Zoetis Q4 2021 Earnings Report
Key Takeaways
Zoetis reported Q4 2021 revenue of $2.0 billion, a 9% increase compared to Q4 2020. Net income for Q4 2021 was $414 million, a 15% increase. Adjusted net income was $474 million, an 8% increase.
Revenue in the U.S. segment was $1.040 billion, an increase of 9% compared with the fourth quarter of 2020.
Sales of companion animal products increased 20%, driven by growth across the company’s parasiticides portfolio, including Simparica Trio® for dogs.
Revenue in the International segment was $902 million, an increase of 8% on a reported and operational basis compared with the fourth quarter of 2020.
Sales of companion animal products increased 22% on a reported basis and 23% operationally.
Zoetis
Zoetis
Zoetis Revenue by Segment
Zoetis Revenue by Geographic Location
Forward Guidance
Zoetis is providing full year 2022 guidance, which includes revenue between $8.325 billion to $8.475 billion, reported diluted EPS between $4.75 to $4.87, and adjusted diluted EPS between $5.09 to $5.19.
Positive Outlook
- Revenue between $8.325 billion to $8.475 billion
- Operational growth of 9% to 11%
- Adjusted cost of sales as a percentage of revenue approximately 29%
- Adjusted SG&A expenses between $2.070 to $2.120 billion
- Adjusted R&D expenses between $540 to $560 million
Challenges Ahead
- Foreign exchange impact on revenue of approximately $(160) million
- Foreign exchange impact on Adjusted SG&A expenses of approximately $(30) million
- Foreign exchange impact on Adjusted R&D expenses of approximately $(5) million
- Adjusted interest expense and other (income)/deductions-net approximately $240 million
- Effective tax rate on adjusted income approximately 20%
Revenue & Expenses
Visualization of income flow from segment revenue to net income