BD Reports Q1 FY2024 Earnings: Net Profit Plunges Over 40% Despite Modest Revenue Growth

Feb 05, 2024 00:02 CST Updated 00:02

BD

Medical Device R&D Manufacturer, Distributor

Source: Siyu MedTech; Editor: Liu Xinyi

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On February 1, 2024, leading medical technology company BD (NYSE: BDX) announced its financial results for the fiscal year 2024 ended December 31, 2023.First Quarter Financial ResultsBD's performance this quarterMixed Blessings，Sales revenue increased by 2.6%, while net profit dropped by 42.2%.。

# Key Points of Financial Report

Sales reached $4.71 billion (approximately $334), representing a year-over-year increase of 2.6%., The growth in sales mainly comes from the three major departments ofBD MedicalAndBD Intervention，BD Life SciencesPerformance slightly declined.
Sales in the international market saw a more significant increase (up 5.5%, to $1.96 billion), while in the U.S., growth was minimal (up 0.7%, to $2.75 billion);
Net profit was US$2.81 billion, a year-on-year decrease of 44.8%.；
Selling and administrative expenses were $1.21 billion, representing a year-over-year increase of 2.1%.
R&D expenses were US$290 million, a year-on-year decrease of 7.3%;
Cash and cash equivalents at the end of the quarter were $1.18 billion, compared to $1.42 billion at the end of fiscal year 2023.

# Department Performance

BD Medical: Sales of $2.23 billion, a year-on-year increase of 3.5%, its sub-department:

(1) Medication Management Solutions (7.5 billion, +5.0%)

DispensingAndInfusionShow strong performance in;

Pharmacy Automation SolutionsStrong customer channels;

Continue to focus onBD Pyxis™Innovation in product portfolios to improve the workflow and efficiency of care;

FDA due toBD Alaris™ Infusion SystemCompatibility issues with syringes have been raised.Class I Recall, the system has made significant progress in returning to the market.

(2) Pharmaceutical Systems (430 million, +3.4%)

Anticoagulant Demand Slows DownMarket dynamics such as these have suppressed growth.

Pre-fillable Solutions Syringe SeriesOccupying a dominant position in the market, throughBD Hypak™AndBD Neopak™Innovative products such as these have driven double-digit growth in biologics;

(3) Drug Delivery Solutions (1.05 billion, +0.2%)

Vascular Access Management StrategyStrong performance in driving catheter solutions;

Affected byMarket Dynamics in ChinaHarmonization.

BD Intervention: Sales of $1.19 billion, a year-on-year increase of 5.2%.

(1) Urology and Critical Care (370 million, +9.3%)：

FranchisedPureWick™ Chronic Incontinence ProductsIt has gained popularity in both urgent use and household markets, achieving double-digit growth.

(2) Peripheral Vascular Intervention (450 million, +4.1%)：

The peripheral vascular disease product portfolio continues to penetrate globally, such asVenovo™ Venous Stent SystemAndRotarex™ Atherectomy System；

Affected by last yearOrders from U.S. DistributorsHarmonization.

(3) Surgery (370 million, +1.2%)：

Phasix™ Absorbable Hernia ScaffoldDrive double-digit growth in the global advanced repair and reconstruction field;

ChloraPrep™Drive high single-digit growth in the field of infection prevention.

BD Life Sciences: Sales of $1.29 billion, a year-on-year decrease of 1.0%.

(1) Biological Science (380 million, +4.3%)：

Despite being affected,Research and Clinical SolutionsStill achieved single-digit growth;

BD FACSDiscover™ S8 Cell SorterAndBD Rhapsody™ HT XpressThe launch has enabled research instruments to achieve double-digit growth;

FACSLyric™ Clinical Cell AnalyzerAndFACSDuet™ Sample Preparation SystemThe installed base drove double-digit growth in clinical reagents.

(2) Comprehensive Diagnostic Solutions (910 million, -5.5%)：

The demand for the diagnosis of respiratory infectious diseases has decreased;

Microbiology Platform (Blood Culture, TB, and ID/AST)High single-digit growth;

BD COR™ SystemAndBD Max™ SystemThe installation base in molecular IVD testing achieved double-digit growth.

# Quarterly Highlights Review

LaunchedSiteRite™ 9 Ultrasound System, aiming to improve the success rate of insertion when placing peripherally inserted central catheters (PICC), central venous catheters, intravenous infusion tubes, and other vascular access devices. (Review:Another New Product! Ultrasound Dedicated to Vascular Access）
BD MiniDraw™ Capillary Blood Collection SystemReceived FDA 510(k) clearance, the device is able to collect high-quality blood samples via a fingerstick, offering a less invasive and more convenient alternative to traditional collection methods. (Review:FDA Approved! BD Medical Fingerstick Blood Collection System）
The World's FirstThe Next Generation of the Female Catheter PureWick™Expected to launch in the second half of fiscal year 2024, this generation offers better anatomical fit, comfort, and safety compared to the previous one.
AboutBD Elience™ POC MDx Immediate Molecular Diagnostic PlatformThe clinical trial has begun enrollment. The company plans to submit a 510(k) application in the second half of fiscal year 2024, with the first test being for sexually transmitted infections Chlamydia trachomatis and Neisseria gonorrhoeae (CT/GC).
In collaboration with the Kenyan government, aiming to increase access to critical cancer diagnostics for women in Kenya.
Signed the World Economic Forum's"Zero Health Disparities Pledge", reaffirming the company's commitment to expanding healthcare access in underserved communities worldwide.

# About BD

Becton, Dickinson and Company (BD) was founded in New York in 1897, with its headquarters located in Franklin Lakes, New Jersey, USA.

The company advances clinical therapies for patients and clinical processes for healthcare providers by developing innovative technologies, services and solutions to support healthcare workers on the front lines. BD has offices in nearly every country, more than 75,000 employees globally, and partners with organizations around the world to address some of the most challenging global health issues.