In a February 24th release, Elanco Animal Health Inc. (ELAN) posted financial results for the 4th quarter and FY 2021. This Company can be regarded as an indicator of the status of enterprises involved in pharmaceuticals, biologics and nutritional additives for the companion animal and livestock industry in the Americas, Asia and Europe. Along with competitors Zooetis, Phibro, Pfizer and Boehringer-Ingelheim, all are subject to the risks of currency fluctuation, disruption of supply-chains and increased costs for products, labor and transport in a competitive environment still impacted by COVID.
For the 4th Quarter of FY 2021 ending December 31st 2021, net loss on a GAAP basis was $(97) million on total revenue of $1,113 million. Comparable figures for the 4th quarter of fiscal 2020 ending December 31st 2020 were a net loss of $(323) million on total revenue of $1,140 million. Diluted EPS attained $(0.20) for the most recent quarter of fiscal 2021 compared to $(0.66) for the 4th Quarter of 2020.
For FY 2021 Elanco posted a loss of $(472) million on revenue of $4,765 million with an EPS of $(0.97). For FY 2020 comparable figures were a net loss of $(560) million on revenue of $3,273 million with a negative EPS of $(1.27). The 46 percent increase in revenue was largely from the acquisition of Bayer Animal Health.
In reviewing the components of revenue for the 4th quarter of FY 2021 the companion animal segment represented 45 percent compared to food animals accounting for 55 percent. Within this segment ruminants comprised 55 percent of revenue, poultry 33 percent and swine 20 percent with aquaculture and other species contributing to the difference.
In commenting on results Jeff Simmons, president and CEO stated “2021 was a historic year for Elanco as we completed our independent company standup, continued our integration of Bayer Animal Health and recorded our highest revenue and adjusted EBITDA levels as a public company. We grew revenue seven percent compared to our 2020 pro forma combined company estimates, including ten percent in Pet Health and six percent in Farm Animals,” Simmons added “The fourth quarter of 2021 represents our 5th consecutive quarter of outperforming our expectations. Our diverse portfolio delivered across the business – growing in all three regions and in four out of five species, demonstrating the durable growth profile of our business. He concluded, “We carry this momentum into 2022, anticipating two to three percent revenue growth on a constant currency basis and 10 percent adjusted EBITDA and 15 percent adjusted EPS growth at the midpoint of our guidance, with seven new product approvals and launches and five to seven new product submissions expected.”
Guidance for FY 2022 include revenue in a range of $4,745 to $4,800; net income of $4 to $27 million and a diluted EPS ranging from $0.01 to $0.07.
On December 31st 20210 Elanco posted assets of $17,692 million of which 71.2 percent comprised intangibles and goodwill against long-term debt of $6,258 million on December 31st 2021. The Company had an intraday market capitalization of $13,190 million on February 25th. ELAN traded with a forward P/E of 22.3 and has ranged over the past 52-weeks from $24.15 to $37.49 with a 50-day moving average of $26.91. Twelve-month trailing operating margin was 6.3 percent and profit margin -9.9 percent. Return on equity over the past twelve months was -5.8 percent. At close of trading on February 23rd ELAN was priced at $25.92 closing on February 24th post- release at $27.89.