Zoetis Inc. reported its financial results for the second quarter of 2016 and increased its revenue and adjusted net income guidance for full-year 2016.

The company reported revenue of $1.2 billion for the second quarter of 2016, an increase of 3% compared with the second quarter of 2015. Net income was $224 million, or 45 cents per diluted share, compared with a net loss of $37 million for the second quarter of 2015, on a reported basis.

Adjusted net income for the second quarter was $246 million, or 49 cents per diluted share, an increase of 14% from a year ago. The adjusted net income figure excludes the net impact of $22 million for purchase accounting adjustments, acquisition-related costs and certain significant items.

On an operational basis, second-quarter revenue increased 6%, excluding the impact of foreign currency. Adjusted net income increased 22% operationally, excluding the impact of foreign currency.

Zoetis chief executive officer Juan Ramón Alaix said, “We have continued our positive momentum through the first half of the year based on the strengths of our diverse portfolio and dedicated Zoetis colleagues. In the second quarter, we delivered 6% operational revenue growth, driven by strong sales of our companion animal products and the positive performance of the U.S. cattle business. We also grew adjusted net income significantly faster than revenue — 22% operationally — as cost controls and efficiency improvements are progressing."

Paul Herendeen, executive vice president and chief financial officer of Zoetis, added, "We’ve made a number of operational efficiency changes over the last year that have and will negatively impact our reported revenue growth in 2016. However, our go-forward product portfolio and revised international footprint delivered strong revenue growth in the second quarter and over the first half of 2016. These efficiency improvements and our execution of new product launches have us on track to achieve our updated financial guidance for 2016 and improve our profitability for the long term.”

Quarterly highlights

Zoetis organizes and manages its business across two regional operating segments: the U.S. and International. Within these segments, the company delivers a diverse portfolio of products for livestock and companion animals tailored to local trends and customer needs.

In the second quarter of 2016:

* Revenue in the U.S. segment was $594 million, an increase of 10% compared with the second quarter of 2015. Sales of companion animal products grew 17% due primarily to increased sales of APOQUEL and several new product launches, including SIMPARICA. Livestock revenue grew 2%, driven by increased sales of cattle products as a result of improving market conditions and expanding herd sizes. Livestock revenue growth was partially offset by product rationalizations as part of the company’s operational efficiency initiative that affected poultry and swine; swine also declined due to increased competition.

* Revenue in the International segment was $602 million, a decrease of 3% on a reported basis and an increase of 2% operationally compared with the second quarter of 2015. Sales of companion animal products grew 2% on a reported basis and 6% operationally. Growth in companion animal products was partially offset by product rationalizations as a result of the company’s operational efficiency initiative and business reductions in Venezuela. Sales of livestock products decreased 5% on a reported basis and grew 1% operationally, primarily from the addition of revenue from PHARMAQ and growth in China due to favorable market conditions in the swine market. Poultry and cattle products declined primarily due to business reductions in Venezuela and India, in addition to product rationalizations as a result of the company’s operational efficiency initiative.