of $595 Million, or $1.26 per Diluted Share, Increasing 6% and 8%, Respectively, on a Reported Basis for First Quarter 2022
Delivers 9% Operational Growth in Revenue and 8% Operational Growth in Adjusted Net Income for First Quarter 2022
Reports Adjusted Net Income of $625 Million, or Adjusted Diluted EPS of $1.32, for First Quarter 2022
Updates Full Year 2022 Revenue Guidance to $8.225 - $8.375 Billion, with Diluted EPS of $4.65 to $4.77 on a Reported Basis, or $4.99 to $5.09 on an Adjusted Basis, Due to the Negative Impact of Foreign Exchange Rates
PARSIPPANY, N.J.--(BUSINESS WIRE)--Zoetis Inc. (NYSE: ZTS) today reported its financial results for the first quarter of 2022 and updated its guidance for full year 2022 due to the negative impact of recent changes in foreign exchange rates. The updated guidance reflects the same operational growth rates for revenue and adjusted net income as stated in the company’s previous guidance for 2022.
The company reported revenue of $2.0 billion for the first quarter of 2022, an increase of 6% compared with the first quarter of 2021. Net income for the first quarter of 2022 was $595 million, or $1.26 per diluted share, an increase of 6% and 8%, respectively, on a reported basis.
Adjusted net income1 for the first quarter of 2022 was $625 million, or $1.32 per diluted share, an increase of 4% and 5%, respectively, on a reported basis. Adjusted net income for the first quarter of 2022 excludes the net impact of $30 million for purchase accounting adjustments, acquisition-related costs and certain significant items.
On an operational2 basis, revenue for the first quarter of 2022 increased 9%, excluding the impact of foreign currency. Adjusted net income for the first quarter of 2022 increased 8% operationally, excluding the impact of foreign currency.
EXECUTIVE COMMENTARY
“Zoetis delivered another strong quarter, with 9% operational revenue growth and 8% operational growth in adjusted net income, driven by the strength of our companion animal portfolio,” said Zoetis Chief Executive Officer Kristin Peck. “Our strength across parasiticides, dermatology products, monoclonal antibodies for pain and diagnostics are all capitalizing on the marriage of positive trends in petcare with the customer-driven science coming from Zoetis."
“As we look at the rest of the year, we are updating our guidance to reflect the negative impact of recent changes to foreign exchange rates, but this has no impact on our previous operational growth rates and assumptions for the year. Even as we face uncertainties related to the war in Ukraine, COVID-19 lockdowns, inflation and ongoing supply chain constraints, we remain confident in the underlying strength and performance of our business. Our diverse portfolio, global scale, talented colleagues and continuous innovations remain the foundation of our long-term success and durability.”
QUARTERLY HIGHLIGHTS
Zoetis organizes and manages its commercial operations across two segments: United States (U.S.) and International. Within these segments, the company delivers a diverse portfolio of products for companion animals and livestock, tailored to local trends and customer needs. In the first quarter of 2022:
INVESTMENTS IN GROWTH
Zoetis continues to gain market approvals and introduce lifecycle innovations for key brands. On the companion animal side of the business, the company received approval in Australia for Solensia (frunevetmab), the first injectable monoclonal antibody (mAb) for the alleviation of pain associated with osteoarthritis (OA) in cats; it is also approved in the U.S., the European Union (EU), the U.K., Canada and Switzerland. Another mAb therapy, Cytopoint (lokivetmab), received a claim extension in Canada. Previously approved for the treatment of atopic dermatitis in dogs, the product is now approved for allergic dermatitis as well.
On the livestock side of the business, Zoetis enhanced its cattle vaccine portfolio with approval in the U.S. of Protivity®, the first modified live vaccine to offer protection against Mycoplasma bovis, providing cattle producers and veterinarians with broader overall protection against bovine respiratory disease (BRD). The company also gained approval in Brazil for Draxxin KP (tulathromycin ketoprofen). This injectable, also for the treatment of BRD, combines the antimicrobial properties of Draxxin with the nonsteroidal anti-inflammatory (NSAID) Ketoprofen to rapidly reduce fever in a single dose. It is also approved in the U.S., Canada, the EU (where it is known as Draxxin Plus), Australia and Mexico. In poultry, the company received approval in Brazil for Poulvac® Procerta™ HVT-IBD. Also approved in the U.S. and Canada, this recombinant vector vaccine provides early protection against Marek’s disease and the contemporary infectious bursal disease (IBD) viruses in chickens.
In Diagnostics, Zoetis announced the addition of artificial intelligence (AI) blood smear testing to its multi-purpose platform, Vetscan Imagyst™. Introduced in September 2020, Vetscan Imagyst is a first-of-its-kind technology with a multitude of applications, including AI fecal analysis, digital cytology image transfer and now AI blood smear – helping veterinarians broaden in-clinic diagnostic offerings to provide the best possible care for dogs and cats.
FINANCIAL GUIDANCE
Zoetis is updating its full year 2022 guidance due to the negative impact of recent changes to foreign exchange rates, and this includes:
This guidance reflects foreign exchange rates as of late April. Additional details on guidance are included in the financial tables and will be discussed on the company's conference call this morning.
WEBCAST & CONFERENCE CALL DETAILS
Zoetis will host a webcast and conference call at 8:30 a.m. (ET) today, during which company executives will review first quarter 2022 results, discuss financial guidance and respond to questions from financial analysts. Investors and the public may access the live webcast by visiting the Zoetis website at http://investor.zoetis.com/events-presentations. A replay of the webcast will be archived and made available on May 5, 2022.
As the world’s leading animal health company, Zoetis is driven by a singular purpose: to nurture our world and humankind by advancing care for animals. After 70 years innovating ways to predict, prevent, detect, and treat animal illness, Zoetis continues to stand by those raising and caring for animals worldwide -- from livestock farmers to veterinarians and pet owners. The company’s leading portfolio and pipeline of medicines, vaccines, diagnostics and technologies make a difference in over 100 countries. A Fortune 500 company, Zoetis generated revenue of $7.8 billion in 2021 with approximately 12,100 employees. For more information, visit www.zoetis.com.
1 Adjusted net income and its components and adjusted diluted earnings per share (non-GAAP financial measures) are defined as reported net income and reported diluted earnings per share, excluding purchase accounting adjustments, acquisition-related costs and certain significant items.
2 Operational growth (a non-GAAP financial measure) is defined as growth excluding the impact of foreign exchange.
DISCLOSURE NOTICES
Forward-Looking Statements: This press release contains forward-looking statements, which reflect the current views of Zoetis with respect to: business plans or prospects, future operating or financial performance, future guidance, future operating models; disruptions in our global supply chain; R&D costs; timing and likelihood of success; expectations regarding products, product approvals or products under development, expected timing of product launches; the impact of the coronavirus (COVID-19) global pandemic and any recovery therefrom on our business, supply chain, customers and employees; expectations regarding the performance of acquired companies and our ability to integrate new businesses; expectations regarding the financial impact of acquisitions; future use of cash, dividend payments and share repurchases; tax rate and tax regimes and any changes thereto; and other future events. These statements are not guarantees of future performance or actions. Forward-looking statements are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, or if management's underlying assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Zoetis expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A further list and description of risks, uncertainties and other matters can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, including in the sections thereof captioned “Forward-Looking Statements and Factors That May Affect Future Results” and “Item 1A. Risk Factors,” in our Quarterly Reports on Form 10-Q and in our Current Reports on Form 8-K. Such risks and uncertainties may be amplified by the COVID-19 global pandemic and its potential impact on the global economy and our business. These filings and subsequent filings are available online at www.sec.gov, www.zoetis.com, or on request from Zoetis.
Use of Non-GAAP Financial Measures: We use non-GAAP financial measures, such as adjusted net income, adjusted diluted earnings per share and operational results (which exclude the impact of foreign exchange), to assess and analyze our results and trends and to make financial and operational decisions. We believe these non-GAAP financial measures are also useful to investors because they provide greater transparency regarding our operating performance. The non-GAAP financial measures included in this press release should not be considered alternatives to measurements required by GAAP, such as net income, operating income, and earnings per share, and should not be considered measures of liquidity. These non-GAAP financial measures are unlikely to be comparable with non-GAAP information provided by other companies. Reconciliations of non-GAAP financial measures and the most directly comparable GAAP financial measures are included in the tables accompanying this press release and are posted on our website at www.zoetis.com.
Internet Posting of Information: We routinely post information that may be important to investors in the 'Investors' section of our website at www.zoetis.com, on our Facebook page at http://www.facebook.com/zoetis and on Twitter@zoetis. We encourage investors and potential investors to consult our website regularly and to follow us on Facebook and Twitter for important information about us.
ZTS-COR ZTS-IR ZTS-FIN
ZOETIS INC. |
||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME(a) |
||||||||||
(UNAUDITED) |
||||||||||
(millions of dollars, except per share data) |
||||||||||
|
Three Months Ended |
|
|
|||||||
March 31, |
|
|
||||||||
|
2022 |
|
|
|
2021 |
|
|
% Change |
||
Revenue |
$ |
1,986 |
|
|
$ |
1,871 |
|
|
6 |
|
Costs and expenses: |
|
|
|
|
|
|||||
Cost of sales |
|
569 |
|
|
|
549 |
|
|
4 |
|
Selling, general and administrative expenses |
|
465 |
|
|
|
409 |
|
|
14 |
|
Research and development expenses |
|
122 |
|
|
|
118 |
|
|
3 |
|
Amortization of intangible assets |
|
41 |
|
|
|
40 |
|
|
3 |
|
Restructuring charges and certain acquisition-related costs |
|
2 |
|
|
|
9 |
|
|
(78 |
) |
Interest expense, net of capitalized interest |
|
53 |
|
|
|
57 |
|
|
(7 |
) |
Other (income)/deductions–net |
|
7 |
|
|
|
2 |
|
|
* |
|
Income before provision for taxes on income |
|
727 |
|
|
|
687 |
|
|
6 |
|
Provision for taxes on income |
|
133 |
|
|
|
129 |
|
|
3 |
|
Net income before allocation to noncontrolling interests |
|
594 |
|
|
|
558 |
|
|
6 |
|
Less: Net loss attributable to noncontrolling interests |
|
(1 |
) |
|
|
(1 |
) |
|
— |
|
Net income attributable to Zoetis Inc. |
$ |
595 |
|
|
$ |
559 |
|
|
6 |
|
|
|
|
|
|
|
|||||
Earnings per share—basic |
$ |
1.26 |
|
|
$ |
1.18 |
|
|
7 |
|
|
|
|
|
|
|
|||||
Earnings per share—diluted |
$ |
1.26 |
|
|
$ |
1.17 |
|
|
8 |
|
|
|
|
|
|
|
|||||
Weighted-average shares used to calculate earnings per share |
|
|
|
|
|
|||||
Basic |
|
472.2 |
|
|
|
475.5 |
|
|
|
|
Diluted |
|
474.1 |
|
|
|
477.9 |
|
|
|
|
(a) |
The condensed consolidated statements of income present the three months ended March 31, 2022 and 2021. Subsidiaries operating outside the United States are included for the three months ended February 28, 2022 and 2021. |
|
* |
Calculation not meaningful. |
ZOETIS INC. |
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RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION |
||||||||||||||||||
CERTAIN LINE ITEMS |
||||||||||||||||||
(UNAUDITED) |
||||||||||||||||||
(millions of dollars, except per share data) |
||||||||||||||||||
|
|
Three Months Ended March 31, 2022 |
||||||||||||||||
|
|
GAAP Reported(a) |
|
Purchase Accounting Adjustments |
|
Acquisition- Related Costs(1) |
|
Certain Significant Items(2) |
|
Non-GAAP Adjusted(b) |
||||||||
Cost of sales |
|
$ |
569 |
|
$ |
(1 |
) |
|
$ |
— |
|
|
$ |
(3 |
) |
|
$ |
565 |
Gross profit |
|
|
1,417 |
|
|
1 |
|
|
|
— |
|
|
|
3 |
|
|
|
1,421 |
Selling, general and administrative expenses |
|
|
465 |
|
|
(7 |
) |
|
|
— |
|
|
|
— |
|
|
|
458 |
Amortization of intangible assets |
|
|
41 |
|
|
(32 |
) |
|
|
— |
|
|
|
— |
|
|
|
9 |
Restructuring charges and certain acquisition-related costs |
|
|
2 |
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
— |
Other (income)/deductions–net |
|
|
7 |
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
10 |
Income before provision for taxes on income |
|
|
727 |
|
|
40 |
|
|
|
2 |
|
|
|
— |
|
|
|
769 |
Provision for taxes on income |
|
|
133 |
|
|
10 |
|
|
|
1 |
|
|
|
1 |
|
|
|
145 |
Net income attributable to Zoetis |
|
|
595 |
|
|
30 |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
625 |
Earnings per common share attributable to Zoetis–diluted |
|
|
1.26 |
|
|
0.06 |
|
|
|
— |
|
|
|
— |
|
|
|
1.32 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended March 31, 2021 |
||||||||||||||||
|
|
GAAP Reported(a) |
|
Purchase Accounting Adjustments |
|
Acquisition- Related Costs(1) |
|
Certain Significant Items(2) |
|
Non-GAAP Adjusted(b) |
||||||||
Cost of sales |
|
$ |
549 |
|
$ |
(2 |
) |
|
$ |
— |
|
|
$ |
(4 |
) |
|
$ |
543 |
Gross profit |
|
|
1,322 |
|
|
2 |
|
|
|
— |
|
|
|
4 |
|
|
|
1,328 |
Selling, general and administrative expenses |
|
|
409 |
|
|
(8 |
) |
|
|
— |
|
|
|
— |
|
|
|
401 |
Amortization of intangible assets |
|
|
40 |
|
|
(34 |
) |
|
|
— |
|
|
|
— |
|
|
|
6 |
Restructuring charges and certain acquisition-related costs |
|
|
9 |
|
|
— |
|
|
|
(5 |
) |
|
|
(4 |
) |
|
|
— |
Income before provision for taxes on income |
|
|
687 |
|
|
44 |
|
|
|
5 |
|
|
|
8 |
|
|
|
744 |
Provision for taxes on income |
|
|
129 |
|
|
10 |
|
|
|
1 |
|
|
|
2 |
|
|
|
142 |
Net income attributable to Zoetis |
|
|
559 |
|
|
34 |
|
|
|
4 |
|
|
|
6 |
|
|
|
603 |
Earnings per common share attributable to Zoetis–diluted |
|
|
1.17 |
|
|
0.07 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
1.26 |
(a) |
The condensed consolidated statements of income present the three months ended March 31, 2022 and 2021. Subsidiaries operating outside the United States are included for the three months ended February 28, 2022 and 2021. |
|
(b) |
Non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. Despite the importance of these measures to management in goal setting and performance measurement, non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS are non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Non-GAAP adjusted net income and its components, and non-GAAP adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance. |
|
See Notes to Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for notes (1) and (2). |
||
ZOETIS INC. NOTES TO RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION CERTAIN LINE ITEMS (UNAUDITED) (millions of dollars)
(1) Acquisition-related costs include the following:
|
Three Months Ended |
||||
|
March 31, |
||||
|
2022 |
|
2021 |
||
Integration costs(a) |
$ |
2 |
|
$ |
3 |
Restructuring charges(b) |
|
— |
|
|
2 |
Total acquisition-related costs—pre-tax |
|
2 |
|
|
5 |
Income taxes(c) |
|
1 |
|
|
1 |
Total acquisition-related costs—net of tax |
$ |
1 |
|
$ |
4 |
(a) |
Integration costs represent external, incremental costs directly related to integrating acquired businesses and primarily include expenditures for consulting and the integration of systems and processes. Included in Restructuring charges and certain acquisition-related costs. |
|
|
|
|
(b) |
Represents exit and employee termination costs, included in Restructuring charges and certain acquisition-related costs. |
|
|
|
|
(c) |
Included in Provision for taxes on income. Income taxes include the tax effect of the associated pre-tax amounts, calculated by determining the jurisdictional location of the pre-tax amounts and applying that jurisdiction's applicable tax rate. |
(2) Certain significant items include the following:
|
Three Months Ended |
|||||
|
March 31, |
|||||
|
|
2022 |
|
|
|
2021 |
Other restructuring charges and cost-reduction/productivity initiatives(a) |
$ |
2 |
|
|
$ |
7 |
Certain asset impairment charges |
|
— |
|
|
|
1 |
Other |
|
(2 |
) |
|
|
— |
Total certain significant items—pre-tax |
|
— |
|
|
|
8 |
Income taxes(b) |
|
1 |
|
|
|
2 |
Total certain significant items—net of tax |
$ |
(1 |
) |
|
$ |
6 |
(a) |
For the three months ended March 31, 2022, primarily represents product transfer costs, included in Cost of sales. |
|
|
For the three months ended March 31, 2021, primarily represents product transfer costs, included in Cost of sales, and employee termination costs related to cost-reduction and productivity initiatives and the CEO transition, included in Restructuring charges and certain acquisition-related costs. |
|
(b) |
Included in Provision for taxes on income. Income taxes include the tax effect of the associated pre-tax amounts, calculated by determining the jurisdictional location of the pre-tax amounts and applying that jurisdiction's applicable tax rate. |
ZOETIS INC. |
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ADJUSTED SELECTED COSTS, EXPENSES AND INCOME(a) |
||||||||||||||||||
(UNAUDITED) |
||||||||||||||||||
(millions of dollars) |
||||||||||||||||||
|
|
Three Months Ended |
|
|
||||||||||||||
|
|
March 31, |
|
% Change |
||||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
Total |
|
|
Foreign Exchange |
|
Operational(b) |
|||
Adjusted cost of sales |
|
$ |
565 |
|
|
$ |
543 |
|
|
4 |
% |
|
|
(4 |
)% |
|
8 |
% |
as a percent of revenue |
|
|
28.4 |
% |
|
|
29.0 |
% |
|
NA |
|
|
NA |
|
NA |
|||
Adjusted SG&A expenses |
|
|
458 |
|
|
|
401 |
|
|
14 |
% |
|
|
(2 |
)% |
|
16 |
% |
Adjusted R&D expenses |
|
|
122 |
|
|
|
118 |
|
|
3 |
% |
|
|
(1 |
)% |
|
4 |
% |
Adjusted net income attributable to Zoetis |
|
|
625 |
|
|
|
603 |
|
|
4 |
% |
|
|
(4 |
)% |
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
(a) |
Adjusted cost of sales, adjusted selling, general, and administrative (SG&A) expenses, adjusted research and development (R&D) expenses, and adjusted net income (non-GAAP financial measures) are defined as the corresponding reported U.S. GAAP income statement line items excluding purchase accounting adjustments, acquisition-related costs and certain significant items. These adjusted income statement line item measures are not, and should not be viewed as, substitutes for the corresponding U.S. GAAP line items. The corresponding GAAP line items and reconciliations of reported to adjusted information are provided in Condensed Consolidated Statements of Income and Reconciliation of GAAP Reported to Non-GAAP Adjusted Information. |
|
|
|
|
(b) |
Operational growth (a non-GAAP financial measure) is defined as growth excluding the impact of foreign exchange. |
ZOETIS INC. 2022 GUIDANCE
Selected Line Items (millions of dollars, except per share amounts) |
Full Year 2022 |
Revenue |
$8,225 to $8,375 |
Operational growth(a) |
9% to 11% |
Adjusted cost of sales as a percentage of revenue(b) |
Approximately 29% |
Adjusted SG&A expenses(b) |
$2,050 to $2,100 |
Adjusted R&D expenses(b) |
$535 to $555 |
Adjusted interest expense and other (income)/deductions-net(b) |
Approximately $250 |
Effective tax rate on adjusted income(b) |
Approximately 20% |
Adjusted diluted EPS(b) |
$4.99 to $5.09 |
Adjusted net income(b) |
$2,365 to $2,420 |
Operational growth(a)(c) |
10% to 13% |
Certain significant items and acquisition-related costs(d) |
$20 to $30 |
The guidance reflects foreign exchange rates as of late April 2022.
Reconciliations of 2022 reported guidance to 2022 adjusted guidance follows:
(millions of dollars, except per share amounts) |
Reported |
Certain significant items and acquisition-related costs(d) |
Purchase accounting |
Adjusted(c) |
|
Cost of sales as a percentage of revenue |
~ 29.2% |
~ (0.1)% |
~ (0.1)% |
~ 29% |
|
SG&A expenses |
$2,080 to $2,130 |
|
~ $(30) |
$2,050 to $2,100 |
|
R&D expenses |
$537 to $557 |
|
~ $(2) |
$535 to $555 |
|
Interest expense and other (income)/deductions-net |
~ $250 |
|
|
~ $250 |
|
Effective tax rate |
~ 20% |
|
|
~ 20% |
|
Diluted EPS |
$4.65 to $4.77 |
$0.03 to $0.05 |
~ $0.29 |
$4.99 to $5.09 |
|
Net income attributable to Zoetis |
$2,200 to $2,265 |
$20 to $30 |
~ $135 |
$2,365 to $2,420 |
(a) |
|
Operational growth (a non-GAAP financial measure) excludes the impact of foreign exchange. |
(b) |
|
Adjusted net income and its components and adjusted diluted EPS are defined as reported U.S. GAAP net income and its components and reported diluted EPS excluding purchase accounting adjustments, acquisition-related costs and certain significant items. Adjusted cost of sales, adjusted SG&A expenses, adjusted R&D expenses, and adjusted interest expense and other (income)/deductions-net are income statement line items prepared on the same basis, and, therefore, components of the overall adjusted income measure. Despite the importance of these measures to management in goal setting and performance measurement, adjusted net income and its components and adjusted diluted EPS are non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, adjusted net income and its components and adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Adjusted net income and its components and adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance. Adjusted net income and its components and adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. |
(c) |
|
We do not provide a reconciliation of forward-looking non-GAAP adjusted net income operational growth to the most directly comparable U.S. GAAP reported financial measure because we are unable to calculate with reasonable certainty the foreign exchange impact of unusual gains and losses, acquisition-related expenses, potential future asset impairments and other certain significant items, without unreasonable effort. The foreign exchange impacts of these items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP reported results for the guidance period. |
(d) |
|
Primarily includes certain nonrecurring costs related to acquisitions and other charges. |
ZOETIS INC. |
||||||||||||||||
CONSOLIDATED REVENUE BY SEGMENT(a) AND SPECIES |
||||||||||||||||
(UNAUDITED) |
||||||||||||||||
(millions of dollars) |
||||||||||||||||
|
|
Three Months Ended |
|
|
||||||||||||
|
|
March 31, |
|
% Change |
||||||||||||
|
|
|
2022 |
|
|
2021 |
|
Total |
|
|
Foreign Exchange |
|
Operational(b) |
|||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
1,263 |
|
$ |
1,076 |
|
17 |
% |
|
|
(3 |
)% |
|
20 |
% |
Livestock |
|
|
705 |
|
|
779 |
|
(9 |
)% |
|
|
(3 |
)% |
|
(6 |
)% |
Contract Manufacturing & Human Health |
|
|
18 |
|
|
16 |
|
13 |
% |
|
|
(4 |
)% |
|
17 |
% |
Total Revenue |
|
$ |
1,986 |
|
$ |
1,871 |
|
6 |
% |
|
|
(3 |
)% |
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
774 |
|
$ |
658 |
|
18 |
% |
|
|
— |
% |
|
18 |
% |
Livestock |
|
|
246 |
|
|
275 |
|
(11 |
) % |
|
|
— |
% |
|
(11 |
)% |
Total U.S. Revenue |
|
$ |
1,020 |
|
$ |
933 |
|
9 |
% |
|
|
— |
% |
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
International |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
489 |
|
$ |
418 |
|
17 |
% |
|
|
(6 |
)% |
|
23 |
% |
Livestock |
|
|
459 |
|
|
504 |
|
(9 |
)% |
|
|
(6 |
)% |
|
(3 |
)% |
Total International Revenue |
|
$ |
948 |
|
$ |
922 |
|
3 |
% |
|
|
(5 |
)% |
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Dogs and Cats |
|
$ |
1,199 |
|
$ |
1,016 |
|
18 |
% |
|
|
(2 |
)% |
|
20 |
% |
Horses |
|
|
64 |
|
|
60 |
|
7 |
% |
|
|
(3 |
)% |
|
10 |
% |
Total Companion Animal Revenue |
|
$ |
1,263 |
|
$ |
1,076 |
|
17 |
% |
|
|
(3 |
)% |
|
20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Livestock: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Cattle |
|
$ |
364 |
|
$ |
399 |
|
(9 |
)% |
|
|
(4 |
)% |
|
(5 |
) % |
Swine |
|
|
154 |
|
|
190 |
|
(19 |
)% |
|
|
(2 |
)% |
|
(17 |
)% |
Poultry |
|
|
124 |
|
|
131 |
|
(5 |
)% |
|
|
(3 |
)% |
|
(2 |
)% |
Fish |
|
|
44 |
|
|
37 |
|
19 |
% |
|
|
(4 |
)% |
|
23 |
% |
Sheep and other |
|
|
19 |
|
|
22 |
|
(14 |
)% |
|
|
(6 |
)% |
|
(8 |
)% |
Total Livestock Revenue |
|
$ |
705 |
|
$ |
779 |
|
(9 |
)% |
|
|
(3 |
)% |
|
(6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(a) |
For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K. |
|
|
|
|
(b) |
Operational revenue growth (a non-GAAP financial measure) is defined as revenue growth excluding the impact of foreign exchange. |
ZOETIS INC. |
||||||||||||||||
CONSOLIDATED REVENUE BY KEY INTERNATIONAL MARKETS |
||||||||||||||||
(UNAUDITED) |
||||||||||||||||
(millions of dollars) |
||||||||||||||||
|
|
Three Months Ended |
|
|
||||||||||||
|
|
March 31, |
|
% Change |
||||||||||||
|
|
|
2022 |
|
|
2021 |
|
Total |
|
|
Foreign Exchange |
|
Operational(a) |
|||
Total International |
|
$ |
947.5 |
|
$ |
922.3 |
|
3 |
% |
|
|
(5 |
) % |
|
8 |
% |
Australia |
|
|
64.9 |
|
|
57.1 |
|
14 |
% |
|
|
(7 |
)% |
|
21 |
% |
Brazil |
|
|
76.8 |
|
|
73.6 |
|
4 |
% |
|
|
(4 |
)% |
|
8 |
% |
Canada |
|
|
49.0 |
|
|
46.1 |
|
6 |
% |
|
|
— |
% |
|
6 |
% |
Chile |
|
|
41.2 |
|
|
34.0 |
|
21 |
% |
|
|
(7 |
)% |
|
28 |
% |
China |
|
|
102.7 |
|
|
123.2 |
|
(17 |
)% |
|
|
1 |
% |
|
(18 |
)% |
France |
|
|
31.9 |
|
|
34.9 |
|
(9 |
)% |
|
|
(7 |
)% |
|
(2 |
)% |
Germany |
|
|
43.1 |
|
|
38.4 |
|
12 |
% |
|
|
(8 |
)% |
|
20 |
% |
Italy |
|
|
30.4 |
|
|
25.1 |
|
21 |
% |
|
|
(9 |
)% |
|
30 |
% |
Japan |
|
|
59.1 |
|
|
46.7 |
|
27 |
% |
|
|
(12 |
)% |
|
39 |
% |
Mexico |
|
|
34.8 |
|
|
33.2 |
|
5 |
% |
|
|
(3 |
)% |
|
8 |
% |
Spain |
|
|
33.4 |
|
|
31.2 |
|
7 |
% |
|
|
(8 |
)% |
|
15 |
% |
United Kingdom |
|
|
63.5 |
|
|
69.1 |
|
(8 |
)% |
|
|
(1 |
)% |
|
(7 |
)% |
Other developed markets |
|
|
115.2 |
|
|
111.2 |
|
4 |
% |
|
|
(5 |
)% |
|
9 |
% |
Other emerging markets |
|
|
201.5 |
|
|
198.5 |
|
2 |
% |
|
|
(10 |
)% |
|
12 |
% |
(a) |
|
Operational revenue growth (a non-GAAP financial measure) is defined as revenue growth excluding the impact of foreign exchange. |
ZOETIS INC. |
||||||||||||||||||
SEGMENT(a) EARNINGS |
||||||||||||||||||
(UNAUDITED) |
||||||||||||||||||
(millions of dollars) |
||||||||||||||||||
|
|
Three Months Ended |
|
|
||||||||||||||
|
|
March 31, |
|
% Change |
||||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
Total |
|
|
Foreign Exchange |
|
Operational(b) |
|||
U.S.: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
1,020 |
|
|
$ |
933 |
|
|
9 |
% |
|
|
— |
% |
|
9 |
% |
Cost of Sales |
|
|
185 |
|
|
|
184 |
|
|
1 |
% |
|
|
— |
% |
|
1 |
% |
Gross Profit |
|
|
835 |
|
|
|
749 |
|
|
11 |
% |
|
|
— |
% |
|
11 |
% |
Gross Margin |
|
|
81.9 |
% |
|
|
80.3 |
% |
|
|
|
|
|
|
|
|||
Operating Expenses |
|
|
165 |
|
|
|
131 |
|
|
26 |
% |
|
|
— |
% |
|
26 |
% |
Other (income)/deductions-net |
|
|
— |
|
|
|
1 |
|
|
* |
|
|
* |
|
* |
|||
U.S. Earnings |
|
$ |
670 |
|
|
$ |
617 |
|
|
9 |
% |
|
|
— |
% |
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
International: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
948 |
|
|
$ |
922 |
|
|
3 |
% |
|
|
(5 |
)% |
|
8 |
% |
Cost of Sales |
|
|
265 |
|
|
|
282 |
|
|
(6 |
)% |
|
|
(6 |
)% |
|
— |
% |
Gross Profit |
|
|
683 |
|
|
|
640 |
|
|
7 |
% |
|
|
(5 |
)% |
|
12 |
% |
Gross Margin |
|
|
72.0 |
% |
|
|
69.4 |
% |
|
|
|
|
|
|
|
|||
Operating Expenses |
|
|
145 |
|
|
|
130 |
|
|
12 |
% |
|
|
(6 |
)% |
|
18 |
% |
Other (income)/deductions-net |
|
|
— |
|
|
|
— |
|
|
* |
|
|
* |
|
* |
|||
International Earnings |
|
$ |
538 |
|
|
$ |
510 |
|
|
5 |
% |
|
|
(6 |
)% |
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Reportable Segments |
|
$ |
1,208 |
|
|
$ |
1,127 |
|
|
7 |
% |
|
|
(3 |
)% |
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other business activities(c) |
|
|
(98 |
) |
|
|
(97 |
) |
|
1 |
% |
|
|
|
|
|
||
Reconciling Items: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Corporate(d) |
|
|
(259 |
) |
|
|
(230 |
) |
|
13 |
% |
|
|
|
|
|
||
Purchase accounting adjustments(e) |
|
|
(40 |
) |
|
|
(44 |
) |
|
(9 |
)% |
|
|
|
|
|
||
Acquisition-related costs(f) |
|
|
(2 |
) |
|
|
(5 |
) |
|
(60 |
)% |
|
|
|
|
|
||
Certain significant items(g) |
|
|
— |
|
|
|
(8 |
) |
|
* |
|
|
|
|
|
|||
Other unallocated(h) |
|
|
(82 |
) |
|
|
(56 |
) |
|
46 |
% |
|
|
|
|
|
||
Total Earnings(i) |
|
$ |
727 |
|
|
$ |
687 |
|
|
6 |
% |
|
|
|
|
|
||
(a) |
For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K. |
|
|
|
|
(b) |
Operational growth (a non-GAAP financial measure) is defined as growth excluding the impact of foreign exchange. |
|
|
|
|
(c) |
Other business activities reflect the research and development costs managed by our Research and Development organization as well as our contract manufacturing business and human health business. |
|
|
|
|
(d) |
Corporate includes, among other things, certain costs associated with information technology, administration expenses, interest expense, certain compensation costs, certain procurement costs, and other costs not charged to our operating segments. |
|
|
|
|
(e) |
Purchase accounting adjustments include certain charges related to the amortization of fair value adjustments to inventory, intangible assets and property, plant and equipment not charged to our operating segments. |
|
(f) |
Acquisition-related costs include costs associated with acquiring and integrating newly acquired businesses, such as transaction costs and integration costs. |
|
|
|
|
(g) |
Certain significant items includes substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such items primarily include certain asset impairment charges, restructuring charges and implementation costs associated with a shift in our organizational structure and cost-reduction/productivity initiatives that are not associated with an acquisition, costs associated with operational efficiency initiatives and supply network strategy, and the impact of divestiture-related gains and losses. |
|
|
|
|
(h) |
Includes overhead expenses associated with our manufacturing and supply operations not directly attributable to an operating segment, as well as certain procurement costs. |
|
|
|
|
(i) |
Defined as income before provision for taxes on income. |
|
|
|
|
* |
Calculation not meaningful. |
Сообщается, что выручка за Первый квартал 2022 года составила 2,0 миллиарда долларов, увеличившись на 6%, а чистая прибыль составила 595 миллионов долларов, или 1,26 доллара на разводненную акцию, Увеличившись на 6% и 8% Соответственно.
Обеспечивает 9%-ный Операционный рост Выручки и 8%-ный Операционный рост Скорректированной чистой прибыли за Первый квартал 2022 года
Сообщает о Скорректированной чистой прибыли в размере 625 миллионов долларов, или Скорректированной разводненной прибыли на акцию в размере 1,32 доллара США, за Первый квартал 2022 года
Обновляет Прогноз по выручке на весь 2022 год до $ 8,225 - $ 8,375 млрд, с разводненной прибылью на акцию от $ 4,65 до $ 4,77 на отчетной основе или от $ 4,99 до $ 5,09 на скорректированной основе Из-за Негативного влияния валютных курсов
ПАРСИППАНИ, Нью-Джерси--(BUSINESS WIRE)--Zoetis Inc. (NYSE: ZTS) сегодня сообщила о своих финансовых результатах за первый квартал 2022 года и обновила свои прогнозы на весь 2022 год из-за негативного влияния недавних изменений валютных курсов. Обновленное руководство отражает те же операционные темпы роста выручки и скорректированной чистой прибыли, что и в предыдущем руководстве компании на 2022 год.
Компания сообщила о выручке в размере 2,0 миллиарда долларов за первый квартал 2022 года, увеличившись на 6% по сравнению с первым кварталом 2021 года. Чистая прибыль за первый квартал 2022 года составила 595 миллионов долларов, или 1,26 доллара на разводненную акцию, увеличившись на 6% и 8% соответственно по сравнению с отчетным периодом.
Скорректированная чистая доходность1 за первый квартал 2022 года составила 625 миллионов долларов, или 1,32 доллара на разводненную акцию, увеличившись на 4% и 5% соответственно на отчетной основе. Скорректированная чистая прибыль за первый квартал 2022 года исключает чистое влияние в размере 30 миллионов долларов США на корректировки учета закупок, расходы, связанные с приобретением, и некоторые существенные статьи.
На операционной основе 2 выручка за первый квартал 2022 года увеличилась на 9%, без учета влияния иностранной валюты. Скорректированная чистая прибыль за первый квартал 2022 года увеличилась на 8% в операционном выражении, без учета влияния иностранной валюты.
исполнительный комментарий
“Zoetis продемонстрировала еще один сильный квартал с ростом операционной выручки на 9% и скорректированной чистой прибыли на 8%, что обусловлено сильным портфелем наших животных-компаньонов”, - сказала главный исполнительный директор Zoetis Кристин Пек. “Наша сила в области паразитицидов, дерматологических продуктов, моноклональных антител для обезболивания и диагностики - все это основано на сочетании позитивных тенденций в уходе за домашними животными с ориентированной на клиента наукой, исходящей от Zoetis".
“Рассматривая оставшуюся часть года, мы обновляем наши рекомендации, чтобы отразить негативное влияние недавних изменений валютных курсов, но это никак не влияет на наши предыдущие темпы операционного роста и предположения на год. Даже когда мы сталкиваемся с неопределенностью, связанной с войной в Украине, карантином из-за COVID-19, инфляцией и продолжающимися ограничениями в цепочке поставок, мы по-прежнему уверены в силе и эффективности нашего бизнеса. Наше разнообразное портфолио, глобальный масштаб, талантливые коллеги и постоянные инновации остаются основой нашего долгосрочного успеха и долговечности”.
основные события за квартал
Zoetis организует и управляет своими коммерческими операциями в двух сегментах: Соединенные Штаты (США) и Международный. В этих сегментах компания поставляет разнообразный ассортимент продуктов для домашних животных и домашнего скота, адаптированных к местным тенденциям и потребностям клиентов. В первом квартале 2022 года:
инвестиции в рост
Zoetis продолжает получать одобрение рынка и внедрять инновации жизненного цикла для ключевых брендов. Что касается бизнеса с домашними животными, компания получила одобрение в Австралии на Solensia (frunevetmab), первое инъекционное моноклональное антитело (mAb) для облегчения боли, связанной с остеоартритом (ОА) у кошек; оно также одобрено в США, Европейском союзе (ЕС), Великобритании., Канада и Швейцария. Другая терапия mAb, Cytopoint (локиветмаб), получила продление срока действия заявки в Канаде. Ранее одобренный для лечения атопического дерматита у собак, продукт теперь одобрен и для лечения аллергического дерматита.
Что касается животноводства, Zoetis расширила свой портфель вакцин для крупного рогатого скота, одобрив в США Protivity®, первую модифицированную живую вакцину, обеспечивающую защиту от Mycoplasma bovis, предоставляя производителям крупного рогатого скота и ветеринарам более широкую общую защиту от респираторных заболеваний крупного рогатого скота (BRD). Компания также получила одобрение в Бразилии для Draxxin KP (тулатромицин кетопрофен). Это инъекционное средство, также предназначенное для лечения BRD, сочетает в себе антимикробные свойства Драксина с нестероидным противовоспалительным (НПВП) кетопрофеном для быстрого снижения температуры в однократной дозе. Он также одобрен в США, Канаде, ЕС (где он известен как Draxxin Plus), Австралии и Мексике. В птицеводстве компания получила одобрение в Бразилии на Poulvac® Procerta™ HVT-IBD. Также одобренная в США и Канаде, эта рекомбинантная векторная вакцина обеспечивает раннюю защиту от болезни Марека и современных вирусов инфекционной бурсальной болезни (ВЗК) у кур.
В области диагностики Zoetis объявила о добавлении тестирования мазка крови с использованием искусственного интеллекта (ИИ) к своей многоцелевой платформе Vetscan Imagyst™. Представленная в сентябре 2020 года Vetscan Imagyst - это первая в своем роде технология с множеством применений, включая анализ фекалий с использованием искусственного интеллекта, передачу цифровых цитологических изображений, а теперь и мазок крови с использованием искусственного интеллекта, помогающий ветеринарам расширять возможности диагностики в клинике для обеспечения наилучшего ухода за собаками и кошками.
финансовое руководство
Zoetis обновляет свои рекомендации на весь 2022 год в связи с негативным влиянием недавних изменений валютных курсов, и это включает:
Это руководство отражает курсы иностранных валют по состоянию на конец апреля. Дополнительная информация о руководстве включена в финансовые таблицы и будет обсуждаться на телефонной конференции компании сегодня утром.
подробности веб-трансляции и конференц-связи
Сегодня в 8:30 утра (по восточному времени) Zoetis проведет веб-трансляцию и телефонную конференцию, в ходе которой руководители компании рассмотрят результаты первого квартала 2022 года, обсудят финансовые рекомендации и ответят на вопросы финансовых аналитиков. Инвесторы и общественность могут получить доступ к прямой трансляции, посетив веб-сайт Zoetis по адресу http://investor .Zoetis.com/events-presentations . Повтор веб-трансляции будет заархивирован и доступен 5 мая 2022 года.
Как ведущая в мире компания по охране здоровья животных, Zoetis руководствуется единственной целью: развивать наш мир и человечество, развивая заботу о животных. После 70 лет разработки инновационных способов прогнозирования, профилактики, выявления и лечения болезней животных Zoetis продолжает поддерживать тех, кто выращивает и заботится о животных по всему миру - от животноводов до ветеринаров и владельцев домашних животных. Ведущий портфель и ассортимент лекарств, вакцин, диагностических средств и технологий компании имеют значение более чем в 100 странах. Компания Zoetis, входящая в список Fortune 500, в 2021 году получила доход в размере 7,8 миллиарда долларов с примерно 12 100 сотрудниками. Для получения дополнительной информации посетите веб-сайт www.Zoetis.com .
1 Скорректированная чистая прибыль и ее компоненты, а также скорректированная разводненная прибыль на акцию (финансовые показатели, не относящиеся к GAAP) определяются как отраженная в отчетности чистая прибыль и отраженная в отчетности разводненная прибыль на акцию, исключая корректировки учета покупок, затраты, связанные с приобретением, и некоторые существенные статьи.
2 Операционный рост (финансовый показатель, не относящийся к GAAP) определяется как рост без учета влияния иностранной валюты.
уведомления о раскрытии информации
Прогнозные заявления: Этот пресс-релиз содержит прогнозные заявления, которые отражают текущие взгляды Zoetis в отношении: бизнес-планов или перспектив, будущих операционных или финансовых показателей, будущих рекомендаций, будущих операционных моделей; сбоев в нашей глобальной цепочке поставок; затрат на НИОКР; сроков и вероятности успеха; ожидания в отношении продуктов, одобренных продуктов или продуктов, находящихся в стадии разработки, ожидаемые сроки запуска продуктов; влияние глобальной пандемии коронавируса (COVID-19) и любое восстановление после нее на наш бизнес, цепочку поставок, клиентов и сотрудников; ожидания относительно эффективности приобретенных компаний и нашей способности интегрировать новые предприятия; ожидания в отношении финансовых последствий приобретений; будущего использования денежных средств, выплаты дивидендов и выкупа акций; налоговых ставок и налоговых режимов и любых изменений в них; и других будущих событий. Эти заявления не являются гарантией будущих результатов или действий. Прогнозные заявления подвержены рискам и неопределенностям. Если один или несколько из этих рисков или неопределенностей материализуются, или если лежащие в основе допущения руководства окажутся неверными, фактические результаты могут существенно отличаться от тех, которые предусмотрены в прогнозном заявлении. Прогнозные заявления относятся только к дате, на которую они сделаны. Zoetis прямо отказывается от каких-либо обязательств по обновлению или пересмотру любых прогнозных заявлений, будь то в результате новой информации, будущих событий или иным образом. Дополнительный список и описание рисков, неопределенностей и других вопросов можно найти в нашем Годовом отчете по форме 10-K за финансовый год, закончившийся 31 декабря 2021 года, в том числе в его разделах, озаглавленных “Прогнозные заявления и факторы, которые могут повлиять на будущие результаты” и “Пункт 1A. Факторы риска” в наших Ежеквартальных отчетах по Форме 10-Q и в наших Текущих отчетах по форме 8-K. Такие риски и неопределенности могут быть усилены глобальной пандемией COVID-19 и ее потенциальным воздействием на мировую экономику и наш бизнес. Эти заявки и последующие заявки доступны онлайн по адресу www.sec.gov , www.Zoetis.com , или по запросу от Zoetis.
Использование финансовых показателей, не относящихся к GAAP: Мы используем финансовые показатели, не относящиеся к GAAP, такие как скорректированная чистая прибыль, скорректированная разводненная прибыль на акцию и операционные результаты (которые исключают влияние иностранной валюты), для оценки и анализа наших результатов и тенденций, а также для принятия финансовых и операционных решений. Мы считаем, что эти финансовые показатели, не относящиеся к GAAP, также полезны для инвесторов, поскольку они обеспечивают большую прозрачность в отношении наших операционных показателей. Финансовые показатели, не относящиеся к GAAP, включенные в этот пресс-релиз, не должны рассматриваться как альтернативы показателям, требуемым GAAP, таким как чистая прибыль, операционная прибыль и прибыль на акцию, и не должны рассматриваться как показатели ликвидности. Эти финансовые показатели, не относящиеся к GAAP, вряд ли будут сопоставимы с информацией, не относящейся к GAAP, предоставленной другими компаниями. Сверки финансовых показателей, не относящихся к GAAP, и наиболее непосредственно сопоставимых финансовых показателей GAAP включены в таблицы, прилагаемые к настоящему пресс-релизу, и размещены на нашем веб-сайте по адресу <url>.Zoetis.com .
Размещение информации в Интернете: Мы регулярно размещаем информацию, которая может быть важна для инвесторов, в разделе "Инвесторы" нашего веб-сайта по адресу www.Zoetis.com , на нашей странице в Facebook по адресу http://www.facebook.com/Zoetis и в Твиттере@Zoetis. Мы призываем инвесторов и потенциальных инвесторов регулярно посещать наш веб-сайт и следить за нами на Facebook и Twitter для получения важной информации о нас.
zts-кор zts-ик zts-плавник
Zoetis INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME(a) |
||||||||||
(UNAUDITED) |
||||||||||
(millions of dollars, except per share data) |
||||||||||
|
Three Months Ended |
|
|
|||||||
March 31, |
|
|
||||||||
|
2022 |
|
|
|
2021 |
|
|
% Change |
||
Revenue |
$ |
1,986 |
|
|
$ |
1,871 |
|
|
6 |
|
Costs and expenses: |
|
|
|
|
|
|||||
Cost of sales |
|
569 |
|
|
|
549 |
|
|
4 |
|
Selling, general and administrative expenses |
|
465 |
|
|
|
409 |
|
|
14 |
|
Research and development expenses |
|
122 |
|
|
|
118 |
|
|
3 |
|
Amortization of intangible assets |
|
41 |
|
|
|
40 |
|
|
3 |
|
Restructuring charges and certain acquisition-related costs |
|
2 |
|
|
|
9 |
|
|
(78 |
) |
Interest expense, net of capitalized interest |
|
53 |
|
|
|
57 |
|
|
(7 |
) |
Other (income)/deductions–net |
|
7 |
|
|
|
2 |
|
|
* |
|
Income before provision for taxes on income |
|
727 |
|
|
|
687 |
|
|
6 |
|
Provision for taxes on income |
|
133 |
|
|
|
129 |
|
|
3 |
|
Net income before allocation to noncontrolling interests |
|
594 |
|
|
|
558 |
|
|
6 |
|
Less: Net loss attributable to noncontrolling interests |
|
(1 |
) |
|
|
(1 |
) |
|
— |
|
Net income attributable to Zoetis Inc. |
$ |
595 |
|
|
$ |
559 |
|
|
6 |
|
|
|
|
|
|
|
|||||
Earnings per share—basic |
$ |
1.26 |
|
|
$ |
1.18 |
|
|
7 |
|
|
|
|
|
|
|
|||||
Earnings per share—diluted |
$ |
1.26 |
|
|
$ |
1.17 |
|
|
8 |
|
|
|
|
|
|
|
|||||
Weighted-average shares used to calculate earnings per share |
|
|
|
|
|
|||||
Basic |
|
472.2 |
|
|
|
475.5 |
|
|
|
|
Diluted |
|
474.1 |
|
|
|
477.9 |
|
|
|
|
(a) |
The condensed consolidated statements of income present the three months ended March 31, 2022 and 2021. Subsidiaries operating outside the United States are included for the three months ended February 28, 2022 and 2021. |
|
* |
Calculation not meaningful. |
Zoetis INC. |
||||||||||||||||||
RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION |
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CERTAIN LINE ITEMS |
||||||||||||||||||
(UNAUDITED) |
||||||||||||||||||
(millions of dollars, except per share data) |
||||||||||||||||||
|
|
Three Months Ended March 31, 2022 |
||||||||||||||||
|
|
GAAP Reported(a) |
|
Purchase Accounting Adjustments |
|
Acquisition- Related Costs(1) |
|
Certain Significant Items(2) |
|
Non-GAAP Adjusted(b) |
||||||||
Cost of sales |
|
$ |
569 |
|
$ |
(1 |
) |
|
$ |
— |
|
|
$ |
(3 |
) |
|
$ |
565 |
Gross profit |
|
|
1,417 |
|
|
1 |
|
|
|
— |
|
|
|
3 |
|
|
|
1,421 |
Selling, general and administrative expenses |
|
|
465 |
|
|
(7 |
) |
|
|
— |
|
|
|
— |
|
|
|
458 |
Amortization of intangible assets |
|
|
41 |
|
|
(32 |
) |
|
|
— |
|
|
|
— |
|
|
|
9 |
Restructuring charges and certain acquisition-related costs |
|
|
2 |
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
— |
Other (income)/deductions–net |
|
|
7 |
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
10 |
Income before provision for taxes on income |
|
|
727 |
|
|
40 |
|
|
|
2 |
|
|
|
— |
|
|
|
769 |
Provision for taxes on income |
|
|
133 |
|
|
10 |
|
|
|
1 |
|
|
|
1 |
|
|
|
145 |
Net income attributable to Zoetis |
|
|
595 |
|
|
30 |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
625 |
Earnings per common share attributable to Zoetis–diluted |
|
|
1.26 |
|
|
0.06 |
|
|
|
— |
|
|
|
— |
|
|
|
1.32 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended March 31, 2021 |
||||||||||||||||
|
|
GAAP Reported(a) |
|
Purchase Accounting Adjustments |
|
Acquisition- Related Costs(1) |
|
Certain Significant Items(2) |
|
Non-GAAP Adjusted(b) |
||||||||
Cost of sales |
|
$ |
549 |
|
$ |
(2 |
) |
|
$ |
— |
|
|
$ |
(4 |
) |
|
$ |
543 |
Gross profit |
|
|
1,322 |
|
|
2 |
|
|
|
— |
|
|
|
4 |
|
|
|
1,328 |
Selling, general and administrative expenses |
|
|
409 |
|
|
(8 |
) |
|
|
— |
|
|
|
— |
|
|
|
401 |
Amortization of intangible assets |
|
|
40 |
|
|
(34 |
) |
|
|
— |
|
|
|
— |
|
|
|
6 |
Restructuring charges and certain acquisition-related costs |
|
|
9 |
|
|
— |
|
|
|
(5 |
) |
|
|
(4 |
) |
|
|
— |
Income before provision for taxes on income |
|
|
687 |
|
|
44 |
|
|
|
5 |
|
|
|
8 |
|
|
|
744 |
Provision for taxes on income |
|
|
129 |
|
|
10 |
|
|
|
1 |
|
|
|
2 |
|
|
|
142 |
Net income attributable to Zoetis |
|
|
559 |
|
|
34 |
|
|
|
4 |
|
|
|
6 |
|
|
|
603 |
Earnings per common share attributable to Zoetis–diluted |
|
|
1.17 |
|
|
0.07 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
1.26 |
(a) |
The condensed consolidated statements of income present the three months ended March 31, 2022 and 2021. Subsidiaries operating outside the United States are included for the three months ended February 28, 2022 and 2021. |
|
(b) |
Non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. Despite the importance of these measures to management in goal setting and performance measurement, non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS are non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Non-GAAP adjusted net income and its components, and non-GAAP adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance. |
|
See Notes to Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for notes (1) and (2). |
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Zoetis INC. ПРИМЕЧАНИЯ К СВЕРКЕ ДАННЫХ ПО ОПБУ С ИНФОРМАЦИЕЙ, СКОРРЕКТИРОВАННОЙ НЕ ПО ОПБУ ОПРЕДЕЛЕННЫЕ ПОЗИЦИИ (НЕАУДИРОВАНО) (в миллионах долларов)
(1) Расходы, связанные с приобретением, включают следующее:
|
Three Months Ended |
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|
March 31, |
||||
|
2022 |
|
2021 |
||
Integration costs(a) |
$ |
2 |
|
$ |
3 |
Restructuring charges(b) |
|
— |
|
|
2 |
Total acquisition-related costs—pre-tax |
|
2 |
|
|
5 |
Income taxes(c) |
|
1 |
|
|
1 |
Total acquisition-related costs—net of tax |
$ |
1 |
|
$ |
4 |
(a) |
Integration costs represent external, incremental costs directly related to integrating acquired businesses and primarily include expenditures for consulting and the integration of systems and processes. Included in Restructuring charges and certain acquisition-related costs. |
|
|
|
|
(b) |
Represents exit and employee termination costs, included in Restructuring charges and certain acquisition-related costs. |
|
|
|
|
(c) |
Included in Provision for taxes on income. Income taxes include the tax effect of the associated pre-tax amounts, calculated by determining the jurisdictional location of the pre-tax amounts and applying that jurisdiction's applicable tax rate. |
(2) Некоторые важные пункты включают следующее:
|
Three Months Ended |
|||||
|
March 31, |
|||||
|
|
2022 |
|
|
|
2021 |
Other restructuring charges and cost-reduction/productivity initiatives(a) |
$ |
2 |
|
|
$ |
7 |
Certain asset impairment charges |
|
— |
|
|
|
1 |
Other |
|
(2 |
) |
|
|
— |
Total certain significant items—pre-tax |
|
— |
|
|
|
8 |
Income taxes(b) |
|
1 |
|
|
|
2 |
Total certain significant items—net of tax |
$ |
(1 |
) |
|
$ |
6 |
(a) |
For the three months ended March 31, 2022, primarily represents product transfer costs, included in Cost of sales. |
|
|
For the three months ended March 31, 2021, primarily represents product transfer costs, included in Cost of sales, and employee termination costs related to cost-reduction and productivity initiatives and the CEO transition, included in Restructuring charges and certain acquisition-related costs. |
|
(b) |
Included in Provision for taxes on income. Income taxes include the tax effect of the associated pre-tax amounts, calculated by determining the jurisdictional location of the pre-tax amounts and applying that jurisdiction's applicable tax rate. |
Zoetis INC. |
||||||||||||||||||
ADJUSTED SELECTED COSTS, EXPENSES AND INCOME(a) |
||||||||||||||||||
(UNAUDITED) |
||||||||||||||||||
(millions of dollars) |
||||||||||||||||||
|
|
Three Months Ended |
|
|
||||||||||||||
|
|
March 31, |
|
% Change |
||||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
Total |
|
|
Foreign Exchange |
|
Operational(b) |
|||
Adjusted cost of sales |
|
$ |
565 |
|
|
$ |
543 |
|
|
4 |
% |
|
|
(4 |
)% |
|
8 |
% |
as a percent of revenue |
|
|
28.4 |
% |
|
|
29.0 |
% |
|
NA |
|
|
NA |
|
NA |
|||
Adjusted SG&A expenses |
|
|
458 |
|
|
|
401 |
|
|
14 |
% |
|
|
(2 |
)% |
|
16 |
% |
Adjusted R&D expenses |
|
|
122 |
|
|
|
118 |
|
|
3 |
% |
|
|
(1 |
)% |
|
4 |
% |
Adjusted net income attributable to Zoetis |
|
|
625 |
|
|
|
603 |
|
|
4 |
% |
|
|
(4 |
)% |
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
(a) |
Adjusted cost of sales, adjusted selling, general, and administrative (SG&A) expenses, adjusted research and development (R&D) expenses, and adjusted net income (non-GAAP financial measures) are defined as the corresponding reported U.S. GAAP income statement line items excluding purchase accounting adjustments, acquisition-related costs and certain significant items. These adjusted income statement line item measures are not, and should not be viewed as, substitutes for the corresponding U.S. GAAP line items. The corresponding GAAP line items and reconciliations of reported to adjusted information are provided in Condensed Consolidated Statements of Income and Reconciliation of GAAP Reported to Non-GAAP Adjusted Information. |
|
|
|
|
(b) |
Operational growth (a non-GAAP financial measure) is defined as growth excluding the impact of foreign exchange. |
Zoetis inc. руководство на 2022 год
Selected Line Items (millions of dollars, except per share amounts) |
Full Year 2022 |
Revenue |
$8,225 to $8,375 |
Operational growth(a) |
9% to 11% |
Adjusted cost of sales as a percentage of revenue(b) |
Approximately 29% |
Adjusted SG&A expenses(b) |
$2,050 to $2,100 |
Adjusted R&D expenses(b) |
$535 to $555 |
Adjusted interest expense and other (income)/deductions-net(b) |
Approximately $250 |
Effective tax rate on adjusted income(b) |
Approximately 20% |
Adjusted diluted EPS(b) |
$4.99 to $5.09 |
Adjusted net income(b) |
$2,365 to $2,420 |
Operational growth(a)(c) |
10% to 13% |
Certain significant items and acquisition-related costs(d) |
$20 to $30 |
Руководство отражает курсы иностранных валют по состоянию на конец апреля 2022 года.
Выверка сообщенных руководящих указаний на 2022 год с учетом скорректированных руководящих указаний на 2022 год следует следующим образом:
(millions of dollars, except per share amounts) |
Reported |
Certain significant items and acquisition-related costs(d) |
Purchase accounting |
Adjusted(c) |
|
Cost of sales as a percentage of revenue |
~ 29.2% |
~ (0.1)% |
~ (0.1)% |
~ 29% |
|
SG&A expenses |
$2,080 to $2,130 |
|
~ $(30) |
$2,050 to $2,100 |
|
R&D expenses |
$537 to $557 |
|
~ $(2) |
$535 to $555 |
|
Interest expense and other (income)/deductions-net |
~ $250 |
|
|
~ $250 |
|
Effective tax rate |
~ 20% |
|
|
~ 20% |
|
Diluted EPS |
$4.65 to $4.77 |
$0.03 to $0.05 |
~ $0.29 |
$4.99 to $5.09 |
|
Net income attributable to Zoetis |
$2,200 to $2,265 |
$20 to $30 |
~ $135 |
$2,365 to $2,420 |
(a) |
|
Operational growth (a non-GAAP financial measure) excludes the impact of foreign exchange. |
(b) |
|
Adjusted net income and its components and adjusted diluted EPS are defined as reported U.S. GAAP net income and its components and reported diluted EPS excluding purchase accounting adjustments, acquisition-related costs and certain significant items. Adjusted cost of sales, adjusted SG&A expenses, adjusted R&D expenses, and adjusted interest expense and other (income)/deductions-net are income statement line items prepared on the same basis, and, therefore, components of the overall adjusted income measure. Despite the importance of these measures to management in goal setting and performance measurement, adjusted net income and its components and adjusted diluted EPS are non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, adjusted net income and its components and adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Adjusted net income and its components and adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance. Adjusted net income and its components and adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. |
(c) |
|
We do not provide a reconciliation of forward-looking non-GAAP adjusted net income operational growth to the most directly comparable U.S. GAAP reported financial measure because we are unable to calculate with reasonable certainty the foreign exchange impact of unusual gains and losses, acquisition-related expenses, potential future asset impairments and other certain significant items, without unreasonable effort. The foreign exchange impacts of these items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP reported results for the guidance period. |
(d) |
|
Primarily includes certain nonrecurring costs related to acquisitions and other charges. |
Zoetis INC. |
||||||||||||||||
CONSOLIDATED REVENUE BY SEGMENT(a) AND SPECIES |
||||||||||||||||
(UNAUDITED) |
||||||||||||||||
(millions of dollars) |
||||||||||||||||
|
|
Three Months Ended |
|
|
||||||||||||
|
|
March 31, |
|
% Change |
||||||||||||
|
|
|
2022 |
|
|
2021 |
|
Total |
|
|
Foreign Exchange |
|
Operational(b) |
|||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
1,263 |
|
$ |
1,076 |
|
17 |
% |
|
|
(3 |
)% |
|
20 |
% |
Livestock |
|
|
705 |
|
|
779 |
|
(9 |
)% |
|
|
(3 |
)% |
|
(6 |
)% |
Contract Manufacturing & Human Health |
|
|
18 |
|
|
16 |
|
13 |
% |
|
|
(4 |
)% |
|
17 |
% |
Total Revenue |
|
$ |
1,986 |
|
$ |
1,871 |
|
6 |
% |
|
|
(3 |
)% |
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
774 |
|
$ |
658 |
|
18 |
% |
|
|
— |
% |
|
18 |
% |
Livestock |
|
|
246 |
|
|
275 |
|
(11 |
) % |
|
|
— |
% |
|
(11 |
)% |
Total U.S. Revenue |
|
$ |
1,020 |
|
$ |
933 |
|
9 |
% |
|
|
— |
% |
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
International |
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal |
|
$ |
489 |
|
$ |
418 |
|
17 |
% |
|
|
(6 |
)% |
|
23 |
% |
Livestock |
|
|
459 |
|
|
504 |
|
(9 |
)% |
|
|
(6 |
)% |
|
(3 |
)% |
Total International Revenue |
|
$ |
948 |
|
$ |
922 |
|
3 |
% |
|
|
(5 |
)% |
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Companion Animal: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Dogs and Cats |
|
$ |
1,199 |
|
$ |
1,016 |
|
18 |
% |
|
|
(2 |
)% |
|
20 |
% |
Horses |
|
|
64 |
|
|
60 |
|
7 |
% |
|
|
(3 |
)% |
|
10 |
% |
Total Companion Animal Revenue |
|
$ |
1,263 |
|
$ |
1,076 |
|
17 |
% |
|
|
(3 |
)% |
|
20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Livestock: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Cattle |
|
$ |
364 |
|
$ |
399 |
|
(9 |
)% |
|
|
(4 |
)% |
|
(5 |
) % |
Swine |
|
|
154 |
|
|
190 |
|
(19 |
)% |
|
|
(2 |
)% |
|
(17 |
)% |
Poultry |
|
|
124 |
|
|
131 |
|
(5 |
)% |
|
|
(3 |
)% |
|
(2 |
)% |
Fish |
|
|
44 |
|
|
37 |
|
19 |
% |
|
|
(4 |
)% |
|
23 |
% |
Sheep and other |
|
|
19 |
|
|
22 |
|
(14 |
)% |
|
|
(6 |
)% |
|
(8 |
)% |
Total Livestock Revenue |
|
$ |
705 |
|
$ |
779 |
|
(9 |
)% |
|
|
(3 |
)% |
|
(6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(a) |
For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K. |
|
|
|
|
(b) |
Operational revenue growth (a non-GAAP financial measure) is defined as revenue growth excluding the impact of foreign exchange. |
Zoetis INC. |
||||||||||||||||
CONSOLIDATED REVENUE BY KEY INTERNATIONAL MARKETS |
||||||||||||||||
(UNAUDITED) |
||||||||||||||||
(millions of dollars) |
||||||||||||||||
|
|
Three Months Ended |
|
|
||||||||||||
|
|
March 31, |
|
% Change |
||||||||||||
|
|
|
2022 |
|
|
2021 |
|
Total |
|
|
Foreign Exchange |
|
Operational(a) |
|||
Total International |
|
$ |
947.5 |
|
$ |
922.3 |
|
3 |
% |
|
|
(5 |
) % |
|
8 |
% |
Australia |
|
|
64.9 |
|
|
57.1 |
|
14 |
% |
|
|
(7 |
)% |
|
21 |
% |
Brazil |
|
|
76.8 |
|
|
73.6 |
|
4 |
% |
|
|
(4 |
)% |
|
8 |
% |
Canada |
|
|
49.0 |
|
|
46.1 |
|
6 |
% |
|
|
— |
% |
|
6 |
% |
Chile |
|
|
41.2 |
|
|
34.0 |
|
21 |
% |
|
|
(7 |
)% |
|
28 |
% |
China |
|
|
102.7 |
|
|
123.2 |
|
(17 |
)% |
|
|
1 |
% |
|
(18 |
)% |
France |
|
|
31.9 |
|
|
34.9 |
|
(9 |
)% |
|
|
(7 |
)% |
|
(2 |
)% |
Germany |
|
|
43.1 |
|
|
38.4 |
|
12 |
% |
|
|
(8 |
)% |
|
20 |
% |
Italy |
|
|
30.4 |
|
|
25.1 |
|
21 |
% |
|
|
(9 |
)% |
|
30 |
% |
Japan |
|
|
59.1 |
|
|
46.7 |
|
27 |
% |
|
|
(12 |
)% |
|
39 |
% |
Mexico |
|
|
34.8 |
|
|
33.2 |
|
5 |
% |
|
|
(3 |
)% |
|
8 |
% |
Spain |
|
|
33.4 |
|
|
31.2 |
|
7 |
% |
|
|
(8 |
)% |
|
15 |
% |
United Kingdom |
|
|
63.5 |
|
|
69.1 |
|
(8 |
)% |
|
|
(1 |
)% |
|
(7 |
)% |
Other developed markets |
|
|
115.2 |
|
|
111.2 |
|
4 |
% |
|
|
(5 |
)% |
|
9 |
% |
Other emerging markets |
|
|
201.5 |
|
|
198.5 |
|
2 |
% |
|
|
(10 |
)% |
|
12 |
% |
(a) |
|
Operational revenue growth (a non-GAAP financial measure) is defined as revenue growth excluding the impact of foreign exchange. |
Zoetis INC. |
||||||||||||||||||
SEGMENT(a) EARNINGS |
||||||||||||||||||
(UNAUDITED) |
||||||||||||||||||
(millions of dollars) |
||||||||||||||||||
|
|
Three Months Ended |
|
|
||||||||||||||
|
|
March 31, |
|
% Change |
||||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
Total |
|
|
Foreign Exchange |
|
Operational(b) |
|||
U.S.: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
1,020 |
|
|
$ |
933 |
|
|
9 |
% |
|
|
— |
% |
|
9 |
% |
Cost of Sales |
|
|
185 |
|
|
|
184 |
|
|
1 |
% |
|
|
— |
% |
|
1 |
% |
Gross Profit |
|
|
835 |
|
|
|
749 |
|
|
11 |
% |
|
|
— |
% |
|
11 |
% |
Gross Margin |
|
|
81.9 |
% |
|
|
80.3 |
% |
|
|
|
|
|
|
|
|||
Operating Expenses |
|
|
165 |
|
|
|
131 |
|
|
26 |
% |
|
|
— |
% |
|
26 |
% |
Other (income)/deductions-net |
|
|
— |
|
|
|
1 |
|
|
* |
|
|
* |
|
* |
|||
U.S. Earnings |
|
$ |
670 |
|
|
$ |
617 |
|
|
9 |
% |
|
|
— |
% |
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
International: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Revenue |
|
$ |
948 |
|
|
$ |
922 |
|
|
3 |
% |
|
|
(5 |
)% |
|
8 |
% |
Cost of Sales |
|
|
265 |
|
|
|
282 |
|
|
(6 |
)% |
|
|
(6 |
)% |
|
— |
% |
Gross Profit |
|
|
683 |
|
|
|
640 |
|
|
7 |
% |
|
|
(5 |
)% |
|
12 |
% |
Gross Margin |
|
|
72.0 |
% |
|
|
69.4 |
% |
|
|
|
|
|
|
|
|||
Operating Expenses |
|
|
145 |
|
|
|
130 |
|
|
12 |
% |
|
|
(6 |
)% |
|
18 |
% |
Other (income)/deductions-net |
|
|
— |
|
|
|
— |
|
|
* |
|
|
* |
|
* |
|||
International Earnings |
|
$ |
538 |
|
|
$ |
510 |
|
|
5 |
% |
|
|
(6 |
)% |
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Reportable Segments |
|
$ |
1,208 |
|
|
$ |
1,127 |
|
|
7 |
% |
|
|
(3 |
)% |
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other business activities(c) |
|
|
(98 |
) |
|
|
(97 |
) |
|
1 |
% |
|
|
|
|
|
||
Reconciling Items: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Corporate(d) |
|
|
(259 |
) |
|
|
(230 |
) |
|
13 |
% |
|
|
|
|
|
||
Purchase accounting adjustments(e) |
|
|
(40 |
) |
|
|
(44 |
) |
|
(9 |
)% |
|
|
|
|
|
||
Acquisition-related costs(f) |
|
|
(2 |
) |
|
|
(5 |
) |
|
(60 |
)% |
|
|
|
|
|
||
Certain significant items(g) |
|
|
— |
|
|
|
(8 |
) |
|
* |
|
|
|
|
|
|||
Other unallocated(h) |
|
|
(82 |
) |
|
|
(56 |
) |
|
46 |
% |
|
|
|
|
|
||
Total Earnings(i) |
|
$ |
727 |
|
|
$ |
687 |
|
|
6 |
% |
|
|
|
|
|
||
(a) |
For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K. |
|
|
|
|
(b) |
Operational growth (a non-GAAP financial measure) is defined as growth excluding the impact of foreign exchange. |
|
|
|
|
(c) |
Other business activities reflect the research and development costs managed by our Research and Development organization as well as our contract manufacturing business and human health business. |
|
|
|
|
(d) |
Corporate includes, among other things, certain costs associated with information technology, administration expenses, interest expense, certain compensation costs, certain procurement costs, and other costs not charged to our operating segments. |
|
|
|
|
(e) |
Purchase accounting adjustments include certain charges related to the amortization of fair value adjustments to inventory, intangible assets and property, plant and equipment not charged to our operating segments. |
|
(f) |
Acquisition-related costs include costs associated with acquiring and integrating newly acquired businesses, such as transaction costs and integration costs. |
|
|
|
|
(g) |
Certain significant items includes substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such items primarily include certain asset impairment charges, restructuring charges and implementation costs associated with a shift in our organizational structure and cost-reduction/productivity initiatives that are not associated with an acquisition, costs associated with operational efficiency initiatives and supply network strategy, and the impact of divestiture-related gains and losses. |
|
|
|
|
(h) |
Includes overhead expenses associated with our manufacturing and supply operations not directly attributable to an operating segment, as well as certain procurement costs. |
|
|
|
|
(i) |
Defined as income before provision for taxes on income. |
|
|
|
|
* |
Calculation not meaningful. |
