Elanco Animal Health (ELAN) FY2023 results: revenue $4.4 billion, up 0.1% on the year

Elanco Animal Health Inc. (ELAN) reported revenue of $4.4 billion for fiscal 2023, the year ended 31 December 2023, up 0.1% on the year before. Net income was -$1.2 billion, and diluted earnings per share $-2.50. The figures are the company's own, from the 10-K it filed with the SEC on 26 February 2024.

Revenue

$4.4 billion

+0.1% on the year

FY2016FY2023

Operating margin

-27.1%

-1.6% a year earlier

FY2016FY2023

Net income

-$1.2 billion

FY2016FY2023

Diluted EPS

-$2.50

FY2016FY2023

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2023 · Q2 FY2023 · Q3 FY2023 · Q4 FY2023

Income statement (profit and loss)

$ million	FY2023	FY2022	FY2021	On the year
Revenue	4,417	4,411	4,765	+0.1%
Cost of revenue	1,931	1,913	2,134	+0.9%
Gross profit	2,486	2,498	2,631	-0.5%
Gross margin	56.3%	56.6%	55.2%
Research and development	327	321	369	+1.9%
Selling, general and administrative	1,285	1,265	1,404	+1.6%
Operating income	-1,195	-72.0	-567
Operating margin	-27.1%	-1.6%	-11.9%
Interest expense	277	241	236	+14.9%
Pre-tax income	-1,195	-72.0	-571
Income tax	36.0	6.0	-88.0	+500.0%
Net income	-1,231	-78.0	-483
Net margin	-27.9%	-1.8%	-10.1%
Diluted EPS	-$2.50	-$0.16	-$0.99

$ 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	FY2023	FY2022	FY2021	On the year
Operating cash flow	271	452	483	-40.0%
Capital expenditure	140	171	159	-18.1%
Free cash flow	131	281	324	-53.4%
Free cash flow margin	3.0%	6.4%	6.8%
Cash from investing	-169	-179	-530
Cash from financing	-83.0	-549	210
Depreciation and amortisation	694	682	716	+1.8%
Share-based compensation	46.0	59.0	66.0	-22.0%
Diluted shares, weighted	492m	488m	487m	+0.8%
Shares outstanding at period end	493m	474m	473m	+3.9%

Balance sheet

$ million	FY2023	FY2022	FY2021	On the year
Shareholders' equity	6,223	7,289	7,508	-14.6%
Debt	5,774	5,836	6,319	-1.1%
Operating lease liabilities	110	111	127	-0.9%
Other liabilities	2,255	2,255	2,529	0.0%
Total liabilities and equity	14,362	15,491	16,483	-7.3%
Fixed assets	1,026	999	1,055	+2.7%
Goodwill	5,094	5,993	6,172	-15.0%
Intangible assets	4,494	4,842	5,587	-7.2%
Cash and equivalents	352	345	638	+2.0%
Receivables	842	797	833	+5.6%
Inventory	1,735	1,538	1,373	+12.8%
Other assets	819	977	825	-16.2%
Total assets	14,362	15,491	16,483	-7.3%

10-K for the year ended 31 December 2023, filed 26 February 2024: the filing.