Zoetis Inc. (NYSE:ZTS) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 08:30 am ET

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Zoetis Inc. (NYSE:ZTS) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day and welcome to the Fourth Quarter and Fiscal Year 2019 Financial Results Conference Call and Webcast for Zoetis. Hosting the call today is Steve Frank, Vice President of Investor Relations for Zoetis. The presentation materials and additional financial tables are currently posted on the Investor Relations section of zoetis.com. The presentation slides can be managed by you, the viewer. It will not be forwarded automatically. In addition, a replay of this call will be available approximately two hours after the conclusion of this call via dial-in or on the Investor Relations section of zoetis.com.

At this time, all participants have been placed in a listen-only mode and the floor will be open for your questions following the presentation. [Operator Instructions] It's now my pleasure to turn the floor over to Steve Frank. Steve, you may begin.

Executive
Steve Frank

Thank you, Keith. Good morning everyone and welcome to the Zoetis fourth quarter and full-year 2019 earnings call. I am joined today by Kristin Peck, our Chief Executive Officer, and Glenn David, our Chief Financial Officer.

Before we begin, I'll remind you that the slides presented on this call are available on the Investor Relations section of our website and that our remarks today will include forward-looking statements and that actual results could differ materially from those projections. For a list and description of certain factors that could cause results to differ, I refer you to the forward-looking statements in today's press release and our SEC filings, including but not limited to our Annual Report on Form 10-K and our reports on Form 10-Q.

Our remarks today will also include references to certain financial measures, which were not prepared in accordance with Generally Accepted Accounting Principles or U.S. GAAP. A reconciliation of these non-GAAP financial measures to the most directly comparable U.S. GAAP measures is included in the financial tables that accompany our earnings press release and in the Company's 8-K filing dated today, February 13, 2020. We will also cite operational results, which exclude the impact of foreign exchange.

With that, I will turn the call over to Kristin.

Executive
Kristin Peck

Thank you, Steve. Good morning, everyone. By now, you read our press release and financial tables on the Zoetis website, so I'll take just a few minutes to recap the full year, talk about our outlook for 2020, and outline some of the long-term investment plans and growth opportunities we see for Zoetis. Our CFO, Glenn David will then cover the fourth quarter and our full year guidance for 2020 before we open the lines up for your questions. So let's get started.

Zoetis delivered another year of strong growth and market leadership in 2019 thanks to our diverse and durable portfolio and our commitment to continuous innovation. We grew revenue 10% operationally, which includes about 2% of growth from the Abaxis acquisition. This is once again above the market growth for animal health, which is expected to be about 3% to 4% for 2019, reflecting the negative impact of African Swine Fever.