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Sep 30, 2023
Elanco Q3 2023 Earnings Report
Elanco's Q3 2023 financial results were reported, showcasing revenue growth and strategic advancements.
Key Takeaways
Elanco Animal Health reported a revenue of $1,068 million, a 4% increase, and a net loss of $1,096 million, which included a $1,042 million non-cash goodwill impairment charge. Adjusted EPS was $0.18, and adjusted EBITDA reached $214 million. The company is updating its full-year guidance to reflect its third-quarter performance and the impact of foreign exchange rates.
Revenue reached $1,068 million, reflecting a 4% reported growth or 5% excluding foreign exchange impacts.
A reported net loss of $1,096 million was inclusive of a $1,042 million non-cash goodwill impairment charge.
Adjusted EBITDA was $214 million, representing 20.0% of revenue.
Innovation pipeline remains on track with potential blockbuster products Credelio Quattro, Bovaer and Zenrelia.
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.comAqua Revenue
CapyFin.com Forward Guidance
Elanco is updating its full year 2023 guidance to reflect third quarter outperformance offset by expected unfavorable impact of foreign exchange rates.
Positive Outlook
- Revenue of $4,360 to $4,400 million, constant currency growth improves to flat to 1%.
- Adjusted EPS of $0.88 to $0.94
- Adjusted EBITDA of $965 to $1,000 million
- Net leverage ratio expected at 5.5x to 5.8x Adjusted EBITDA at year-end 2023
- Company expects revenue growth of 1% to 4% on a constant currency basis in Q4 2023.
Challenges Ahead
- Reported Net Loss of $1,174 to $1,204 million
- Reported diluted EPS of $(2.43) to $(2.37)
- Revenue guidance for the fourth quarter includes an estimated headwind of approximately $10 million from the unfavorable impact of foreign exchange rates compared to the prior year.
- The impact of foreign exchange on revenue is now expected to be a headwind of approximately $70 million, a $40 million increase from the August guidance.
- Full year reported net loss guidance does not include any further goodwill impairment beyond the third quarter charge.
Revenue & Expenses
Visualization of income flow from segment revenue to net income