on productivity particular, deliver, our while progress and Thanks, Katy. our strategy, innovation, to pleased agenda Good quarter. morning, productivity continued are pipeline. and with portfolio our continues everyone. in execute company-wide the Elanco innovation delivering we to the second In
to expect in over remainder expect to currency to some of quarter year. challenges, the growth challenges our line top performance we now the fourth this sales While return constant of year, the mostly macro we environmental
margin drive to continue efforts expansion. productivity company-wide Our
proud quarter, help guidance. portfolio. progress focus on productivity despite X% reduce and in range around with footprint the the EPS our marketing year EBITDA revenue our currency, sales organizations, continue and adjusted efforts across over constant XX%, second diversified of laying exceed and for in Elanco's team the was globe resources global prioritizing and EBITDA allowed adjusted $XXX our commercial and with streamlining the future guidance by In groundwork our Elanco our decline adjusted R&D second line our treat May of million. to the growth costs increasing us which for quarter end top Our I'm manufacturing to of X% our customers EPS $X.XX with to of of pipeline is animals in adjusted last teams
Additionally, we times, leverage revenue the intensified first in delivered from the to to factors economic, XXXX outlook cash strong X.X company-specific net quarter. in that are accelerated down and flow quarter quarter. updating at the ratio end our times for environmental for we account operating X.X and our of the Today, reduced and
are We balanced approach this and forecast. this to environment and taking a measured
today's achieve reduction EBITDA expand adjusting we targets these to the at XXXX in margin XXXX. timing XXXX. and on both margin an this gross margin year update remain committed that to XX% and XX% and to continue We and expect EBITDA adjusted provide in and gross we'll our margin, line sales Despite Investor XXXX, XXXX laid for we which to December out longer-term in expect also are expect we margin Given dynamics, by Day. our our expectations time
led We constant in by and delivered poultry growth sales our We billion, results. X% to in $X.XXX revenue the four, constant reported farm growth animal currency. X% ZoaShield revenue start of X% decline of let's second driven Moving currency or cattle. Rumensin in quarter reported slide in in with by a in X% US,
a our swine lesser grew Rumensin, extent, sheep, by and to including in constant was softness strength in business partially Animal offset X% Farm Europe. as in international China Our currency business
first Although Pet to smaller of X% of business, discussed May, despite continue into constant in QX the $XX a the X% Aqua Health million we declined constant currency by phasing in growth growth drove currency. strong notionally XX%. QX in performance quarter, see with we in which
business the our driven XX%, the by our Our quarter. We business quality competitive indicative as our declined other this across and issues Interceptor vet-based US Plus the and and including of sales retail decline parasiticide, on supply Health is Pet US business pressure of portfolio. in not discrete believe do impacted declines underlying of Trifexis level
it growth are the China, flat flat through business the back In confident was International our also half Health in months the and the two XXXX. quarter. Pet XXXX These contrast COVID as Health forward the lockdowns. are will quarter, driven move the of the double-digit to We in team significant was of in Pet we of quarter by of first improve year. the delivered results in impact
address driven reducing but more reflects year Farm been in spend with further second increases our like below to Pet to Pet price second levels. marketing business. to quarter and taken trade trade accelerating price disease Price pricing initial Animal, the driven our retail retail our US expense and price respiratory Farm X% operating positive in our and Price in promotional expectations, portfolios, or net see spend that drive a demand and our our lower from both have by US bovine dynamics price our shift intentional line Animal with We funds with Additionally, in competitive international market contribution actions growth fund was net partners expectations, an impacting Increxxa. investment in our X%. expect than Health was I'd the we in historical Mid-year and growth created This thus business. sales. across Health increased contribution to gross-to-net a by EBITDA. was In investments shift Animal was growth Farm growth invested half, in the of in full
to growth $XX first, this rates. is of to total X% May. to approximately the our dollar currency from our Compared constant are guidance million reducing Moving from reduction early to slide flat guidance, we $XXX We now of million mid-point expected year of to can from X% into May sales five, impact compared at expected a assumptions current the headwind to minus X%. range full $XXX a areas; exchange unfavorable million reflect to grouped our expect now strength foreign we $XXX in three the that of million be an
and $XX chain, parasiticides. drag macro relating innovation lockdown, expected headwinds Secondly, the million world. pet net from point million And from COVID $XXX $XXX to growth economic pressure finally, primarily global million from US the from health slowdown million and to China's around pace of in the on performance pricing one factors, recovery realization, ramp environmental supply disruptions percentage a the or $XX to including
percentage to with million Regarding point of to grow by to XX% China, now and X% one macro Elanco is to revenue to reduction change, $XX factors, by million let's which decline this year about environmental provide from total growth of the this reduction. did year With expect it constant $XXX start we currency $XX China as in from currency. approximately that at China We've been XXXX. million $XXX in this constant expecting business million our
that we in saw in starting China May health, demand June pent-up as in V-shaped strict the result XXXX. our major recovery in rebound was under in US a in centers population were assumption pet would to For a what lockdowns, the in for similar
the market through in not improvement expect double we quarter lost the expected been parasiticide we it some to of health pace first saw we we will from with materialize we to half second of second appear In expect half now a and of capabilities bounce-back recapture and our while our business June the share into and points sales in China its second QX more May. has grew the that as year. does strong don't market enhanced growth of in in team did than pet China portfolio in approval July, percentage year, see the we Credelio, commercial Elanco's the as tempered digits the in the projected six grow While through May, strong still half just
volatile. African ability are invest our prices below swine breakeven large higher base prices fever, levels. expected farm to of their improving remain products swine a animal Moving swine to remain have in cost to in out their coming industrial current China, as the but impacting The are producers
and take have believe been well-positioned prices protein the driver lower current expectations we the cheaper overall we the advantage of health farm demand both where very will our our for Despite in and below believe occur as to a growth come. to from lockdowns China from pork competition animal tracking recoveries is and years the and COVID XXXX Additionally, for depressed they business, also pet environmental China, in poultry Elanco be and year. the in headwinds are impacting
first environmental chain packaging and of and represents supply labor sales $XX are of our paper while factors, the and and us, suppliers CMOs remains dynamic the disruption, from reduction to Next, input sourcing moving behind from and shortages. experiencing challenges number to largely are half million our macro a $XX ongoing the logistics million which freight challenges
meet issues these farm impact primarily for smaller expect our animal We a to negatively demand of products, to in business. ability international number our
drive raw more of XXXX. to to performance other materials We alternative inputs reliable seek continue supply and sources in
the million reality million we our global world slowdowns downside across $XX create of will in the economic $XX to Lastly, a expect the business.
sales to than reflect by guidance contract growth price more manufacturing. expectations than our reducing parasiticide and ramp, of US $XX performance aqua in Finally, our approximately we better poultry, lowered our to our pet offset for will revenue which innovation business, are health expected million and million performance $XX
by and of earlier the $XXX as million price a Increxxa covered I year $XX updated Credelio for $XX expectations our million million While innovation to sales, $XXX expectations result lowering Plus. we're Experior, full million our for to for to
Experior are using increase. with as are we product we of the Experior, the the customer number the of to For head number continues receiving customers on pleased experience very and feedback
Experior point However, second started in our than of all curve in of July from cattle in May. number in out, Experior and Important cattle twice to cattle QX. saw expectations the we on QX, the second feedyard QX, more is in than than started the quarter and quarter in adoption the behind more
to continue has Xperia become feedback a expect in to recent this months industry and We strengthened belief. blockbuster only
Given to growth major to strong we and on expect cattle the be XXXX. a product, in Experior in margin gross current driver the accretive ramp
season, Seresto rather majority is tick previous the this across our additional growth We as and closer we or and $XX products $XX of will see flea think for cats Finally, year's pressure evaluate the dog Credelio the in portfolio million pressure competitive million the as to the assumption. $XX likely strong. of we than be results million on
a Poultry business and in Aqua contract innovation, expected our expectations, sales in sales our headwinds these strength negative to and net positive on are create While in provide parasiticides a higher offset. pricing the manufacturing
deliver competitive in adjusted to continue areas where teams the the EBITDA has adjusted Our Todd through will our Later, line take guidance. the from changes commercial in you portfolio strength. and top EPS
more like by a season constant Seresto In lower quarter, and approximately innovation. below to provide The the and our X% was and and was on on driven I'd Now progress retail Seresto to information decline dynamics. competitive expectations. in the declined inventory US our Europe, transition second softer in currency levels
with importance half, the the $XXX brand disease X% currency the cats consumer policy the economic on profile June, of total sales In first its million. approximately fleas strong and of support carrying and protecting For and grew in appeared ticks. Seresto, House against before defending dogs Subcommittee in I and of safety constant
science-based work to evaluations testimony, my commitment During our with of supporting the the product. reiterated EPA, I
We continue to and data safety that profile. supports strong analysis Seresto's additional provide
data, very see brand meets US driving of has customer brand rest the important has to of Seresto unique Slide come. X. growth in for our resilient, in our generally are innovation challenged needs future the Transitioning with portfolio. intent world. focused in high years and July, Seresto, the been loyalty. as US driver While is demonstrating most to We of historical affordable consumer a expectations growth in our it Aligned for years, The Seresto market on that last research line repurchase shows two with across the performed XX% Elanco
team beyond products XXXX. leadership we spaces, by last coming the of million over to antibodies, call Brabander, therapeutics million months the the platforms well expect XXXX our to including as confidence launched of execution era revenue to $XXX disciplined advance new and our and in nine May, continue Dr. Ellen our approvals innovation increasing We continue of contribute monoclonal delivering pipeline, parasiticides. in Since last pet experienced and and and $XXX have our as protein De of the increased next pet to sustainable in The probabilities. earnings from late-stage
in intend iterative we products. product late-stage rolling months, start two dermatology of The make which typically is regulatory the nature XX the broad while to to next we one from submission and will review often with submissions a the Within to on -month approval, parasiticide shorter. USDA FDA, process, timing a to spectrum expect regulatory four the approval regulatory review involved. body dependent submissions initial European are cycle With our XX authorities for the and and
product, Canada; parasiticide the including heartworm several in markets in threshold, we update differentiated ago in six Advantage the so-called received. believe seven cats seven current challenge XXXX. These US US. And developments. Plus for and you now have with primarily from approvals our Pet Credelio faced of are and Health, crossed in material in we'll development We We with any the the For remain years Credelio products for assets approvals program. believe late-stage our to China; in on-track are on portfolio-enhancing Plus continue the we we market major XD expected offerings, Credelio in a
treatment Additionally, continues approval to dogs advance with our parvovirus USDA expected this or XXXX. for early year late
leading cat by clinic product new oral In care. which approved condition. for mechanism Finally, to revolutionary announce Diabetes we the owners, is July, Its for chronic product to the is we easier believe within treat we've care easy postoperative veterinarians daily we The FDA give XX to a makes their feline build to in needle-free on to continue mechanism next be We're X,XXX that to expected this that transdermal first-in-class and product a ZORBIUM, in standard gaining will action pleased portfolio month. introduces medication product a review cats long-acting licensed first of also value and clinics. Care. evidenced months. today traction placements the delivery a with under feline pain improve innovative vet The delivering regulatory veterinarians as of launched postoperative a
to our influenza efforts broad We earnings on third expected In and dermatology addition parvovirus joining as our and spectrum to near-term of commitment will provide call builders bringing Elanco's veterinarians products differentiated to updates in these November innovations demonstrate innovation with innovations as parasiticide and serve such and and relationship further canine to multiple market. important ahead quarter have portfolio to the Ellen plan coming progress. novel
all years. few to their thank Before I'd productivities the the I the turn call Elanco Todd, team. for over over to like last of
Cash into Our intensifying introduction value of company-wide an we which drive and I is term. ownership our mindset optimization. the evil ownership mindset believe [ph] capital like earnings short-term driving long a our for will compensation, performance Elanco call this over culture metric all and focus on delivering stakeholders
hand to I'll over Todd. it Now