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Dec 31, 2022
Elanco Q4 2022 Earnings Report
Elanco's Q4 2022 results demonstrated dedication to the IPP strategy, with significant advancements in innovation pipeline and productivity gains.
Key Takeaways
Elanco Animal Health reported a revenue decrease of 11% in Q4 2022, but delivered operating cost discipline, contributing to an Adjusted EBITDA margin expansion of 90 basis points for the year. The company delivered expected submissions for two pet health potential blockbusters and added eight product approvals in major markets.
Revenue was $988 million, an 11% decrease compared to Q4 2021.
Pet Health revenue decreased by 14% to $423 million.
Farm Animal revenue decreased by 9% to $552 million.
Adjusted EBITDA was $174 million, a 19% decrease compared to Q4 2021.
Elanco
Elanco
Elanco Revenue by Segment
Revenue by Segment
Pet Health Revenue
CapyFin.comCattle Revenue
CapyFin.comPoultry Revenue
CapyFin.comSwine Revenue
CapyFin.comAqua Revenue
CapyFin.com Forward Guidance
Elanco is providing financial guidance for the full year 2023, anticipating revenue between $4,280 million and $4,400 million. For the first half of 2023, revenue is expected to be between $2.23 billion and $2.31 billion.
Positive Outlook
- Accelerating growth from innovation products
- Increased price
- Improving dynamics in China
- Successfully executing systems integration
- Enhancing commercial excellence
Challenges Ahead
- Continued pressure from competitive innovation in the U.S. pet health veterinary market
- Economic weakness in Europe and U.S.
- Impact on pet retail markets
- Headwind of approximately $10 million to $15 million from the unfavorable impact of foreign exchange rates compared to prior year (FY)
- Shift of approximately $40 million to $80 million in revenue into the first quarter of 2023 from what otherwise would have been expected in the second quarter of 2023 due to ERP system go-live in April 2023
Revenue & Expenses
Visualization of income flow from segment revenue to net income