Eli Lilly’s Q2 2018 Earnings: Elanco

Elanco

Elanco is Eli Lilly & Co.’s (LLY) animal health business. Elanco reported revenues of $792.1 million in the second quarter, representing 1.0% YoY (year-over-year) growth from $784.8 million in the second quarter of 2017. The chart below shows Elanco’s revenues since the first quarter of 2017.

Eli Lilly’s Q2 2018 Earnings: Elanco

Elanco’s revenues

Elanco’s revenues include the sales of food, animal products, and companion animal products for its US and international markets. Eli Lilly’s (LLY) US animal health business reported revenues of $378.3 million during the second quarter, an ~7.0% YoY decline compared to the second quarter of 2017.

This segment’s international markets reported revenues of $414.0 million during the second quarter, representing 9.0% growth in YoY revenues compared to the second quarter of 2017.

Food and other products

This segment’s food and other products unit reported revenues of $491.7 million during the second quarter, a 4.0% YoY increase in revenues compared to the second quarter of 2017. The revenues for its US markets for food and other products declined 7.0% to $171.4 million during the second quarter.

The sales for international markets for food and other products reported 11.0% growth in revenues of $320.3 million during the second quarter. This trend includes 8.0% growth in operating revenues and a 2.0% favorable impact of foreign exchange.

Companion animal products

Elanco’s companion animal products portfolio reported revenues of $300.6 million in the second quarter, a 4.0% decline in YoY revenues compared to the second quarter of 2017. The portfolio’s US sales decreased ~7.0% to $206.9 million. Its international sales increased ~5.0% to $93.7 million, including 1.0% growth in operating revenues and a 5.0% favorable impact of foreign exchange.

On July 24, Eli Lilly announced that according to its strategic review, the company plans to separate its Elanco business through a potential initial public offering.

The SPDR S&P Pharmaceuticals ETF (XPH) holds 4.7% of its total investments in Eli Lilly (LLY), 4.7% in Bristol-Myers Squibb (BMY), 4.5% in Allergan (AGN), and 4.2% in Zoetis (ZTS).