In This Story
Elanco Animal Health Incorporated (ELAN) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a revenue of $1,030 million for the quarter, a 4% decrease compared to $1,068 million in the same quarter of the previous year. The decrease is attributed to the divestiture of the aqua business and competitive pressures in the pet health segment.
Cost of sales for the quarter was $492 million, representing 48% of revenue, compared to 46% in the same quarter of the previous year. This increase in cost ratio is due to inflation, unfavorable manufacturing performance, and product mix changes.
Research and development expenses were $87 million for the quarter, consistent with the prior year. Marketing, selling, and administrative expenses increased to $323 million from $313 million, driven by higher employee-related expenses and investments in the U.S. pet health business.
Amortization of intangible assets decreased to $133 million from $140 million, reflecting changes in foreign currency exchange rates and the cessation of amortization for certain assets.
A pre-tax gain of $640 million was recorded from the divestiture of the aqua business to Merck Animal Health (MRK), which was completed on July 9, 2024.
Interest expense, net of capitalized interest, decreased to $58 million from $72 million due to lower average outstanding debt balances following significant debt repayments.
Net income for the quarter was $364 million, compared to a net loss of $1,096 million in the previous year, which included a $1,042 million goodwill impairment charge.
Cash provided by operating activities was $364 million for the nine months ended September 30, 2024, compared to $114 million in the prior year, driven by improvements in changes in operating assets and liabilities.
Cash provided by investing activities was $1,248 million, primarily due to proceeds from the aqua business sale, while cash used for financing activities was $1,460 million, reflecting significant debt repayments.
The company identified risks related to manufacturing capacity imbalances and supplier challenges, which could impact future operations and financial results.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Elanco Animal Health Incorporated quarterly 10-Q report dated November 7, 2024. To report an error, please email earnings@qz.com.