Zoetis Inc. Class A (ZTS) reports earnings

The report was filed on February 13, 2025

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Zoetis Inc. Class A (ZTS+2.15%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.

The filing reports total revenue of $9.256 billion, an 8% increase from $8.544 billion in 2023. This growth was driven by a 13% increase in companion animal product sales, while livestock product sales remained flat.

The U.S. segment contributed $5.074 billion to total revenue, reflecting an 11% increase, primarily due to growth in sales of Simparica Trio, Librela, Solensia, and key dermatology products.

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International revenue grew by 5% to $4.102 billion, with operational growth of 10% when excluding foreign exchange impacts. This was driven by increased sales in companion animal products and growth in cattle, poultry, and fish product sales.

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Cost of sales as a percentage of revenue decreased to 29.4% from 30.0% in the prior year, attributed to price increases and favorable product mix.

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Selling, general, and administrative expenses increased by 8% to $2.318 billion, primarily due to higher compensation-related costs and increased advertising expenses.

Research and development expenses rose by 12% to $686 million, reflecting increased project investments and compensation costs.

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Net income attributable to Zoetis was $2.486 billion, a 6% increase from $2.344 billion in 2023. Adjusted net income was $2.693 billion, up 10% from the previous year.

The effective tax rate remained consistent at 20.3% for 2024, with changes in jurisdictional mix of earnings and benefits related to foreign-derived intangible income.

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Zoetis completed the divestiture of its medicated feed additive product portfolio, contributing to a net loss on sale of businesses of $25 million.

The company repurchased 10.4 million shares for $1.8 billion under its share repurchase program and declared dividends of $1.796 per share for the year.

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This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Zoetis Inc. Class A annual 10-K report dated February 13, 2025. To report an error, please email earnings@qz.com.