Henry Schein, a global distributor of medical and dental supplies, reported approximately $3.1 billion in revenue for the second quarter of 2024, marking a 1.1% increase compared to the same quarter last year, according to its earnings report on Aug. 6. This figure fell short of analysts’ estimates of $3.27 billion.
The company’s revenue was driven by a 4.0% sales growth from acquisitions, offset by a 0.5% sales decrease due to unfavorable foreign exchange rates and a 0.5% sales decline from lower personal protective equipment (PPE) sales, primarily due to reduced glove pricing. Additionally, its technology and value-added Services sales increased 10.8% to $0.2 billion.
“We are experiencing improving sales trends in our distribution businesses, however, the pace of recovery in these businesses since the cyber incident late last year has been slower than anticipated,” said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein.
On Oct. 14, 2023, Henry Schein was hit by a BlackCat ransomware attack, leading to a one-month operational hiatus. During this period, many customers sought supplies from other providers, despite Henry Schein offering up to 15% in discounts to retain business.
Its Operational Cash
The company reported an operating cash flow increase of $22 million for the quarter, reaching $296 million compared to the second quarter of 2023, which was impacted by the cyberattack.
“We delivered solid second quarter financial results, including strong operating cash flow, that reflected stable end markets,” Bergman said.
“Gross margin continued to increase, driven by our strategies to expand our high-growth, high-margin products and services and by the successful performance of our recent acquisitions,” he added.
To achieve further savings, Henry Schein announced a restructuring plan aiming for $75 million to $100 million in annual run-rate savings. The company expects to record restructuring charges in the second half of 2024 and 2025.
For the full report, please click HERE.
(Figures are reported in USD)
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