Elanco raises annual forecasts after quarterly growth
US animal-health company Elanco raised its annual revenue and adjusted earnings forecasts after third-quarter sales increased 11 per cent. Both pet-health and farm-animal revenue grew, and the company returned to net profit. Higher operating expenses accompanied the expansion, while operating cash generation remained slightly below the corresponding quarter a year earlier.
Economics & Markets··Morning
Animal-health sales increase
Elanco Animal Health, a US supplier of animal-health products, reported higher third-quarter revenue and adjusted earnings per share than a year earlier. Revenue reached 1.265 billion dollars, up 11 per cent. Organic revenue growth at constant exchange rates was 9 per cent, including 4 per cent from pricing and 5 per cent from volume. Revenue from pet health grew 14 per cent to 608 million dollars, while farm-animal revenue increased 6 per cent to 631 million dollars.[1], [2]
Profit returns as operating expenses rise
Net income was 18 million dollars, against a year-earlier loss of 34 million dollars. Adjusted earnings per share increased to 0.27 dollars from 0.19 dollars. Gross margin reached 56.9 per cent, up 350 basis points, while operating expenses rose 12 per cent to 492 million dollars. Operating activities generated 216 million dollars in cash, compared with 219 million dollars a year earlier. Net debt was approximately 3.01 billion dollars.[1]
Management lifts annual guidance
Management raised its annual revenue guidance. Its adjusted earnings-per-share forecast increased to 1.17–1.20 dollars from 1.10–1.16 dollars. It also lifted the organic revenue growth forecast to 8 per cent from 6–7 per cent. These are management’s forecasts for the full year.[1]
