Enriching Life Food and Companionship Investor Overview | May 2025 Notices and Disclaimers Forward-Looking Statements. This presentation contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements concerning product launches and revenue from such products, our 2025 full year, long-term expectations, our expectations regarding debt levels, and expectations regarding our industry and our operations, performance and financial condition, and i ...

GREENFIELD, Ind., June 26, 2025 /PRNewswire/ -- Today, Elanco Animal Health Incorporated (NYSE: ELAN) announced the release of its 2024 Impact Report, showcasing its efforts to enhance animal care, not just improving the lives of animals but also the people who care for them. Reflecting on its purpose and strategic alignment, the report introduces a new framework centered on four key communities of impact, celebrating Elanco's culture of 'Going Beyond' for animals, customers, society, and our people.In laun ...

Summary of Elanco Animal Health Conference Call Company Overview - **Company**: Elanco Animal Health - **CEO**: Jeff Simmons - **Event**: Stifel Jaws and Paws Conference 2025 Key Points Leadership Transition - Elanco announced a proactive leadership change with the departure of the CFO Todd, who has been with the company for over six years, to be succeeded by Bob Ben Hinbergen from Hillenbrand, emphasizing a cultural fit and value creation focus [2][4][6] Financial Performance - Elanco reported a solid first quarter with innovation revenue reaching **$198 million** and a **4% growth** in revenue, guiding for **4% to 6% growth** for the year [7][9][12] - The company has absorbed tariff impacts and earmarked **$25 million** of FX EBITDA tailwind for future potential pharma tariffs [7][12] - Cash debt paydown was raised from **$150 million** to between **$450 million and $500 million**, indicating strong cash flow management [12] Innovation and Growth - Elanco has seen **seven consecutive quarters of growth**, driven by innovation across its product portfolio, including products like Experior, Credelio, and AdTap [8][10][11] - The company is focusing on a basket of **six blockbusters** and additional products launched in the last three years to drive growth [11] - Credelio Quattro has captured **10% market share** shortly after launch, indicating strong market acceptance [29][30] Market Dynamics - The OTC business experienced a decline in January and February due to cold weather but rebounded in March and April, continuing into May [13][16] - Elanco's distribution strategy has expanded to include retailers like Tractor Supply and Target, enhancing accessibility for pet owners [16][17] Product Development - ZENRELIA is positioned for growth with a focus on changing language on labels to enhance vet adoption, with **11,000 vet clinics** currently using the product [41][42] - The company anticipates a significant market opportunity in the derm category, projected to exceed **$2 billion** [45] Margin Expansion Strategy - Elanco is implementing a company-wide margin expansion approach, focusing on gross-to-net pricing strategies and operational efficiencies [22][58][60] - The company expects to leverage new product launches for improved pricing realization in 2026 [62] Regulatory Environment - Elanco is advocating for streamlined regulatory processes and an exemption from pharma tariffs, emphasizing the unique nature of the animal health industry compared to pharmaceuticals [76][77][78] Future Outlook - The company is optimistic about the growth trajectory in both the pet and farm animal segments, with a focus on innovation and market expansion [70][72] - Elanco aims to solidify its position as a leader in the derm market and capitalize on the growing demand for animal protein [67][70] Additional Insights - The company is closely monitoring weather impacts on sales and is prepared to adjust strategies accordingly [16][17] - Elanco's approach to innovation is multi-faceted, focusing on both product differentiation and market penetration strategies [25][62] This summary encapsulates the key discussions and insights from the Elanco Animal Health conference call, highlighting the company's strategic direction, financial performance, and market opportunities.

Summary of Elanco Animal Health Conference Call Company Overview - **Company**: Elanco Animal Health - **Industry**: Animal Health Key Points and Arguments Financial Performance - Elanco reported a robust Q1 with a **4% constant currency revenue growth**, marking the **seventh consecutive quarter of growth** [4][5] - The company exceeded guidance on revenue, adjusted EBITDA, and adjusted EPS [5] - Revenue guidance was raised to **$660 million to $740 million** for the innovation basket initiated in 2021 [6] Innovation and Product Development - The innovation basket includes six key products contributing significantly to growth, particularly **Quattro**, **Experior**, and **ZENRELIA** [7][8] - **Experior** is identified as having a **$350 million potential market** in North America [8] - ZENRELIA is gaining traction with **11,000 clinics** adopting it, indicating strong market demand in the **$1.9 billion dermatology market** [25][26] - The derm market is expected to grow **double digits**, with ZENRELIA positioned as a leading product [25] Cash Flow and Debt Management - Elanco announced monetizing royalties on the Lotta Lanner asset, bringing in nearly **$300 million** for debt reduction [9] - The company anticipates **$450 million to $500 million** for debt paydown, improving leverage ratios [9] Tariff and Regulatory Environment - Elanco is actively managing tariff impacts, estimating a **$16 million to $20 million** effect primarily from U.S.-China trade relations [10][11] - The company is engaged in discussions with the administration regarding potential tariff exemptions for the animal health industry [16][19] - Regulatory reform discussions are ongoing, with a focus on streamlining processes with the FDA and USDA [17][34] Market Dynamics and Competitive Landscape - The farm animal segment is experiencing growth, with Elanco being a leader in beef, swine, and poultry [73] - The company is optimistic about the protein market, noting a **20% decline** in animal protein alternatives [74] - Elanco's competitive strategy includes leveraging its innovation pipeline and addressing market needs effectively [46][87] Future Outlook - Elanco is focused on expanding its product portfolio, with plans for **seven blockbuster products** in the pipeline [87] - The company is enhancing its distribution strategy, increasing physical availability across various retail channels [90][92] - The outlook for the farm animal segment remains positive, with specific growth anticipated in cattle and poultry, while the pig industry faces challenges [99] Additional Insights - Elanco emphasizes the importance of a stable core business supported by innovation, which is crucial for sustained growth [100] - The company is committed to maintaining a competitive edge through scientific rigor and addressing consumer demands for sustainability [80][81] Conclusion Elanco Animal Health is positioned for continued growth through innovation, effective management of market dynamics, and a strong focus on regulatory engagement. The company's diverse product portfolio and strategic initiatives in the animal health sector are expected to drive future performance.

Financial Data and Key Metrics Changes - Elanco reported revenue of $1,193 million, a decrease of 1% on a reported basis, but achieved organic constant currency growth of 4% compared to Q1 2024 [39][40] - Adjusted EBITDA was $276 million, a decrease of $18 million year-over-year, but increased by $8 million when excluding the impact of the Aqua divestiture and foreign exchange headwinds [44][45] - Adjusted EPS improved to $0.37, driven by a favorable discrete tax rate benefit and interest expense savings from debt reduction [45] Business Line Data and Key Metrics Changes - Total Pet Health revenue increased by 1% in constant currency, with U.S. Pet Health revenue declining by 3% due to a challenging retail environment and soft vaccine demand, while international Pet Health grew by 5% [40][41] - The U.S. Farm Animal business grew by 17%, driven by demand for Experior and the launch of Pradillac, while international Farm Animal business contributed 2% in organic constant currency [42][43] - Innovation revenue reached $198 million in Q1, leading to an increase in full-year expectations for innovation contributions to $660 million to $740 million [7][20] Market Data and Key Metrics Changes - U.S. Retail business declined by 21% in January and February due to adverse weather conditions, but rebounded to a positive 13% growth in March [14][16] - International Pet Health business saw 5% organic constant currency growth, driven by products like AdTab and Credelio [17][18] - The U.S. Farm Animal business experienced significant growth, particularly in cattle, with Experior leading the way [19][31] Company Strategy and Development Direction - Elanco's strategy focuses on innovation, cash management, and a global operating model to navigate external uncertainties [9][10] - The company is committed to maintaining a balanced profile of risks and implementing mitigating strategies to offset tariff impacts and macroeconomic challenges [11][12] - Continued investment in product launches and facility expansions is planned, with a focus on maintaining cost discipline [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver on 2025 goals, citing strong Q1 performance and positive trends in March and April [49][53] - The company is closely monitoring consumer spending and macroeconomic conditions, emphasizing its resilience and execution capabilities [104][106] - Management highlighted the growth potential in the animal protein market, indicating a favorable outlook for the farm animal business [106][107] Other Important Information - Elanco raised its full-year revenue guidance due to favorable foreign exchange impacts, maintaining an organic constant currency growth outlook of 4% to 6% [8][47] - The company expects to achieve a net leverage ratio of 3.9 to 4.3 times adjusted EBITDA by year-end, reflecting strong cash generation and debt reduction efforts [37][50] Q&A Session Summary Question: Can you elaborate on the Q2 guidance and the impact of investments on EBITDA? - Management confirmed that Q2 investments are aimed at supporting product launches during the peak parasiticide season, which may dampen near-term EBITDA but are expected to drive revenue growth in the second half [59][60] Question: What is the expected impact of tariffs and the pharma exemption on EBITDA? - Management indicated a potential $25 million EBITDA tailwind from foreign exchange moves, which has not been reflected in guidance due to uncertainty surrounding the pharma exemption [62][64] Question: Can you provide insights on the innovation revenue contributions? - Management highlighted that the overall innovation portfolio, including products like ZENRELIA and Credelio Quattro, is driving growth, with a focus on expanding market share and clinic adoption [71][93] Question: How is the macro environment affecting consumer spending? - Management noted that while monitoring consumer spending is essential, the company is well-positioned to navigate fluctuations due to its diverse product offerings and strong execution capabilities [104][106]

Elanco Animal Health (ELAN) Q1 2025 Earnings Call May 07, 2025 08:00 AM ET Speaker0 Ladies and gentlemen, thank you for standing by. Welcome to Elanco Animal Health's First Quarter twenty twenty five Earnings Conference Call. At this time, all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you. I would now like to hand the call over to Tiffany Kanaga, Head of Investor Relations. You may begin your conference. Sp ...

Accelerating Debt Paydown in 2025 First Quarter 2025 Financial Results: Revenue of $1,193 million, a decline of 1% year-over-year; 4% organic constant currency growth Reported Net Income of $67 million, Adjusted Net Income of $184 million Adjusted EBITDA of $276 million, or 23.1% of Revenue Reported EPS of $0.13, Adjusted EPS of $0.37 Net leverage ratio of 4.4x Adjusted EBITDA Full Year 2025 Guidance: Raising revenue guidance to $4,510 to $4,580 million, with $65 to $70 million increase since February dr ...

NEW YORK, April 29, 2025 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Elanco Animal Health Incorporated (NYSE:ELAN) on behalf of long-term stockholders following a class action complaint that was filed against Elanco on October 7, 2024 with a Class Period from November 7, 2023 to June 26, 2024. Our investigation concerns whether the board of directors of Elanco have breached their fiduciary duties to the compa ...

Elanco Animal Health Incorporated (NYSE:ELAN) Q4 2024 Earnings Conference Call February 25, 2024 8:00 AM ET Company Participants Tiffany Kanaga - Head of IR Jeffrey Simmons - President & CEO Todd Young - EVP & CFO Conference Call Participants Jonathan Block - Stifel Michael Ryskin - Bank of America Daniel Clark - Leerink Partners Andrea Alfonso - UBS Erin Wright - Morgan Stanley Balaji Prasad - Barclays Mike DiFiore - Evercore ISI Chris Schott - JPMorgan David Westenberg - Piper Sandler Operator Ladies and ...