Zoetis Inc. reported strong financial performance for the third quarter and the first nine months of 2024, with significant increases in revenue and net income compared to the same periods in 2023. For the three months ended September 30, 2024, revenue reached $2,388 million, an 11% increase from $2,151 million in the prior year. For the nine months, revenue totaled $6,939 million, up 10% from $6,331 million. The growth was driven by strong sales in both the U.S. and international markets, particularly in companion animal products, which saw a 14% operational revenue increase.
Net income attributable to Zoetis for the third quarter was $682 million, a 14% rise from $596 million in Q3 2023. For the nine months, net income was $1,905 million, up 5% from $1,819 million. Earnings per share (EPS) also improved, with diluted EPS for Q3 2024 at $1.50, compared to $1.29 in Q3 2023, and for the nine months, diluted EPS increased to $4.18 from $3.93.
The company’s operational revenue growth was supported by price increases and volume growth from new products, although foreign exchange fluctuations negatively impacted reported revenue growth by approximately 3% in Q3 and 2% for the nine months. The cost of sales as a percentage of revenue decreased slightly to 29.4% in Q3 2024 from 29.7% in Q3 2023, attributed to a favorable product mix and lower inventory charges.
Zoetis has been active in strategic acquisitions, including the purchase of PetMedix Ltd. for $111 million and adivo GmbH, both in Q3 2023. The company also announced a definitive agreement to sell its medicated feed additive product portfolio to Phibro Animal Health for $350 million, expected to close in Q4 2024. Restructuring charges for the nine months ended September 30, 2024, totaled $51 million, primarily related to employee termination costs due to organizational refinements.
As of September 30, 2024, Zoetis had cash and cash equivalents of $1,714 million, down from $2,041 million at the end of 2023. The company maintained a strong balance sheet with total assets of $14,357 million and total liabilities of $9,123 million. The effective tax rate for Q3 2024 was 20.8%, up from 16.9% in Q3 2023, reflecting changes in tax expenses and benefits.
Overall, Zoetis continues to demonstrate robust growth in revenue and profitability, supported by strategic investments and a diversified product portfolio in the animal health industry.
About Zoetis Inc.
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