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.
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(END) Dow Jones Newswires
August 06, 2020 13:15 ET (17:15 GMT)Copyright (c) 2020 Dow Jones & Company, Inc.