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Zoetis 2Q Livestock Products Sales Fall Amid Less Demand From Food-Service Sector — Commodity Comment

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)

Copyright (c) 2020 Dow Jones & Company, Inc.

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