Zoetis Inc.

Please stand by. We're about to begin. Welcome to the first quarter 2025 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, and will not be forwarded automatically. In addition, a replay of the call will be available approximately two hours after the conclusion of this call via dial-in or 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. If you would like to ask a question at that time, please press star 1 on your telephone keypad. If at any point your question has been answered, you may remove yourself from the queue by pressing star 2. In the interest of time, we ask that you limit yourself to one question and then queue up again with any follow-up questions. Your line will be muted when you complete your question. When posing your question, please pick up your handset to allow optimal sound quality. Lastly, should you require operator assistance, please press star zero. It is now my pleasure to turn the floor over to Steve Frank. Steve, you may begin.

Thank you, operator. Good morning, everyone, and welcome to the Zoetis first quarter 2025 earnings call. I am joined today by Kristen Peck, our chief executive officer, and Whitney Joseph, 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 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 US GAAP, a reconciliation of these non-GAAP financial measures to the most directly comparable US GAAP measures is included in the financial tables that accompany our earnings press release and the company's 8K filing dated today, Tuesday, May 6, 2025. We also cite operational results, which exclude the impact of foreign exchange. With that, I will turn the call over to Kristen.

Thank you, Steve, and welcome everyone to our first quarter 2025 earnings call. By staying laser focused on delivering for our customers, our colleagues drove strong 9% organic operational revenue growth and grew adjusted net income 6% on an organic operational basis. Our international segment led with 11% organic operational revenue growth, highlighting our global scale and diversification, while the U.S. grew 6%, excluding the impact of the MFA divestiture. Growth was balanced across species, Our innovative companion animal portfolio grew 9% operationally, fueled by sustained demand for our diverse, market-leading franchises. Livestock grew 7% on an organic operational basis, driven by broad-based, double-digit performance internationally. Before we go deeper into the quarter, I want to briefly address what is top of mind for many of you. In today's operating environment, the essential nature of our business remains clear. Animals provide companionship and nourishment, and in uncertain times, people will rely on both. It's precisely because of the enduring secular trends and the fundamentals underpinning our innovation-led operating model that Zoetis has consistently proven its resilience, even through economic turbulence. That resilience is embedded in how we operate, from our global footprint and diverse, durable portfolio across species and geographies, to our omnichannel presence, matrix manufacturing network, and talented field force. Combined, those dynamics ensure we're operating from a position of strength as we navigate a fluid environment shaped by macroeconomic, regulatory, and geopolitical uncertainty. We are managing these challenges thoughtfully, working to minimize their impact while also seizing opportunities where they exist so we can continue delivering for our customers, colleagues, and shareholders. That means executing our strategy with discipline, supported by a strong balance sheet, operational excellence, thoughtful and strategic capital allocation, and experienced leadership team ready to adapt as needed. Most importantly, we continue to prioritize what matters most, living our purpose and ensuring our products reach the people and animals who depend on them. With that context, let's pivot back to the quarter. While our performance reflects the strength of our diverse, multi-leveraged strategy. I'll touch on a few of the key growth drivers. In companion animal, our combined key franchises grew double digits operationally, fueled by exceptional performance in our international segment, where our trusted brands, even after several years on the market, continue to grow by winning new patients and improving compliance with significant runway to further define the standard of care and deliver meaningful outcomes. In parasiticides, Our Semperica franchise continues to expand the overall category and is gaining share, driven by our omnichannel strategy, meeting customers where they are, whether in the clinic, through retail, where Semperica Trio is the top-selling parasiticide in the U.S., or via home delivery. As you've heard us say, we are seeing increased conversion to broad-spectrum triple combinations, setting us up for an even longer-term growth tailwind. Together, These dynamics positions us well to continue leading through innovation, most recently with Semperica Trio's U.S. label expansion to include flea tapeworm protection. Similarly, key dermatology has consistently been a high growth category built on innovation, customer trust, and a portfolio that remains the preferred choice for treating allergic itch. Through years of investment and strong partnerships, We have built brand loyalty and established a clear leadership position. We continue to leverage our first mover advantage by capitalizing on the breadth of our portfolio to grow and sustain share in a dynamic environment. We remain focused on what we can control, execution, innovation, and customer experience, and we are winning with customers every day. Demand for our portfolio remains strong. fueled by the convenience and the unmatched flexibility we provide to vets and pet owners through our three differentiated products. At the same time, an estimated 20 million dogs still untreated or undertreated for itch. Advances in diagnostics are helping unlock this opportunity, enabling broader access, earlier intervention, and better outcomes. That's why we're confident in the enduring strength of this franchise and our ability to continue leading. And similarly, building on our track record of scientific innovation, our osteoarthritis pain franchise marks a meaningful advancement in care, delivering strong double-digit growth and approximately 25 million doses distributed globally. While adoption has been more gradual than initially expected, we are encouraged by the foundation we are laying and the long-term potential ahead. We are building and scaling a new category of care, one that requires significant education and engagement. Both veterinarians and pet owners need time and support to fully understand the safety and efficacy profile of newer, more advanced treatments for chronic pain. And in this economic environment, we're seeing pet owners take a more measured approach to managing chronic conditions, making choices that reflect broader consumer spending trends, which could include adjustments to timing or frequency of care. That said, we see the impact of these therapies every day. They are safe, effective, and improving the quality of life for pets and the people who care for them. To accelerate adoption, improve access, and grow the OA pain market, we are taking focused, strategic actions. We are expanding medical education for veterinarians and partnering with key opinion leaders to shape best practices. We're investing in and plan to leverage post-launch studies to generate additional real-world insights for vets. We are engaging directly with pet owners to increase education on the burden of OA pain and the long-term value of treatment. And we are launching 360 campaigns, including targeted direct-to-consumer efforts to build awareness and demand. So while uptake may be slower in the near term, our long-term confidence remains strong as we build a durable, differentiated market with significant room to grow, especially given the sizable and under-penetrated opportunity ahead. In livestock, we delivered strong performance with 7% organic operational growth. Through the sale of our MFA portfolio, we consistently reaffirmed our commitment to livestock and our customers, because what makes Zoetis unique and reliable is the diversity and durability of our business model. Regardless of portfolio mix, one thing is true. People need to eat, and global demand for animal protein will continue to rise. That's why we continue to invest in solutions to protect the health of food-producing animals and safeguard supply chains. Since reporting our results in February, we received conditional licensure from the USDA for avian influenza vaccine for chickens, ensuring we are ready to support customers and regulators wherever the path leads in addressing this evolving threat. And it's during periods of uncertainty that execution matters most. Our experience enables us to rise to the occasion, to stay focused, stay ready, and continue delivering solutions where and when they are needed most. As we look to the rest of the year, we're encouraged by our first quarter performance and the steady demand for our products, along with the resilience we've consistently seen across the animal health industry. We are maintaining our full year organic operational revenue guidance range of six to 8%, reflecting confidence in the differentiation of our portfolio and our ability to execute in the current environment. While the operating backdrop remains unpredictable, we believe this range appropriately reflects what we know today, and we will remain agile in navigating new uncertainties and embracing new opportunities. At the same time, based on our current estimates of enacted tariff-related cost impacts, we are updating our full-year organic operational adjusted net income to a range of 5% to 7%. And just to clarify, our outlook does not include any potential impact from future tariffs as it's still too early to know how the situation will unfold. And with that, I will close with this. The performance we shared today reflects the dedication of our colleagues around the world, living our purpose, being a trusted solutions provider to our customers, and delivering results through their relentless focus. Uncertainty is top of mind for everyone, but it's not unique to Zoetis. What sets us apart is how we respond. Zoetis has consistently leveraged its innovation-led customer-first operating model to outperform the market and deliver value for both customers and shareholders. We remain vigilant and agile. We'll draw on our experience navigating complexity, stay clear-eyed in our decision-making, and continue moving forward with discipline. We are confident in the strength of our portfolio, in the promise of our pipeline, in our ability to adapt. Most of all, we're confident in the commitment of our teams around the world to lead through change, and continue delivering for our customers and shareholders. Because ultimately, what we do matters for the well-being of animals, people, and communities. That's why animal health is both essential and resilient, an industry fueled by long-term demand and rising expectations for high-quality care. And as a global leader, we recognize our responsibility to lead today and well into the future. With that, I'll turn it over to Whitney to walk us through the more detailed financials. Whitney?