Becton Dickinson Reports 7% Revenue Growth in Q4 FY2023 Driven by Diversified Portfolio and Strong Product Demand

Source: 360Dx

On November 9, Becton Dickinson reported that the company's fourth-quarter revenue increased nearly 7% year-over-year. Excluding revenue related to COVID-19, its underlying revenue also grew by approximately 7%.

In the three months ended September 30, Becton, Dickinson and Company, the Franklin Lakes, New Jersey-based medical technology and diagnostics company, reported revenue of $5.09 billion, compared to $4.76 billion in the same period last year, slightly above the analysts' average estimate of $5.02 billion. Excluding the impact of currency fluctuations, fourth-quarter revenue increased by approximately 6% year-over-year.

During a conference call with investors on Thursday morning, BD CEO Tom Polen attributed part of the revenue growth to the company's diversified product portfolio. Polen said, "Our portfolio has durability through our leadership positions and continued demand for products that are essential to everyday patient care and strong growth."

BD's medical segment revenue was $2.55 billion, an increase of approximately 8% compared to $2.38 billion in the same period last year. The life sciences segment revenue was $1.33 billion, an increase of approximately 3% compared to $1.29 billion in the fourth quarter of 2022.

In the Life Sciences segment, revenue from Integrated Diagnostic Solutions fell approximately 3% year-over-year, from $459 million to $447 million, while revenue from Biosciences surged 16%, from $137 million to $159 million. Revenue from COVID-19 diagnostic testing in the fourth quarter dropped to $17 million, down from $37 million in the fourth quarter of 2022.

This quarter, the revenue from BD's interventional business increased by 9%, from $1.1 billion to $1.2 billion.

U.S. revenue increased 6% to $2.88 billion from $2.71 billion in the same period last year; international market revenue grew approximately 8% to $2.21 billion from $2.05 billion in the fourth quarter of 2022.

In the fourth quarter, BD's R&D expenses decreased by approximately 7% year-over-year, from $300 million to $281 million, while sales and administrative expenses surged from $2.69 billion to $3.39 billion.

BD's net profit was $108 million, or $0.37 per share, compared to a net profit of $287 million, or $0.93 per share, in the same period last year. On an adjusted basis, the company's earnings per share in the fourth quarter were $3.42, in line with Wall Street's expected earnings per share of $3.43.

For the full fiscal year 2023, BD's revenue was $19.37 billion, an increase of approximately 3% compared to $18.87 billion in fiscal 2022, slightly higher than the Wall Street average estimate of $19.3 billion.

In fiscal year 2023, BD's Medical segment revenue increased from $8.84 billion to $9.50 billion, representing a year-over-year growth of approximately 8%; while BD's Life Sciences segment revenue decreased from $5.56 billion to $5.13 billion, reflecting a year-over-year decline of 8%.

In the Life Sciences segment, revenue from the Integrated Diagnostic Solutions business decreased from $4.19 billion to $3.62 billion, representing a 13% decline. Revenue from the Biosciences business increased from $1.38 billion to $1.51 billion, reflecting an approximate 9% growth. Full-year revenue from COVID-19 diagnostic testing fell from $511 million in 2022 to $73 million, marking an 86% decrease.

During the conference call, Polen noted that the company’s BD Kiestra automated microbiology systems hit record sales in 2023. Additionally, the company continued to "drive strong double-digit growth for our BD Cor and BD Max molecular platforms, leveraging our growing install base with menu expansions including new vaginal panel testing and Onclarity HPV with Thin Prep on BD Cor, as well as over 20 assays on BD Max."

Polen said that BD launched 27 new products in 2023 and plans to launch 25 more in 2024. On a slide accompanying the conference call, the company showcased its short- and mid-term pipeline for the life sciences business through fiscal year 2025, including the FACS Duet Premium, BD Rhapsody HT Xpress, BD FACS Discover 58 Cell Sorter in three-laser and four-laser configurations, Synapsis ID/AST, and additional RealBlue and RealYellow dyes. The company also previewed planned future launches, including the FACS Discover A8 Analyzer, BD Cor Respiratory Virus and Enterovirus Combo Test, and the BD Elience Point-of-Care Molecular System.

BD's interventional business achieved annual revenue of $4.74 billion, representing a 6% increase from $4.46 billion in the same period last year.

For the full year, the company's U.S. business revenue increased from $10.72 billion to $11.11 billion, representing a 4% growth; international market revenue grew from $8.15 billion in 2022 to $8.26 billion, marking an approximate 1% increase.

BD's annual R&D expenses decreased from $1.26 billion to $1.24 billion, a year-on-year decrease of approximately 2%; sales and administrative expenses increased from $4.71 billion to $4.72 billion, a year-on-year increase of approximately 1%.

In fiscal 2023, BD's net profit was $1.48 billion, or $4.94 per share, compared to a net profit of $1.78 billion, or $5.88 per share, in fiscal 2022. The company reported adjusted full-year earnings per share of $12.21, slightly below the Wall Street consensus estimate of $12.22.

For fiscal year 2024, BD expects revenue to be approximately $20.1 billion to $20.3 billion, with adjusted earnings per share of $12.70 to $13.00.

In early Nasdaq trading, BD's stock price fell about 8% to $235.66.

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