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Dec 31, 2021

Elanco Q4 2021 Earnings Report

Elanco reported a decrease in revenue but an increase in gross profit and adjusted EPS for Q4 2021.

Key Takeaways

Elanco Animal Health reported a decrease in revenue by 2% to $1,113 million in Q4 2021, but an increase in gross profit to $601 million. Adjusted EPS increased by 75% to $0.21 per share and adjusted EBITDA increased by 20% to $212 million.

Revenue was $1,113 million, a decrease of 2% compared to Q4 2020.

Gross profit was $601 million, or 54.0% of revenue, compared to $544 million, or 47.7% for Q4 2020.

Adjusted EPS in the quarter was $0.21 per share, an increase of 75% as compared to Q4 2020.

Adjusted EBITDA was $212 million, an increase of 20% compared to Q4 2020.

Total Revenue
$1.11B
Previous year: $1.14B
-2.3%
EPS
$0.21
Previous year: $0.12
+75.0%
Gross Profit
$601M
Previous year: $544M
+10.6%
Cash and Equivalents
$638M
Previous year: $495M
+28.9%
Free Cash Flow
$223M
Previous year: -$211M
-205.5%
Total Assets
$16.5B
Previous year: $17.7B
-6.9%

Elanco

Elanco

Forward Guidance

Elanco anticipates revenue between $4,745 million and $4,800 million for the full year 2022, with a headwind of approximately $95 million from the unfavorable impact for foreign exchange rates. The company expects revenue between $1,200 million and $1,230 million for the first quarter of 2022.

Positive Outlook

  • Growth is expected to be driven by newly launched innovation products
  • Increased price across the portfolio
  • Growth in key focus brands

Challenges Ahead

  • Lower revenue as a result of competitive pressure in the U.S. pet health parasiticides market
  • Headwinds in the China swine business
  • The reduction of contract manufacturing revenue