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Jun 30, 2024
Elanco Q2 2024 Earnings Report
Elanco's Q2 2024 financial performance reflected revenue growth, strategic progress, and updated financial guidance, excluding the Aqua divestiture.
Key Takeaways
Elanco reported Q2 2024 financial results with revenue of $1,184 million. The company reported a net loss of $50 million, but adjusted net income was $147 million. Adjusted EBITDA was $275 million, representing 23.2% of revenue. The company has raised its full-year revenue guidance and maintained its adjusted EBITDA guidance, excluding the Aqua divestiture.
Revenue for the second quarter of 2024 was $1,184 million.
Reported net loss was $50 million, while adjusted net income reached $147 million.
Adjusted EBITDA stood at $275 million, which is 23.2% of revenue.
The sale of the aqua business was completed in July, leading to a $1.2 billion debt paydown in Q3 2024.
Elanco
Elanco
Elanco Revenue by Segment
Revenue by Segment
Pet Health Revenue
CapyFin.comFarm Animal Revenue
CapyFin.comCattle Revenue
CapyFin.comPoultry Revenue
CapyFin.comSwine Revenue
CapyFin.comContract Manufacturing & Other Revenue
CapyFin.comAqua Revenue
CapyFin.com Forward Guidance
Elanco has provided financial guidance for the third quarter and updated financial guidance for the full year 2024, reflecting the expected contribution from Bovaer and Zenrelia and the removal of the aqua business.
Positive Outlook
- Revenue between $4.41 billion and $4.46 billion.
- Organic constant currency revenue growth of 3% to 4%.
- Adjusted EBITDA of $900 million to $940 million.
- Adjusted EPS of $0.88 to $0.96.
- Lower interest expense due to debt paydown.
Challenges Ahead
- Headwind of approximately $30 million from the unfavorable impact of foreign exchange rates.
- Higher manufacturing losses expected.
- Increased investment in product launches in the second half of the year.
- Aqua business divestiture reduces revenue, adjusted EBITDA and adjusted EPS.
- Financial guidance reflects foreign currency exchange rates as of the beginning of August.
Revenue & Expenses
Visualization of income flow from segment revenue to net income