- First Quarter 2023 Financial Results
- Revenue of $1,257 million, including an estimated $90-$110 million benefit from customer purchasing shifted from the second quarter into the first as a result of ERP system commercial ordering blackout period for legacy Bayer Animal Health products in April
- Reported Net Income of $103 million, Adjusted Net Income of $220 million
- Adjusted EBITDA of $379 million or 30.2% of Revenue
- Reported EPS of $0.21, Adjusted EPS of $0.45
- Net leverage ratio of 5.4x Adjusted EBITDA
- Raising the bottom end of full year 2023 guidance ranges to reflect current assumptions:
- Revenue of $4,310 to $4,400 million
- Reported Net Loss of $(134) to $(98) million, Reported diluted EPS of $(0.27) to $(0.20)
- Adjusted EPS of $0.76 to $0.83, Adjusted EBITDA of $940 to $1,000 million
- Net leverage ratio expected at 5.3x to 5.8x Adjusted EBITDA at year-end 2023
- Successful integration of legacy Bayer Animal Health business into Elanco’s ERP system and shared service center network with all affiliates and sites resuming normal operations in April, as scheduled
- Received USDA conditional approval for breakthrough Canine Parvovirus Monoclonal Antibody treatment; Initiated USDA submission for IL-31 monoclonal antibody for canine dermatology
GREENFIELD, Ind (May 9, 2023) - Elanco Animal Health Incorporated (NYSE: ELAN) today reported financial results for the first quarter of 2023, provided guidance for the second quarter of 2023, and raised the bottom-end of guidance for the full year 2023.
“Elanco delivered sequentially improved underlying business performance in the first quarter driven by recovering business conditions and actions we have taken to strengthen our commercial positioning, notably in U.S. Pet Health driven by improved share of voice, physical availability, price and innovation. In April, we achieved a major milestone with the successful integration of the Bayer Animal Health business into our ERP system, with the first quarter benefiting from customers shifting their purchases ahead of our system blackout. We expect lower revenue in the second quarter as a result of this shift,” said Jeff Simmons, Elanco president and CEO. “I am very pleased with the progress on Seresto as we continue to align with the EPA on its recommended stewardship actions supporting the continued registration of Seresto. We received USDA conditional approval for our breakthrough Canine Parvovirus Monoclonal Antibody treatment and initiated USDA submission for our IL-31 monoclonal antibody for canine dermatology.”
“The combination of advancing innovation, reducing uncertainty with the successful ERP integration and increased confidence in our U.S. Pet Health and international poultry businesses, allow us to confidently raise the bottom end of our first half and full year 2023 guidance for our key metrics. We are focused on delivering an expected return to top-line growth in the second half of the year, while also dedicating resources as we prepare to bring up to four additional potential blockbuster products to market in 2024."
