Elanco Animal Health reported Q4 2024 revenue of $1.02 billion, down 1.5% year over year and 1.0% quarter over quarter, reflecting a modest top-line performance in a challenging macro and competitive environment. Gross margin remained solid at ~50.9%, with EBITDA of $138 million and operating income of $88 million, delivering an operating margin of 8.6%. A net loss of $8 million, or a negative EPS of $0.0196, was driven by a large swing in total other income/expenses (-$139 million) and a pretax loss of $51 million; taxes contributed $43 million, resulting in the quarterly bottom line. Importantly, cash generation remained healthy: operating cash flow (OCF) was $177 million and free cash flow (FCF) $130 million, supporting liquidity despite the earnings shortfall.
Key Performance Indicators
Revenue
Decreasing
1.02B
QoQ: -0.97% | YoY: -1.45%
Gross Profit
Stable
519.00M
50.88% margin
QoQ: -3.53% | YoY: 0.00%
Operating Income
Decreasing
88.00M
QoQ: -31.25% | YoY: -40.14%
Net Income
Increasing
-8.00M
QoQ: -102.20% | YoY: 94.33%
EPS
Increasing
-0.02
QoQ: -102.68% | YoY: 93.24%
Revenue Trend
Margin Analysis
Financial Highlights
Key Q4 2024 metrics and notable trends:
- Revenue: $1.02B; YoY change: -1.45%; QoQ change: -0.97%.
- Gross Profit: $519M; Gross Margin: 50.88%; YoY: 0.0%; QoQ: -3.53%.
- Operating Income: $88M; Operating Margin: 8.63%; YoY: -40.14%; QoQ: -31.25%.
- EBITDA: $138M; EBITDA Margin: 13.53%.
- Net Income: -$8M; Net Margin: -0.78%; YoY: +94.33%; QoQ: -102.20%.
- EPS (GAAP): -$0.0196; Diluted EPS: -$0.0162; YoY: +93.24%; QoQ: -102.68%.
- Cash Flow: Operating cash flow $177M; Free cash flow $130M; FCF/Revenue about 12.7%; FCF-to-OCF ratio: 0.734.
- Balance Sheet: Cash $468M; Total assets $12.614B; Total debt $4.444B; Net debt $3.976B; Stockholders’ equity $6.096B; Current ratio 2.44; Quick ratio 1.248; Cash ratio 0.356.
- Leverage and profitability indicators: Debt/Equity 0.729; Debt/Capitalization 0.422; ROE -0.131% (negative); Asset turnover 0.081; DSO 71 days; DIO 282.75 days; CCC ~301 days.
- Valuation and market metrics: P/S 7.98; EV/EBITDA 87.78; P/B 1.34; P/E negative; Price to Free Cash Flow 62.59; Cash Flow per Share (OCF) $0.433; Free Cash Flow per Share $0.318.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.02B
-1.45%
-0.97%
Gross Profit
519.00M
0.00%
-3.53%
Operating Income
88.00M
-40.14%
-31.25%
Net Income
-8.00M
94.33%
-102.20%
EPS
-0.02
93.24%
-102.68%
Key Financial Ratios
Gross Profit Margin
Good
50.90%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Fair
8.63%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Weak
-0.01%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.00%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.00%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
2.44
Current ratio shows adequate liquidity to meet short-term obligations