Zoetis Inc - Ordinary Shares - Class A

Strong Financial Performance: Zoetis reported an 11% operational revenue growth for 2024, leading to total revenue of $9.3 billion, with adjusted net income growing 15% operationally to $2.7 billion. The growth was driven by a robust 14% increase in the companion animal portfolio, alongside a 5% increase in the livestock portfolio.

Guidance for 2025: The company expects organic operational revenue growth between 6% to 8% for 2025, driven by continued strength in the companion animal segment with forecasts of double-digit growth across major franchises including Simparica, dermatology, and OA pain treatments. Adjusted net income is projected to grow 6% to 8% organically.

Impact of Competition: Increased competition in the dermatology segment, with new entrants expected later in 2025, may affect market dynamics and growth rates. Zoetis is preparing for these challenges by factoring competitive scenarios into their revenue guidance, indicating a potential for more robust growth in the first half of the year compared to the second half.