Elanco Animal Health, based in Greenfield, Indiana, experienced a boost in fourth-quarter sales thanks to price hikes and growing demand for its farm-animal products. Despite reporting a loss of $141 million, or 29 cents per share, compared to a loss of $55 million, or 11 cents per share, in the same quarter the previous year, the company saw a 5% revenue increase to $1.04 billion.
Financial Performance
Adjusting for one-time items, the company reported adjusted earnings of 8 cents per share, falling short of analysts’ expectations of 10 cents per share. The revenue increase was driven by a significant 10% rise in sales of farm-animal products, partially offset by a 1% decline in pet-health product sales.
CEO Statement
Chief Executive Jeff Simmons attributed the revenue growth to price increases and consumer demand for innovative products. The company’s adjusted earnings were impacted by the devaluation of the Argentinian peso in December.
Future Projections
For the upcoming first quarter, Elanco is aiming for adjusted earnings between 25 and 28 cents per share, with revenue projected to fall between $1.16 billion and $1.19 billion. Looking ahead to 2024, the company has set targets of adjusted earnings ranging from 87 to 95 cents per share, with anticipated revenue in the range of $4.45 billion to $4.54 billion. These projections account for the full-year contribution of the aqua business, which is slated to be sold to Merck Animal Health.
The guidance does not incorporate expectations related to new product launches in 2024.