Full Press Release Details
HENRY SCHEIN REPORTS FOURTH QUARTER AND FULL YEAR 2024 FINANCIAL RESULTS
AND PROVIDES DETAILED 2025 FINANCIAL GUIDANCE
Fourth-quarter 2024 GAAP diluted EPS of $0.74 and non-GAAP diluted EPS
Fourth-quarter 2024 operating cash flow of $204 million;
full-year 2024 operating cash flow of $848 million,
up $348 million compared with 2023
2025 non-GAAP diluted EPS expected to be in the range of $4.80
to $4.94 with mid-single digit 2025 Adjusted
Announces new reportable segments to provide more meaningful information for investors
Henry Schein, Inc. (Nasdaq: HSIC), the world's largest provider of health care
solutions to office-based dental and medical practitioners, today reported financial results
for the fourth quarter and full year
ended December 28, 2024. The financial results and guidance being provided
today are consistent with the preliminary
financial results and guidance provided on January 29
"Our fourth quarter financial results reflect relatively stable dental and
medical end-markets.
progress on our 2022 to 2024 BOLD+1 Strategic Plan which we
exceeding our 2024 target of generating
40% of our worldwide operating income from high-growth, high-margin businesses,"
said Stanley M. Bergman, Chairman of
the Board and Chief Executive Officer of Henry Schein.
"We have confidence in the underlying fundamentals of our business and look forward to advancing the
opportunities contained in our updated 2025 to 2027 BOLD+1 Strategic Plan.
KKR's announced investment to become our
largest non-index shareholder recognizes this potential.
We expect 2025 to be the base year from which to grow and achieve
our previously provided long-term goal of high-single digit to low-double digit
earnings growth," Mr. Bergman added.
New Organizational Structure
"As part of the updated
2025 to 2027 BOLD+1 Strategic Plan, we have simplified
our organizational structure and
appointed Andrea Albertini and Tom Popeck to be responsible for our three business groups. Andrea will be responsible
our Global Distribution and Value-Added Services Group as well as our Global Technology Group,
while Tom will lead our
Global Specialty Products Group. We expect that these complementary businesses will drive growth by leveraging our
current product portfolio across our customer base, providing new products and
services to our customers, and growing our e-
Commerce business," Mr. Bergman continued.
"Andrea has more than 20 years of experience in senior leadership positions
in the health care products and services
industry. He joined Henry Schein in 2013 and most recently served as President of Henry Schein's International Distribution
Group. Tom has spent over two decades leading businesses in orthopedics and industrial manufacturing. He joined Henry
Schein in 2019 and most recently served as President of the Henry Schein Healthcare
Specialties Group," Mr. Bergman
New Reportable Segments
The Company is also today announcing a change to its reportable
segments to align with management reporting and
provide more meaningful information for investors on the business.
The results being reported today reflect this change.
three reportable segments are:
Global Distribution and Value-Added Services:
includes distribution to the global dental and medical markets of
national brand and corporate brand merchandise,
as well as equipment and related technical services. This segment
also includes value-added services such as practice transition, continuing
education, consulting, financial and other
services. This segment had annual sales of $10.8 billion for the full-year
Global Specialty Products:
includes manufacturing, marketing and sales of dental implant and
biomaterial products;
and endodontic, orthodontic and orthopedic products and other health
care-related products and services.
segment had annual sales of $1.4 billion for the full-year 2024.
includes development,
marketing and sales of practice management software, e-services
other products and related services. This segment had annual sales of $0.6
billion for the full-year 2024.
Our organizational structure also includes Corporate, which consists primarily of
income and expenses associated
with support functions and projects.
All prior comparative segment information has been recast to reflect our new
segment structure, as provided in
Exhibit D. We are also updating the breakdown of sales as detailed in Exhibit A to reflect new reportable segments. Of note,
we are now reporting U.S. distribution sales instead of North America
Fourth Quarter 2024 Financial Results
for the quarter were $3.2 billion, an increase of 5.8% compared with
the fourth quarter of 2023. This
reflects 5.5% internal sales growth, 0.7% sales growth from acquisitions, and
sales decrease resulting from
foreign currency exchange.
Excluding the impact of personal protective equipment (PPE) and COVID
internal sales growth was 6.6%.
Fourth-quarter sales growth is summarized below and detailed in Exhibit
Global Dental Merchandise
Global Dental Equipment
Global Dental Distribution
Global Medical Distribution
Global Distribution and Value-Added Services
Global Specialty Products
Note: items may not sum due to rounding
for the quarter was $94 million, or $0.74 per diluted share
, and compares with fourth-quarter
2023 GAAP net income of $18 million, or $0.13 per diluted share.
for the quarter was $149 million, or $1.19
, and compares with fourth-
quarter 2023 non-GAAP net income of $86 million, or $0.66 per diluted
for the quarter was $204 million and compares
with the fourth-quarter 2023 negative operating