In an August 8th release, Elanco Animal Health (ELAN) posted financial results for the second 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 industries in the Americas, Asia and Europe. Along with competitors Zoetis, 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 impacted by inflation.
For the second quarter of FY 2022 ending June 30th 2021, net loss attained $(22) million on revenue of $1,177 million representing operating and net margins of 22.8 and -1.8 percent respectively. Comparable figures for the second quarter of fiscal 2021 ending June 30th were a net loss of $(210) million on total revenue of $1,279 million. Diluted EPS attained $(0.04) for the most recent quarter of fiscal 2022 compared to $(0.43) for the second quarter of 2021.
In reviewing the components of revenue for the second quarter of FY 2022 the Companion Animal Segment represented 51.9 percent of Company revenue with Food Animals accounting for 47 percent. Within this segment, ruminants comprised 44 percent; poultry, 32 percent and swine, 16 percent with aquaculture and other species contributing to the difference.
In commenting on results Jeff Simmons, president and CEO stated, “Our relentless efforts to drive operational efficiency from our company-wide productivity agenda allowed us to grow adjusted EBITDA and adjusted EPS despite topline pressures in the quarter,” He added "Our global teams are executing on items within our control while continuing to weather the many macro challenges that are creating headwinds to our business. While we are reducing our revenue expectations for the full year primarily based on these macro factors, we expect to deliver improved margins that will enable us to grow full year adjusted EBITDA and adjusted EPS compared to 2021.”
Guidance for FY 2022 was downgraded to include revenue in a range of $4,465 to $4,550 million with a net loss of $(48) to $(15) million.
On June 30th 2021 Elanco posted assets of $15,601 million of which 70.3 percent comprised intangibles and goodwill against long-term debt of $6,249 million. The Company had an intraday market capitalization of $9,140 million on August 8th at 14H00. ELAN traded with a forward P/E of 17.8 and has ranged over the past 52-weeks from $18.64 to $35.00 with a 50-day moving average of $21.00. Twelve-month trailing operating margin was 9.8 percent and profit margin -7.7 percent. Return on assets was 1.8 percent and -4.7 percent on equity over the past twelve months. At close of trading on Friday August 5th ELAN was priced at $19.83 opening on Monday August 8th post-release at $20.14.