Sep 30, 2024

Elanco Q3 2024 Earnings Report

Elanco's Q3 2024 financial results were reported, with revenue of $1,030 million and organic constant currency growth of 1%.

Key Takeaways

Elanco Animal Health reported its Q3 2024 financial results, achieving revenue of $1,030 million with 1% organic constant currency growth. The company received U.S. FDA approval for Zenrelia™ and Credelio Quattro™, and tightened its full-year 2024 financial guidance.

Revenue reached $1,030 million, with organic constant currency growth of 1%.

Reported EPS was $0.73, and Adjusted EPS was $0.13.

U.S. FDA approved Zenrelia™ and Credelio Quattro™.

Full-year 2024 revenue guidance tightened to $4,420 to $4,450 million, with 3% organic constant currency growth.

Total Revenue
$1.03B
Previous year: $1.07B
-3.6%
EPS
$0.13
Previous year: $0.18
-27.8%
Revenue growth (excl. FX)
1%
Previous year: 5%
-80.0%
Gross Profit
$538M
Previous year: $581M
-7.4%
Cash and Equivalents
$490M
Previous year: $369M
+32.8%
Free Cash Flow
$120M
Previous year: $165M
-27.3%
Total Assets
$13.3B
Previous year: $14.3B
-7.4%

Elanco

Elanco

Forward Guidance

Elanco is tightening financial guidance for the full year 2024 and providing guidance for the fourth quarter of 2024.

Positive Outlook

  • Revenue between $1.00 billion and $1.03 billion is anticipated for Q4 2024.
  • Organic constant currency revenue growth of 1% to 4% is expected in Q4 2024.
  • Full year 2024 revenue is projected to be between $4,420 to $4,450 million.
  • Full year 2024 organic constant currency growth is expected to be 3%.
  • Innovation sales contribution is expected between $420 million to $450 million for the full year.

Challenges Ahead

  • Reported net loss is expected to be between $(59) million and $(32) million for Q4 2024.
  • The impact of foreign exchange rates on revenue is expected to be a headwind of approximately $5 million in Q4 2024.
  • The impact of foreign exchange rates on revenue is now expected to be a headwind of approximately $25 million for full year 2024.
  • Gross margin headwinds from product mix and manufacturing performance are expected.
  • Underlying adjusted EBITDA growth in 2025 is impacted by an anticipated $25 million to $35 million year-over-year headwind from the court-supervised insolvency of a key U.K-based contract manufacturing partner.