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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.
Revenue by Segment
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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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