Elanco Q3 2022 Earnings Report
Key Takeaways
Elanco Animal Health reported a 9% decrease in revenue, but a 5% increase in adjusted EPS. The company is reducing its full year financial outlook due to foreign exchange headwinds, the global economic slowdown and continued impacts of COVID-19 lockdowns in China.
Revenue was $1,028 million, a decrease of 9% on a reported basis, or a decrease of 4% excluding the unfavorable impact of foreign exchange rates.
Pet Health revenue was $471 million, a decrease of 11% on a reported basis or a decrease of 7% excluding the unfavorable impact from foreign exchange rates, with a 4% increase from price in the quarter.
Farm Animal revenue was $545 million, a decrease of 7% on a reported basis or flat excluding the unfavorable impact from foreign exchange rates, with a 3% increase from price.
Adjusted EBITDA was $205 million, a decrease of 3% compared to the third quarter of 2021.
Elanco
Elanco
Forward Guidance
Elanco is updating financial guidance for the full year 2022 and providing financial guidance for the fourth quarter of 2022.
Positive Outlook
- Confident in ability to expand margins over time
- Generate cash to pay down debt
- Bring differentiated innovation to the market
Challenges Ahead
- Worsening macro-economic and environmental pressures
- Continued strength of the U.S. dollar
- Economic impacts from China's continued COVID-19 lockdowns
- Impact of the global economic slowdown on Europe
- Impact of the global economic slowdown on U.S. pet retail markets