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Sep 30, 2020
Elanco Q3 2020 Earnings Report
Elanco reported third quarter results, reflecting the inclusion of the Bayer Animal Health business acquired on August 1, 2020, and announced initial restructuring actions to drive synergies.
Key Takeaways
Elanco's third quarter results reflect the inclusion of the Bayer Animal Health business, with revenue at the high end of guidance. The company is integrating Bayer Animal Health, targeting $100 million in synergies, and advancing its IPP strategy. Despite COVID-19 headwinds, Elanco is driving improvements in working capital and balance sheet leverage.
Achieved results at the high end of guidance despite pandemic headwinds in the Farm Animal business.
Closed the acquisition of Bayer Animal Health and moved quickly to integrate the business, announcing actions toward a synergy target of at least $100 million.
Received European Commission approval for Increxxa and FDA approval for Elura, progressing the company's innovation pipeline.
Started repayment against the Term Loan that funded the Bayer Animal Health acquisition, with $100 million repaid on September 25, 2020.
Elanco
Elanco
Forward Guidance
For the fourth quarter of 2020, Elanco expects total revenue to be between $1,020 and $1,060 million. Core revenue, excluding Contract Manufacturing, is expected to be between $985 and $1,025 million, including an estimated $20 to $30 million in COVID-19 related headwinds and a $20 million headwind from divested products.
Challenges Ahead
- Expects approximately $20 to $30 million in COVID-19 related headwinds.
- Expects approximately $20 million headwind as a result of products that have been divested from legacy Elanco.