Elanco Earnings Swing Negative
(Provided Photo/Elanco Animal Health)
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowGreenfield-based Elanco Animal Health Inc. (NYSE: ELAN) is reporting a first quarter net loss of $49 million, compared to net income of $31 million during the same period a year ago.
The company said the results reflect the impact of the COVID-19 pandemic on the business.
“In the first quarter, the COVID-19 pandemic created working capital pressures across our commercial value chain and dampened assumptions about near-term demand from end users of our products,” said Jeff Simmons, president and chief executive officer of Elanco.
The company announced in March it had withdrawn its 2020 guidance due to the uncertainty associated with the pandemic and its impact on animal agriculture.
“While leading indicators for our products remain encouraging, in April our business has experienced pressure given the significant impacts the pandemic is having on the customers we serve,” said the company.
Elanco said it is tracking production capacity constraints, primarily in the U.S., weakening producer economics, and shifting consumer demand globally.
“As we move throughout the year, which, along with the reductions in channel inventory, will provide meaningful headwind to our full-year results,” said the company statement.
Elanco also said its acquisition of Bayer Animal Health remains on track for a mid-year close, saying the antitrust approval process is progressing.
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