BDX - Earnings call 1 2024 | Becton, Dickinson and Company

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Operator

Hello, and welcome to BD's First Fiscal Quarter 2024 Earnings Call. At the request of BD, today's call is being recorded and will be available for replay on BD's Investor Relations website, investors.bd.com or by phone at (800) 8-7339 for domestic calls and area code 1 (402) 220-1347 for international calls. [Operator Instructions].

I will now turn the call over to Greg Roditas, Senior Vice President, Treasurer and Head of Investor Relations.

Greg Rodetis

Good morning, and welcome to BD's earnings call. Vice and Senior Relations. of Rodetis, Greg President, Head Treasurer Investor I'm behalf thank team, the for On BD you of joining us. being BD the This bd.com. Earlier XXXX. is made audio via call webcast this morning, quarter released first for results of fiscal available at

Chris Vice fiscal provide QX earnings on posted BD our provide provides Executive that Officer at XXXX. call Leading the strategy execution and President IR an DelOrefice, our then Officer. and and on presentation for are our Tom additional press today's highlights the financial BD's Chief performance will Executive performance. XXXX website of and performance The will We release on Chairman, details Financial Tom strategy. and can business, presentation Chris of also details and our and be our additional Chief Polen, accessed guidance President; continued updated investors.bd.com.

Medical segment of Rick by of Following Garrison, President the for joined Interventional Byrd, prepared Q&A the Dave remarks, be Tom presidents. segment; segment. and Mike will the Life Sciences Chris segment; Hickey, our President and of the President

the the as relevant I appendices included on release period. an the unless get SEC to which any reconciliations would that period the be I Relations Investor changes a are specified, comparisons in a the Before basis the available otherwise read presentation. are to all we referring a it release press given you started, in of making our attention will call When forward-looking your on I we remind specifically Revenue statements. to will period. basis encourage and are earnings our the on disclaimer disclosures to refer want in note and calendar be we you earnings to both filings, also otherwise versus we website. non-GAAP Unless percentage year-over-year FX-neutral unless noted. period, we fiscal

to it I pleased Tom. to am very turn that, over With

Thomas Polen

Also as for you largely we line adjusted everyone, for BD growth timing our and quarter. our Good results expectations. And first Greg. growth and in flow team that determination our our consistent joining of want over system delivered our deliver execution Total strong confidence thank us the flow year our I give with on reported QX XX,XXX agility today, was us. Thanks, unrelenting ahead guidance. thank 'XX Excellence shareholders. digits. morning, expected. execution, item. for customers, positions executed and through of revenue Earlier to we in on bottom due cash patients a good margin operating well our our plan, the discrete goals our deliver tax These with the associates expectations to results of to and growing EPS of was line, Overall, for to very we strong the another free to double the cash increase FY us

our strategy. XXXX Turning to BD

we advancing reshaping execute on our well and settings supports plus new areas. X X QX, This to we disease. focused today forces, innovation irreversible creation. drive to profitable to and outlined continuing innovation includes value continued at actions durable our our During Day we advance which Investor pipeline, growth against health X.X% chronic remain Anchored We profile. see care, care in the growth over revenue targeted connected decade, and high-growth next care against the

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patient system. molecular experience on study, year, XXX(k) progressing is settings well, fiscal collection over MiniDraw incontinence. In women capillary venous MiniDraw received which MiniDraw's and it not a we enter assay BD external traditional point-of-care initiated into retail to more a test treatment. trial blood routine first catheter require a a for does way a CT/GC tests launch enables blood track on new BD draw. platform point-of-care QX, Since with clearance sample to BD our clinics expand program several recent next-generation molecular and Alliance later blood high-growth molecular and we rapid to retail female the testing in and better dignified in diagnostics, lastly, this their and market. PureWick collection a Our [ our the previous pharmacies. And phlebotomist, to enrollment access Eliance remain for will to ] for X/X a in-office we for manage experience fingerstick can of setting for collection as BD clinical [ Based new a our urinary patients such prefer provide ]

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we $XXX And still in fiscal while early revenue 'XX. the recently Customer and is the bringing servicing been very believe pleased the strong to on process, floor customers with it with standard engaging all and progress momentum in customers. priority. with our is Alaris, positive cleared Alaris Regarding million pumps our in shared, the response we I'm up has as remains now our field

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Our continuous BD to world-class management new Excellence throughout of building operating and is BD. an capability important culture lean we're system drive a improvement

plant Project including efficiencies. We network Recode also initiatives, progressed optimization to effort our drive our

goals flows us double-digit driving in capitalize FY in spend, consolidations Through in to yield our for year continued We our also supporting by us site in cash results. now to and cash shareholders. we million $XXX delivered efficient completed free start positions operating FY opportunistically architecture This seeing positions categories network system, cash and underway visibility expansion combination to 'XX with in Reco QX. 'XX. cash deliver flows 'XX beyond focus XX%. or CapEx working for is our also operating over The to providing have footprint multiple plan excellence on approximately of in XX% well program BD either return strong and and reduce capital contributing Excellence more our systematic the growth opportunities BD FY efficiencies higher flow, growth our margins to our 'XX continuing on margin M&A operating to to We're FY execution

on to teams continue around the make strategy. our advancements our ESG meaningful Lastly, world

well collaboration commitment I'm this XXXX. to the Kenyan positioned with of of access we made and as diagnostics are through last believe growing our and see innovation self-sampling summary, announced in the Excellence Just week, With BD applicable our XXXX as markets women goals. power Government enables strong around for to simplification guidance other progress self-sampling we our with in health our We expanding programs, In pipeline cancer U.S. margin the progress in world. and a fiscal the which pleased equity advance from we we the achieve Kenya execution, critical furthering to the is for raise to across model access to momentum well us BD QX underserved and solid

let to me and to With it that, outlook. financials, turn our review Chris over guidance

Christopher DelOrefice

morning, everyone. good and Tom, Thanks,

delivered well strong both flow we growth support our I'll margin some double-digit goal. now QX insight cash the growth provide pleased noted, to us performance well I'm against QX, our free Tom that in into largely was goals and our expected, our executed flow goals and and earnings positions to exceeded As we as we revenue and quarter. revenue cash performance in share

Medical year high comparison Additional partially organic as was announcement out billion, playing detail earnings BD a to and growth which and X.X% season. was China by BD in prior Sciences, growth decline market offset dynamics respiratory in impacted driven can organic by the found in that with single-digit Life today's presentation. QX the be expected. BD $X.X in by growth was solid revenue of with Interventional

under company growth were indexing total expected, QX about primary As goal. drivers impacted of respiratory our growth year full respiratory The China the and points. season revenue alone basis XXX by

Regionally, organic decline Latin divestiture the was partially our the QX instruments EMEA China. by growth platform. U.S., expected America, X.X% driven in reflects the growth by offset of revenue of and Total surgical

in infusion in BD billion strong to continue efficiencies. In with BD in pharmaceutical system quarter Performance partially year biologics Management Mid-single-digit dispensing in BD strong Growth anticoagulants. Pharmaceutical are prefilled strong Pyxis by progress in in course to reflects ramp timing for Systems Solutions driven growth including of in led to MMS by expect SES. also Medication segment the the was Alaris innovations was Turning business, quarter, and for line of in customer revenue our and offset IV market demand double-digit growth the the our infusion and Medical inventory Infusion to X.X% year. over nursing performance, workflows with totaled growth comparison that the installations. was our for in expected, improving led are outsized capital systems. we dynamics, in growing reflects and expectations Alaris by planned devices strong the an our performance the a prior driven $X.X as and portfolio X.X%, back was by pleased pharmacy bringing slowdown by to of in automation the and the demand

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Now moving to our P&L.

initiatives margin line Adjusted strong XX.X%, good execution of our gross to R&D adjusted of simplification SG&A improvement due and margin expectations. our of of operating our portfolio goals leverage. with on across expectations ahead XX.X% spend in margin were expense our was and

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conversion remain well to of XX%. around achieve cash we our also long-term BD positioned As against our we strategy, target XXXX execute

$XXX in and balance billion our million with of QX to repurchases. of shareholders, $XXX dividends, $X.X net growth, Beyond in investments a in we We including a million leverage share capital ratio X.Xx. and ended returned cash

fiscal Moving updated to 'XX. guidance our for

we revenue by EPS our guidance, For many raised our parts your reflects presentation. Based our small organic including outperformance guidance underlying performance, our business initiatives, of be adjusted assumptions of in the on the improvement growth found operational in momentum the of detailed and strong and and our midpoint FY can QX convenience, QX a guidance adjusted increasing also progression margin improvement our 'XX midpoint $X.XX. FX. to the increase in The EPS raised our

to As $XX.XX a we midpoint. range our the including X.X%. revenue $XX.XX, about diluted of now currency expect the $XX.XX increases X.XX%, deliver organic which now a at which midpoint of We adjusted to X.X% growth slightly be result, to reflects above to to expect impact in EPS, of

rates full company to has for Regarding to spot the basis modestly purposes, on and full to total a year currency growth improved XX now year approximately basis. points and on points is current basis XXX foreign headwind approximately currency, based for estimated be illustrative of EPS adjusted revenues a

As the over you are the think of of phasing 'XX, some fiscal considerations. following balance

partially in our to to higher of second year such continue expect be comparisons as along growth sales organic with half, driven in year the the ramp the we prior range full First, easing Alaris by than expected China.

margin in impact points sequential our from the year. Specific basis now margin SG&A. QX, improvement margin lessening leverage expectation efforts prior inflation, guidance cadence FX. over to by continued to balance the significant in Second, and line XX improvement prior year reflects continues inventory adjusted continued We expand to reductions our improved driven given by expect QX updated gross an and to year-over-year, of the is margin with adjusted operating and our XX reflect

as QX adjusted no timing a changes revised item was to share. our to impact. And expectations our the tax rate. rate QX QX discrete the offset expect phasing phasing performance year earnings tax there XX% and effective result, of full results largely per shift in for to be on our expect a tax nearly Based this Third, operating strong from tax we we and currently are dynamic,

operating XX remain of we for points year. confident improvement basis Lastly, in margin about delivering the adjusted

well deliver is clear the sight our the X.X% coupled As our transitory continuation first the strong summary, second our our simplification portfolio of FY innovation, inflation line have midpoint and margin we inventory and can And X% outlook. a remain start achieve guide target of us half, including strong of With a half flow, of supported our as and improvement, goals half execution of continue operating to to free 'XX to at to above year which X-year flow with cash positioned in results the our and portfolio targets. a plus double-digit continued over growth to support year nearly the a we margin I'm based to increases the We by deliver our on delivering opportunities, our of earnings strong CAGR to additional our deliver reminder, BD remain strength margin through strategy deliver is naturally which new well first another from increasing rate and growth. revenue we as we our income cash pleased organization financial goals. In on XXXX M&A. quarter expect behind back meaningful with and FX a exit which value-creating and the positioned we moderate impact against at talented capacity QX. half

queue? can assemble start Operator, let's session. our that, With you the Q&A

Operator

[Operator will Instructions] question Rick And Stifel. come first Wise from our with

Frederick Wise

on very Heading were like of the flu you and accelerating time guide. year up peso going growth, clearly Chris, repeatedly. if But things a in you're you feeling the acceleration the could sales outlook picking currency rest about the will, you critical guidance the half, more about? the you shift. organic new And I we're to talk confidence benefit, knew and see into used that detail says language just full divestitures, that, -- that the your year, the second setup that clear things drivers above word we think most about Help of quarter, on your confident that little and creating are maybe the us the to slide

Thomas Polen

Thanks Yes. to Rick, good the question, and connect. for

said, QX expected. in largely Total with was revenue as played you growth our line out as expectations. So

timing MDS, we value-based factors going that really XXX in flu saw strong QX. X assumption. BDI As we those double-digit, playing you fact, last basis kind factors One that growth was that we about points year, growth going as to DOBP large were expected. In be said, And single-digit high in exactly then the stay given we early in there was in the recognize out to happen. quarter, was procurement the played growth And Life that compare was were actually mid-teen our really we're had Sciences. X within out of within focused just watching we which China. We in China, knew

saw China play than budgeted actually in out, QX. a we so that did And bit better little

so for And continue out feel we that's the good year. going play to to that,

we also think guidance course, of was, and I else started year, to as of as at we the begin part 'XX to question, looking about back gave the think your Alaris. are something we

highly XXX(k). pleased a Alaris be deal unique. our new We customers to new a fully. our product back big really improvements, It's to are back with and have It's servicing great

really that the upgrading and so was and And been our wanted Alaris and led part course, what's And the look million as QX for I to think as we're ahead, we also engagement. those and team now us remediating get comment floor confidence it's base, that and quarter we progress of that early year. back proactively first to also our relaunched in the see And with is we quite the making to positive. $XXX feedback engagements

for heard remarks, in molecular grew growth, QX. out as playing We're there automation, seeing a fax digits marketplace pharmacy strong the been you as or call strong about, The that think this double-digit Discover, Pharm other drivers talking and out a the very signaled slower growth we've Biologics the those we for you vascular aspects, businesses. going the platforms, growth underlying in those quarter. the had really the was well. trends X with outlook create that you clearly in saw slower anticoagulant really prepared quarter. in peripheral demand we and continue compare growth specific to about do great business PureWick topic often Systems in double

comments as any So again, played add? to knew the out QX is impact and they clearly to very were saw X we other in factors going Chris, expected. we that

Christopher DelOrefice

are right? bigger balance I mean sure in establishing our now. confidence to which very expressed floor at just Tom's plans, it's we've you're sometimes to easier point, go confident Alaris in, like looking just -- in picture, we a I'm

Alaris the important. dynamic's think I

second X It's if to Alaris Last If medical progress. what momentum you about right? it, look not half, the growth. But more about to X So contributor over necessity. balance see despite in there. actually, go, to significant X% cycle about does is adds drop years, delivered half very a the it around think at the is we it's good right revenue This strong growth. going year, we in really X%. that you point first seeing

So and sort adjusted Alaris when at over you as compare had cycle X, China think we of the declined to which you're well. QX, of this

keep are plans think are X intact. strong rest So about positioned kind the on like year. areas of of I and biologics to, Tom pointing the feel fundamentals in The underlying mentioned key well good we the

Frederick Wise

The And correctly. $X.XX, just ask I'm a I'd as follow-up, about think I EPS guide. the Chris, calculating

targets. operationally going or driving EPS, margins raised more at You year. going that your EPS in about are are mix are raise in again, the help how to that for midpoint Talk to you volume confidence beat midpoint $X.XX the or -- you've full -- -- get those detail to EPS

Christopher DelOrefice

through Yes, definitely we delivery. pleased point. income Yes. strong, was and We exceeded passed progression Thanks, your margin QX, expectations. it basically with it to Rick. were operating that the

other points. The XX improvement basis thing accelerated XX margin we did we to actually about by QX in is

was expected, FX those things. So on ask we couple -- more us in our XXX basis Whenever you transitory the year, played the to want stronger had dynamics couple outsized it importantly, We knew, first and on quarter points. things. that of One, as of had item derisks inventory delivery some in we that start did see improvement out a have of China. these hit want a you and to We quarter. we headwinds half your year. call a program. the did calling inflation like We All you in back transitory the of the margin that

So to delivering over track of had basis X years expectations those. We've of margin record our against back prepandemic X to we points levels, now years. accelerate XXX continue consistent

progression year it basis half. then back in QX year, -- we inflation said inflation the throughout the the moderates full an margin half level transitory in we points. our basically, was in with half items of outsized you and year. the from the cuts with for you, what through QX, moderating goes delivered improvement It almost back the in cost these of outsized alone in behind Xx If It XXX look at QX calling we're

against portfolio, So gave executing on we strong. margin programs that. just the to against focused to for is have performance And ongoing with really and QX raise year, keep and executing confidence improvement which us our the what our we're that's

Operator

next from We'll question with of take Travis Bank Steed our America.

Travis Steed

on I'll revenue. take question first the

out of to of raise if if areas, there Systems, to the some curious there's the outlook the anything with kind you expectations non-flu of in your Just call guidance. growth revenue Pharm on MMS, kind still and decision track think

Just the raise curious what's confidence at you giving this guidance and stage revenue to go point? that this ahead at

Thomas Polen

Yes, Travis, question. Thanks is for the Tom. this

So that beyond I we out mentioned in on specifically, impact farm expected strong the that in again, anticoagulants mentioned, as growth systems, we customer again, growth biologics. and as saw the play double-digit one that, of underlying with

to out continue may as capacity those play investments to we Our continues that expected. --

to we you now see of We prudent as for the thought other very really And in again, to if engaging floor based the engagement space. revenue, Alaris, don't as Mike, feel capacity on, have in was that I on that year slight to the needs, comments outlook that customers we're XXX actively we add? know, have any again, meet early with our we given do and space. customer we about raise think

Michael Garrison

agreements entering Just in terms space. biologics. addition to pretty future in of molecules of to for double-digit the that also comment in demand pipeline the development been in the successful We've

our -- back systems area see headwinds. year to agreement above, and to around Day, and We've this farm as business really early despite continue part continues progress portfolio That's high the grower described a additional with single-digit expectation that 'XX. and innovation are occurring. going that development And the in in of we Investor any portfolio well. also Our the to Hypak development and Libertas Neopak wearables

Travis Steed

margins And the Great. core question, on on was especially of outperformance QX, a It in Chris, QX. kind just then revenue upside. nice last in margins without

QX. curious better the QX about from margins kind XXX And if in better. to margin got confidence step-up basis and think to you and go QX of in the side what gets through what point Just on

basis that step-up that, Just point to achievable. give XXX is some sequentially confidence

Christopher DelOrefice

just is Yes. of all, kind thing. the Thanks, Travis. the The here. -- first it wasn't execution I'd theme quarter, in X of so say

consistent some done portfolio is as cost well, of part been mix had benefit is hyper-focused organization our Our predominantly on our as programs. what we've We with well. which improvement strategy has

I the QX of that, To delivered QX would kind XXX played points over that as step-up signaled. QX, and the to of about point, execution improvement initiatives. headwinds basis our the from through good out all margin we So step-up say on your we've focus, expected,

If you X items head we what of Those call, about and would think items inventory dynamic. absorption it had as the again, transitory this QX the pretty with way, with QX I coupled in outsized reduction X, you into alone are XX%.

were those value of XXX about basis points that they're XX% only So in QX.

and moderating by which momentum the half we So half that you inflation, Xx the moderates further It then the up almost QX, with pick of the almost in outsized fact year. there, starts the in was significantly, it coupled what call for back year QX. in

just delivered over of deliver it's kind monitoring inflation already Really, what in back we those cycling So to outsized and us items, continuing onetime QX.

again, that which progression feel feel driving improved year. get margin, that, good good operating continues. the our to QX sight is our phasing, of And we're you we're that half So step-up the sequential towards. about the we the With increased about back line naturally of and why we confident that, have

Operator

question take Evercore We'll from our ISI. Kumar Vijay with next

Vijay Kumar

look orders. I Can prints was looks at impact? of look, China like in X.X% below utilization is a elements, it of timing sort just organic of What the this My you well is was points to QX? basis contributor you respiratory. China it growth. XXX so X.X%, Alaris, think Does impact Tom, customer help first us seen right? that And far. optically mentioned include questions medtech think I you I mentioned QX some was COVID? that bridge, not what you we've if think on, mentioned lot one, strong. I Why A

So help have maybe items? the underlying us just these been and between what X.X% of onetime bridge some draw it should without

Thomas Polen

if Great those start just about take you and referenced we've X X X guide, it's growth, from China. combined, the our Maybe items that those excluding just items. Yes. flu underlying Vijay. X% out, of Those those question,

quite significant. those So are

procedure If you aren't. seeing et flow cetera, that at base where the volumes, look business those you're X in items through

in So if see growth the look volume. example, getting as double-digit is procedure interventional, that you you'll of growth in benefit an very surgery, strong right,

seeing X% in But as flu a year again, X there. timing play on example, large expected. an those we're was PI, we UCC in I'd little factors there, You're concentrate about last the timing seeing bit played early Again, -- X%. solid China. inventory out in of topics, the out. Chris. given those which, as compare Underlying growth just

Christopher DelOrefice

progress No, And of I just we right, recognition, is We're and the Again, as our journey is very with et gave guide. customers of part actually on the pleased going was cycle of engaging life of floor. the revenue declared increase a That cetera. you revenue played fact, expected, the highlighted confidence Alaris low progression $XXX a the of kind it placement as natural think of a to more million with of of end there. as the what out matter us actually. we've was be to what natural mean,

a that half feeling that does were as with side, was as to you is half outsized like think so on And focus of it's And year, will -- you the of which point the gives that that the the in flip expected back at on growth basically seeing look it the around of expected what year, tailwind of that executing moderate the the expecting of kind it front versus almost when on so continuing Alaris. you're it back help, we're there. growth half, we the will full expectation ramp is

Thomas Polen

here. Mike it I to Yes. turn

obviously, is this relaunched Alaris. the that we've I first think -- it's quarter

agreements and upgrades. that's on remediation the we And the good focus feeling how so place in indicating back because that customers, for key those engaging the going getting are of launch that's is what that in evolve first what's the the of and are the metrics half And . to in look quarter is revenue -- about. we first at year,

Michael Garrison

that now. how We're remind we shipping. just year, I we medical the certificate And last necessity Right. had were doing that of not that's

more to that. becomes like of growth step and a to top it get of So on then over there

that's we're first seeing quarter. what So in

and from I is going selling starting feel way actually the that gone. really really with ramping it's pleased good ground I our it quite ramp-up And well. that. feel actually manufacturing up. about X scale-up So process has

supply to our So customers. we're product able to

system. customer system, of with think different the that anyone is they're in the I all advanced different a order of in single category. a response than power recognizing live interoperability like modalities the as X most else. XXX category almost sites, Alaris the a way. the more It's It's magnitude infusion a

differently little a recognized being way. almost that it's So

relative good. sort field. So -- certain expectations, we fleet return to exceeded of we've in we've that's exceeded to the in the set those And upgrading terms of market

-- have that elements way the build to early, it's is think say the think what the us I led That's but progressed. confidence to of things So we XXX sort are those the that floor.

Vijay Kumar

Can one your the inflation you versus up which Chris, back you. Fed, That's still XX% in XXX XQ to point talk, of a margins XX% half? bridge maybe was margins just the quick on step levels. The half think helpful. maybe in imply back from is one similar part And I for a basis

Christopher DelOrefice

which Yes, QX. move again, you it's -- basically away, goes continuation of completely both in dynamic of When basis points XX QX. still the inventory QX, is a almost out

you the moderate. So up off That's continues the biggest right move that item to FX QX. you probably bat and as pick through

signals obviously, We can have FX, continue moderates to reasonable move. that But on down.

QX, significantly. you moderates in to to be we from just other gets The if in where improvement full margin that already And is is executed improvement and again, margin basis a further need our thing we the you year, initiatives, down it from which throughout moves about standpoint. cost outsized the points, QX average XXX year inflation continue then

Operator

Larry Biegelsen our next from take We'll Wells with question Fargo.

Larry Biegelsen

Mike, why tailwinds in MMS with in in would fiscal medical growth farm 'XX be given the systems. the and corporate average line

single said just to you in farm expect systems XXXX. You high digits grow

expectations X%, this So what was are average. the and Last above for MDS year? MMS the Medical year, was corporate

Michael Garrison

Yes.

of first MDS, business is which bit showing the China. about talk masked a I'll the actually by So is VoBP underlying momentum really for -- impact in good little

needs Vivo These headwind the by momentum injection prepared BOPP very this in in also we've out capacity that in and our the momentum had driven to [indiscernible] advance It's And as advancements some the product Nearport, watching year. a aware agency recent and and somewhat the are the catheters serve in launches So ramped out to working seeing we vision. in U.S., we've Pro. if the we and being we're area. the built plan. is Nexive of But our hypodermic. U.S. market the right ] strong recalls, expected recent [ We're site for of attractive into playing field We're customers new as one arise strong X, systems in of action some the

of that's So sort MDS.

sort maybe we're upcoming the U.S. way be the a perspective, of to of to infusion system, a release soon MMS flat growth an of for market BD [ returning our drag about very Alaris. And versus Axis]. really thinking it From to infusion return also, sort with that it is of and contributor ex then excited seeing

very in alternate well. and business It's got site. quarter continues both and perform dispensing the Our to solid growth, hospital

digits grew to and in Our presence the our in nonacute MedBank double quarter settings. acquisition continues expand

Pharmacy So resonate to I proposition for good that Parata. about both that. well continues and feel automation, ROA really

we fiscal presentation, finish brought quarter us this for the previously year. actually last and strong QX noted was their in a As year

a created of weighted timing more tough back This of expected compare. the our ramp it a is towards half. was So and installs bit

those me MDS that So the confidence and are sort around of give things MMS.

Larry Biegelsen

Talk the be China you're about in China your Tom, expect what you digits I to confidence, quarter this said year. think, this and was in single to X% past, low you That's helpful. there down seeing flat up And

Thomas Polen

we we expectation what specifically to bit in other remains at out VoBP, was which see What all. is budget. as within unchanged. Larry. We're seeing exactly areas -- We and described, remained. was China to expected little essentially we saw as Yes. a the that MDS, expand didn't it not expected Mike Thanks, favorable played that. We it's quarter where

growth We QX. we over China. in see which we in very solid BD last several the we've of And had digits we Life growth the as growth had And quarter, years. cusp in strong the BDI, to in is high view Our also on projected. high in growth, double-digit mid-teens expected -- Sciences saw single saw that in out play

half base is we continuing China VoBP of to do start in that well. -- so last in year. saw business And the back We'll

become a going tailwind for a we in us And about that's compare so again, that. as think to China go over

Operator

with from Marcus take We'll question our next JPMorgan. Robbie

Robert Marcus

I it operating fiscal expansion implies wanted I to long-range basis get points to about we're target. to on your to -- 'XX here, but year And next I XX. ask margin to wanted out guidance, XXX in look based plan know

your next So how similar about we I'm sure the about do and XXX basis to answer points pretty think confidence but is the in that? year XX%, the implied

Christopher DelOrefice

a all Yes, for plan, question. JPMorgan, our margin you outlining outlined strong know, at initiatives. as improvement Rob, thanks Actually, the we of

for there improvement actually next I Recode, is already initiatives network margin of there. gross think going that the have progress margin And prepared of we us. underway goal XX% of highlighted stage accelerated through a our our Tom completed architecture, SKU our already We The to there actually rationalization. We're go great Project by right? strong focus initiatives pipeline reduced in XX%. with network the further remarks,

start that a great 'XX, the network another we next next value year. get getting into As in Excellence this this actually so of into going traction continue the seeing out benefits year, going one. momentum that. It's margin have of is a the . BD really we will of architecture year. year doubles that you're We're fact, to matter of part

scales, You and fully also leverage get that margin ramps up as there. the have Alaris we'll dynamic

momentum above of exit things, should in formal continued everything It's which and with that strong the fact, in momentum of So manage really strong matter year, positioned we XX carry to profile to XXXX confidence takes, premature to all all XX certainly XXX of year. points coupled doing into do as the a the plus, commitment this of there. kind make and great being the us consistently growth well did, we but next basis those we've and confidence puts kind high been we gives well able as a be and

Thomas Polen

Maybe, add just Yes. Chris' Robbie, good to comments. to

And BD ahead, road map to just way end BD right? it way of as 'XX, another through it about think XXXX think X-year launched the a be XXXX. was is the 'XX so I of XX% will in we

about clearly our slightly way in you out of that's As right? through as for programs a margin track seeing XX% 'XX, perspective, timing through that the way quarter. margin from really ahead good momentum this the on we've of goal, think BD XXXX, as So FY evidenced of we're guide margin our number our and the our XX% goal, set XX% we're

Obviously, learnings, XXXX, heard to across our BD us one. get started you've Excellence. BD apply I let's was make those think number we about company focus we building capabilities. talk the were them back, take sure as Alaris

play backed tuck-in of we growth. program Second seeing with was R&D we our [ drove which out. and simplification [ for And starting our spaces. track optimize portfolio We driving [indiscernible] that's are you're portfolio Obviously, our those built ]. growth sold up. Mueller on Recode, M&A accretive We into high-growth ] rebalanced

Along capabilities right? year, of thousands really had of our This on operating the that areas the associates operating excellence. a the those Excellence, whole the company. X progress made drive way, to program and new pedal on BD And we're lean BD capabilities system began starting for across across in it's last that we last we scale as company first model to develop year, now we've year, engaged I pressing mentioned. And

that as in the to scale continue year. if going did year just go in said QX remarks, many of so year all just we about think as to we And this through completed. that's prepared BD And as kaizens the Excellence, we the last of did through you we

visibility progression look momentum ahead. we good not goal, but also so it's only continue there. we us beyond us XX% to It's as indicated margin really margin giving 'XX our on see And giving visibility we

Robert Marcus

Great. Really helpful.

back headwind a talked Just How a business units of about hitting size, that try about. can do kind our headwind in follow-up. just you've think the models? each of is we quick out VBP that's the we so and China and where

Thomas Polen

we it's all all specifically. it see within That's within Robbie, is almost MDS, it. Essentially, MDS. where

Operator

next Morgan Wood our We'll Patrick Stanley. from take with question

Patrick Andrew Wood

mix timing the side hearing completely based outlook curious, from first of I book? of year-end But get now whether kind things. the and things customers ones. pharmacy the just the what for year it's like and the automation the on quick of you're right orders, the of guess is the on the order Two seeing from rest order

Michael Garrison

take I'll that. Yes.

that. and pharmacy good feel their the we were I incentivized Parata mentioned, Like on compare So QX really strong. to they there finish was tough because incentivized, automation, for team

finishing. for their had last record they So quarter year. last year They installations lined for had already up them a

tough compare. care talk care book channels. long-term starting about So with little of continue to transform the sort good, force customers customers. the care leverage the Order our sales looks to BD we to in acute to And our bit pharmacy a acute it's retail IDN a especially in of our

that's that we've the see a we and of it throughout it's have of double-digit projected as grow So continuing described year. low and been year. what we of expected sort grower, to -- the sort for rest a the Overall,

Vijay Kumar

of care Tom or [ very Dave. obviously Brilliant. Alliance And market. then fast either molecular quickly you, very for maybe growing a one but point ] is competitive

Just high ]. curious between and plex low product how interplay [ like the that seeing fit you're in,

that market. Just going to you're how curious into fit

Thomas Polen

Dave. to Patrick. question, the for Thanks that Turn

Dave Hickey

[ And up on ]. picking Thanks, Patrick. Alliance

we Just a back, growth this you thesis the terms about have if right? customer step X high-volume satisfy real molecular we you we dynamics playing BD think divergence with will the BD, of look So overall, at continue testing, if that there's that is happen, the -- at way molecular said drivers cancer evolution the right? of So the of the market, a look of sort and in take X you of for cervical out COR. centralization

growth the heard the prepared good setting, Tom say BD there. acute good we're in think double-digit in about as remarks, you seeing MAX You -- and

unfortunate sort think point to in that it we our single-digit critical market. this it If and be to can there minutes, unmet used the will CDC than will obviously, clearly, And clear so need the I actually entry waived settings. these is it burden high And as is Alliance of be in access you wide a way patients treatment [ to about And less in you're will administered reports, of I in clinic assay care when X testing. that because the about be care think an it in look increasing selected is will address. anticipate goal be potential results within a it a relevant it the those there ] our first clinic, if about What here But would NIH different XX CTGC you're deliberately, the actually there and decentralized all settings. it decentralization you're of Alliance we've diagnosed at ], to while in about what of giving STI get is testing new on now, of result think in but setting. is increase of that could specifically [ our a variety you

the the of units, lead And strong these behind capabilities deliberately, to on cetera. then, right respiratory STI less road really with. course, than in map focused it. assays, see of other but assays because results, we think a So CTGC is we et XX-minute assay

Thomas Polen

you're results kind Yes. COR and The treat or while of test minutes XX component. less concept with the

Operator

next take Barclays. We'll from Patrick Miksik with our question

Matthew Miksic

is This It's Matt. okay.

the then factors some have wages. of on last detail that played and through came after of a talked lot of that around obviously, around was you And One Just follow-ups QX, questions quarter. a about and couple I follow-up. X peso

And business update through that And during the most you're quick of sort then that on just and maybe sounds anticoagulation QX and could China, you like If in of new think -- was home the that. a this just way you on could. in next and follow-up, just update perhaps find an a to find that if I capacity hoping quarter, quarter, that something would X that? were then going was

Christopher DelOrefice

it's in Thanks, still That supply the Chris. play biggest of it's playing out as the for it. were talked Matt, about in supply out dynamics Yes, that of we started expected. we and the Appreciate chain ones year but organization. year the when was continues, X our question. -- dynamics wage seeing kind the Yes, the inflationary we chain,

So nothing there. new

both that. revenue good news the passed Regarding through We is favorable. moderately FX, and earnings on

and And moving the direction. this and I through in the So $X.XX FX. continue think the with $X.XX point to operational performance and beat operational the happy We'll right it. watch we're passing of both stable at

Thomas Polen

And maybe, for Mike, Systems. Pharm

Michael Garrison

that to in to to look that's our systems hunting and and the where converting a the lines overall just freed form there's of serve to are teams for that's also help anti-agent strategic for have and But accelerate it to playing we ability been area, Yes, to some capacity normalization home more biologics pretty capacity and are think of at There post-COVID out there. took the decision market that, there. that well. some over returning for I anticoagulant. up success is a

be come some part able recognize we've So serve year. we'll that line of biologics able able these to be for increased been to there's the demand in And conversions. in we'll that's to that then been in because later

it't's So to both that anticoagulant of been little dynamic. bit relative a

Matthew Miksic

cash emphasized excess of of up impact inventory, having You bet. part and on And a flows remember just times and Chris, one impact I freeing M&A. an bunch follow-up, could, that sort quarter, if And on of I was you last margins.

through You're that.

expect you maybe the progress the of XX You year about size what in be we M&A talk the XX, in like a of of the made rest X, for outlook terms and things, things leverage. looks kinds might months? Could next little that of nice on might the you that -- bit

Christopher DelOrefice

I in the our extremely cash been a plants. really question, confidence more efforts areas double of definitely really on Matt. that Yes. focused for getting was We've we're year. with and CapEx quarter. that strong this the driving flow, was been to strong our BD digits leverage. One, the Part recognize. expenditures. pleased simplification we're gives for flow out we've through efficient is you trying appreciate It It the Thanks performance. us played all I with the from cash excellence

you inventory in in saw and well. you our improvement as In saw improvement addition, collection cycle

positive basically So disciplined organically going last active net year, a consistently to and contributor delivered But imagine, really been at target disciplined. It's that remain growth remain we can We're so things nearly to nice points. we at you will always our we're leverage M&A. well basis things. of XX of and look sit think have all as We as positioned you portfolio an at.

So to more come something. certainly we're strategy something to want on don't that and going know to part add of focus that. continue growth our I if you Tom, to on as

Thomas Polen

part think has the against said. accretive as right, It and those the our been our well shared margin remains been Extremely we've several I of past, growth, on acquisitions, track focused active strategy. executed last accretive well an record, in over we've growth And years. which we've

track I think we've clearly of built a good record that.

returns, the focused And has where bring market macro our either growth footprint, very got channel, again, tailwinds we so drive can and manufacturing strategic healthy we've or growth. a through And we active to disciplined areas additional M&A, strong our significant on accretive again strong sustainable global remain our pipeline structural meaningful value where in prowess.

that, have on operating our -- we strong been focus but emphasis pipeline. doing haven't we're And goals. delivering going to We to and dilutive remains, is right? that Our continue deals, focused on a on . XX% margin we're

Operator

At this time, I'll for to return call any comments. Tom the closing

Thomas Polen

joining Thank you all our call. for

very increased As momentum year, towards outlook had rest forward and call you our of good our the to and we FY for great and have you next 'XX goals on the to delivering a look we May. start our heard, progress XXXX BD day. Thank sharing in and much,

Operator

you of for your have this you. conclude thank behalf This does Thank wonderful Please today. disconnect at joining a program. lines today's time, day. and BD, On

Becton, Dickinson and (BDX) 1 Feb 242024 Q1 Earnings call transcript