Elanco Q1 2023 Earnings Report
Key Takeaways
Elanco Animal Health reported a 3% increase in revenue to $1,257 million for Q1 2023, driven by customer purchases shifting from Q2 due to ERP integration. The company raised the bottom end of its full-year guidance, reflecting confidence in U.S. Pet Health and international poultry businesses.
Revenue increased by 3% on a reported basis, or 6% excluding the unfavorable impact from foreign exchange rates.
Pet Health revenue increased by 5%, driven by price, but impacted by supply constraints and competition.
Farm Animal revenue increased by 1%, driven by strength in Europe and Asia, offset by poultry rotations and supply constraints.
The company estimates adjusted EPS in the first quarter includes a $0.11 to $0.14 benefit from the ERP Blackout.
Elanco
Elanco
Forward Guidance
Elanco is updating financial guidance for the full year 2023, driven by the successful completion of the ERP system integration, innovation progress, and increased confidence in the company’s U.S. Pet Health and international poultry businesses.
Positive Outlook
- Successful completion of the ERP system integration
- Innovation progress
- Increased confidence in the company’s U.S. Pet Health business
- Increased confidence in the company’s international poultry businesses
- Raising the bottom end of its full year 2023 guidance for revenue
Challenges Ahead
- Impact of foreign exchange is now expected to be a headwind of approximately $20 million to $25 million
- Second quarter revenue guidance accounts for an estimated $90 million to $110 million in customer purchases shifted from the first quarter
- Second quarter adjusted EPS is expected to be impacted from headwinds from higher interest expense
- Second quarter adjusted EPS is expected to be impacted from headwinds from taxes
- Second quarter adjusted EPS is expected to be impacted from headwinds from unfavorable foreign exchange rates