uploads///Graph

Here Are Elanco Animal Health’s Key Revenue Drivers in 2019

By

Feb. 22 2019, Published 6:26 p.m. ET

Revenue performance in fiscal 2018

In fiscal 2018, Elanco Animal Health (ELAN) reported revenues of $3.07 billion, a YoY rise of 6.15%. The company reported revenues of $799.3 million in the fourth quarter, a YoY rise of 5.96% on a reported basis and 8% on a constant currency basis. The company reported core revenues that exclude sales from its Strategic Exits businesses of $775 million in the fourth quarter, a YoY rise of 9% on a CC basis.

According to the company’s fourth-quarter earnings conference call, Elanco Animal Health managed to earn 60% of its total sales from its targeted growth categories such as companion animal disease prevention, future protein & health, and companion animal therapeutics in the fourth quarter.

Article continues below advertisement

Growth drivers

According to the company’s fourth-quarter earnings investor presentation, Elanco Animal Health business has launched 11 new products since 2015. These products reported sales worth $69.8 million in the fourth quarter of 2018, a YoY rise of 74%. This innovation portfolio also reported sales of $275 million in fiscal 2018.

According to the company’s fourth-quarter earnings conference call, Elanco Animal Health secured regulatory approvals for three new products in fiscal 2018, an innovation run rate that the company has managed to maintain since 2015. In the third quarter of 2018, the company launched a swine vaccine called Prevacent PRRS in the US, a nutritional health product for poultry called Correlink in Asia, and Credelio for flea and tick infestation in cats in Europe. According to the company’s fourth-quarter earnings investor presentation, Elanco Animal Health secured regulatory approval for Experior in the US market to reduce the emission of ammonia gas in cattle.

According to the company’s fourth-quarter earnings conference call, in fiscal 2019, Elanco Animal Health aims to launch Imvixa in Norway for treating sea lice in salmon. This product has already managed to report 70% YoY revenue growth in Chile in fiscal 2018.

According to the company’s fourth-quarter earnings conference call, while Elanco Animal Health has sold off its Cali, Columbia, site in fiscal 2018, the company anticipates continued expenses from this site for the next 12 to 18 months until completion of technology transfer activities. The company, however, continues to make solid progress in its restructuring activities and has reduced operating expenses YoY by 4% in fiscal 2018.

Next, we will discuss growth drivers for Zoetis for fiscal 2019.

Advertisement

More From Market Realist