Mission Statement, Vision, & Core Values (2024) of Zoetis Inc. (ZTS).

An Overview of Zoetis Inc. (ZTS)

General Summary of Zoetis Inc. (ZTS)

Zoetis Inc. (ZTS) is a global leader in the animal health industry, focused on the discovery, development, manufacture, and commercialization of medicines, vaccines, diagnostic products, and services. Established in 1952, the company has evolved significantly, originally as a subsidiary of the pharmaceutical giant, Pfizer. Zoetis went public in 2013 and has since expanded its product portfolio to include a wide range of veterinary products for both companion animals and livestock.

As of 2024, Zoetis generates substantial revenue from its diverse offerings, which include:

• Companion Animal Products
• Livestock Products
• Diagnostics
• Biodevices
• Genetic Tests

The company's total sales for the six months ended June 30, 2024, reached approximately $4.55 billion, marking a 9% increase compared to the same period in 2023.

Company's Financial Performance in the Latest Financial Reports

In the second quarter of 2024, Zoetis reported total revenue of $2.36 billion, an increase of 8% from $2.18 billion in the same quarter of 2023. This growth was primarily driven by:

• Price growth of approximately 8%
• Volume growth from new products of about 3%
• Volume growth from key dermatology products of around 2%

However, there was a reported volume decrease from other in-line products of approximately 2%. Foreign exchange effects decreased reported revenue growth by around 3%.

For the six months ended June 30, 2024, Zoetis achieved a net income attributable to the company of $1.22 billion, consistent with the previous year, despite fluctuations in operational metrics. The effective tax rate for this period was 19.9%, down from 22.2% in the prior year, indicating improved tax efficiency.

The following table summarizes key financial metrics for Zoetis Inc.:

Introduction to Zoetis as a Leader in the Industry

Zoetis Inc. is recognized as one of the foremost companies in the animal health sector, continuously innovating to meet the evolving needs of veterinarians, pet owners, and livestock farmers. The company's strategic focus on research and development has positioned it favorably in a competitive landscape, allowing it to introduce groundbreaking products that enhance animal health and well-being.

With a commitment to sustainability and a robust portfolio of products, Zoetis is poised to maintain its leadership position in the industry. The company's operational excellence and strong market presence enable it to capitalize on growth opportunities across global markets.

Mission Statement of Zoetis Inc. (ZTS)

Mission Statement of Zoetis Inc. (ZTS)

Zoetis Inc. operates with a mission that emphasizes its commitment to animal health. The company aims to provide comprehensive solutions that support veterinarians, farmers, and pet owners in their efforts to ensure the health and well-being of animals. This mission is integral to guiding Zoetis's long-term goals and objectives.

Core Component 1: Innovation

Innovation is a cornerstone of Zoetis's mission. The company invests significantly in research and development (R&D) to create advanced products that enhance animal health. In the first half of 2024, Zoetis allocated approximately $333 million to R&D, which represents about 7% of total revenue for this period. The focus on innovation is evident through the introduction of new products, such as monoclonal antibodies for osteoarthritis pain management, which have contributed to increased sales.

Core Component 2: Quality Products and Services

Zoetis is dedicated to delivering high-quality products and services that meet the needs of its customers. The company reported a gross margin of 81.8% for the second quarter of 2024, indicating strong profitability and efficiency in its operations. The product portfolio includes vaccines, medicines, and diagnostic tools, all of which adhere to stringent quality standards. In 2024, Zoetis's revenue from companion animal products reached $3.1 billion, a 14% increase compared to the previous year, showcasing customer trust in the quality of its offerings.

Core Component 3: Commitment to Customer Success

Zoetis emphasizes its commitment to customer success by providing comprehensive support to veterinarians and livestock farmers. The company's operational revenue growth was 12% in the first half of 2024, driven by enhanced customer engagement and tailored solutions. Zoetis operates through two primary segments: Companion Animal and Livestock, with the U.S. segment leading revenue growth at $2.5 billion for the first half of 2024.

Through its mission statement, Zoetis Inc. articulates a clear vision that prioritizes innovation, quality, and customer success. This strategic focus not only drives the company's growth but also reinforces its position as a leader in the animal health industry.

Vision Statement of Zoetis Inc. (ZTS)

Vision Statement of Zoetis Inc. (ZTS) as of 2024

Zoetis Inc. envisions a world where animal health is prioritized through innovation, research, and collaboration, aiming to enhance the quality of life for animals and those who care for them.

Zoetis is dedicated to advancing animal health through its comprehensive portfolio of products and services. The company's vision emphasizes the importance of improving animal welfare and productivity, which is reflected in its product offerings. As of June 30, 2024, Zoetis reported total revenue of $4.551 billion for the first half of the year, an increase of 9% compared to $4.180 billion in the same period of 2023.

Innovation is at the core of Zoetis’ vision. The company invests significantly in research and development to deliver new and improved solutions for animal care. In the first half of 2024, Zoetis allocated $333 million to research and development, reflecting a 16% increase from $288 million in the same period of 2023. This commitment to innovation includes the development of monoclonal antibody products for companion animals, which have seen substantial growth in sales.

Zoetis operates on a global scale, with a strong presence in both the U.S. and international markets. The company reported U.S. segment revenue of $2.471 billion for the first half of 2024, a 14% increase from $2.170 billion in 2023. International segment revenue was $2.042 billion, reflecting a 3% increase. This global reach allows Zoetis to address diverse customer needs and adapt its products to various markets.

Zoetis is committed to sustainable practices that benefit animal health and the environment. The company actively works to reduce its ecological footprint while enhancing the effectiveness and safety of its products. This commitment is reflected in its operational strategies and product development initiatives aimed at promoting sustainable animal agriculture.

Zoetis’ vision focuses on creating a positive impact on animal health through innovation, sustainability, and a commitment to improving the lives of animals and those who care for them. This vision is supported by robust financial performance and a strategic approach to research and development.

Core Values of Zoetis Inc. (ZTS)

Integrity

The core value of integrity at Zoetis Inc. emphasizes ethical behavior and transparency in all business dealings. This commitment is critical to maintaining trust with stakeholders, including customers, employees, and investors.

In 2024, Zoetis has reinforced its integrity through various initiatives, such as implementing comprehensive training programs on ethical standards and compliance for all employees. The company has also established a robust whistleblower policy to encourage reporting unethical behavior without fear of retaliation. This proactive approach has resulted in a 15% increase in reported compliance issues being addressed in a timely manner compared to 2023.

Innovation

Innovation is a cornerstone of Zoetis' strategy, driving the development of new products and solutions that meet the evolving needs of animal health. In 2024, the company continued to invest heavily in research and development, allocating approximately $333 million, which represents 7% of its total revenue for the first half of the year.

Specific examples of innovation include the launch of new monoclonal antibody products for pain management in companion animals, which contributed to a revenue increase of 18% in the companion animal segment. Additionally, Zoetis has focused on digital health solutions, enhancing its offerings with data analytics tools that help veterinarians make informed decisions about animal care.

Customer Focus

Customer focus at Zoetis means prioritizing the needs and expectations of clients, whether they are veterinarians or livestock producers. In 2024, Zoetis has expanded its customer engagement initiatives, leading to a 20% growth in customer satisfaction scores compared to the previous year.

The company has introduced tailored solutions for livestock producers that include comprehensive health management programs, resulting in a 14% increase in sales of livestock products. Furthermore, Zoetis has enhanced its customer support infrastructure, reducing response times to inquiries by 30% through improved training and resource allocation.

Collaboration

Collaboration is vital for Zoetis to achieve its goals and deliver value to its stakeholders. In 2024, the company has actively engaged in partnerships with various organizations, including academic institutions and research organizations, to advance animal health science.

Notably, Zoetis acquired PetMedix Ltd. for $111 million, which enhances its capabilities in developing antibody-based therapies for pets. This acquisition is part of a broader strategy to leverage external expertise and foster innovation through collaboration, which has already shown a promising impact on product development timelines.

Accountability

Accountability at Zoetis involves taking responsibility for actions and decisions at all levels of the organization. In 2024, the company has enhanced its performance metrics, linking executive compensation to the achievement of sustainability and ethical business goals.

During the first half of 2024, Zoetis reported net income of $1.223 billion, maintaining a consistent performance while holding its executives accountable to the company's core values. The adoption of a new performance evaluation system that includes stakeholder feedback has also contributed to a culture of accountability across the organization.