Elanco Animal Health Incorporated (NYSE:ELAN) Q3 2023 Earnings Conference Call November 7, 2023 8:00 AM ET

Company Participants

Katy Grissom - Head of IR

Jeff Simmons - President and CEO

Todd Young - CFO

Conference Call Participants

Michael Ryskin - Bank of America

Jon Block - Stifel

Erin Wright - Morgan Stanley

Chris Schott - JPMorgan

Umer Raffat - Evercore ISI

Nathan Rich - Goldman Sachs

Brandon Vazquez - William Blair

Balaji Prasad - Barclays

Operator

Good morning. My name is Krista, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Elanco Third Quarter 2023 Earnings Call. [Operator Instructions] Thank you.

I would now like to turn the conference over to Katy Grissom, Head of Investor Relations, you may begin your conference.

Katy Grissom

Good morning. Thank you for joining us on Elanco Animal Health's third quarter 2023 earnings call. I'm Katy Grissom, Head of Investor Relations. Joining me on today's call are Jeff Simmons, our President and Chief Executive Officer; Todd Young, our Chief Financial Officer; and Scott Purucker, from Investor Relations.

The slides referenced during today's call are available on the Investor Relations section of elanco.com. Today's discussion will include forward-looking statements. These statements are based on our current assumptions and expectations and are subject to risks and uncertainties that could cause actual results to differ materially from our forecast. For more information, see the risk factors in today's earnings press release as well as in our latest Form 10-K and 10-Q filed with the SEC. We do not undertake any duty to update any forward-looking statements.

Our remarks today will focus on our non-GAAP financial measures. Reconciliations of these non-GAAP measures are included in the appendix of today's slides and in the earnings press release. After our prepared remarks, we'll be happy to take your questions.

I'll now turn the call over to Jeff.

Jeff Simmons

Thanks, Katy. Good morning, everyone.

Elanco reported a strong third quarter, delivering topline adjusted EBITDA and adjusted EPS growth. We exceeded our expectations on all key non-GAAP metrics, while weathering the unfavorable strengthening of the U.S. dollar that occurred late in the quarter. Constant currency revenue growth of 5% was driven by accelerating contribution from innovation, stabilizing core volumes and price growth.

Along with the improving market conditions, constant currency revenue growth of 6% for pet health and 4% for farm animal was enabled by our differentiated global omnichannel approach, strategic leverage of our diverse portfolio and our enhanced capabilities and leadership. We believe this provides the framework for continued topline growth for Elanco in the fourth quarter and in 2024.