Elanco Animal Health Inc. reported second-quarter revenue of $1.37 billion on August 5, a 10% increase from a year earlier, and raised its full-year financial guidance for the second time this year.
The company posted net income of $54 million, or 11 cents per diluted share, up from $11 million, or 2 cents per share, in the same period last year. Adjusted earnings were $174 million, or 34 cents per share, a 31% increase.
Adjusted earnings before interest, taxes, depreciation and amortization rose 21% to $288 million, with margins expanding to 21.2% from 19.2% a year earlier.
Elanco President and CEO Jeff Simmons credited the growth to the company's newer products, particularly the arthritis drug Zenrelia and the parasite treatment Credelio Quattro, which he called "the single largest contributor to global Elanco growth."
"We saw strong contributions from both price and volume, as consumer demand for our basket of innovation drove market share gains and stabilized our base business," Simmons said in a statement.
U.S. Pet Health and U.S. Farm Animal segments each grew 11% on an organic constant currency basis. Pet Health revenue reached $718 million, while Farm Animal revenue was $633 million. Global ruminant sales were the company's fastest-growing category, up 12% for the quarter.
For the full year, Elanco now expects revenue of $5.09 billion to $5.14 billion, up from a prior forecast of $5.01 billion to $5.09 billion. The company also raised its adjusted EBITDA target to a range of $1.01 billion to $1.035 billion and its adjusted earnings per share target to $1.10 to $1.16.
Elanco said it now expects to reach $1.25 billion in innovation-driven revenue this year, an increase from its earlier target.
Chief Financial Officer Bob VanHimbergen said the company's net leverage ratio fell to 3.1 times adjusted EBITDA at quarter's end, ahead of schedule, putting Elanco "closing in" on its goal of dropping below 3 times leverage next year.
For the third quarter, Elanco forecast revenue of $1.195 billion to $1.22 billion and adjusted earnings per share of 19 to 22 cents.
