GREENFIELD, Ind. – Elanco Animal Health (NYSE:ELAN) Incorporated (NYSE: ELAN) disclosed its financial outcomes for the fourth quarter and full year of 2023, revealing a blend of growth and setbacks. The company announced a net loss of $141 million for the fourth quarter, contrasted with a $55 million loss in the same period the previous year.
Despite this, Elanco saw a 5% year-over-year increase in fourth-quarter revenue, reaching $1,035 million, primarily due to its farm animal sector.
For the full year, Elanco reported a significant net loss of $1,231 million, compared to a $78 million loss in 2022. However, the company achieved a slight revenue increase to $4,417 million, up from $4,411 million. Adjusted net income for the year stood at $439 million, and adjusted EBITDA was $979 million, or 22.2% of revenue.
Looking ahead to 2024, Elanco anticipates revenues between $4,450 million and $4,540 million, with an expected net loss ranging from $17 million to $62 million. Adjusted EBITDA projections are set between $960 million and $1,010 million.
The company also unveiled a strategic restructuring plan, which will affect approximately 420 personnel and is anticipated to generate $30 to $35 million in annualized savings. These savings are planned to be reinvested in areas of higher value creation. The restructuring will result in a charge to 2024 reported results of $50 to $55 million.
Elanco's President and CEO, Jeff Simmons, stated that the company ended the year with momentum, highlighting growth in the farm animal business and innovation revenue. He acknowledged the impact of unexpected items, such as the Argentinian peso devaluation, on the fourth quarter's adjusted EBITDA. Simmons expressed optimism for 2024, citing potential growth from the existing portfolio and contributions from three late-stage pipeline products expected to be approved in the first half of the year.
The company's financial guidance for 2024 includes the full-year contribution of its aqua business but does not account for contributions from the expected launches of new products. Elanco has announced the sale of its aqua business to Merck Animal Health for approximately $1.3 billion, which is expected to close around midyear. Proceeds from the sale are planned for debt paydown.
This news article is based on a press release statement. Elanco has taken measures to improve its commercial infrastructure, manage operating expenses, and enhance revenue growth.
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