Core Viewpoint - Elanco Animal Health Incorporated has released its 2024 Impact Report, emphasizing its commitment to enhancing animal care and the well-being of those who care for them through a new framework focused on four key communities of impact [1][2][3] Group 1: Commitment to Animals - Elanco's strong portfolio and high-impact innovations drive the company's mission to improve animal lives [4] - Key innovations such as Zenrelia, Credelio Quattro, and Pradalex generated $461 million in revenue in 2024, exceeding the target of $420 million to $450 million [7] - The company ranked as the 1 retail parasiticide dispenser in the U.S. and expanded global retail offerings [7] Group 2: Commitment to Customers - Elanco aims to advocate for and earn the trust of customers while solving significant challenges to create value [5] - The company has launched new veterinary-formulated pet supplements under the Advantage family umbrella [7] Group 3: Commitment to Society - Elanco is dedicated to improving public health through animal health initiatives and safeguarding the food system [6] - The company donated over $400,000 worth of products to support animal health and well-being [7] - Elanco's UpLook database helps U.S. dairy farmers earn around $10 million in net returns from carbon credit reductions [7] Group 4: Commitment to Employees - Elanco promotes a purpose-driven culture that encourages ownership, growth, and well-being among its employees [8] - The company achieved a 71% Employee Engagement Score, reflecting a 4% increase from the previous year [11] - Over 26,000 volunteer hours were recorded in 2024, contributing an estimated value of $870,000 across 1,100 global organizations [11] Group 5: Future Outlook - Elanco invites stakeholders to explore the full 2024 Impact Report and is committed to advancing its purpose of making life better for animals, customers, society, and employees [9]

Financial Performance & Guidance - Elanco's Q1 2025 revenue exceeded guidance by $25 million[9] - Adjusted EBITDA for Q1 2025 exceeded guidance by $26 million[9] - Adjusted EPS for Q1 2025 exceeded guidance by $005[9] - The company is raising its 2025 revenue guidance due to foreign exchange tailwinds, while maintaining adjusted EBITDA guidance of $830-$870 million and adjusted EPS guidance of $080-$086[11] - Elanco expects $450-$500 million of gross debt paydown in 2025[10] Revenue Analysis - Elanco achieved 4% organic constant currency revenue growth in Q1 2025[10, 14] - Q1 2025 total Elanco revenue was $1193 million, a decrease of 1% compared to $1205 million in Q1 2024[29, 31] - US Farm Animal revenue increased by 17% to $230 million in Q1 2025 compared to $197 million in Q1 2024[31] - International Farm Animal revenue decreased by 12% to $316 million in Q1 2025 compared to $360 million in Q1 2024, but increased 2% on an organic constant currency basis[31] Innovation & Portfolio - Q1 2025 innovation revenue contribution was $198 million[10, 18] - Elanco is raising its 2025 innovation sales target to $660-$740 million[10, 17, 20]

Core Insights - Elanco Animal Health Incorporated reported financial results for Q1 2025, exceeding guidance for revenue, adjusted EBITDA, and adjusted EPS, with a 4% organic constant currency revenue growth and a revenue of $1,193 million, a decline of 1% year-over-year [2][4][7] - The company raised its 2025 revenue guidance to a range of $4,510 to $4,580 million, attributing the increase to favorable foreign exchange rates and strong performance in its diverse portfolio [2][19] - Elanco's adjusted net income for Q1 2025 was $184 million, or $0.37 per diluted share, reflecting a 9% increase compared to the same period in 2024 [15][19] Financial Performance - Q1 2025 revenue was $1,193 million, down 1% year-over-year, but showed a 4% organic constant currency growth [4][7] - Reported net income for Q1 2025 was $67 million, compared to $32 million in Q1 2024, with adjusted EBITDA at $276 million, a 6% decrease from the previous year [15][17] - The net leverage ratio as of March 31, 2025, was 4.4x adjusted EBITDA, with an improved year-end target of 3.9x to 4.3x [17][19] Business Segments - Pet Health revenue was $635 million, a decrease of 1% year-over-year, with a 1% increase when excluding foreign exchange impacts [8][9] - Farm Animal revenue was $546 million, down 2% year-over-year, but showed a 7% increase when excluding unfavorable impacts from the aqua divestiture and foreign exchange rates [9][10] - The company achieved approximately 10% dollar share of broad-spectrum sales in U.S. vet clinics for Credelio Quattro™ and over 35% penetration for Zenrelia™ in U.S. clinics [5][6] Guidance and Outlook - For the full year 2025, Elanco expects adjusted EBITDA of $830 to $870 million and adjusted EPS of $0.80 to $0.86, maintaining previous guidance despite macroeconomic uncertainties [19][21] - The company anticipates a revenue headwind of approximately $5 million in Q2 2025 due to unfavorable foreign exchange rates, but expects 4% to 6% organic constant currency revenue growth excluding these impacts [23][24] - Operating expenses are projected to increase by approximately 11% year-over-year in constant currency, driven by strategic investments in the innovation portfolio [23][24]