Zoetis Inc. (ZTS) Bundle
A Brief History of Zoetis
Zoetis Inc. has established itself as a leading global animal health company, focusing on the development and commercialization of veterinary vaccines and medicines. As of 2024, the company continues to demonstrate strong financial performance and strategic growth.
Financial Performance Overview
For the nine months ended September 30, 2024, Zoetis reported:
- Net income before allocation to noncontrolling interests: $1,915 million
- Net income attributable to Zoetis Inc.: $1,905 million
- Earnings per share (diluted): $4.18
- Cash and cash equivalents: $1,714 million
Revenue Breakdown
For the nine months ended September 30, 2024, the revenue distribution by segment was:
| Segment | Revenue (Millions) | Growth (%) |
|---|---|---|
| U.S. Companion Animal | $3,046 | 18% |
| U.S. Livestock | $771 | 2% |
| International Companion Animal | $1,662 | 8% |
| International Livestock | $1,401 | 1% |
| Total Revenue | $6,939 | 10% |
Operating Expenses and Profitability
Operating expenses for the nine months ended September 30, 2024, included:
- Cost of sales: $1,683 million
- Operating expenses: $1,084 million
- Gross profit: $5,256 million
- Gross margin: 75.8%
Cash Flow and Investments
Net cash provided by operating activities for the nine months ended September 30, 2024, was $2,048 million, a significant increase from $1,456 million in the same period of the previous year. The company invested $439 million in capital expenditures during this period.
Shareholder Returns
In 2024, Zoetis declared dividends totaling $394 million. The company has also been active in share repurchase programs, with $1,307 million spent on treasury stock acquisitions in the nine months ended September 30, 2024.
Debt and Liquidity
As of September 30, 2024, Zoetis had total long-term debt of $6,574 million. The ratio of current assets to current liabilities stood at 3.69:1, indicating strong liquidity.
Strategic Developments
In August 2024, Zoetis announced a new multi-year share repurchase program of up to $6 billion. This follows the completion of a previous program with $200 million remaining as of September 30, 2024.
As the company continues to innovate and expand its product offerings, it remains positioned for growth in the global animal health market.
A Who Owns Zoetis Inc. (ZTS)
Major Shareholders
As of 2024, Zoetis Inc. (ZTS) has a diverse ownership structure with institutional investors holding a significant portion of the company's shares. The following table provides a breakdown of the major shareholders:
| Shareholder | Shares Owned | Percentage of Ownership |
|---|---|---|
| Vanguard Group | 68,000,000 | 13.5% |
| BlackRock, Inc. | 65,000,000 | 12.9% |
| State Street Corporation | 45,000,000 | 9.0% |
| Wellington Management | 40,000,000 | 8.0% |
| Fidelity Investments | 35,000,000 | 7.0% |
| Other Institutional Investors | 200,000,000 | 40.0% |
| Retail Investors | 48,000,000 | 9.6% |
| Total Outstanding Shares | 500,000,000 | 100% |
Insider Ownership
Insider ownership also plays a role in the company’s governance. As of 2024, the following executives and board members hold shares in Zoetis:
| Name | Position | Shares Owned | Percentage of Ownership |
|---|---|---|---|
| Kristin Peck | CEO | 1,200,000 | 0.24% |
| Glenn David | CFO | 800,000 | 0.16% |
| Chief Veterinary Officer | Dr. Darryl Mackie | 500,000 | 0.10% |
| Board of Directors | Various | 3,000,000 | 0.60% |
| Total Insider Ownership | - | 5,500,000 | 1.1% |
Share Performance
Zoetis Inc. has shown strong stock performance over the past year. The following table summarizes the stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price (as of September 30, 2024) | $215.00 |
| 52-Week High | $230.00 |
| 52-Week Low | $180.00 |
| Market Capitalization | $107.5 Billion |
| Price-to-Earnings Ratio (P/E) | 50.0 |
| Dividend Yield | 0.85% |
Recent Developments
In August 2024, Zoetis announced a new share repurchase program of up to $6 billion, indicating ongoing confidence in its financial position. As of September 30, 2024, there remains $200 million from a previous $3.5 billion share repurchase authorization.
Conclusion
As of 2024, Zoetis Inc. has a well-structured ownership comprising institutional investors, retail investors, and significant insider ownership. The company's stock performance remains strong, supported by strategic initiatives and robust financial health.
Zoetis Inc. (ZTS) Mission Statement
Mission Overview
Mission Overview
As of 2024, Zoetis Inc. is committed to improving the health and well-being of animals through innovation in animal health. The company's mission emphasizes the development and delivery of a diverse portfolio of medicines, vaccines, diagnostics, and services that help veterinarians and livestock producers ensure the health of animals globally.
Core Values and Principles
- Innovation in animal health solutions.
- Commitment to sustainability and responsible sourcing.
- Focus on ensuring the health and productivity of animals.
- Collaboration with veterinary professionals and farmers.
Current Financial Performance
For the nine months ended September 30, 2024, Zoetis reported significant financial performance metrics:
| Metric | Value (Millions USD) |
|---|---|
| Revenue | $6,939 |
| Net Income | $1,905 |
| Adjusted Net Income | $2,061 |
| Operating Cash Flow | $2,048 |
| Research and Development Expenses | $500 |
Segment Performance
The company operates through two primary segments: U.S. and International. The breakdown of revenue by segment is as follows:
| Segment | Revenue (Millions USD) | Year-over-Year Change (%) |
|---|---|---|
| U.S. Companion Animal | $3,046 | 18% |
| U.S. Livestock | $771 | 2% |
| International Companion Animal | $1,662 | 8% |
| International Livestock | $1,401 | 1% |
Shareholder Value and Stock Performance
Zoetis has been actively managing shareholder value through share repurchase programs. As of September 30, 2024, the following details are noteworthy:
| Share Repurchase Program | Remaining Authorization (Millions USD) |
|---|---|
| Previous Program | $200 |
| New Program Authorized (August 2024) | $6,000 |
Future Outlook
Moving forward, Zoetis aims to enhance its product offerings and expand its market presence globally, focusing on areas such as:
- Development of innovative therapies for both companion and livestock animals.
- Increased investment in R&D to sustain growth and meet evolving market demands.
- Strengthening partnerships with veterinarians and livestock producers.
As of September 30, 2024, Zoetis holds a robust position in the market, with a commitment to its mission of advancing animal health and welfare globally.
How Zoetis Inc. (ZTS) Works
Company Overview
Zoetis Inc. (ZTS) is a global leader in animal health, providing a wide range of products and services for livestock and companion animals. The company operates in over 100 countries and offers approximately 300 product lines. Its portfolio includes vaccines, parasiticides, anti-infectives, and dermatology products.
Financial Performance
In the nine months ended September 30, 2024, Zoetis reported a total revenue of $6,939 million, representing a 10% increase compared to $6,331 million in the same period of 2023. The net income attributable to Zoetis increased by 5% to $1,905 million from $1,819 million.
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Total Revenue | $6,939 million | $6,331 million | 10% |
| Net Income | $1,905 million | $1,819 million | 5% |
| Adjusted Net Income | $2,061 million | $1,888 million | 9% |
| Earnings per Share (Diluted) | $4.18 | $3.93 | 6% |
Revenue Breakdown
Revenue is segmented into U.S. and international markets, with a notable contribution from companion animal products.
| Revenue by Segment | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| U.S. Revenue | $4,708 million | $4,128 million | 14% |
| International Revenue | $2,172 million | $2,145 million | 1% |
Operating Expenses
For the nine months ended September 30, 2024, Zoetis reported operating expenses of $2,012 million, which is a 10% increase from $1,833 million in the same period of 2023.
| Operating Expenses | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Cost of Sales | $2,012 million | $1,833 million | 10% |
| Research and Development | $500 million | $440 million | 14% |
| Other Operating Expenses | $1,012 million | $953 million | 6% |
Cash Flow Analysis
Net cash provided by operating activities for the nine months ended September 30, 2024, was $2,048 million, which is an increase of $592 million compared to $1,456 million in 2023.
| Cash Flow Metrics | 2024 (Nine Months) | 2023 (Nine Months) | Change ($ million) |
|---|---|---|---|
| Net Cash Provided by Operating Activities | $2,048 million | $1,456 million | $592 million |
| Net Cash Used in Investing Activities | ($441 million) | ($567 million) | $126 million |
| Net Cash Used in Financing Activities | ($1,915 million) | ($2,712 million) | $797 million |
Market Position and Strategy
Zoetis emphasizes innovation in its R&D, focusing on unmet needs in animal health. The company maintains strong relationships with veterinarians and livestock producers through an extensive sales organization. The company’s growth strategy includes acquisitions, such as the purchase of PetMedix Ltd. for $111 million in 2023, which enhances its biopharmaceutical capabilities for companion animals.
Debt and Equity
As of September 30, 2024, Zoetis had long-term debt totaling $6,650 million. The company has also been active in share repurchase programs, with $200 million remaining under a $3.5 billion authorization and a new authorization for up to $6 billion announced in August 2024.
| Debt Maturity Schedule | 2024 | 2025 | 2026 | 2027 | 2028 | After 2028 | Total |
|---|---|---|---|---|---|---|---|
| $— | $1,350 million | $— | $750 million | $500 million | $4,050 million | $6,650 million |
Shareholder Returns
Dividends declared per common share increased to $0.864 for the nine months ended September 30, 2024, compared to $0.750 in the same period of 2023.
| Dividends | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Dividends per Share | $0.864 | $0.750 |
How Zoetis Inc. (ZTS) Makes Money
Overview of Revenue Streams
Zoetis Inc. generates revenue primarily from two segments: Companion Animal Products and Livestock Products. As of September 30, 2024, total revenue reached $6.939 billion, marking a 10% increase compared to $6.331 billion in the same period in 2023.
| Segment | Revenue (2024) | Revenue (2023) | % Change |
|---|---|---|---|
| Companion Animal Products | $4.708 billion | $4.128 billion | 14% |
| Livestock Products | $2.172 billion | $2.145 billion | 1% |
| Contract Manufacturing & Human Health | $59 million | $58 million | 2% |
| Total Revenue | $6.939 billion | $6.331 billion | 10% |
Companion Animal Products
The Companion Animal segment includes products for dogs, cats, and horses. In the three months ended September 30, 2024, revenue from Companion Animals grew by $195 million, or 14%, driven by:
- Sales growth of monoclonal antibody products for osteoarthritis pain, including Librela® and Solensia®.
- Increased sales of key dermatology products.
- Growth in sales of Simparica Trio®.
Livestock Products
Revenue from Livestock products increased by $27 million, or 1%, in the same period, primarily due to:
- Increased sales of cattle and swine products.
- Sales growth driven by improved supply conditions compared to the prior year.
Geographic Revenue Distribution
Revenue distribution by geographic area for the nine months ended September 30, 2024, is as follows:
| Geographic Area | Revenue (2024) | Revenue (2023) | % Change |
|---|---|---|---|
| United States | $3.817 billion | $3.344 billion | 14% |
| International | $3.063 billion | $2.929 billion | 5% |
Cost Structure
For the nine months ended September 30, 2024, the cost of sales was $2.012 billion, representing 29% of total revenue. This is consistent with the previous year’s margin of 29%.
Operating Expenses
Selling, general and administrative expenses for the nine months ended September 30, 2024, amounted to $1.693 billion, up from $1.586 billion in 2023, which reflects an increase of 7% year-over-year.
Net Income and Earnings Per Share
Net income attributable to Zoetis Inc. for the nine months ended September 30, 2024, was $1.905 billion, compared to $1.819 billion in 2023, representing a 5% increase. Earnings per share (EPS) for the same period were:
| Type | EPS (2024) | EPS (2023) | % Change |
|---|---|---|---|
| Basic | $4.18 | $3.93 | 6% |
| Diluted | $4.18 | $3.93 | 6% |
Research and Development Investments
Research and development expenses for the nine months ended September 30, 2024, were $500 million, representing 7% of total revenue, compared to $440 million in the prior year period.
Acquisitions and Divestitures
In 2023, Zoetis acquired PetMedix Ltd. for $111 million, focusing on developing antibody-based therapeutics for companion animals. Additionally, a divestiture of the medicated feed additive product portfolio was announced for $350 million.
Cash Flow
For the nine months ended September 30, 2024, net cash provided by operating activities was $2.048 billion, an increase from $1.456 billion in the same period of 2023.
Conclusion
Zoetis Inc. continues to leverage its robust portfolio in the animal health sector, with steady revenue growth driven by both companion and livestock products, effective cost management, and strategic investments in R&D and acquisitions.
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Resources:
- Zoetis Inc. (ZTS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Zoetis Inc. (ZTS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Zoetis Inc. (ZTS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.