Share via Email


* Email To: (Separate multiple addresses with a semicolon)
* Your Name:
* Email From: (Your IP Address is 34.204.169.76)
* Email Subject: (personalize your subject)


Email Content:
Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Elanco Reports on Q2 FY 2019

08/13/2019

In a press release dated August 13th Elanco Animal Health Inc. (ELAN) announced results for the 2nd Quarter of Fiscal 2019 ending June 30th.

The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as $ x 1,000 except EPS)

 

 

2nd Quarter Ending June 30th

2019

2018

Difference (%)

Sales:

$781,600

$770,200

+1.5

Gross profit:

$287,200

$338,700

+51.5

Operating income:

$153,900

$86.200

+78.5

Pre-tax Income

Net Income

$50,200

$35,000

$(40,000)

$(62,800)

+225.5

+155.7

Diluted earnings per share:

$0.10

$(0.21)

+147.6

Gross Margin (%)

36.8

43.9

-16.2

Operating Margin (%)

19.9

11.2

+77.7

Profit Margin (%)

1.8

-8.2

 

Long-term Debt: December 31st 2018.

$2,443,300

N/A

 

12 Months Trailing:

     

Return on Assets (%)

-

   

Return on Equity (%)

0.7

   

Operating Margin (%)

11.9

   

Profit Margin (%)

1.5

   

Total Assets Dec. 31st 2018/2017.

$2,504,900

$2,123,700

+17.9

Market Capitalization

$11,000,000

   

In comparing Q2 2019 with Q2 2018 the following differences are pertinent:-

  • Write-downs for intangibles were respectively $49.3 million and $49.4 million
  • Asset impairment charges were $31.3 million and $68.0 million
  • Q2 2019 incurred $20 million in interest

52-Week Range in Share Price: $28.00 to $37.61

Market Open August 13th $29.69

ELAN revenue in Q2 2019 was derived 39 percent from companion animal products, 57% from food animal products. (Q2 2018 values 37 and 61 percent respectively)


In commenting on Q2 results Jeff Simmons, CEO stated "we continue to be pleased with the delivery of our productivity agenda driving the significant increase in adjusted gross margin as a percent of sales. We are encouraged by the 9 percent constant currency growth in our targeted growth categories and continue to make strategic investments that advance all three pillars of our strategy. He added " while discrete external events provide headwinds to our global business, we continue to leverage our portfolio approach to respond and deliver to our expectations."


 
Copyright 2019 Simon M. Shane