Zoetis(ZTS) - 2024 Q4 - Annual Results

Financial Performance - The company reported revenue of $2.3 billion for Q4 2024, a 5$581 million, or $1.29 per diluted share, reflecting an 11$9.3 billion, an 8% increase compared to 2023, with operational revenue growth of 11%[4] - Adjusted net income for full year 2024 was $2.7 billion, or$5.92 per diluted share, marking a 10% and 11% increase, respectively, on a reported basis[5] - Revenue for Q4 2024 was $2,317 million, a 5$2,213 million in Q4 2023[21] - Net income attributable to Zoetis for Q4 2024 was $581 million, up 11$525 million in Q4 2023[21] - Earnings per share (diluted) for Q4 2024 increased to $1.29, representing a 13$1.14 in Q4 2023[21] - Total revenue for the twelve months ended December 31, 2024, reached $9,256 million, an 8$8,544 million in 2023[21] - Net income attributable to Zoetis for the twelve months ended December 31, 2024, was $2,486 million, a 6$2,344 million in 2023[28] - Adjusted net income for the twelve months ended December 31, 2024, was $2,693 million, a 10$2,457 million in 2023[40] - Total earnings for the company were $3,133 million, a 7$2,936 million in 2023[63] Revenue Breakdown - Revenue in the U.S. segment for Q4 2024 was $1.3 billion, a 4$1.0 billion, reflecting a 6% increase on a reported basis[8] - Companion animal products in the U.S. saw a 7% increase, driven by products like Simparica Trio and the dermatology portfolio[8] - The company achieved 11% revenue growth in the U.S. and 10% operational revenue growth internationally for full year 2024[7] - Companion Animal revenue grew by 13% to $6,278 million, up from$5,576 million in 2023[51] - Livestock revenue remained stable at $2,898 million, showing no significant change from$2,890 million in 2023[51] - U.S. total revenue increased by 11% to $5,074 million, compared to$4,555 million in 2023[51] - International revenue for 2024 was $4,102 million, a 5$3,911 million in 2023[54] - U.S. revenue increased to $5,074 million in 2024, up 11$4,555 million in 2023[63] - International revenue rose to $4,102 million, reflecting a 5$3,911 million in the previous year[63] - Total reportable segments revenue reached $5,454 million, an 11$4,900 million in 2023[63] Guidance and Projections - The company expects full year 2025 revenue guidance of $9.225 to$9.375 billion, with diluted EPS of $5.70 to$5.80 on a reported basis[10] - The company is confident in sustaining above-market growth, guiding for 6% to 8% organic operational growth in revenue for 2025[7] - The company expects full-year 2025 revenue to be between $9,225 million and$9,375 million, with organic operational growth projected at 6% to 8%[43] - Adjusted diluted EPS for 2025 is forecasted to be between $6.00 and$6.10, reflecting a significant increase from previous periods[43] - The effective tax rate on adjusted income for 2025 is expected to be approximately 21%[43] Expenses and Costs - Research and development expenses for Q4 2024 were $186 million, a 7$174 million in Q4 2023[21] - Selling, general and administrative expenses for Q4 2024 rose to $625 million, an 11$565 million in Q4 2023[21] - Adjusted cost of sales for the twelve months ended December 31, 2024, was $2,714 million, representing a 7$2,548 million in 2023[40] - Adjusted SG&A expenses for the twelve months ended December 31, 2024, were $2,301 million, an 8$2,130 million in 2023[40] - Corporate costs increased by 16% to $1,213 million, up from$1,042 million in the previous year[65] Profitability Metrics - The company reported a gross profit of $1,610 million for Q4 2024, slightly up from$1,485 million in Q4 2023[24] - Gross profit in the U.S. segment rose by 8% to $1,028 million, with a gross margin of 81.8$523 million, with a gross margin of 67.7%[56] - The company reported a total earnings increase of 13% to $732 million for the period[56] - Gross profit margin in the U.S. improved to 81.6$4,138 million in the U.S., which is a 13% increase from $3,655 million in 2023[63] Other Financial Information - Interest expense decreased by 14$51 million in Q4 2024 from $59 million in Q4 2023[21] - The provision for taxes on income for Q4 2024 was$151 million, a 19% increase from $127 million in Q4 2023[21] - Total acquisition and divestiture-related costs for the twelve months ended December 31, 2024, were$14 million net of tax, compared to $7 million in 2023[31] - The company reported a net loss of$3 million on the sale of businesses for the three months ended December 31, 2024[36] - Adjusted R&D expenses for the three months ended December 31, 2024, were $186 million, a 7$174 million in the same period of 2023[39]