Elanco Q4 2023 Earnings Report
Key Takeaways
Elanco Animal Health reported a 5% increase in revenue to $1,035 million for Q4 2023, driven by its farm animal business, innovation revenue, and price growth. However, the company experienced a net loss of $141 million, and adjusted EBITDA was adversely affected by unexpected items, including the devaluation of the Argentinian peso.
Elanco's Q4 2023 revenue reached $1,035 million, marking a 5% increase year-over-year.
The company reported a net loss of $141 million, with adjusted net income at $39 million.
Adjusted EBITDA stood at $165 million, representing 15.9% of revenue.
Strategic restructuring announced to reallocate resources and improve efficiency.
Elanco
Elanco
Forward Guidance
Elanco provided financial guidance for the full year 2024, anticipating revenue between $4,450 million and $4,540 million and adjusted EPS between $0.87 and $0.95.
Positive Outlook
- Revenue between $4,450 million and $4,540 million
- Constant currency revenue growth of 1% to 3%
- Growth expected in both pet health and farm animal
- Adjusted EBITDA between $960 million and $1,010 million
- Adjusted EPS between $0.87 and $0.95
Challenges Ahead
- A headwind of approximately $5 million from the unfavorable impact of foreign exchange rates
- Slight decline in gross margin
- Operating expenses are expected to increase 2% to 4%
- Decline in the first half the year and increase in the second half of the year for both adjusted EBITDA and adjusted EPS
- Guidance does not consider contribution from expected launches of new products