Elanco Animal Health (ELAN) FY2022 results: revenue $4.4 billion, down 7.4% on the year

Elanco Animal Health Inc. (ELAN) reported revenue of $4.4 billion for fiscal 2022, the year ended 31 December 2022, down 7.4% on the year before. Net income was -$78 million, and diluted earnings per share $-0.16. The figures are the company's own, from the 10-K it filed with the SEC on 1 March 2023.

Revenue

$4.4 billion

-7.4% on the year

FY2016FY2022

Operating margin

-1.6%

-11.9% a year earlier

FY2016FY2022

Net income

-$78 million

FY2016FY2022

Diluted EPS

-$0.16

FY2016FY2022

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2022 · Q2 FY2022 · Q3 FY2022 · Q4 FY2022

Income statement (profit and loss)

$ million	FY2022	FY2021	FY2020	On the year
Revenue	4,411	4,765	3,273	-7.4%
Cost of revenue	1,913	2,134	1,667	-10.4%
Gross profit	2,498	2,631	1,607	-5.1%
Gross margin	56.6%	55.2%	49.1%
Research and development	321	369	329	-13.0%
Selling, general and administrative	1,265	1,404	997	-9.9%
Operating income	-72.0	-567	-672
Operating margin	-1.6%	-11.9%	-20.5%
Interest expense	241	236	150	+2.1%
Pre-tax income	-72.0	-571	-677
Income tax	6.0	-88.0	-103
Net income	-78.0	-483	-574
Net margin	-1.8%	-10.1%	-17.5%
Diluted EPS	-$0.16	-$0.99	-$1.30

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2022	FY2021	FY2020	On the year
Operating cash flow	452	483	-41.0	-6.4%
Capital expenditure	171	159	135	+7.5%
Free cash flow	281	324	-176	-13.3%
Free cash flow margin	6.4%	6.8%	-5.4%
Cash from investing	-179	-530	-4,779
Cash from financing	-549	210	4,954
Depreciation and amortisation	682	716	517	-4.7%
Share-based compensation	59.0	66.0	47.0	-10.6%
Diluted shares, weighted	488m	487m	441m	+0.2%
Shares outstanding at period end	474m	473m	472m	+0.2%

Balance sheet

$ million	FY2022	FY2021	FY2020	On the year
Shareholders' equity	7,289	7,508	8,457	-2.9%
Debt	5,836	6,319	6,127	-7.6%
Operating lease liabilities	111	127	151	-12.6%
Other liabilities	2,255	2,529	2,958	-10.8%
Total liabilities and equity	15,491	16,483	17,693	-6.0%
Fixed assets	999	1,055	1,316	-5.3%
Goodwill	5,993	6,172	6,225	-2.9%
Intangible assets	4,842	5,587	6,387	-13.3%
Cash and equivalents	345	638	495	-45.9%
Receivables	797	833	872	-4.3%
Inventory	1,538	1,373	1,578	+12.0%
Other assets	977	825	820	+18.4%
Total assets	15,491	16,483	17,693	-6.0%

10-K for the year ended 31 December 2022, filed 1 March 2023: the filing.