FULL YEAR: ELANCO'S SALES UP 6%, RETURNS TO PROFITABILITY
Feb. 11, 2019
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Full year global revenue increased 6 percent to $3.1 billion, Interceptor Plus reaches blockbuster status with more than $100 million in annual sales
• Fourth quarter and full year revenue both grew 6 percent to $799.3 million and $3.1 billion, respectively.
• Core Revenue, which excludes strategic exits, grew 6 percent to $774.7 million in Q4; or 9 percent without the impact of foreign currency exchange rates.
• Full year reported earnings per share (EPS) increased by $1.34 to $0.28 compared to a loss of $1.06 per share in 2017; Adjusted EPS increased 71 percent to $1.18.
• Launched Credelio for cats in Europe and gained U.S. approval of Experior for the reduction of ammonia gas emission in cattle.
• Completed the sale of a manufacturing facility in Cali, Colombia and announced a program to streamline international operations, continuing progress on Elanco's productivity agenda.
• Confirm expected 2019 revenue to be between $3.10 billion and $3.16 billion. Reported EPS for 2019 is expected in the range of $0.36 to $0.48 and Adjusted EPS of $1.02 to $1.12.
Elanco Animal Health Incorporated (NYSE: ELAN), today reported global revenue for full year 2018 increased 6 percent to $3.1 billion. For the fourth quarter of 2018, global revenue also grew 6 percent to $799.3 million. The results reflect strong volume growth and the execution of the company's targeted, three-pillar strategy focused on Portfolio, Innovation and Productivity. The results also reflect strong full year performance in its three targeted growth categories: Companion Animal Disease Prevention, Companion Animal Therapeutics and Food Animal Future Protein & Health.
"Our solid results for the full year demonstrate that our strategy is on track, we're executing efficiently and making strong progress against our strategy to deliver the results we promised to our customers, investors and employees," said Jeff Simmons, president and chief executive officer of Elanco.
"Overall, the animal health market continues to display strong fundamentals that will drive growth going forward. We are well positioned to capitalize on these industry growth drivers and are optimistic about our ability to continue to drive top and bottom line growth with the momentum we are carrying into 2019," said Simmons.
Fourth Quarter Key Events:
• Our portfolio of innovation launched since 2015 accounted for $69.8 million in revenue, up $29.7 million or 74 percent over the same quarter last year.
• Experior: Received U.S. approval for Experior, a first-of-its-kind product for the reduction of ammonia gas emission in cattle. This approval marked Elanco's fourth consecutive year since 2015 of securing three key new product approvals.
• Imvixa: Met with the Norwegian Medicines Agency and have agreed on the path forward for submission of Imvixa, a novel treatment for sea lice in salmon.
• Credelio: Launched Credelio, our innovative oral flea and tick treatment for cats in Europe.
• As a group, the targeted growth categories in Elanco's portfolio - Companion Animal Disease Prevention, Companion Animal Therapeutics and Food Animal Future Protein & Health grew 20 percent on a constant currency basis, representing 60 percent of Elanco's total business.
• Interceptor Plus reached blockbuster status, exceeding $100 million in annual sales for the first time.
• Completed the sale of the Cali, Colombia manufacturing facility in December 2018.
• Announced a restructuring program that will replace physical presence in 16 countries with other go-to market models, as well as streamline and delayer international operations.
• For the full year 2018, Elanco:.
-Reduced operating expenses by 5%
-Exited four manufacturing facilities;
-Reduced 18 contract manufacturing organizations (CMOs), finishing the year with 100 CMOs;
-Rationalized 15 percent of low-volume, low-margin stock keeping units (SKUs).