Zoetis Inc. Q4 FY2023 results: revenue $2.2 billion, up 8.5% on the year

Zoetis Inc. (ZTS) reported revenue of $2.2 billion for Q4 FY2023, the quarter ended 31 December 2023, up 8.5% on the same quarter a year earlier. Net income was $525 million, up 13.9% on the year, and diluted earnings per share $1.14. The figures are the company's own, from the 10-K it filed with the SEC on 13 February 2024.

Revenue$2.2 billionup 8.5%

Net income$525 millionup 13.9%

Diluted EPS$1.14

QuarterQ4 FY2023ended 31 December 2023

The quarter, against the one before and a year earlier

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Revenue	2,213	2,151	n/a	n/a
Cost of revenue	728	638	n/a	n/a
Gross profit	1,485	1,513	n/a	n/a
Gross margin	67.1%	70.3%	n/a
Research and development	174	152	n/a	n/a
Selling, general and administrative	565	525	n/a	n/a
Interest expense	59.0	59.0	n/a	n/a
Pre-tax income	650	717	n/a	n/a
Income tax	127	121	n/a	n/a
Effective tax rate	19.5%	16.9%	n/a
Net income	525	596	n/a	n/a
Net margin	23.7%	27.7%	n/a
Diluted EPS	$1.14	$1.29	n/a	n/a

$ million except per share. Fourth quarters are the year less the first three quarters. 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 and capital returned

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Operating cash flow	897	724	n/a	n/a
Capital expenditure	198	145	n/a	n/a
Free cash flow	699	579	n/a	n/a
Free cash flow margin	31.6%	26.9%	n/a
Depreciation and amortisation	126	124	n/a	n/a
Share-based compensation	17.0	17.0	n/a	n/a
Buybacks	235	250	n/a	n/a
Dividend per share	n/a	$0.00	n/a	n/a
Diluted shares, weighted	462m	461m	n/a	n/a
Shares outstanding at period end	458m	460m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Total assets	14,286	14,106	n/a	n/a
Cash and equivalents	2,041	1,754	n/a	n/a
Receivables	1,304	1,257	n/a	n/a
Inventory	2,564	2,744	n/a	n/a
Goodwill	2,759	2,762	n/a	n/a
Long-term debt	6,564	6,552	n/a	n/a
Borrowings, as the company tags them	6,650	6,650	n/a	n/a
Operating lease liabilities	188	191	n/a	n/a
Finance lease liabilities	8.0	n/a	n/a	n/a
Shareholders' equity	4,997	5,078	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	2,151	2,213	2,190	2,361	2,388	2,317	2,220	2,460	2,400	2,387	2,262	2,468
Cost of revenue	638	728	643	668	701	707	622	649	683	712	641	673
Gross profit	1,513	1,485	1,547	1,693	1,687	1,610	1,598	1,811	1,717	1,675	1,621	1,795
Gross margin	70%	67%	71%	72%	71%	69%	72%	74%	72%	70%	72%	73%
R&D	152	174	162	171	167	186	157	172	170	199	180	173
SG&A	525	565	547	581	565	625	563	617	579	619	588	592
Interest expense	59.0	59.0	58.0	59.0	57.0	51.0	54.0	53.0	58.0	57.0	62.0	61.0
Pre-tax income	717	650	747	780	874	732	810	902	887	761	758	866
Tax rate	17%	20%	20%	20%	21%	21%	22%	20%	19%	21%	21%	20%
Net income	596	525	599	624	682	581	631	718	721	603	601	691
Net margin	28%	24%	27%	26%	29%	25%	28%	29%	30%	25%	27%	28%
Diluted EPS	$1.29	$1.14	$1.31	$1.37	$1.50	$1.29	$1.41	$1.61	$1.63	$1.37	$1.42	$1.65
Operating cash flow	724	897	595	502	951	905	587	486	938	893	401	655
Capital expenditure	145	198	140	132	167	216	149	178	133	161	110	117
Free cash flow	579	699	455	370	784	689	438	308	805	732	291	538
Buybacks	250	235	339	533	433	553	443	338	394	2,060	606	584
Shares outstanding	460m	458m	457m	454m	452m	448m	446m	444m	441m	425m	420m	414m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. 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. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-K for the period ended 31 December 2023, filed 13 February 2024, accession 0001555280-24-000143: the filing on EDGAR. All of Zoetis Inc.'s filings: EDGAR company page.

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