- Fourth Quarter 2023 Financial Results:
- Revenue of $1,035 million
- Reported Net Loss of $141 million, Adjusted Net Income of $39 million
- Adjusted EBITDA of $165 million or 15.9% of Revenue
- Reported EPS of $(0.29), Adjusted EPS of $0.08
- Net leverage ratio of 5.6x Adjusted EBITDA
- Full Year 2023 Financial Results:
- Revenue of $4,417 million
- Reported Net Loss of $1,231 million, Adjusted Net Income of $439 million
- Adjusted EBITDA of $979 million or 22.2% of Revenue
- Reported EPS of $(2.50), Adjusted EPS of $0.89
- Full Year 2024 Guidance:
- Revenue of $4,450 to $4,540 million
- Reported Net Loss of $17 to $62 million, Adjusted EBITDA of $960 to $1,010 million
- Reported EPS of $(0.12) to $(0.03), Adjusted EPS of $0.87 to $0.95
- Guidance includes full year contribution of the company's aqua business and does not consider contribution from expected launches of three blockbuster-potential products
- Announced strategic restructuring impacting approximately 420 personnel, resulting in a charge to 2024 reported results of $50 to $55 million and generating approximately $30 to $35 million in annualized savings, which the company plans to reinvest in more significant value creation opportunities
GREENFIELD, Ind (February 26, 2024) - Elanco Animal Health Incorporated (NYSE: ELAN) today reported its financial results for the fourth quarter and full year 2023 and provided initial guidance both for the first quarter and full year 2024.
“Elanco ended 2023 with momentum, returning to constant currency revenue growth for the full year and delivering 5% growth in the fourth quarter, primarily driven by our farm animal business, innovation revenue and price growth,” said Jeff Simmons, President and CEO of Elanco Animal Health. "While we exceeded our sales expectations and demonstrated strong operating expense management in the fourth quarter, adjusted EBITDA was adversely impacted by approximately $18 million of unexpected items, primarily the significant devaluation of the Argentinian peso that occurred in December of 2023. Over the past year, we have enhanced our commercial infrastructure to support future growth, doubled year over year innovation sales, returned to revenue growth and taken actions to accelerate debt paydown."
Simmons continued, “As we look at 2024, we expect our existing portfolio to deliver constant currency revenue growth of 1% to 3%, with both pet health and farm animal expected to contribute to growth. We remain encouraged by our three late-stage pipeline products under regulatory review that have a path toward approval in the first half of 2024 and would be additive to our topline expectations in the second half of the year. Continuing our efforts to improve efficiency, today we announced a strategic restructuring to continue the shift of our investments into more significant value creation areas. We are investing to enhance our launch efforts, prioritizing cash flow improvements and meaningfully reducing leverage, from both our improving free cash flow and the expected sale of our aqua 2 business. We believe that the investments we are making in 2024 will provide the foundation to enable sustained revenue growth over the medium and long term.”
