Elanco reported increases in its earnings per share but saw its expected 2019 top range revenue decrease by $20 million, which it has attributed to African swine fever (ASF).
Elanco is updating its full year guidance for revenue and earnings per share (EPS) to reflect impacts from ASF, according to a company release. Expected 2019 revenue is now between $3.08 billion and $3.12 billion, and expected 2019 EPS range is now between $0.36 to $0.44 (reported).
"While discrete external events provide headwinds to our global business, we continue to leverage our portfolio approach to respond and deliver to our expectations," says Jeff Simmons, Elanco president and chief executive officer.
Overall, Elanco has seen business growth, with total revenue of $781.6 million in total revenue for the second quarter, according to the release. Companion animal therapeutics increased 22% for the quarter, and companion animal disease prevention, food animal future protein and health also saw revenue increases. In the second quarter, gross profit increased 26% to $425.6 million in the second quarter compared to the second quarter last year.
"Elanco is delivering on our Innovation, Portfolio and Productivity strategy and the stand-up of the independent company is on track,” Simmons says.
However, food animal ruminants and swine revenue decreased 9% for the quarter, which Elanco attributes to flat prices, a decline in volume, and an unfavorable impact from foreign exchange rates, the release says.
“We are narrowing our full year guidance to reflect discrete events in the external market, but are pleased with our margin expansion progress and confident in the growth of our underlying business," Simmons says.