Full Press Release Details
BD 2025 Strategic Investments Driving Growth and Advancing Innovation; Company Raises Mid-point of Revenue and Adjusted EPS Guidance Ranges
FRANKLIN LAKES, N.J. , May 4, 2023 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX ), a leading global medical technology company, today announced results for its second quarter of fiscal 2023, which ended March 31, 2023.
"Since launching BD 2025, we have made purposeful and strategic investments to shift BD into attractive end markets to advance innovations that are transforming healthcare and driving company growth," said Tom Polen , chairman, CEO and president of BD. "Our strong performance this quarter reflects our strategy in action and the positive impact of these investments on our business as we deliver for our customers and patients around the world. Particularly, our innovation pipeline and the impact of our M&A strategy played a key role in our results, and we remain well-positioned to continue driving strong growth and performance in the future."
Recent Business and ESG Highlights
Basis of Presentation— Continuing Operations
On April 1, 2022 , the Company completed the spin-off of its Diabetes Care business as a separate publicly traded company named Embecta Corp. ("Embecta"). The historical results of the Diabetes Care business are now accounted for as discontinued operations. Financial information presented in this release reflects BD's results on a continuing operations basis, which excludes Embecta. The prior periods have been recast to conform to this presentation.
Second Quarter Fiscal 2023 Operating Results
| Three Months Ended March 31, | Change | Foreign Currency Neutral Change 1 | ||
| (Millions of dollars, except per share amounts) | 2023 | 2022 | ||
| Revenues | $ 4,821 | $ 4,750 | 1.5 % | 4.1 % |
| Base Revenues 1 | $ 4,805 | $ 4,535 | 6.0 % | 8.7 % |
| Base Organic Revenue Growth 1 | 4.3 % | 7.0 % | ||
| Reported Diluted Earnings per Share | $ 1.53 | $ 1.28 | 19.5 % | 36.7 % |
| Adjusted Diluted Earnings per Share 1 | $ 2.86 | $ 2.78 | 2.9 % | 11.2 % |
Geographic Results
| Revenues (Millions of dollars) | Three Months Ended March 31, | Reported Change | Foreign Currency Neutral Change 1 | |||||
| 2023 | 2022 | |||||||
| United States | $ 2,733 | $ 2,669 | 2.4 % | 2.4 % | ||||
| International | $ 2,088 | $ 2,081 | 0.4 % | 6.3 % | ||||
| Total Revenues | $ 4,821 | $ 4,750 | 1.5 % | 4.1 % |
Segment Results
| Revenues (Millions of dollars) | Three Months Ended March 31, | Reported Change | Foreign Currency Neutral Change 1 | Reported Change Base Revenues 1 | Foreign Currency Neutral Change Base Revenues 1 | |||||||
| 2023 | 2022 | |||||||||||
| BD Medical | $ 2,360 | $ 2,154 | 9.6 % | 12.2 % | 9.6 % | 12.2 % | ||||||
| BD Life Sciences | $ 1,275 | $ 1,485 | (14.2) % | (11.5) % | (0.9) % | 2.2 % | ||||||
| BD Interventional | $ 1,186 | $ 1,111 | 6.8 % | 9.3 % | 6.8 % | 9.3 % | ||||||
| Total Revenues | $ 4,821 | $ 4,750 | 1.5 % | 4.1 % | 6.0 % | 8.7 % |
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 strong double-digit growth in MMS and PS.
The BD Life Sciences segment includes the Integrated Diagnostic Solutions (IDS) and Biosciences (BDB) business units. BD Life Sciences performance reflects growth in the segment's base business despite a negative impact of approximately 800 basis points from the comparison to prior-year respiratory testing revenues. The segment's performance also reflects a decline in COVID-only diagnostic testing revenues.
The BD Interventional segment includes the Surgery, Peripheral Intervention (PI), and Urology & Critical Care (UCC) business units. BD Interventional performance was driven by strong performance across the segment.
Assumptions and Outlook for Full Year Fiscal 2023
The company raised the lower-end and mid-point of its full-year revenue and adjusted EPS guidance ranges. This includes an increase to base business currency-neutral revenue growth, which is enabling additional investments in growth and innovation while absorbing lower COVID-only diagnostic testing revenue and an estimated incremental foreign currency headwind.
BD's outlook for fiscal 2023 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 second fiscal quarter earnings call.
Conference Call and Presentation Materials BD will host an audio webcast today for the public, investors, analysts, and news media to discuss its second quarter results. The audio webcast will be broadcast live on BD's website, www.bd.com/investors at 8 a.m. (ET) Thursday, May 4, 2023. 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 1-800-688-7036 (domestic) and 1-402-220-1346 (international) through the close of business on Thursday, May 11, 2023 . A confirmation number is not needed to access the replay.
We present adjusted diluted earnings per share for the second quarter and the first six months of fiscal year 2023, 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 product liability and legal defense costs, certain investment gains and losses, and certain asset impairment charges. 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 second quarter and first six months of fiscal year 2023 over the corresponding prior periods 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 periods after eliminating the impact of foreign currency translation to further enable investors to evaluate BD's underlying earnings performance compared to the prior periods. 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 prior periods.
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 77,000 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 Twitter @BDandCo.
This press release contains 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 and earnings per share. 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 forward-looking statements contained herein, a number of factors could cause actual results to vary materially. These factors include, but are not limited to, risks relating to the macroeconomic environment on our operations and healthcare spending, including any impact of the current disruptions in the global supply chain on our ability to source raw materials, components and energy sources needed to produce our products, labor constraints, inflationary pressures, currency rate fluctuations and increased interest rates; geopolitical developments such as the ongoing Russia and Ukraine conflict and the evolving conditions in Asia , which could adversely impact our operations; 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, changes in tax laws, new environmental laws and regulations, new cybersecurity or privacy laws or changes in laws impacting international trade) or changes in enforcement practices with respect to such laws; increased labor costs; our suppliers' ability to provide products needed for our operations and BD's ability to maintain favorable supplier arrangements and relationships; legislative or regulatory changes to the U.S. or foreign healthcare systems, potential cuts in governmental healthcare spending (including China's volume-based procurement tender process) or governmental or private measures to contain healthcare costs, including changes in pricing and reimbursement policies, each of which could result in reduced demand for our products or downward pricing pressure; adverse changes in regional, national or foreign economic conditions, including inflation, deflation and fluctuations in interest rates and foreign exchange rates, particularly in emerging markets, 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; competitive factors including technological advances and new products introduced by competitors; risks relating to our overall indebtedness; the possible impact of COVID-19, including any resurgence or new strains, on our business and the global healthcare system, which could result in decreased demand for our products, disruptions to our operations or the operations of our suppliers and customers and our supply chain, and factors such as vaccine utilization rates, infection rates, the emergence of new variants and competitive factors that could impact the demand and pricing for our COVID-19 diagnostics testing; interruptions in our manufacturing or sterilization processes or those of our third-party providers; pricing and market pressures; difficulties inherent in product development, delays in product introductions and uncertainty of market acceptance of new products; the remediation of our infusion pump business (including risks relating to our ability to obtain regulatory clearance and market acceptance of the BD Alaris™ System); 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, particularly regarding supply chain pressures, inflation and foreign exchange rates. 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: Francesca DeMartino , SVP, Head of Investor Relations - 201-847-5743 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 March 31, | ||||||||||||
| 2023 | 2022 | % Change | ||||||||||
| REVENUES | $ | 4,821 | $ | 4,750 | 1.5 | |||||||
| Cost of products sold | 2,586 | 2,637 | (2.0) | |||||||||
| Selling and administrative expense | 1,205 | 1,192 | 1.0 | |||||||||
| Research and development expense | 337 | 327 | 3.1 | |||||||||
| Acquisition-related integration and restructuring expense | 62 | 28 | 117.4 | |||||||||
| Other operating expense, net | 4 | — | 100.0 | |||||||||
| TOTAL OPERATING COSTS AND EXPENSES | 4,193 | 4,185 | 0.2 | |||||||||
| OPERATING INCOME | 628 | 564 | 11.3 | |||||||||
| Interest expense | (118) | (97) | 21.1 | |||||||||
| Interest income | 10 | 2 | 429.2 | |||||||||
| Other income (expense), net | 8 | (27) | 130.2 | |||||||||
| INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 529 | 442 | 19.6 | |||||||||
| Income tax provision | 68 | 52 | 30.7 | |||||||||
| NET INCOME FROM CONTINUING OPERATIONS | 460 | 390 | 18.2 | |||||||||
| Income from discontinued operations, net of tax | — | 64 | (100.0) | |||||||||
| NET INCOME | 460 | 454 | 1.5 | |||||||||
| Preferred stock dividends | (23) | (23) | — | |||||||||
| NET INCOME APPLICABLE TO COMMON SHAREHOLDERS | $ | 438 | $ | 431 | 1.5 | |||||||
| BASIC EARNINGS PER SHARE | ||||||||||||
| Income from Continuing Operations | 1.54 | 1.29 | 19.4 | |||||||||
| Income from Discontinued Operations | — | 0.22 | (100.0) | |||||||||
| Basic Earnings per Share | $ | 1.54 | $ | 1.51 | 2.0 | |||||||
| DILUTED EARNINGS PER SHARE | ||||||||||||
| Income from Continuing Operations | 1.53 | 1.28 | 19.5 | |||||||||
| Income from Discontinued Operations | — | 0.22 | (100.0) | |||||||||
| Diluted Earnings per Share | $ | 1.53 | $ | 1.50 | 2.0 | |||||||
| AVERAGE SHARES OUTSTANDING (in thousands) | ||||||||||||
| Basic | 284,292 | 285,243 | ||||||||||
| Diluted | 285,645 | 287,299 |
| BECTON DICKINSON AND COMPANY CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited; Amounts in millions, except share and per share data) | ||||||||||||
| Six Months Ended March 31, | ||||||||||||
| 2023 | 2022 | % Change | ||||||||||
| REVENUES | $ | 9,407 | $ | 9,468 | (0.6) | |||||||
| Cost of products sold | 5,038 | 5,135 | (1.9) | |||||||||
| Selling and administrative expense | 2,392 | 2,378 | 0.6 | |||||||||
| Research and development expense | 651 | 641 | 1.5 | |||||||||
| Acquisition-related integration and restructuring expense | 106 | 62 | 69.1 | |||||||||
| Other operating expense (income), net | 7 | (4) | 262.9 | |||||||||
| TOTAL OPERATING COSTS AND EXPENSES | 8,193 | 8,212 | (0.2) | |||||||||
| OPERATING INCOME | 1,213 | 1,256 | (3.4) | |||||||||
| Interest expense | (220) | (195) | 13.0 | |||||||||
| Interest income | 16 | 4 | 321.6 | |||||||||
| Other income (expense), net | 1 | (24) | 102.3 | |||||||||
| INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 1,009 | 1,041 | (3.1) | |||||||||
| Income tax provision | 40 | 84 | (51.9) | |||||||||
| NET INCOME FROM CONTINUING OPERATIONS | 969 | 958 | 1.2 | |||||||||
| Income from discontinued operations, net of tax | — | 173 | (100.0) | |||||||||
| NET INCOME | 969 | 1,131 | (14.3) | |||||||||
| Preferred stock dividends | (45) | (45) | — | |||||||||
| NET INCOME APPLICABLE TO COMMON SHAREHOLDERS | $ | 924 | $ | 1,086 | (14.9) | |||||||
| BASIC EARNINGS PER SHARE | ||||||||||||
| Income from Continuing Operations | 3.25 | 3.20 | 1.6 | |||||||||
| Income from Discontinued Operations | — | 0.61 | (100.0) | |||||||||
| Basic Earnings per Share | $ | 3.25 | $ | 3.81 | (14.7) | |||||||
| DILUTED EARNINGS PER SHARE | ||||||||||||
| Income from Continuing Operations | 3.24 | 3.18 | 1.9 | |||||||||
| Income from Discontinued Operations | — | 0.60 | (100.0) | |||||||||
| Diluted Earnings per Share | $ | 3.24 | $ | 3.78 | (14.3) | |||||||
| AVERAGE SHARES OUTSTANDING (in thousands) | ||||||||||||
| Basic | 284,087 | 284,961 | ||||||||||
| Diluted | 285,360 | 287,202 |
| BECTON DICKINSON AND COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in millions) | |||||||||
| March 31, 2023 | September 30, 2022 | ||||||||
| (Unaudited) | |||||||||
| ASSETS | |||||||||
| Cash and equivalents | $ | 1,981 | $ | 1,006 | |||||
| Restricted cash | 87 | 153 | |||||||
| Short-term investments | 6 | 8 | |||||||
| Trade receivables, net | 2,413 | 2,191 | |||||||
| Inventories | 3,656 | 3,224 | |||||||
| Prepaid expenses and other | 1,444 | 1,559 | |||||||
| TOTAL CURRENT ASSETS | 9,587 | 8,141 | |||||||
| Property, plant and equipment, net | 6,356 | 6,012 | |||||||
| Goodwill and other intangibles, net | 36,458 | 36,932 | |||||||
| Other assets | 1,994 | 1,848 | |||||||
| TOTAL ASSETS | $ | 54,394 | $ | 52,934 | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
| Current debt obligations | $ | 2,214 | $ | 2,179 | |||||
| Other current liabilities | 5,090 | 5,632 | |||||||
| Long-term debt | 16,010 | 13,886 | |||||||
| Long-term employee benefit obligations | 920 | 902 | |||||||
| Deferred income taxes and other liabilities | 4,471 | 5,052 | |||||||
| Shareholders' equity | 25,689 | 25,282 | |||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 54,394 | $ | 52,934 |
| BECTON DICKINSON AND COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited; Amounts in millions) | |||||||||
| Six Months Ended March 31, | |||||||||
| 2023 | 2022 | ||||||||
| OPERATING ACTIVITIES | |||||||||
| Net income | $ | 969 | $ | 1,131 | |||||
| Less: Income from discontinued operations, net of tax | — | 173 | |||||||
| Income from continuing operations, net of tax | 969 | 958 | |||||||
| Depreciation and amortization | 1,130 | 1,094 | |||||||
| Change in operating assets and liabilities and other, net | (1,515) | (1,231) | |||||||
| NET CASH PROVIDED BY CONTINUING OPERATING ACTIVITIES | 584 | 820 | |||||||
| INVESTING ACTIVITIES | |||||||||
| Capital expenditures | (389) | (405) | |||||||
| Acquisitions, net of cash acquired | — | (450) | |||||||
| Other, net | (134) | (124) | |||||||
| NET CASH USED FOR CONTINUING INVESTING ACTIVITIES | (524) | (979) | |||||||
| FINANCING ACTIVITIES | |||||||||
| Change in short-term debt | 365 | — | |||||||
| Proceeds from long-term debt | 1,662 | — | |||||||
| Distribution from Embecta Corp. | — | 1,266 | |||||||
| Payments of debt | (529) | (2) | |||||||
| Dividends paid | (563) | (541) | |||||||
| Other, net | (101) | (63) | |||||||
| NET CASH PROVIDED BY CONTINUING FINANCING ACTIVITIES | 835 | 659 | |||||||
| DISCONTINUED OPERATIONS | |||||||||
| Net cash provided by operating activities | — | 298 | |||||||
| Net cash used for investing activities | — | (11) | |||||||
| Net cash provided by financing activities | — | 145 | |||||||
| NET CASH PROVIDED BY DISCONTINUED OPERATIONS | — | 432 | |||||||
| Effect of exchange rate changes on cash and equivalents and restricted cash | 14 | (4) | |||||||
| NET INCREASE IN CASH AND EQUIVALENTS AND RESTRICTED CASH | 909 | 928 | |||||||
| OPENING CASH AND EQUIVALENTS AND RESTRICTED CASH | 1,159 | 2,392 | |||||||
| CLOSING CASH AND EQUIVALENTS AND RESTRICTED CASH | $ | 2,068 | $ | 3,320 |
| BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATION REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES Three Months Ended March 31, (Unaudited; Amounts in millions) | ||||||||||||
| A | B | C=(A-B)/B | ||||||||||
| 2023 | 2022 | % Change | ||||||||||
| BD MEDICAL | ||||||||||||
| Medication Delivery Solutions (a) | $ | 616 | $ | 590 | 4.4 | |||||||
| Medication Management Solutions | 550 | 461 | 19.4 | |||||||||
| Pharmaceutical Systems | 173 | 125 | 38.1 | |||||||||
| TOTAL | $ | 1,339 | $ | 1,176 | 13.9 | |||||||
| BD LIFE SCIENCES | ||||||||||||
| Integrated Diagnostic Solutions | $ | 422 | $ | 618 | (31.7) | |||||||
| Biosciences | 159 | 129 | 23.3 | |||||||||
| TOTAL | $ | 581 | $ | 747 | (22.2) | |||||||
| BD INTERVENTIONAL | ||||||||||||
| Surgery | $ | 295 | $ | 268 | 10.0 | |||||||
| Peripheral Intervention | 256 | 240 | 6.5 | |||||||||
| Urology and Critical Care | 263 | 239 | 10.0 | |||||||||
| TOTAL | $ | 813 | $ | 746 | 8.9 | |||||||
| TOTAL UNITED STATES FROM CONTINUING OPERATIONS | $ | 2,733 | $ | 2,669 | 2.4 |
| BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATION REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL Three Months Ended March 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 (a) | $ | 454 | $ | 460 | $ | (28) | (1.2) | 4.9 | |||||||||||
| Medication Management Solutions | 173 | 143 | (10) | 20.9 | 28.1 | ||||||||||||||
| Pharmaceutical Systems (a) | 394 | 375 | (18) | 5.0 | 9.8 | ||||||||||||||
| TOTAL | $ | 1,022 | $ | 978 | $ | (56) | 4.4 | 10.2 | |||||||||||
| BD LIFE SCIENCES | |||||||||||||||||||
| Integrated Diagnostic Solutions | $ | 466 | $ | 532 | $ | (28) | (12.3) | (7.1) | |||||||||||
| Biosciences | 228 | 206 | (12) | 10.3 | 15.9 | ||||||||||||||
| TOTAL | $ | 694 | $ | 738 | $ | (40) | (6.0) | (0.7) | |||||||||||
| BD INTERVENTIONAL | |||||||||||||||||||
| Surgery | $ | 86 | $ | 72 | $ | (6) | 19.3 | 27.1 | |||||||||||
| Peripheral Intervention | 213 | 210 | (15) | 1.3 | 8.5 | ||||||||||||||
| Urology and Critical Care | 74 | 82 | (7) | (9.7) | (1.4) | ||||||||||||||
| TOTAL | $ | 373 | $ | 364 | $ | (28) | 2.4 | 10.0 | |||||||||||
| TOTAL INTERNATIONAL FROM CONTINUING OPERATIONS | $ | 2,088 | $ | 2,081 | $ | (124) | 0.4 | 6.3 |
| BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATION REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL Three Months Ended March 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 (a) | $ | 1,070 | $ | 1,049 | $ | (28) | 1.9 | 4.6 | |||||||||||
| Medication Management Solutions | 723 | 604 | (10) | 19.8 | 21.5 | ||||||||||||||
| Pharmaceutical Systems (a) | 567 | 501 | (18) | 13.3 | 16.9 | ||||||||||||||
| TOTAL | $ | 2,360 | $ | 2,154 | $ | (56) | 9.6 | 12.2 | |||||||||||
| BD LIFE SCIENCES | |||||||||||||||||||
| Integrated Diagnostic Solutions | $ | 888 | $ | 1,150 | $ | (28) | (22.7) | (20.3) | |||||||||||
| Biosciences | 386 | 335 | (12) | 15.3 | 18.7 | ||||||||||||||
| TOTAL | $ | 1,275 | $ | 1,485 | $ | (40) | (14.2) | (11.5) | |||||||||||
| BD INTERVENTIONAL | |||||||||||||||||||
| Surgery | $ | 381 | $ | 340 | $ | (6) | 12.0 | 13.7 | |||||||||||
| Peripheral Intervention | 468 | 450 | (15) | 4.1 | 7.5 | ||||||||||||||
| Urology and Critical Care | 336 | 320 | (7) | 5.0 | 7.1 | ||||||||||||||
| TOTAL | $ | 1,186 | $ | 1,111 | $ | (28) | 6.8 | 9.3 | |||||||||||
| TOTAL REVENUES FROM CONTINUING OPERATIONS | $ | 4,821 | $ | 4,750 | $ | (124) | 1.5 | 4.1 |
| BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATION REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES Six Months Ended March 31, (Unaudited; Amounts in millions) | ||||||||||||
| A | B | C=(A-B)/B | ||||||||||
| 2023 | 2022 | % Change | ||||||||||
| BD MEDICAL | ||||||||||||
| Medication Delivery Solutions (a) | $ | 1,235 | $ | 1,210 | 2.1 | |||||||
| Medication Management Solutions | 1,114 | 945 | 17.9 | |||||||||
| Pharmaceutical Systems | 292 | 228 | 28.2 | |||||||||
| TOTAL | $ | 2,642 | $ | 2,383 | 10.9 | |||||||
| BD LIFE SCIENCES | ||||||||||||
| Integrated Diagnostic Solutions | $ | 930 | $ | 1,232 | (24.6) | |||||||
| Biosciences | 296 | 258 | 14.8 | |||||||||
| TOTAL | $ | 1,226 | $ | 1,490 | (17.8) | |||||||
| BD INTERVENTIONAL | ||||||||||||
| Surgery | $ | 582 | $ | 549 | 5.9 | |||||||
| Peripheral Intervention | 492 | 457 | 7.6 | |||||||||
| Urology and Critical Care | 522 | 492 | 5.9 | |||||||||
| TOTAL | $ | 1,595 | $ | 1,498 | 6.5 | |||||||
| TOTAL UNITED STATES FROM CONTINUING OPERATIONS | $ | 5,462 | $ | 5,372 | 1.7 |
| BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATION REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL Six Months Ended March 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 (a) | $ | 873 | $ | 936 | $ | (75) | (6.7) | 1.3 | |||||||||||
| Medication Management Solutions | 316 | 286 | (28) | 10.3 | 20.3 | ||||||||||||||
| Pharmaceutical Systems (a) | 684 | 669 | (48) | 2.2 | 9.4 | ||||||||||||||
| TOTAL | $ | 1,873 | $ | 1,892 | $ | (151) | (1.0) | 7.0 | |||||||||||
| BD LIFE SCIENCES | |||||||||||||||||||
| Integrated Diagnostic Solutions | $ | 911 | $ | 1,062 | $ | (81) | (14.2) | (6.6) | |||||||||||
| Biosciences | 440 | 416 | (31) | 5.9 | 13.4 | ||||||||||||||
| TOTAL | $ | 1,351 | $ | 1,478 | $ | (113) | (8.6) | (1.0) | |||||||||||
| BD INTERVENTIONAL | |||||||||||||||||||
| Surgery | $ | 162 | $ | 152 | $ | (16) | 6.3 | 16.6 | |||||||||||
| Peripheral Intervention | 410 | 407 | (40) | 0.8 | 10.7 | ||||||||||||||
| Urology and Critical Care | 148 | 168 | (20) | (11.9) | (0.2) | ||||||||||||||
| TOTAL | $ | 720 | $ | 727 | $ | (75) | (1.0) | 9.4 | |||||||||||
| TOTAL INTERNATIONAL FROM CONTINUING OPERATIONS | $ | 3,944 | $ | 4,096 | $ | (339) | (3.7) | 4.6 |
| BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATION REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL Six Months Ended March 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 (a) | $ | 2,109 | $ | 2,146 | $ | (75) | (1.7) | 1.8 | |||||||||||
| Medication Management Solutions | 1,430 | 1,231 | (28) | 16.1 | 18.4 | ||||||||||||||
| Pharmaceutical Systems (a) | 976 | 897 | (48) | 8.8 | 14.1 | ||||||||||||||
| TOTAL | $ | 4,515 | $ | 4,274 | $ | (151) | 5.6 | 9.2 | |||||||||||
| BD LIFE SCIENCES | |||||||||||||||||||
| Integrated Diagnostic Solutions | $ | 1,841 | $ | 2,295 | $ | (81) | (19.8) | (16.2) | |||||||||||
| Biosciences | 736 | 674 | (31) | 9.3 | 13.9 | ||||||||||||||
| TOTAL | $ | 2,577 | $ | 2,968 | $ | (113) | (13.2) | (9.4) | |||||||||||
| BD INTERVENTIONAL | |||||||||||||||||||
| Surgery | $ | 744 | $ | 701 | $ | (16) | 6.0 | 8.2 | |||||||||||
| Peripheral Intervention | 902 | 863 | (40) | 4.4 | 9.1 | ||||||||||||||
| Urology and Critical Care | 670 | 661 | (20) | 1.4 | 4.4 | ||||||||||||||
| TOTAL | $ | 2,315 | $ | 2,225 | $ | (75) | 4.0 | 7.4 | |||||||||||
| TOTAL REVENUES FROM CONTINUING OPERATIONS | $ | 9,407 | $ | 9,468 | $ | (339) | (0.6) | 2.9 |
| BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATION RECONCILIATION OF REPORTED REVENUE CHANGE TO BASE REVENUE CHANGE Three Months Ended March 31, (Unaudited; Amounts in millions) | |||||||||||||||||||
| D=(A-B)/B | E=(A-B-C)/B | ||||||||||||||||||
| A | B | C | % Change | ||||||||||||||||
| 2023 | 2022 | FX Impact | Reported | FXN | |||||||||||||||
| TOTAL REVENUES FROM CONTINUING OPERATIONS | $ | 4,821 | $ | 4,750 | $ | (124) | 1.5 | 4.1 | |||||||||||
| Less: COVID-19-only Diagnostic Testing Revenues | 16 | 214 | — | (92.6) | (92.6) | ||||||||||||||
| Base Revenues from Continuing Operations | $ | 4,805 | $ | 4,535 | $ | (124) | 6.0 | 8.7 | |||||||||||
| BD LIFE SCIENCES REVENUES | $ | 1,275 | $ | 1,485 | $ | (40) | (14.2) | (11.5) | |||||||||||
| Less: COVID-19-only Diagnostic Testing Revenues | 16 | 214 | — | (92.6) | (92.6) | ||||||||||||||
| Base BD Life Sciences Revenues | $ | 1,259 | $ | 1,271 | $ | (39) | (0.9) | 2.2 | |||||||||||
| Integrated Diagnostic Solutions Revenues | $ | 888 | $ | 1,150 | $ | (28) | (22.7) | (20.3) | |||||||||||
| Less: COVID-19-only Diagnostic Testing Revenues | 16 | 214 | — | (92.6) | (92.6) | ||||||||||||||
| Base Integrated Diagnostic Solutions Revenues | $ | 873 | $ | 935 | $ | (28) | (6.7) | (3.7) |
| BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATION RECONCILIATION OF REPORTED REVENUE CHANGE TO BASE REVENUE CHANGE Six Months Ended March 31, (Unaudited; Amounts in millions) | |||||||||||||||||||
| D=(A-B)/B | E=(A-B-C)/B | ||||||||||||||||||
| A | B | C | % Change | ||||||||||||||||
| 2023 | 2022 | FX Impact | Reported | FXN | |||||||||||||||
| TOTAL REVENUES FROM CONTINUING OPERATIONS | $ | 9,407 | $ | 9,468 | $ | (339) | (0.6) | 2.9 | |||||||||||
| Less: COVID-19-only Diagnostic Testing Revenues | 48 | 399 | (1) | (88.0) | (87.7) | ||||||||||||||
| Base Revenues from Continuing Operations | $ | 9,359 | $ | 9,069 | $ | (338) | 3.2 | 6.9 | |||||||||||
| BD LIFE SCIENCES REVENUES | $ | 2,577 | $ | 2,968 | $ | (113) | (13.2) | (9.4) | |||||||||||
| Less: COVID-19-only Diagnostic Testing Revenues | 48 | 399 | (1) | (88.0) | (87.7) | ||||||||||||||
| Base BD Life Sciences Revenues | $ | 2,529 | $ | 2,569 | $ | (112) | (1.6) | 2.8 | |||||||||||
| Integrated Diagnostic Solutions Revenues | $ | 1,841 | $ | 2,295 | $ | (81) | (19.8) | (16.2) | |||||||||||
| Less: COVID-19-only Diagnostic Testing Revenues | 48 | 399 | (1) | (88.0) | (87.7) | ||||||||||||||
| Base Integrated Diagnostic Solutions Revenues | $ | 1,793 | $ | 1,896 | $ | (80) | (5.4) | (1.2) |
| BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATION RECONCILIATION OF REPORTED REVENUE CHANGE TO BASE ORGANIC REVENUE CHANGE Three Months Ended March 31, (Unaudited; Amounts in millions) | |||||||||||||||||||||||||||
| F=(A-B)/B | G=(A-B-C)/B | ||||||||||||||||||||||||||
| A | B | C | D=A-B | E=A-B-C | % Change | ||||||||||||||||||||||
| 2023 | 2022 | FX Impact | Reported Change | FXN Change | Reported | FXN | |||||||||||||||||||||
| TOTAL REVENUES FROM CONTINUING OPERATIONS | $ | 4,821 | $ | 4,750 | $ | (124) | $ | 71 | $ | 195 | 1.5 | 4.1 | |||||||||||||||
| Less: COVID-19-only diagnostics | 16 | 214 | — | (199) | (198) | (92.6) | (92.6) | ||||||||||||||||||||
| TOTAL BASE REVENUES FROM CONTINUING OPERATIONS | $ | 4,805 | $ | 4,535 | $ | (124) | $ | 270 | $ | 393 | 6.0 | 8.7 | |||||||||||||||
| Less: Inorganic revenue contribution (1) | 77 | 77 | 1.7 | 1.7 | |||||||||||||||||||||||
| Total Base Organic Revenue Growth from Continuing Operations | $ | 193 | $ | 317 | 4.3 | 7.0 |
| BECTON DICKINSON AND COMPANY SUPPLEMENTAL INFORMATION RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS (Unaudited) | ||||||||||||||||||||||||
| Three Months Ended March 31, | ||||||||||||||||||||||||
| 2023 | 2022 | Change | Foreign Currency Translation | Foreign Currency Neutral Change | Change % | Foreign Currency Neutral Change % | ||||||||||||||||||
| Reported Diluted Earnings per Share from Continuing Operations | $ | 1.53 | $ | 1.28 | $ | 0.25 | $ | (0.22) | $ | 0.47 | 19.5 % | 36.7 % | ||||||||||||
| Purchase accounting adjustments ($347 million and $356 million pre-tax, respectively) (1) | 1.21 | 1.24 | (0.01) | |||||||||||||||||||||
| Integration costs ($29 million and $11 million pre-tax, respectively) (2) | 0.10 | 0.04 | — | |||||||||||||||||||||
| Restructuring costs ($33 million and $17 million pre-tax, respectively) (2) | 0.11 | 0.06 | — | |||||||||||||||||||||
| Separation-related items ($3 million pre-tax) (3) | 0.01 | — | — | |||||||||||||||||||||
| European regulatory initiative-related costs ($37 million and $35 million pre-tax, respectively) (4) | 0.13 | 0.12 | — | |||||||||||||||||||||
| Product, litigation, and other items ($109 million pre-tax) (5) | — | 0.38 | — | |||||||||||||||||||||
| Income tax benefit of special items ($(70) million and $(96) million, respectively) | (0.24) | (0.34) | — | |||||||||||||||||||||
| Adjusted Diluted Earnings per Share from Continuing Operations | $ | 2.86 | $ | 2.78 | $ | 0.08 | $ | (0.23) | $ | 0.31 | 2.9 % | 11.2 % |
| (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 expense (income), 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, and certain asset impairment charges. The amount in 2022 include charges to Cost of products sold of $35 million to adjust the estimate of future product remediation costs and $54 million related to a noncash asset impairment charge in the Medical segment. |
| BECTON DICKINSON AND COMPANY SUPPLEMENTAL INFORMATION RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS (Unaudited) | ||||||||||||||||||||||||||
| Six Months Ended March 31, | ||||||||||||||||||||||||||
| 2023 | 2022 | Change | Foreign Currency Translation | Foreign Currency Neutral Change | Change % | Foreign Currency Neutral Change % | ||||||||||||||||||||
| Reported Diluted Earnings per Share from Continuing Operations | $ | 3.24 | $ | 3.18 | $ | 0.06 | $ | (0.26) | $ | 0.32 | 1.9 | % | 10.1 | % | ||||||||||||
| Purchase accounting adjustments ($709 million and $720 million pre-tax, respectively) (1) | 2.49 | 2.51 | (0.01) | |||||||||||||||||||||||
| Integration costs ($47 million and $28 million pre-tax, respectively) (2) | 0.16 | 0.10 | (0.01) | |||||||||||||||||||||||
| Restructuring costs ($59 million and $34 million pre-tax, respectively) (2) | 0.21 | 0.12 | — | |||||||||||||||||||||||
| Separation-related items ($9 million pre-tax) (3) | 0.03 | — | — | |||||||||||||||||||||||
| European regulatory initiative-related costs ($70 million and $66 million pre-tax, respectively) (4) | 0.24 | 0.23 | — | |||||||||||||||||||||||
| Product, litigation, and other items ($4 million and $131 million pre-tax, respectively) (5) | 0.01 | 0.46 | — | |||||||||||||||||||||||
| Income tax benefit of special items ($(155) million and $(182) million, respectively) | (0.54) | (0.63) | 0.01 | |||||||||||||||||||||||
| Adjusted Diluted Earnings per Share from Continuing Operations | $ | 5.84 | $ | 5.95 | $ | (0.11) | $ | (0.27) | $ | 0.16 | (1.8) | % | 2.7 | % |
| (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 expense (income), 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, and certain asset impairment charges. The amount in 2022 include charges to Cost of products sold of $35 million to adjust the estimate of future product remediation costs and $54 million related to a noncash asset impairment charge in the Medical segment. |
| BECTON DICKINSON AND COMPANY SUPPLEMENTAL INFORMATION FY 2023 OUTLOOK RECONCILIATION | ||||||||
| Full Year FY2022 | Full Year FY2023 Outlook | |||||||
| ($ in millions) | FX Neutral % Change | Reported Revenues | ||||||
| BDX Reported Revenues from Continuing Operations | $ | 18,870 | ||||||
| Less: COVID-19-only Diagnostic Testing Revenues | 511 | |||||||
| Base Business Revenues from Continuing Operations | $ | 18,358 | ||||||
| FY2023 Base Business Revenue Growth | +6.5% to +7.0% | |||||||
| FY2023 COVID-19-Only Diagnostic Testing Revenues | ~$50 million | |||||||
| Illustrative Foreign Currency (FX) Impact, based on FX spot rates | (~200) basis points | |||||||
| Total FY 2023 Revenues from Continuing Operations | $19.2 to $19.3 billion |
| BECTON DICKINSON AND COMPANY SUPPLEMENTAL INFORMATION FY 2023 OUTLOOK RECONCILIATION CONTINUED | ||||||||
| Full Year FY2023 Outlook | ||||||||
| Full Year FY2022 from Continuing Operations | Total Company | |||||||
| Reported Diluted Earnings per Share | $ | 5.38 | ||||||
| Purchase accounting adjustments ($1.431 billion pre-tax) (1) | 4.98 | |||||||
| Integration costs ($68 million pre-tax) (2) | 0.24 | |||||||
| Restructuring costs ($123 million pre-tax) (2) | 0.43 | |||||||
| Separation-related items ($20 million pre-tax) (3) | 0.07 | |||||||
| European regulatory initiative-related costs ($146 million pre-tax) (4) | 0.51 | |||||||
| Product, litigation, and other items ($268 million pre-tax) (5) | 0.93 | |||||||
| Impacts of debt extinguishment ($24 million pre-tax) | 0.08 | |||||||
| Income tax benefit of special items ($(366) million) | (1.27) | |||||||
| Adjusted Diluted Earnings per Share | $ | 11.35 | $12.10 to $12.32 | |||||
| Illustrative Foreign Currency (FX) Impact, based on FX spot rates | (~270) basis points | |||||||
| FX Neutral % Change | ~+9.5% to +11.0% |
| (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 expense (income), 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, and certain asset impairment charges. Items in 2022 included product remediation costs of $72 million recorded to Cost of products sold, certain asset impairment charges of $54 million recorded to Cost of products sold, and pension settlement costs of $73 million recorded to Other (expense) income, net . |
SOURCE BD (Becton, Dickinson and Company)