Latest earnings: Zoetis, IDEXX and Trupanion
The pet health industry continues to report positive earnings, though some companies have shown signs of stagnation amid industry headwinds.
GlobalPETS dives into the latest earnings results of Zoetis, IDEXX and Trupanion.
Zoetis
The pet health company, which focuses largely on veterinary pharmaceuticals, raised its full-year guidance after a strong third quarter of 2024.
Zoetis posted $2.4 billion (€2.24B) in revenue in the quarter, up 11% from $2.2 billion (€2.05B) during the same period last year.
Net income hit $682 million (€637M), a 14% increase from last year’s Q3, when the figure was $596 million (€556M).
“Building on the strong momentum from the first half of the year, we are proud to have delivered another excellent quarter, fueled by our diverse, durable and science-driven portfolio and our customer obsession that underscores our market leadership,” says company CEO Kristin Peck.
Medical advances for both pets and livestock are driving the New Jersey firm to increase its full-year guidance. It now expects revenue to reach $9.3 billion (€3.6B), up from the previous projection of $9.2 billion. (€8.6B)
IDEXX
IDEXX, another medical company specializing in veterinary tools, slightly reduced its annual guidance for 2024 despite reporting a 7% revenue increase.
That growth was driven in part by the pet portfolio. Despite this, the company blamed a decline in veterinary visits in the US market and other headwinds in the livestock market for pushing down its annual revenue projections.
For the year, IDEXX has adjusted its organic revenue growth to a range of 5.3% to 6%. At the projected range’s midpoint, this is a roughly 1% decrease from previous guidance.
Trupanion
Pet wellness player Trupanion saw a 15% increase in revenue between Q3 2024 and the same period the previous year.
Revenue hit $327.5 million during the quarter, a 15% increase from Q3 2023. For the first nine months of the 2024 fiscal year, revenue was $948.4 million (€885.3M), an increase of 17% compared to the previous year.
However, membership stalled, declining by 1% in the quarter ending 30 September 2024, with more than 1.6 million pets enrolled in the company’s insurance plans.
Trupanion’s CEO and President, Margi Tooth, told investors that the company’s current biggest markets, Canada and the United States, are still “dramatically” underpenetrated at approximately 4%. “The opportunity is enormous, and with the humanization of our pets continuing, the demand and need to enable access to care increases with it,” she said.
With pet numbers stagnating, the company launched its first Trupanion-branded services in Europe, beginning in September in Germany and Switzerland.
