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Dec 31, 2024
Elanco Q4 2024 Earnings Report
Elanco's Q4 2024 performance reflected a mix of revenue decrease and organic constant currency revenue growth, alongside a reported net loss and adjusted net income, with strategic focus on innovation and operational efficiency.
Key Takeaways
Elanco Animal Health reported Q4 2024 revenue of $1,020 million, a 1% decrease but a 4% increase on an organic constant currency basis. The company experienced a net loss of $8 million but achieved an adjusted net income of $72 million. Adjusted EBITDA stood at $177 million, representing 17.4% of revenue. The company is focused on accelerating organic constant currency revenue growth for 2025.
Revenue decreased by 1% on a reported basis but increased by 4% on an organic constant currency basis.
Reported a net loss of $8 million, while adjusted net income reached $72 million.
Adjusted EBITDA was $177 million, 17.4% of revenue, impacted by foreign exchange headwinds.
Launched and shipped Credelio Quattro™ in January and achieved Zenrelia™ use in over 8,000 U.S. clinics.
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.com Forward Guidance
Elanco anticipates revenue between $4,445 to $4,510 million and adjusted EPS between $0.80 to $0.86 for the full year 2025. The company expects a revenue headwind of approximately $110 million due to unfavorable foreign exchange rates. First quarter revenue is expected to be $1,155 to $1,180 million with adjusted EPS of $0.29 to $0.34.
Positive Outlook
- Continue to expect accelerating organic constant currency revenue growth to mid-single digits
- Raising 2025 innovation revenue target to $640 to $720 million
- Expects operating expenses to increase approximately 6% year over year in constant currency with strategic investment in the global launches of the innovation portfolio.
- First quarter adjusted EBITDA includes an expected foreign exchange rate impact of approximately $15 million compared to prior year.
- Expect first quarter adjusted effective tax rate to be in the mid-single digit range as a result of a discrete tax item that will also benefit the full-year expected tax rate of 21% to 22%.
Challenges Ahead
- Anticipates a headwind to revenue of approximately $110 million from the unfavorable impact of foreign exchange rates compared to prior year
- Full year adjusted EBITDA includes an anticipated foreign exchange rate impact of approximately $45 million compared to prior year
- Expects a headwind to revenue of approximately $40 million from the unfavorable impact of foreign exchange rates compared to prior year in Q1 2025
- Expects operating expenses up 6% to 8% year over year in constant currency with strategic investment in the global launches of the innovation portfolio in Q1 2025
- Expect 2025 adjusted EBITDA to be more back half weighted than our historical cadence, with the stronger dollar and as our strategic investments in global launches drive the expected ramp for innovation revenue contributions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income