Zoetis' 2024 Success: A Recipe for Future Growth

Zoetis Inc. (ZTS) wrapped up 2024 with a bang, delivering double-digit operational revenue growth of 11% and marking significant revenue milestones in both the U.S. and international markets. The company's commitment to scientific innovation and commercial excellence has been the driving force behind its sustained growth and market leadership in the animal health sector. As we look ahead to 2025, Zoetis is confident that the drivers of its 2024 success are sustainable, positioning the company for continued above-market growth in the mid-to-high single-digit range.



Zoetis' global comparative franchise, which grew 28% operationally on the year, is a testament to the company's ability to adapt to market trends and customer needs. The ongoing shift towards triple combination treatments, a market that has grown over 40% in the past 12 months, has been a significant driver of this growth. With over 50% of dogs in the U.S. now on triple combination treatments, the market's trajectory is clear, and Zoetis' three-year first-mover advantage in this segment, combined with the strength of its diverse portfolio and robust channel strategy, positions the company to continue leading in this critical segment.



Zoetis' commitment to expanding its portfolio of products for companion animals and livestock has also contributed to its operational revenue growth. In 2024, the company reported 14% operational revenue growth in its companion animal portfolio and 5% operational revenue growth in its livestock portfolio. The success of the company's global comparative franchise and OA pain franchises, along with its diverse portfolio and channel strategy, positions Zoetis well for further expansion in these areas.



As Zoetis looks ahead to 2025, it is confident that the drivers of its 2024 success are sustainable. The company's diverse business model, powered by multiple growth drivers and fueled by scientific innovation and commercial excellence, ensures that its market-leading franchises deliver long and, in some cases, decade-long growth tailwinds with significant room for further expansion. By continuing to invest in research and development and expanding its product offerings, Zoetis can maintain its competitive edge and drive further growth.

In conclusion, Zoetis' 2024 success is a testament to the company's commitment to scientific innovation and commercial excellence. With a strong global comparative franchise, a diverse portfolio of products, and a robust channel strategy, Zoetis is well-positioned to maintain its market leadership and drive further growth in the animal health sector. As we look ahead to 2025, investors should keep a close eye on Zoetis as it continues to execute on its strategic vision and deliver sustainable, above-market growth.