BD Reports Strong Q3 Fiscal 2024 Results with $5.1B Adjusted Revenue and Announces Key Strategic Updates

Aug 02, 2024 19:39 CST Updated 19:39

BD

Medical Device R&D Manufacturer, Distributor

Source: Siyu MedTech; Editor: Sophia

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On August 1, 2024, Becton, Dickinson and Company (NYSE: BDX) released its latest financial report. The Q3 performance was mixed compared to consensus estimates, resulting in a slight decline in stock price on the day of the announcement.

# Highlights of Financial Report

Reported revenue is$5 billion (approximately 36.1 billion RMB), Adjusted income is$5.1 billion, with organic growth of approximately 5.2%;

GAAP is$1.68, Growth23.5%; Adjust diluted earnings per share to$3.50, Growth18.2%，19 cents higher than Wall Street expectations;

Cash from continuing operations year-to-dateIncrease by 60%, reaching$2.7 billion，An increase of 1 billion US dollars over the previous year；

Free Cash Flow GrowthMore than 100%, reaching$2.2 billion, an increase of 1.2 billion US dollars over the previous year;

The company updated its GAAP revenue growth guidance for the 2024 fiscal year toApproximately 3.7%, Updated Guidance for Organic Revenue Growth5.0%-5.25%；

The company raised the midpoint of its adjusted diluted earnings per share guidance for fiscal 2024 to$13.05 - $3.15。

# Department Performance Overview

BD Medical：Including three major businesses: Medication Delivery Solutions (MDS), Medication Management Solutions (MMS), and Pharmaceutical Systems (PS). The revenue growth of BD Medical was driven by MMS and MDS:

MDS Performance:The entire product portfolio showed relatively strong sales growth, with improved market positions in vascular access management and subcutaneous injection products, meeting expectations; this growth was partially offset by the impact of market dynamics in China.
MMS Performance:BD Alaris™ Drives High Double-Digit Growth in Infusion Business; Increased Utilization of Infusion Sets Partially Offset.
PS Performance:Biologics and GLP-1 achieved double-digit growth but were offset by expected short-term market dynamics, including customer destocking of anticoagulants and vaccines.

BD Life Sciences：Including the Integrated Diagnostic Solutions (IDS) and Biosciences (BDB) business units.BD Life Sciences Revenue growth was driven by IDS.

IDS Performance:BD Vacutainer™ Product Portfolio SalesWidely,Customer upgrades to higher-value products, sample management achieves high single-digit growth
BDB Performance:Temporary market dynamics led to a decrease in demand for instruments, but the growth of clinical reagents offset some of the impact.

BD Interventional ：Including Surgical, Peripheral Intervention (PI), as well as Urology and Critical Care (UCC) business units.

Surgical Performance:Three major platforms (Advanced Repair & Reconstruction, Infection Prevention, and BioSurgery) achieved double-digit organic growth. The segment’s performance also reflects the impact of divesting the Surgical Instruments platform.

PI Performance:The peripheral vascular disease portfolio achieved double-digit growth, but was partially offset by a decline in the oncology business, primarily due to market dynamics in China.

UCC Performance:PureWick™ Achieves Double-Digit Growth and Continued Adoption of Male and Female Product Portfolio.

# Latest Developments

Acquisition

On June 4, 2024, BD announcedHuge sum of money$4.2 billion(Approximately 30.4 billion RMB)Acquisition of Edwards Lifesciences' Critical Care Business Aims to Expand Medical Monitoring Solutions and Become a Leader in the Field.

This acquisition is expected toBrings Immediate Revenue Growth to BD Medical；Expand BD Medical Smart Connected Care Solutions:Integrate the advanced medical monitoring technologies, advanced AI clinical decision-making tools, and robust innovative R&D pipelines of both parties;

Critical Care will operate as an independent business unit within BD's Medical segment.

In order to raise funds for the acquisition, BD plans to utilize approximately$1 billion in cashAnd$3.2 Billion in New Debt。

After the transaction is completed, BD Medical's estimatedNet debt ratio is approximately 3 times, and expects to reduce its net debt ratio to the long-term target of 2.5 times within 12 to 18 months after the completion of the transaction, primarily through debt repayment via free cash flow.

Product

On May 15, 2024, BD announced FDA approval for use when cervical samples are unavailable.Using self-collected vaginal samples for human papillomavirus (HPV) testing.

This approval allows women to self-collect vaginal samples for HPV testing in medical settings, including non-traditional locations such as retail pharmacies or mobile clinics, which helps increase testing coverage.

LaunchBD Rhapsody™ ATAC-Seq Kit and BD Rhapsody TCR/BCR Next Multi-Omics Analysis KitBoth products can be applied to the HT Xpress platform.

Others

BD Releases "2023 Fiscal Year Joint Progress on Corporate Sustainability Report" and Announces It Has Exceeded the 5% Greenhouse Gas (GHG) Emission Reduction Target Set for Fiscal Year 2023.

Release of the 2023 Product Safety Annual Report Highlights the Company's Leadership and Commitment to Product Safety, Transparency, and Collaboration.

# Conclusion

BD Projects Over 100 New Product Launches by Fiscal Year 2025

Tom Polen, Chairman, CEO, and President of BD, stated:

"Our investment portfolio has achieved remarkable performance in multiple areas, accelerating profit margins and cash flow."Dilation. The company team will move towardsBuild BD into a leader in innovative medical technology"This direction aligns with our 2025 strategy, and moreover, we will continue to work towards achieving the profit guidance target for the 2024 fiscal year, ensuring substantial growth."

Editor-in-Chief | Zhao Qing Reviewed by | Yi He