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• Revenue: $9.3 billion for the year, growing 8% on a reported basis and 11% operationally.

• Adjusted Net Income: $2.7 billion, growing 10% on a reported basis and 15% operationally.

• Companion Animal Portfolio Revenue Growth: 14% operationally.

• Simparica Franchise Revenue: $1.4 billion, growing 28% operationally.

• Simparica Trio Revenue: Exceeded $1 billion globally.

• OA Pain Franchises Revenue: $581 million globally, growing 80% operationally.

• Key Dermatology Franchise Revenue: $1.6 billion, growing 17% operationally.

• Livestock Portfolio Revenue: $2.9 billion, growing 5% operationally.

• US Revenue Growth: 11% for the year.

• International Revenue Growth: 10% operationally for the year.

• Adjusted Gross Margin: 70.7%, growing 50 basis points on a reported basis.

• Adjusted Operating Expenses Growth: 10% operationally for the year.

• Share Repurchase: $1.9 billion of Zoetis shares repurchased in 2024.

• Dividend Increase: 15% during the year, distributing $786 million to shareholders.

• 2025 Revenue Guidance: $9.225 billion to $9.375 billion, representing 6% to 8% organic operational growth.

• 2025 Adjusted Net Income Guidance: $2.7 billion to $2.75 billion, representing 6% to 8% organic operational growth.

• 2025 Adjusted Diluted EPS Guidance: $6 to $6.10.

• Warning! GuruFocus has detected 5 Warning Signs with OGN.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Zoetis Inc (NYSE:ZTS) reported double-digit operational revenue growth of 11% for the full year 2024, driven by strong demand for its products.

• The company's companion animal portfolio saw a 14% operational revenue growth, with significant contributions from the Simparica franchise and OA pain franchises.

• Zoetis Inc (NYSE:ZTS) achieved a 15% operational growth in adjusted net income, reflecting strong financial performance.

• The company successfully launched Librela in the US, marking it as the most successful launch in its history, contributing to an 80% operational revenue growth in the OA pain franchises.

• Zoetis Inc (NYSE:ZTS) maintained a strong commitment to innovation, with expectations of at least one major product approval annually over the next several years, supporting long-term growth.

Negative Points

• The livestock portfolio faced headwinds due to the divestiture of the Medicated Feed Additives product portfolio, impacting overall growth.

• Foreign exchange posed a challenge, with a reported unfavorable impact on gross margins and revenue projections for 2025.

• The company anticipates increased competition in key areas such as dermatology, which could impact growth in the latter half of 2025.

• Zoetis Inc (NYSE:ZTS) faces potential headwinds from new market entrants and regulatory changes, which could affect future performance.

• The company's guidance for 2025 reflects a slowdown in price-driven growth compared to previous years, indicating potential challenges in maintaining high growth rates.