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Mar 31, 2023

Zoetis Q1 2023 Earnings Report

Zoetis's revenue increased, but net income and EPS decreased due to distributor de-stocking and other factors.

Key Takeaways

Zoetis reported a 1% increase in revenue to $2.0 billion for Q1 2023, with a net income of $552 million, a 7% decrease. Adjusted net income was $607 million, a 3% decline. The company maintained its full-year revenue guidance of $8.575 - $8.725 billion and operational revenue growth of 6% to 8%.

Revenue grew 1% to $2.0 billion, with 4% operational growth.

Net income decreased 7% to $552 million, with adjusted net income down 3% to $607 million.

U.S. revenue decreased 1%, while international revenue increased 3% on a reported basis and 10% operationally.

Full-year revenue guidance maintained at $8.575 - $8.725 billion, with operational growth of 6% to 8%.

Total Revenue
$2B
Previous year: $1.99B
+0.7%
EPS
$1.31
Previous year: $1.32
-0.8%
US Revenue Growth
-1%
Previous year: 9%
-111.1%
International Revenue Growth
10%
Previous year: 3%
+233.3%
Gross Profit
$1.41B
Previous year: $1.42B
-0.4%
Cash and Equivalents
$2.11B
Previous year: $3.14B
-32.7%
Free Cash Flow
$326M
Previous year: $194M
+68.0%
Total Assets
$13.8B
Previous year: $13.9B
-0.8%

Zoetis

Zoetis

Zoetis Revenue by Segment

Zoetis Revenue by Geographic Location

Forward Guidance

Zoetis is maintaining its full year 2023 guidance, which includes revenue between $8.575 billion to $8.725 billion (operational growth of 6% to 8%), reported net income between $2.345 billion to $2.400 billion, adjusted net income between $2.490 billion to $2.540 billion (operational growth of 7% to 9%), reported diluted EPS between $5.03 to $5.14, and adjusted diluted EPS between $5.34 to $5.44.

Positive Outlook

  • Revenue between $8.575 billion to $8.725 billion
  • Operational growth of 6% to 8%
  • Reported net income between $2.345 billion to $2.400 billion
  • Adjusted net income between $2.490 billion to $2.540 billion
  • Operational growth of 7% to 9%

Revenue & Expenses

Visualization of income flow from segment revenue to net income