Margin Execution Drives Better Performance
in Quarter and Higher Guidance for Fiscal 2024
- Q1 revenue of $4.7 billion
increased 2.6% as reported, 1.6% currency-neutral and 2.4%
organic
- Q1 GAAP and adjusted diluted EPS from continuing operations of
$0.96 and $2.68, respectively
- Company raises full-year adjusted EPS guidance and midpoint of
organic revenue growth guidance
FRANKLIN
LAKES, N.J., Feb. 1, 2024
/PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE:
BDX), a leading global medical technology company, today announced
results for its first quarter of fiscal 2024, which ended
December 31, 2023.
"Our Q1 results reflect our team's strong execution of our BD
2025 strategy, in particular leveraging our broad portfolio of
simplification programs to deliver both margin performance and cash
flow ahead of our expectations," said Tom
Polen, chairman, CEO and president of BD. "As we build on
this momentum, advance our strong innovation pipeline and
accelerate the adoption of our BD Excellence operating system, we
are well-positioned to achieve our increased fiscal 2024 guidance
and create sustained value for all stakeholders."
Recent Business and ESG Highlights
- BD Medical:
- The Medication Delivery Solutions business unit
launched the SiteRite™ 9 Ultrasound System which is designed
to aid clinicians with first attempt insertion success when placing
peripherally inserted central catheters (PICCs), central venous
catheters, IV lines and other vascular access devices.
- BD Life Sciences:
- The Integrated Diagnostics Solutions business unit
received FDA 510(k) clearance for the BD MiniDraw™ Capillary
Blood Collection System, a device which enables fingertip
collection of a high-quality blood sample that is less invasive and
more convenient than the traditional collection method.
- Aligned with its recent collaboration with the Kenyan
Government to advance access to critical cancer diagnostics for
women in Kenya, the company signed
the World Economic Forum's Zero Health Gaps Pledge,
reinforcing its longstanding commitment to help improve health
equity and expand access to care in under-resourced communities
around the world.
First Quarter Fiscal 2024 Operating Results
|
|
Three Months Ended
December 31,
|
|
Change
|
|
Foreign
Currency
Neutral
Change1
|
|
Organic
Revenue
Change1
|
(Millions of dollars, except per share
amounts)
|
|
2023
|
|
2022
|
|
|
|
Revenues
|
|
$
4,706
|
|
$
4,586
|
|
2.6 %
|
|
1.6 %
|
|
2.4 %
|
|
|
|
|
|
|
|
|
|
|
|
Reported Diluted Earnings per
Share
|
|
$ 0.96
|
|
$ 1.70
|
|
(43.5) %
|
|
(28.8) %
|
|
|
Adjusted Diluted Earnings per
Share1
|
|
$ 2.68
|
|
$ 2.98
|
|
(10.1) %
|
|
(2.0) %
|
|
|
|
1Represents
a non-GAAP financial measure; refer to reconciliations of
non-GAAP financial measures included in the attached financial
tables.
|
Geographic Results
Revenues (Millions of dollars)
|
|
Three Months Ended
December 31,
|
|
Reported Change
|
|
Foreign Currency
Neutral Change1
|
|
|
2023
|
|
2022
|
|
|
United States
|
|
$
2,749
|
|
$
2,730
|
|
0.7 %
|
|
0.7 %
|
|
|
|
|
|
|
|
|
|
International
|
|
$
1,957
|
|
$
1,856
|
|
5.5 %
|
|
2.9 %
|
|
|
|
|
|
|
|
|
|
Total Revenues
|
|
$
4,706
|
|
$
4,586
|
|
2.6 %
|
|
1.6 %
|
|
1Represents
a non-GAAP financial measure; refer to reconciliations of
non-GAAP financial measures included in the attached financial
tables.
|
Segment Results
Revenues (Millions of dollars)
|
|
Three Months Ended
December 31,
|
|
Reported
Change
|
|
Foreign
Currency
Neutral
Change1
|
|
Organic
Revenue
Change1
|
|
|
2023
|
|
2022
|
|
|
|
BD Medical
|
|
$ 2,230
|
|
$ 2,154
|
|
3.5 %
|
|
2.4 %
|
|
2.4 %
|
|
|
|
|
|
|
|
|
|
|
|
BD Life Sciences
|
|
$ 1,288
|
|
$ 1,302
|
|
(1.0) %
|
|
(2.5) %
|
|
(2.5) %
|
|
|
|
|
|
|
|
|
|
|
|
BD Interventional
|
|
$ 1,188
|
|
$ 1,129
|
|
5.2 %
|
|
4.7 %
|
|
8.4 %
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues
|
|
$ 4,706
|
|
$ 4,586
|
|
2.6 %
|
|
1.6 %
|
|
2.4 %
|
|
1Represents
a non-GAAP financial measure; refer to reconciliations of
non-GAAP financial measures included in the attached financial
tables.
|
The BD Medical segment includes the Medication Delivery
Solutions (MDS), Medication Management Solutions (MMS), and
Pharmaceutical Systems (PS) business units. BD Medical revenue
growth was driven by MMS and PS.
- MDS performance reflects continued execution of our
Vascular Access Management strategy which drove strong performance
in Catheter Solutions. As expected, growth was tempered by market
dynamics in China.
- MMS performance reflects strong growth in Dispensing and
Infusion with a continued focus on innovation within the BD Pyxis™
portfolio to improve nursing workflows and efficiencies, and strong
progress bringing the BD Alaris™ Infusion System back to market.
Performance in Pharmacy Automation was impacted by the comparison
to the prior year, as expected, and the timing of planned capital
installations.
- PS performance reflects leadership in Pre-Fillable
Solutions which drove double-digit growth in biologics with BD
Hypak™ and innovative products like BD Neopak™. As expected, growth
was tempered by customer inventory dynamics, including a slowdown
in demand for anticoagulants.
The BD Life Sciences segment includes the Integrated
Diagnostic Solutions (IDS) and Biosciences (BDB) business units. BD
Life Sciences revenue reflects a decline in IDS that was partially
offset by growth in BDB.
- IDS performance reflects the comparison to higher
prior-year respiratory testing revenues. Partially offsetting this
decline was high single-digit growth in our Microbiology platforms
and strong double-digit growth from Molecular IVD assays leveraging
the BD COR™ System and BD Max™ System install base.
- BDB performance was driven by strong mid-single digit
growth in both Research and Clinical Solutions despite the impact
of prior-year comparisons. Performance was led by double-digit
growth in Research Instruments enabled by the BD FACSDiscover™ S8
Cell Sorter and BD Rhapsody™ HT Xpress launches, and double-digit
growth in Clinical Reagents driven by our growing FACSLyric™
Clinical Cell Analyzer and FACSDuet™ Sample Preparation System
install base.
The BD Interventional segment includes the Surgery,
Peripheral Intervention (PI), and Urology & Critical Care (UCC)
business units. BD Interventional organic revenue growth
was primarily driven by Surgery and UCC.
- Surgery performance reflects continued market adoption
of the Phasix™ hernia resorbable scaffold, which drove double-digit
growth worldwide in Advanced Repair and Reconstruction, and
high-single digit growth in Infection Prevention, driven by strong
demand for ChloraPrep™. The unit's performance also reflects the
impact from the divestiture of the Surgical Instrumentation
platform.
- PI performance reflects global penetration of the
Peripheral Vascular Disease portfolio, including the Venovo™ Venous
Stent System and the Rotarex™ Atherectomy System. As expected,
growth was impacted by the timing of prior-year distributor
ordering in the US.
- UCC performance reflects double-digit growth in the
PureWick™ franchise for chronic incontinence driven by continued
adoption in both acute care and home care settings.
Assumptions and Outlook for Full Year Fiscal 2024
The company provided the following guidance with respect to
fiscal 2024.
The company raised the lower end and midpoint of its fiscal 2024
organic revenue growth guidance range, and increased its adjusted
diluted earnings per share guidance range.
- The company now expects fiscal year 2024 revenues to be in the
range of approximately $20.2 billion
to $20.4 billion compared to
$20.1 billion to $20.3 billion previously.
- Organic revenue growth is now expected to be 5.5% to 6.25%
compared to 5.25% to 6.25% previously.
- Total currency-neutral revenue growth is now expected to be
4.75% to 5.5% compared to 4.5% to 5.5% previously. Total
currency-neutral revenue growth continues to reflect a negative
impact of approximately 75 basis points from the impact of the
Surgical Instrumentation platform divestiture.
- Based on current rates, foreign exchange represents a reduction
of approximately 25 basis points to total company revenue
growth.
- The company now expects fiscal year 2024 adjusted diluted EPS
to be $12.82 to $13.06, compared to $12.70 to $13.00
previously. This reflects an increase of 9
cents at the midpoint including an operational increase of
7 cents driven by strong execution in
the first quarter, and a 2-cent
improvement related to foreign currency translation.
- Adjusted earnings per share guidance reflects growth of
approximately 5% to 7%. This includes a reduction of approximately
360 basis points from foreign exchange based on current rates and
continues to include the absorption of an estimated 75 basis point
negative impact from the divestiture of the Surgical
Instrumentation platform.
BD's outlook for fiscal 2024 reflects numerous assumptions about
many factors that could affect its business, based on the
information management has reviewed as of this date. Management
will discuss its outlook and several of its assumptions on its
first fiscal quarter earnings call.
The company's expected adjusted diluted EPS for fiscal 2024
excludes potential charges or gains that may be recorded during the
fiscal year, such as, among other things, the non-cash amortization
of intangible assets, acquisition-related charges, spin-related
costs, and certain tax matters. BD does not attempt to provide
reconciliations of forward-looking adjusted diluted non-GAAP EPS
guidance to the comparable GAAP measure because the impact and
timing of these potential charges or gains is inherently uncertain
and difficult to predict and is unavailable without unreasonable
efforts. In addition, the company believes such reconciliations
would imply a degree of precision and certainty that could be
confusing to investors. Such items could have a substantial impact
on GAAP measures of BD's financial performance. We also present our
estimated revenue, organic revenue growth and adjusted diluted EPS
growth for our 2024 fiscal year after adjusting for the anticipated
impact of foreign currency translation. BD believes that this
adjustment allows investors to better evaluate BD's anticipated
underlying earnings performance for our 2024 fiscal year in
relation to our underlying 2023 fiscal year performance.
Conference Call and Presentation Materials
BD will
host an audio webcast today for the public, investors, analysts,
and news media to discuss its first quarter results. The audio
webcast will be broadcast live on BD's website,
www.bd.com/investors at 8 a.m. (ET) Thursday, February 1,
2024. Accompanying slides will be available on BD's website,
www.bd.com/investors at approximately 6:30
a.m. (ET). The conference call will be available for replay
on BD's website, www.bd.com/investors. Alternatively, you can dial
into the replay at 800-688-7339 (domestic) and 402-220-1347
(international) through the close of business on Thursday, February 8, 2024. A confirmation number
is not needed to access the replay.
Non-GAAP Financial Measures/Financial Tables
This news
release contains certain non-GAAP financial measures. These include
revenue growth rates on a currency-neutral basis, adjusted diluted
earnings per share and organic revenue growth rates on a
currency-neutral basis. These non-GAAP financial measures are not
in accordance with generally accepted accounting principles in the
United States. BD management believes that the use of non-GAAP
measures to adjust for items that are considered by management to
be outside of BD's underlying operational results or that affect
period to period comparability helps investors to gain a better
understanding of our performance year-over-year, to analyze
underlying trends in our businesses, to analyze our operating
results, and understand future prospects. Management uses these
non-GAAP financial measures to measure and forecast the company's
performance, especially when comparing such results to previous
periods or forecasts. We believe presenting such adjusted metrics
provides investors with greater transparency to the information
used by BD management for its operational decision-making and for
comparison to other companies within the medical technology
industry. Although BD's management believes non-GAAP results are
useful in evaluating the performance of its business, its reliance
on these measures is limited since items excluded from such
measures may have a material impact on BD's net income, earnings
per share or cash flows calculated in accordance with GAAP.
Therefore, management typically uses non-GAAP results in
conjunction with GAAP results to address these limitations. BD
strongly encourages investors to review its consolidated financial
statements and publicly filed reports in their entirety and
cautions investors that the non-GAAP measures used by BD may differ
from similar measures used by other companies, even when similar
terms are used to identify such measures. Non-GAAP measures should
not be considered replacements for, and should be read together
with, the most comparable GAAP financial measures.
We present adjusted diluted earnings per share for the first
quarter of fiscal year 2024, and the corresponding prior periods,
after eliminating items we believe are not part of our ordinary
operations and affect the comparability of the periods presented.
Adjusted diluted earnings per share includes adjustments for the
impact of purchase accounting adjustments, integration and
restructuring costs, spin related costs, certain regulatory costs,
certain product remediation costs, certain litigation-related
items, certain investment gains and losses, certain asset
impairment charges, and certain pension settlement costs. In
particular, current and prior-year adjusted diluted earnings per
share results exclude European regulatory initiative-related costs,
which represent costs incurred to develop processes and systems to
establish initial compliance with the European Union Medical Device
Regulation and the European Union In Vitro Diagnostic Medical
Device Regulation (collectively, the "New EU Medical Devices
Regulations"), which represent a significant, unusual change to the
existing regulatory framework. We consider the excluded European
regulatory initiative-related costs to be duplicative of previously
incurred costs and/or one-off costs related to establishing initial
compliance with such regulatory regimes, and in each case are
limited to a specific period of time. These expenses relate to
establishing initial compliance with the New EU Medical Devices
Regulations and include the cost of labor, other services and
consulting (in particular, research and development and clinical
trials) and supplies, travel and other miscellaneous costs. These
costs were recorded in Cost of products sold and Research
and development expense.
We also present revenue growth rates for the first quarter over
the corresponding prior period on a currency-neutral basis after
eliminating the effect of foreign currency translation, where
applicable. We also show the growth in adjusted diluted earnings
per share compared to the prior year period after eliminating the
impact of foreign currency translation to further enable investors
to evaluate BD's underlying earnings performance compared to the
prior period. We calculate foreign currency-neutral percentages by
converting our current-period local currency financial results
using the prior period foreign currency exchange rates and
comparing these adjusted amounts to our current-period results. As
exchange rates are an important factor in understanding
period-to-period comparisons, we believe the presentation of
results on a foreign currency-neutral basis in addition to reported
results helps improve investors' ability to understand our
operating results and evaluate our performance in comparison to the
prior period.
Reconciliations of these and other non-GAAP measures to the
comparable GAAP measures are included in the attached financial
tables. Within the attached financial tables presented, certain
columns and rows may not add due to the use of rounded numbers.
Percentages and earnings per share amounts presented are calculated
from the underlying amounts.
About BD
BD is one of the largest global medical
technology companies in the world and is advancing the world of
health by improving medical discovery, diagnostics and the delivery
of care. The company supports the heroes on the frontlines of
health care by developing innovative technology, services and
solutions that help advance both clinical therapy for patients and
clinical process for health care providers. BD and its more than
70,000 employees have a passion and commitment to help enhance the
safety and efficiency of clinicians' care delivery process, enable
laboratory scientists to accurately detect disease and advance
researchers' capabilities to develop the next generation of
diagnostics and therapeutics. BD has a presence in virtually every
country and partners with organizations around the world to address
some of the most challenging global health issues. By working in
close collaboration with customers, BD can help enhance outcomes,
lower costs, increase efficiencies, improve safety and expand
access to health care. For more information on BD, please visit
bd.com or connect with us on LinkedIn at
www.linkedin.com/company/bd1/ and on X (formerly known as Twitter)
@BDandCo.
***
This press release and accompanying audio webcast on
February 1, 2024 contain certain estimates and other
forward-looking statements (as defined under Federal securities
laws) regarding BD's future prospects and performance, including,
but not limited to, future revenues, margins, earnings per share,
leverage targets and capital deployment. All such statements are
based upon current expectations of BD and involve a number of
business risks and uncertainties. Actual results could vary
materially from anticipated results described, implied or projected
in any forward-looking statement. With respect to such
forward-looking statements, a number of factors could cause actual
results to vary materially. These factors include, but are not
limited to, risks relating to macroeconomic conditions and their
impact on our operations and healthcare spending generally,
including any impact of disruptions in the global supply chain on
our ability to source raw materials, components and energy sources
needed to produce our products, labor constraints or disputes,
inflationary pressures, currency rate fluctuations, and increased
interest rates and borrowing costs; conditions in
international markets, including geopolitical developments such as
the continuation and/or escalation of the evolving situations in
Russia and Ukraine, the Middle
East and Asia, which could
adversely impact our operations; competitive factors including
technological advances and new products or novel medical therapies
introduced by competitors; increases in energy costs and their
effect on, among other things, the cost of producing BD's products;
product efficacy or safety concerns resulting in product recalls or
actions being taken with respect to our products; new or changing
laws and regulations impacting our business (including the
imposition of tariffs, sanctions, changes in tax laws, new
environmental laws and regulations (such as those related to
climate change or materials of concern), new cybersecurity or
privacy laws or changes in laws impacting international trade or
anti-corruption and bribery), or changes in reporting requirements
or enforcement practices with respect to such laws; legislative or
regulatory changes to the U.S. or foreign healthcare systems,
potential cuts in governmental healthcare spending or governmental
or private measures to contain healthcare costs, such as
China's volume-based procurement
tender process or changes in pricing and reimbursement policies,
which could result in reduced demand for our products or downward
pricing pressure; increased labor costs and labor shortages; our
suppliers' ability to provide products needed for our operations
and BD's ability to maintain favorable supplier arrangements and
relationships; adverse changes in regional, national or foreign
economic conditions, including any impact on our ability to access
credit markets and finance our operations; the adverse impact of
cyberattacks on our information systems or products; risks relating
to our overall indebtedness; the possible impact of public health
crises on our business and the global healthcare system, which
could decrease demand for our products, disrupt our
operations or the operations of our customers and companies within
our supply chain, or increase transportation costs; interruptions
in our manufacturing or sterilization processes or those of our
third-party providers, including any restrictions placed on the use
of ethylene oxide for sterilization; pricing and market pressures;
difficulties inherent in product development, delays in product
introductions and uncertainty of market acceptance of new products;
the overall timing of the replacement or remediation of the BD
Alaris™ Infusion System and return to market in the U.S., which may
be impacted by, among other things, customer readiness, supply
continuity and our continued engagement with the FDA; our ability
to achieve our projected level or mix of product sales; our ability
to successfully integrate any businesses we acquire; uncertainties
of litigation and/or investigations and/or subpoenas (as described
in BD's filings with the Securities and Exchange Commission
("SEC")); and the issuance of new or revised accounting standards,
as well as other factors discussed in BD's filings with the SEC. In
addition, we have made certain assumptions in making these
forward-looking statements. If any of these assumptions are
incorrect, BD's actual results could differ materially from those
described in these forward-looking statements. We do not
intend to update any forward-looking statements to reflect events
or circumstances after the date hereof except as required by
applicable laws or regulations.
Contacts:
Investors: Adam Reiffe, Sr.
Director, Investor Relations - 201-847-6927
Media: Troy Kirkpatrick, VP,
Public Relations - 858-617-2361
BECTON DICKINSON AND
COMPANY
|
CONDENSED CONSOLIDATED
INCOME STATEMENTS
|
(Unaudited; Amounts in
millions, except share and per share data)
|
|
|
|
Three Months Ended
December 31,
|
|
|
2023
|
|
2022
|
|
% Change
|
REVENUES
|
|
$
|
4,706
|
|
|
$
|
4,586
|
|
|
2.6
|
|
|
|
|
|
|
|
|
Cost of products
sold
|
|
2,679
|
|
|
2,453
|
|
|
9.2
|
|
Selling and
administrative expense
|
|
1,213
|
|
|
1,187
|
|
|
2.1
|
|
Research and
development expense
|
|
290
|
|
|
313
|
|
|
(7.3)
|
|
Integration and
restructuring expense
|
|
75
|
|
|
44
|
|
|
69.4
|
|
Other operating
expense, net
|
|
11
|
|
|
3
|
|
|
215.6
|
|
TOTAL OPERATING COSTS
AND EXPENSES
|
|
4,267
|
|
|
4,001
|
|
|
6.7
|
|
OPERATING
INCOME
|
|
439
|
|
|
585
|
|
|
(24.9)
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(111)
|
|
|
(102)
|
|
|
8.6
|
|
Interest
income
|
|
34
|
|
|
6
|
|
|
475.1
|
|
Other expense,
net
|
|
(4)
|
|
|
(8)
|
|
|
47.0
|
|
INCOME BEFORE INCOME
TAXES
|
|
359
|
|
|
481
|
|
|
(25.4)
|
|
Income tax provision
(benefit)
|
|
77
|
|
|
(28)
|
|
|
377.7
|
|
NET INCOME
|
|
281
|
|
|
509
|
|
|
(44.8)
|
|
Preferred stock
dividends
|
|
—
|
|
|
(23)
|
|
|
(100.0)
|
|
NET INCOME APPLICABLE
TO COMMON SHAREHOLDERS
|
|
$
|
281
|
|
|
$
|
486
|
|
|
(42.2)
|
|
|
|
|
|
|
|
|
Basic Earnings per
Share
|
|
$
|
0.97
|
|
|
$
|
1.71
|
|
|
(43.3)
|
|
Diluted Earnings per
Share
|
|
$
|
0.96
|
|
|
$
|
1.70
|
|
|
(43.5)
|
|
|
|
|
|
|
|
|
AVERAGE SHARES
OUTSTANDING (in thousands)
|
|
|
|
|
|
|
Basic
|
|
290,113
|
|
283,887
|
|
|
Diluted
|
|
291,398
|
|
285,340
|
|
|
BECTON DICKINSON AND
COMPANY
|
CONDENSED CONSOLIDATED
BALANCE SHEETS
|
(Amounts in
millions)
|
|
|
|
December 31,
2023
|
|
September 30,
2023
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
Cash and
equivalents
|
|
$
|
1,180
|
|
|
$
|
1,416
|
|
Restricted
cash
|
|
54
|
|
|
65
|
|
Short-term
investments
|
|
2
|
|
|
8
|
|
Trade receivables,
net
|
|
2,267
|
|
|
2,534
|
|
Inventories
|
|
3,304
|
|
|
3,273
|
|
Prepaid expenses and
other
|
|
1,349
|
|
|
1,380
|
|
TOTAL CURRENT
ASSETS
|
|
8,156
|
|
|
8,676
|
|
Property, plant and
equipment, net
|
|
6,647
|
|
|
6,557
|
|
Goodwill and other
intangibles, net
|
|
35,211
|
|
|
35,469
|
|
Other assets
|
|
2,259
|
|
|
2,078
|
|
TOTAL ASSETS
|
|
$
|
52,274
|
|
|
$
|
52,780
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current debt
obligations
|
|
$
|
2,016
|
|
|
$
|
1,141
|
|
Other current
liabilities
|
|
5,524
|
|
|
5,500
|
|
Long-term
debt
|
|
14,094
|
|
|
14,738
|
|
Long-term employee
benefit obligations
|
|
894
|
|
|
1,023
|
|
Deferred income taxes
and other liabilities
|
|
4,414
|
|
|
4,582
|
|
Shareholders'
equity
|
|
25,332
|
|
|
25,796
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
$
|
52,274
|
|
|
$
|
52,780
|
|
BECTON DICKINSON AND
COMPANY
|
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited; Amounts in
millions)
|
|
|
|
Three Months Ended
December 31,
|
|
|
2023
|
|
2022
|
OPERATING
ACTIVITIES
|
|
|
|
|
Net income
|
|
$
|
281
|
|
|
$
|
509
|
|
Depreciation and
amortization
|
|
561
|
|
|
567
|
|
Change in operating
assets and liabilities and other, net
|
|
13
|
|
|
(676)
|
|
NET CASH PROVIDED BY
CONTINUING OPERATING ACTIVITIES
|
|
855
|
|
|
399
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
Capital
expenditures
|
|
(116)
|
|
|
(208)
|
|
Other, net
|
|
(116)
|
|
|
(83)
|
|
NET CASH USED FOR
INVESTING ACTIVITIES
|
|
(233)
|
|
|
(291)
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
Change in short-term
debt
|
|
—
|
|
|
365
|
|
Payments of
debt
|
|
—
|
|
|
(528)
|
|
Repurchases of common
stock
|
|
(500)
|
|
|
—
|
|
Dividends
paid
|
|
(275)
|
|
|
(281)
|
|
Other, net
|
|
(87)
|
|
|
(89)
|
|
NET CASH USED FOR
FINANCING ACTIVITIES
|
|
(862)
|
|
|
(534)
|
|
Net cash used for
operating activities of discontinued operations
|
|
(14)
|
|
|
—
|
|
Effect of exchange rate
changes on cash and equivalents and restricted cash
|
|
7
|
|
|
11
|
|
NET DECREASE IN CASH
AND EQUIVALENTS AND RESTRICTED CASH
|
|
(247)
|
|
|
(415)
|
|
OPENING CASH AND
EQUIVALENTS AND RESTRICTED CASH
|
|
1,481
|
|
|
1,159
|
|
CLOSING CASH AND
EQUIVALENTS AND RESTRICTED CASH
|
|
$
|
1,234
|
|
|
$
|
744
|
|
BECTON DICKINSON AND
COMPANY
|
SUPPLEMENTAL REVENUE
INFORMATION
|
REVENUES BY BUSINESS
SEGMENTS AND UNITS - UNITED STATES
|
Three Months Ended
December 31,
|
(Unaudited; Amounts in
millions)
|
|
|
|
A
|
|
B
|
|
C=(A-B)/B
|
|
|
2023
|
|
2022
|
|
% Change
|
BD MEDICAL
|
|
|
|
|
|
|
Medication Delivery
Solutions
|
|
$
|
639
|
|
|
$
|
620
|
|
|
3.1
|
|
Medication Management
Solutions
|
|
594
|
|
|
564
|
|
|
5.3
|
|
Pharmaceutical
Systems
|
|
127
|
|
|
119
|
|
|
6.9
|
|
TOTAL
|
|
$
|
1,360
|
|
|
$
|
1,303
|
|
|
4.4
|
|
|
|
|
|
|
|
|
BD LIFE
SCIENCES
|
|
|
|
|
|
|
Integrated Diagnostic
Solutions
|
|
$
|
444
|
|
|
$
|
508
|
|
|
(12.6)
|
|
Biosciences
|
|
143
|
|
|
137
|
|
|
4.3
|
|
TOTAL
|
|
$
|
587
|
|
|
$
|
645
|
|
|
(9.0)
|
|
|
|
|
|
|
|
|
BD
INTERVENTIONAL
|
|
|
|
|
|
|
Surgery
|
|
$
|
280
|
|
|
$
|
287
|
|
|
(2.3)
|
|
Peripheral
Intervention
|
|
234
|
|
|
236
|
|
|
(0.7)
|
|
Urology and Critical
Care
|
|
287
|
|
|
259
|
|
|
10.8
|
|
TOTAL
|
|
$
|
802
|
|
|
$
|
782
|
|
|
2.5
|
|
|
|
|
|
|
|
|
TOTAL UNITED
STATES
|
|
$
|
2,749
|
|
|
$
|
2,730
|
|
|
0.7
|
|
BECTON DICKINSON AND
COMPANY
|
SUPPLEMENTAL REVENUE
INFORMATION
|
REVENUES BY BUSINESS
SEGMENTS AND UNITS - INTERNATIONAL
|
Three Months Ended
December 31, (continued)
|
(Unaudited; Amounts in
millions)
|
|
|
|
|
|
|
|
|
|
D=(A-B)/B
|
|
E=(A-B-C)/B
|
|
|
A
|
|
B
|
|
C
|
|
% Change
|
|
|
2023
|
|
2022
|
|
FX Impact
|
|
Reported
|
|
FXN
|
BD MEDICAL
|
|
|
|
|
|
|
|
|
|
|
Medication Delivery
Solutions
|
|
$
|
413
|
|
|
$
|
419
|
|
|
$
|
10
|
|
|
(1.6)
|
|
|
(4.0)
|
|
Medication Management
Solutions
|
|
153
|
|
|
142
|
|
|
5
|
|
|
7.3
|
|
|
3.5
|
|
Pharmaceutical
Systems
|
|
304
|
|
|
290
|
|
|
8
|
|
|
4.8
|
|
|
2.0
|
|
TOTAL
|
|
$
|
870
|
|
|
$
|
852
|
|
|
$
|
24
|
|
|
2.1
|
|
|
(0.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
BD LIFE
SCIENCES
|
|
|
|
|
|
|
|
|
|
|
Integrated Diagnostic
Solutions
|
|
$
|
470
|
|
|
$
|
445
|
|
|
$
|
13
|
|
|
5.6
|
|
|
2.7
|
|
Biosciences
|
|
232
|
|
|
212
|
|
|
6
|
|
|
9.2
|
|
|
6.6
|
|
TOTAL
|
|
$
|
701
|
|
|
$
|
657
|
|
|
$
|
19
|
|
|
6.7
|
|
|
3.9
|
|
|
|
|
|
|
|
|
|
|
|
|
BD
INTERVENTIONAL
|
|
|
|
|
|
|
|
|
|
|
Surgery
|
|
$
|
88
|
|
|
$
|
76
|
|
|
$
|
2
|
|
|
17.1
|
|
|
14.4
|
|
Peripheral
Intervention
|
|
220
|
|
|
197
|
|
|
3
|
|
|
11.4
|
|
|
9.8
|
|
Urology and Critical
Care
|
|
78
|
|
|
74
|
|
|
1
|
|
|
5.0
|
|
|
4.0
|
|
TOTAL
|
|
$
|
386
|
|
|
$
|
347
|
|
|
$
|
6
|
|
|
11.2
|
|
|
9.6
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
INTERNATIONAL
|
|
$
|
1,957
|
|
|
$
|
1,856
|
|
|
$
|
48
|
|
|
5.5
|
|
|
2.9
|
|
BECTON DICKINSON AND
COMPANY
|
SUPPLEMENTAL REVENUE
INFORMATION
|
REVENUES BY BUSINESS
SEGMENTS AND UNITS - TOTAL
|
Three Months Ended
December 31, (continued)
|
(Unaudited; Amounts in
millions)
|
|
|
|
|
|
|
|
|
|
D=(A-B)/B
|
|
E=(A-B-C)/B
|
|
|
A
|
|
B
|
|
C
|
|
% Change
|
|
|
2023
|
|
2022
|
|
FX Impact
|
|
Reported
|
|
FXN
|
BD MEDICAL
|
|
|
|
|
|
|
|
|
|
|
Medication Delivery
Solutions
|
|
$
|
1,052
|
|
|
$
|
1,039
|
|
|
$
|
10
|
|
|
1.2
|
|
|
0.2
|
|
Medication Management
Solutions
|
|
747
|
|
|
706
|
|
|
5
|
|
|
5.7
|
|
|
5.0
|
|
Pharmaceutical
Systems
|
|
431
|
|
|
409
|
|
|
8
|
|
|
5.4
|
|
|
3.4
|
|
TOTAL
|
|
$
|
2,230
|
|
|
$
|
2,154
|
|
|
$
|
24
|
|
|
3.5
|
|
|
2.4
|
|
|
|
|
|
|
|
|
|
|
|
|
BD LIFE
SCIENCES
|
|
|
|
|
|
|
|
|
|
|
Integrated Diagnostic
Solutions
|
|
$
|
913
|
|
|
$
|
952
|
|
|
$
|
13
|
|
|
(4.1)
|
|
|
(5.5)
|
|
Biosciences
|
|
375
|
|
|
349
|
|
|
6
|
|
|
7.3
|
|
|
5.7
|
|
TOTAL
|
|
$
|
1,288
|
|
|
$
|
1,302
|
|
|
$
|
19
|
|
|
(1.0)
|
|
|
(2.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
BD
INTERVENTIONAL
|
|
|
|
|
|
|
|
|
|
|
Surgery
|
|
$
|
369
|
|
|
$
|
363
|
|
|
$
|
2
|
|
|
1.7
|
|
|
1.2
|
|
Peripheral
Intervention
|
|
454
|
|
|
433
|
|
|
3
|
|
|
4.8
|
|
|
4.1
|
|
Urology and Critical
Care
|
|
365
|
|
|
333
|
|
|
1
|
|
|
9.5
|
|
|
9.3
|
|
TOTAL
|
|
$
|
1,188
|
|
|
$
|
1,129
|
|
|
$
|
6
|
|
|
5.2
|
|
|
4.7
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
REVENUES
|
|
$
|
4,706
|
|
|
$
|
4,586
|
|
|
$
|
48
|
|
|
2.6
|
|
|
1.6
|
|
BECTON DICKINSON AND
COMPANY
|
SUPPLEMENTAL REVENUE
INFORMATION
|
RECONCILIATION OF
REPORTED REVENUE CHANGE TO ORGANIC REVENUE CHANGE
|
Three Months Ended
December 31,
|
(Unaudited; Amounts in
millions)
|
|
|
|
|
|
|
|
|
|
D=(A-B-C)/B
|
|
|
A
|
|
B
|
|
C
|
|
% Change
|
|
|
2023
|
|
2022
|
|
FX Impact
|
|
FXN
|
TOTAL
REVENUES
|
|
$
|
4,706
|
|
|
$
|
4,586
|
|
|
$
|
48
|
|
|
1.6
|
|
Less: Inorganic revenue
adjustment (1)
|
|
—
|
|
|
39
|
|
|
—
|
|
|
(100.0)
|
|
Organic
Revenue
|
|
$
|
4,706
|
|
|
$
|
4,547
|
|
|
$
|
48
|
|
|
2.4
|
|
|
|
|
|
|
|
|
|
|
BD INTERVENTIONAL
REVENUES
|
|
$
|
1,188
|
|
|
$
|
1,129
|
|
|
$
|
6
|
|
|
4.7
|
|
Less: Inorganic revenue
adjustment (1)
|
|
—
|
|
|
39
|
|
|
—
|
|
|
(100.0)
|
|
BD Interventional
Organic Revenue
|
|
$
|
1,188
|
|
|
$
|
1,090
|
|
|
$
|
6
|
|
|
8.4
|
|
|
|
(1)
|
Inorganic revenue
adjustment is defined as the amount of incremental revenue
attributable to acquisitions and the revenue decline attributable
to divestitures during the first 12 months
post-acquisition/divestiture. Divestitures include: the sale of the
Surgical Instrumentation platform in the Interventional
segment.
|
BECTON DICKINSON AND
COMPANY
|
SUPPLEMENTAL
INFORMATION
|
RECONCILIATION OF
REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS
|
(Unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
|
2023
|
|
2022
|
|
Change
|
|
Foreign
Currency
Translation
|
|
Foreign
Currency
Neutral
Change
|
|
Change %
|
|
Foreign
Currency
Neutral
Change %
|
Reported Diluted
Earnings per Share
|
|
$
|
0.96
|
|
|
$
|
1.70
|
|
|
$
|
(0.74)
|
|
|
$
|
(0.25)
|
|
|
$
|
(0.49)
|
|
|
(43.5) %
|
|
(28.8) %
|
Purchase accounting
adjustments ($362 million and $362 million pre-tax, respectively)
(1)
|
|
1.24
|
|
|
1.27
|
|
|
|
|
—
|
|
|
|
|
|
|
|
Integration costs ($5
million and $18 million pre-tax, respectively)
(2)
|
|
0.02
|
|
|
0.06
|
|
|
|
|
—
|
|
|
|
|
|
|
|
Restructuring costs
($69 million and $26 million pre-tax, respectively)
(2)
|
|
0.24
|
|
|
0.09
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
Separation-related
items ($2 million and $6 million pre-tax, respectively)
(3)
|
|
0.01
|
|
|
0.02
|
|
|
|
|
—
|
|
|
|
|
|
|
|
European regulatory
initiative-related costs ($23 million and $33 million pre-tax,
respectively) (4)
|
|
0.08
|
|
|
0.11
|
|
|
|
|
—
|
|
|
|
|
|
|
|
Product, litigation,
and other items ($14 million and $4 million pre-tax, respectively)
(5)
|
|
0.05
|
|
|
0.01
|
|
|
|
|
—
|
|
|
|
|
|
|
|
Income tax provision
(benefit) of special items ($24 million and ($86) million,
respectively)
|
|
0.08
|
|
|
(0.30)
|
|
|
|
|
—
|
|
|
|
|
|
|
|
Adjusted Diluted
Earnings per Share
|
|
$
|
2.68
|
|
|
$
|
2.98
|
|
|
$
|
(0.30)
|
|
|
$
|
(0.24)
|
|
|
$
|
(0.06)
|
|
|
(10.1) %
|
|
(2.0) %
|
|
|
(1)
|
Includes amortization
and other adjustments related to the purchase accounting for
acquisitions.
|
(2)
|
Represents costs
associated with integration and restructuring activities, as well
as costs associated with simplification and cost saving
initiatives.
|
(3)
|
Represents costs
recorded to Other operating expense, net incurred in
connection with the separation of BD's former Diabetes Care
business.
|
(4)
|
Represents costs
incurred to develop processes and systems to establish initial
compliance with the European Union Medical Device Regulation and
the European Union In Vitro Diagnostic Medical Device Regulation,
which represent a significant, unusual change to the existing
regulatory framework. We consider these costs to be duplicative of
previously incurred costs and/or one-off costs, which are limited
to a specific period of time. These expenses, which are recorded in
Cost of products sold and Research and
development expense, include the cost of labor, other services
and consulting (in particular, research and development and
clinical trials) and supplies, travel and other miscellaneous
costs.
|
(5)
|
Includes certain
(income) expense items which are not part of ordinary operations
and affect the comparability of the periods presented. Such items
may include certain product remediation costs, certain
litigation-related items, certain investment gains and losses,
certain asset impairment charges, and certain pension settlement
costs.
|
BECTON DICKINSON AND
COMPANY
|
SUPPLEMENTAL
INFORMATION
|
FY 2024 OUTLOOK
RECONCILIATION
|
|
|
|
Full Year
FY2023
|
|
Full Year FY2024
Outlook
|
|
|
($ in
millions)
|
|
FX Neutral %
Change
|
|
Reported
Revenues
|
BDX Reported
Revenues
|
|
$
|
19,372
|
|
|
|
|
|
|
|
|
|
|
|
|
FY2024 Revenue
Growth
|
|
|
|
+4.75% to
5.5%
|
|
|
FY2024 Inorganic Impact
to Revenue Growth
|
|
|
|
(~75) basis
points
|
|
|
FY2024 Organic Revenue
Growth
|
|
|
|
+5.5% to
+6.25%
|
|
|
|
|
|
|
|
|
|
Illustrative Foreign
Currency (FX) Impact, based on FX spot rates
|
|
|
|
|
|
(~25) basis
points
|
Total FY 2024
Revenues
|
|
|
|
|
|
$20.2 to $20.4
billion
|
|
Note - Inorganic
Impact to Revenue Growth reflects the revenue decline attributable
to divestitures for the first 12 months
post-divestiture.
|
BECTON DICKINSON AND
COMPANY
|
SUPPLEMENTAL
INFORMATION
|
FY 2024 OUTLOOK
RECONCILIATION CONTINUED
|
|
|
|
|
|
Full Year FY2024
Outlook
|
|
|
Full Year FY2023
from
Continuing Operations
|
|
Total
Company
|
Reported Diluted
Earnings per Share
|
|
$
|
5.10
|
|
|
|
|
|
Purchase accounting
adjustments ($1.434 billion pre-tax) (1)
|
|
4.97
|
|
|
|
|
|
Integration costs ($67
million pre-tax) (2)
|
|
0.23
|
|
|
|
|
|
Restructuring costs
($239 million pre-tax) (2)
|
|
0.83
|
|
|
|
|
|
Separation-related
items ($14 million pre-tax) (3)
|
|
0.05
|
|
|
|
|
|
European regulatory
initiative-related costs ($139 million pre-tax)
(4)
|
|
0.48
|
|
|
|
|
|
Product, litigation,
and other items ($554 million pre-tax) (5)
|
|
1.92
|
|
|
|
|
|
Income tax benefit of
special items ($(399) million)
|
|
(1.38)
|
|
|
|
|
|
Adjusted Diluted
Earnings per Share
|
|
$
|
12.21
|
|
|
$12.82 to
$13.06
|
Adjusted Diluted
Earnings per Share Percentage Change
|
|
|
|
~+5.0% to
+7.0%
|
Illustrative Foreign
Currency (FX) Impact, based on FX spot rates
|
|
|
|
(~360) basis
points
|
|
|
(1)
|
Includes amortization
and other adjustments related to the purchase accounting for
acquisitions.
|
(2)
|
Represents costs
associated with acquisition-related integration and restructuring
activities, as well as costs associated with simplification and
cost saving initiatives.
|
(3)
|
Represents costs
recorded to Other operating (income)
expense, net incurred in connection with the
separation of BD's former Diabetes Care business.
|
(4)
|
Represents costs
incurred to develop processes and systems to establish initial
compliance with the European Union Medical Device Regulation and
the European Union In Vitro Diagnostic Medical Device Regulation,
which represent a significant, unusual change to the existing
regulatory framework. We consider these costs to be duplicative of
previously incurred costs and/or one-off costs, which are limited
to a specific period of time. These expenses, which are recorded in
Cost of products sold and Research and
development expense, include the cost of labor, other services
and consulting (in particular, research and development and
clinical trials) and supplies, travel and other miscellaneous
costs.
|
(5)
|
Includes certain
(income) expense items which are not part of ordinary operations
and affect the comparability of the periods presented. Such items
may include certain product remediation costs, certain product
liability and legal defense costs, certain investment gains and
losses, certain asset impairment charges, and certain pension
settlement costs. The amount in 2023 includes a charge of $653
million to adjust the estimate of future product remediation costs
to Cost of products sold and a charge of $57 million
related to pension settlement costs to Other expense,
net. The amount in 2023 also includes a gain of $268 million
related to the sale of our Surgical Instrumentation platform
recorded to Other operating (income) expense,
net.
|
View original
content:https://www.prnewswire.com/news-releases/bd-reports-first-quarter-fiscal-2024-financial-results-302049830.html
SOURCE BD (Becton, Dickinson and Company)