November 13, 2023- Henry Schein, Inc. has reported financial results for the third quarter ended September 30, 2023.
“We are reporting solid financial results for the third quarter. The Company achieved good total sales growth and non-GAAP diluted EPS growth despite continued lower sales of PPE products and COVID-19 test kits. Profitability benefitted from our technology, value-added services, and dental specialty products as we continue towards our goal of achieving 40% of operating income from sales of high-growth, high-margin products,” said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein.
Third-Quarter Financial Results include:
- Total net sales for the quarter were $3.2 billion, an increase of 3.1% compared with the third quarter of 2022. This increase included a 1.2% decrease in local currencies excluding acquisitions, reflecting some market softening in the second half of the quarter as well as lower sales of PPE products and COVID-19 test kits. Growth from acquisitions was 3.2% and there was a 1.1% increase in net sales related to foreign currency exchange
- GAAP net income for the quarter was $137 million, or $1.05 per diluted share, compared with third-quarter 2022 GAAP net income of $150 million, or $1.09 per diluted share.
- Non-GAAP net income3 for the quarter was $173 million, or $1.32 per diluted share, compared with third-quarter 2022 non-GAAP net income of $177 million, or $1.29 per diluted share, and excludes restructuring expenses of $11 million, or $0.06 per diluted share, and amortization expense of acquired intangible assets of $44 million, or $0.21 per diluted share.
- Global Medical sales were $1.1 billion for the quarter, a decrease of 3.1% compared with the prior-year period. Internally generated sales decreased 4.6% in local currencies. Internal sales increased 0.8% in local currencies when excluding sales of PPE products and COVID-19 test kits and continued to be impacted by a difficult prior-year comparison of 9.3% sales growth, and a product mix shift to generic pharmaceuticals and corporate brand products.
- Global Technology and Value-Added Services sales were $210 million for the quarter, an increase of 18.8% compared with the prior-year period, driven by the strength of Henry Schein One and by acquisitions.