Zoetis 2Q Livestock Products Sales Fall Amid Less Demand From Food-Service Sector -- Commodity Comment
August 06 2020 - 1:30PM
Dow Jones News
By Dave Sebastian
Zoetis Inc. on Thursday reported higher profit and overall U.S.
revenue for the second quarter, though sales from its livestock
products in the U.S. declined 18% as meatpackers faced supply-chain
disruptions and the company received less demand from the
food-service industry amid the Covid-19 pandemic.
"Producers are adjusting to new market demands and distribution
needs--from food service and restaurant channels to more grocery
and retail channels--while also managing ongoing labor, safety and
trade issues," Chief Executive Kristin Peck said on a conference
call. "As expected, U.S. livestock in the second quarter saw
significant downturn as we expect that to remain a challenge for
the rest of the year."
The Parsippany, N.J.-based company makes vaccines and medication
for livestock and pets. Its U.S. revenue from pet products grew 6%
as customers spent more time at home with their pets amid
shelter-in-place measures, while overall sales were about flat from
a year ago.
Livestock-product sales in China rebounded along with its
Covid-19 recovery, Ms. Peck said. The company also is tracking how
Latin American countries, such as Brazil, will perform for the
remainder of the year, she added.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
August 06, 2020 13:15 ET (17:15 GMT)
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