Zoetis Reports 1% Revenue Growth to $2.220 Billion in Q1 2025

Zoetis Inc. reported a revenue increase of 1% for the first quarter of 2025, reaching $2.220 billion compared to $2.190 billion in the same period of 2024. The company's net income attributable to Zoetis rose by 5% to $631 million, up from $599 million year-over-year. Earnings per share also saw an increase, with diluted EPS rising to $1.41 from $1.31. The growth in revenue was primarily driven by a 4% increase in pricing and a 4% rise in volume from key franchises, although this was partially offset by a 4% decline in volume due to the divestiture of the medicated feed additive product portfolio.

In terms of operational performance, Zoetis experienced a 5% increase in revenue on an operational basis, indicating that foreign exchange fluctuations negatively impacted reported revenue growth by approximately 4%. The company’s cost of sales as a percentage of revenue decreased to 28.0% from 29.4%, attributed to price increases and favorable impacts from the divestiture. Selling, general, and administrative expenses rose by 3% to $563 million, driven by increased compensation-related costs and higher advertising expenses.

Strategically, Zoetis completed the divestiture of its medicated feed additive product portfolio on October 31, 2024, which has since altered its major product categories. The company continues to focus on its core offerings in companion animals and livestock, with approximately 300 product lines marketed across more than 100 countries. The company’s international segment revenue remained stable at $1.008 billion, with operational growth of 7% driven by increased sales in companion animal products, although foreign exchange impacts reduced revenue by 7%.

Looking ahead, Zoetis maintains a positive outlook, supported by its diversified product portfolio and ongoing investments in research and development. The company has approximately $5.2 billion remaining under its share repurchase authorization, reflecting its commitment to returning value to shareholders. However, Zoetis acknowledges potential risks, including foreign exchange fluctuations, global economic conditions, and regulatory changes, which could impact future performance. The company remains focused on leveraging its strong market position and operational capabilities to navigate these challenges effectively.