In a May 9th release, Elanco Animal Health (ELAN) posted financial results for the 1st quarter of FY 2022. The 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, Merck, 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 1st Quarter of FY 2022 ending March 31st 2021, net income attained $48 million on revenue of $1,225 million representing a net margin of 3.9 percent. Comparable figures for the 1st quarter of fiscal 2021 ending March 31st were a net loss of $(61) million on total revenue of $1,242 million. Diluted EPS attained $0.10 for the most recent quarter of fiscal 2022 compared to $(0.12) for the 1st Quarter of 2021.
In reviewing the components of revenue for the 1st quarter of FY 2022 the Companion Animal Segment represented 52.2 percent of Company revenue with Food Animals accounting for 46.4 percent. Within this segment, ruminants comprised 43 percent; poultry, 32 percent; swine, 17 percent with aquaculture and other species contributing to the difference.
In commenting on results Jeff Simmons, president and CEO stated “Our first quarter financial results demonstrate continued consistent delivery and strong execution across our global enterprise with revenue, adjusted EBITDA and adjusted EPS all exceeding the mid-point of our guidance. We are already seeing the benefits of a leaner, more agile organization, contributing to our ability to reduce operating expenses sequentially and adapt quickly to the changing macro environment," He added "Elanco is well positioned in the durable animal health industry, our strategy is working, and the team is consistently delivering on the items within our control, including our company-wide productivity agenda and price. We remain confident in our guidance after adjusting for the continued strengthening of the U.S. dollar.”
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 2021 Elanco posted assets of $17,692 million of which 71.2 percent comprised intangibles and goodwill against long-term debt of $6,258 million. The Company had an intraday market capitalization of $10,388 million on May 12th 2022. ELAN traded with a forward P/E of 17.5 and has ranged over the past 52-weeks from $20.57 to $37.49 with a 50-day moving average of $25.96. Twelve-month trailing operating margin was 7.9 percent and profit margin -9.9 percent. Return on assets was 1.4 percent and -5.9 percent on equity over the past twelve months. At close of trading on Friday May 6th ELAN was priced at $23.78 opening on Monday May 9th post-release at $22.64.