ABC - Earnings call transcript Q2 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to AmerisourceBergen's Second Quarter Fiscal Year 2021 Earnings Conference Call. [Operator Instructions] Please note that today's event is being recorded. I would now like to turn the conference over to Mr. Bennett Murphy, Head of Investor Relations. Please go ahead, sir.

Bennett Murphy

you. Thank thank AmerisourceBergen's joining results. fiscal and call today's all discuss to XXXX you morning, us for conference Good second quarter am Vice Senior Ben Relations. I President, Investor Murphy,

release and Steve On CFO. call, of we non-GAAP President Joining these President discussing today's Collis, be measures. today also to on Executive Vice are and accompany our website on are also GAAP available to me website. are CEO; financial Jim provided investor presentation will investor.amerisourcebergen.com. measures Cleary, our in posted We've today's today's slide press and press release Chairman, and Reconciliations a at

conference will an our adjusted this income limited forward-looking on business including, basis, statements operating but not During about call, we non-GAAP to, expectations tax. and income financial EPS, make and

on to management's are based that expectations uncertainty change. are subject current statements and Forward-looking

a forward-looking and assumes periods of release XX-K. permission our assumptions, SEC to recent the without refer obligation including no of cannot the to Management in the express we statements, Form today's company. our this any most call press filings, be rebroadcast further discussion For and update

ask call have to after [Operator opportunity With participant. one to turn your we questions you Steve. you If management, per today's remarks question I'll that, Instructions] over ask that to an the by limit

Steve Collis

futures, first decisively were pandemic. everyone protect our continuity associates, navigate how and Ben, in COVID-XX responsibility year of the said purpose and our increased united good our I AmerisourceBergen our us you, global our X enacted Thank maintain hard our uncertainties impact was to Part to There morning customers joining lives, time healthier believe create help call, of will and families support business communities. about It's our for COVID-XX complexity. and braced that to being to AmerisourceBergen responding to today. ago many this how on

Powered inspired solutions as by by a and partners to remain vital innovated the [indiscernible] and Our people data-driven and support solutions. and demonstrated distribution and by our technology, and to associates talent teams infrastructure incredibly system. providing health where our facilitate patient care awareness I resilient for AmerisourceBergen role businesses value-added is and prove empower our in culture, exit. pharmaceutical key proud have channel a with adapted its enabled needs the and industry and our that robust

capability pharmaceutical our Importantly, the our to in pandemic embodies and operating U.S. both This and differentiated and partners to by and role communities abroad. stakeholders. increasingly us for enable important continue support our response is people, purpose all for innovation our our value our the

results. Turning to our financial quarterly now

the with the grew EPS year, leadership delivered relationships, earlier systems strategic across that providing culture way the futures. the therapies is going. to movement nationwide providing are their we Good with healthier Through As morning, vaccine our [NMR] future efforts AmerisourceBergen period our program. in innovative play XXXX. and we the Canada, government business to create efforts. growth of populations. as the especially distribute Outside are results Pharmacy unites on distribute global example, X% partnership the serve second active retail though support for as definitively the vaccination solutions, our representing customer Canadian FedEx the the United driven to highly we national pharmacy we In to communities we purpose-driven continue government. role continue to them These facilitate health COVID-XX in Members enables and year-over-year. announced their U.S., in in local Neighbor behalf COVID-XX growth in by same supporting in inoculation fiscal for the role X% strong year-over-year to quickly, of communities trusted preparedness were an The needs. antiviral important Revenues and our One purpose In pharmaceutical specialty, our services priority participation their States, us potential this last medical from living and because $XX for current and federal are that leading role quarter in is access stockpile, responsibility efficiently are were of of professionals work our network in backseat billion, working adjusted antibody our hard-to-reach the our country. we

COVID-XX AmerisourceBergen that pandemic. earlier, providing on been focus customer-centric throughout And is mentioned innovative focused solutions. I amplified has and value-added only services As the

and and our to to commercialization associates critical ensure resilient Our to help are dynamic have current patients solutions providing the innovation, efficient medication we the supply chain to In for partners of pharmaceutical are an access adapt environment. distribution [indiscernible]. key facilitating support them

innovation We are our position as our and differentiated a distribution partners. value further further suite includes and specialty of leveraging capability and enhance to and our expanding our for our supporting analytic of data solidify for pharmaceutical services to specialty and proposition access. robust solutions essential leadership choice Those in partner

field-based challenges keeping our World with given World Courier's purpose full, partnerships partners. manufacturer are transportation and antiviral honored the of need our around never through the innovation to traditional partner. The able business, key past to trials specialty navigate U.S. Just to been World be we partner in logistical direct-to-patient the World were foundations. at of logistical leverage our partner, execution over world. year with standard manufacturers logistical of and for combined and and this homes as have network provider continues logistics been broad more enabled we to were global moving of Working services am and the India. [indiscernible]. not proven of able with breadth the including trials and we humbled our clinical fastly, public capabilities, perform government build with expertise patients therapies shifted industry-leading a facilitate both to Courier to private The importance now the part so possible interfacing patient invaluable and I the clinical support capabilities, they unparalleled solution that expertise able would forward. a our to as [indiscernible] efficient services, Korea AmerisourceBergen's a our of have Courier of has

and creative teams as facilitate for patients have serve. the partners been outcomes communities Our provide solutions and better to that they our adaptable

Health our its as both to provider also strong this distribution and care as further recently strong other to we distribution and and production core opened value service to animal its Animal futures our ability being our To companion nationwide. a U.S. well the bolsters operational growth our health and for capabilities center animal the our enhances continued ability responsibility differentiated providers to our thanks our manufacturer continued AmerisourceBergen's customers [indiscernible] on enhanced deliver MWI facility is MWI and facilitate health strategies. network Our healthier help and our standard united new execute ability animal the to business provide This of in efficiency, its new health create performance by support of veterinarians relationships quarter, for to and on business animals. promise continued growth better in partners

strengthen focused needed. base facilitate with customer each we relationships differentiators patient key our core key remain access prescription on customer is segment We anchor to market customer-centric customers our us business. one globally. our of This to lead our leaders our across our and customers, enables and First, to with of continue wherever enhance intend of portfolio solutions

upon leadership to concessions. continue build Second, our we will

value-added and AmerisourceBergen. us of important We services in have capabilities our portfolio of customer advance focus our to which upstream on enhancing to pharmaceutical area and the relationships the for in customers, industry, support enables partners an and benefit specialty downstream both strongest innovation, makes

pharmaceutical unlock access innovation technology expertise, partnerships as best-in-class globally facilitate our data are we delivering and provide patient on our outcomes focus to innovative innovations to strategies services to when to solutions providing enable and service access to customers of potential as continue and all Fourth, by analytics, we into health scale and top that forward. our customers because approaches small growth we patient by our service better Third, This well embracing that and time first our able facilitating get commercialization large prescription positive By unparalleled populations. pharmaceutical to facilitate solution-oriented this we enable advanced enables value-added our we seek approach grow, value-added grow. therapies market developing to move supporting grow, and innovative on and customers. and

key been pivotal long and inclusion our and success, well success. equity on culture and our growth advancing deepening associates as to diversity, these have focus our in strategies Our as for remain investments long-term AmerisourceBergen in positioning

to and Our are strategy are bringing our into for corporate long-term and financial value we culture, all create embedding culture health continued is [indiscernible] the that ensure of our we by principles stakeholders. reinforcing processes the [indiscernible], legacy ensuring focuses strategy. businesses creating our strong of sustainable, overall To businesses which first growth and our people value our ESG foundational on to

a in Our advancing adapting supply and resilient to responsible environmental climate a strategy chain. on focuses change and

and chain and for an leveraging We our carbon are efficient lower us unexpected allows secure footprint create infrastructure pharmaceutical technology and that global events. supply reduce prepare our to waste, also to

and and improvements. collaborate result in environmental create efficiencies to packaging For cost transportation example, we process, our with and that partners significant customers

and robust deliver can place our continue we to life-saving understand also We to ensure medications. continuity have climate-related physical a risks business in plan

is inspire healthy strategy side, on social our and team foster to people around investing and members in communities. the centered On and responsibility corporate our focused our communities

and we paid strong protect families associates throughout [indiscernible] with to our of our as include now, bonuses, benefit now ensure physical which and part have enhanced their medicare and mental programs, parental health leave. childcare resources benefits continue We additional we the pandemic, and and assist as extended

[indiscernible] protections an them providing such distancing frontline For protocols, with we and enhanced important our associates, remained cleaning additional social have as PPE.

supported collaboration the rapidly prepare and by new goals, and full empower talent landscape. our also a we've and we tailored creating help a these term, expect innovating that term. long by our our enterprise purpose being By model programs, their for we development our leaders. the unlock people For aligning and adapt consistent to development and. principles, offers investments with future them the investing the to in and create long associates of dynamic to strategy, competency world leaders Added culture creative guiding our value then new leadership is diverse and opportunities, our focuses on now program and new model business class leveraging we To By and what is for launched experience our learning develop executing with workplace, career to action-based reach an a strategy in their to to advanced by and technology. intuitive people. resourcefulness the our and all potential learning modern learning inclusive energized, that realize create also our

we focus we this and equity we -- have our our heard and and are broader our in members ensuring to X I that further with the impact, employee in thoughtful XX%. and groups. and through participation our our inspire the diversity supply our the workplace and perspectives ESG investment Another and culture, focus resource past voices ensure inclusion. In has new with have and of the aligned diversity, with efforts. partners elevated way remain XX collaborative, and encourage to of ERGs team a promoting to diversity approach is strengthened key associates ERGs in participating collective on data-driven introduced grown supplier our To community months, function

our AmerisourceBergen Additionally, that in they conversations shape to future and empowers see. the help participate want associates to need

issues social proud and diversity, Neighbor impact as over has donation foundation X:X focused network innovate work And a our right year highlight believe here, steps past want empowerment. [indiscernible] am members our is of our also because to social facing the our Pharmacy has raised equality example, support a I the one that I provider is healthy and doing For new justice. elevated faster justice, communities. their societies. that been organizations inclusion has equity on to I that taken important at social Foundation on fundamental and personally Good AmerisourceBergen for and the on it many that Health the ratio matching by associates

support and work COVID-XX and vital As in the communities. outcomes care COVID-XX health a donation vaccination quickly advances Separately, and on all remove major basis improve credible the recently in our Boys locally. reach transient in to of education barriers equity their role of health population providers the with parts to & effort AmerisourceBergen Girls and to the to play relationships communities, positive national a efficiently. promote a awareness, daily health Clubs ensuring access they country's America to well-established effort health Foundation vaccine an made of Their

We the partnering healthy to are to support independent opportunity grateful U.S. have and across with communities proud by nonprofit pharmacies. the

we ethics is government. of and the do which informs Finally, of and government integrity, a everything of transparency, culture element highest that standards ESG which our strategy the embracing ensures

create advancing we it initiatives, is right right purpose and around do environmental, AmerisourceBergen By to enables thing Our social commitment governance the also to do futures AmerisourceBergen's to stakeholders. benefit aims stakeholders, the stewardship. enhance leverage to In not and the from specialty world. our to on our principles. all and distribution, we strong create This differentiated core closing, the innovative to provide further is remain ability corporate in only thing to us healthier but focus value capitalize in for our on our our AmerisourceBergen mindset leadership confident value

next we services. strengthen ahead, the and our and the markets which excited innovative and global and ability look We the team, team, key acquisition we business Alliance Healthcare, to of of our Alliance our enhancing talent provide focused strong closing their building management have base into Looking global solutions. will confidence forward upon are of the onboarding in begin of distribution further fantastic extend treating platform evolution our on healthy manufacturing to to health are our strong capabilities with

We to are futures. create well-positioned long-term healthier to our and value create remain responsibility united stakeholder in

of a Now to more Jim? in-depth review the Jim I will our call turn results. over for

Jim Cleary

morning, Thanks, everyone. and Steve, good

COVID-XX by that Steve on been a publicly the Reflecting our past teams we As moved has have our the year since times. I partners supporting response. year, diligence passed over complex to hard these and it's have believe the in AmerisourceBergen's during shown addressed mentioned, pandemic

continued create performance. and our lived of talent there, our healthier to on am the being of have our year, foundation I past hard our the cultivating our that responsibility of proud work continues culture. the appreciative associates of united Our associates and over and, I'm and futures purpose to advancing in focus AmerisourceBergen

the pandemic our successfully challenges, our long-term to presented demonstrate manage investing of resilience business the strength them While and through in and allowed commitment to us businesses model. new our

on the resources and capabilities this time of said the have meet to able last partners. we call As downstream I to been year, needs our and upstream significant internal leverage evolving

continuing to As delivering on long is we with but do this innovative in ensure today, fiscal services our to eyes that sit talent not and solutions. is will invest AmerisourceBergen AmerisourceBergen and from the for so only term businesses internally our strong continue year here future, results to differentiated value the our over

Alliance XXXX consolidated still the EPS of elements results, our I today segment Turning announced does XXXX. will remarks not include review now I guidance. adjusted note any to contribution stated from guidance, are acquisition the the quarter the second results Healthcare focus on performance prior updated comparisons March -- including and against our our adjusted increase that will discuss financial and results. our made our proposed in otherwise updated year quarter. both will My quarterly financial to non-GAAP our January unless fiscal this guidance

income strong fiscal we For earnings solid diluted bringing from EPS bottom a to operating with full finished detailed our a to $X.XX of across our growth year are GAAP X%, raising discussion adjusted continued $X.XX of please primarily $X.XX, refer our the to quarter of results, EPS $X.XX. $X.XX, reflect range to range an guidance, increase release. of end due up We of To the our a of businesses. it to our performance,

group of consolidated revenue higher-margin the billion, X%, Health. Global Commercialization Our and This and products, Courier of increases billion, which in Services of the Other, $X.X revenue gross profit profit Animal our prior each segment margin in to includes improvement Health to segment. $XX.X the X by therapies, Consolidated as both operating including such by the Services was Pharmaceutical X% in and growth due gross is in quarter, gross growth growth and increased our in quarter. Distribution points driven driven up increased World gross businesses from MWI some profit COVID-XX specialty Animal In sale basis continued margin year businesses.

initiatives investments, future fiscal operating number focus consolidated value operate throughout for with operating differentiate payroll-related on a environment due a the growth. proposition expenses, to made continuing year-over-year to and to expenses and X% Regarding internal grew our of current costs in XXXX, being

in to expense our single-digit growth year mid- We in the single narrowing range digits. growth high are high for the from the guidance operating to

As from from expenses. lower health second benefited lower of last an half travel care and fiscal year, the and tailwind a corporate administrative costs, notably reminder, XXXX lower OpEx

Turning operating now income. to consolidated

more prior income and which businesses, $XXX Animal review basis I interest This in $XX year-over-year. in higher-margin compared X.XX% operating the quarter. million, performance. was Pharmaceutical Net by our the Our flat expense Commercialization X% segment was will to I when grew a as result of margin by strong driven segment profit points Global Services gross discuss businesses. and roughly year million, Operating continued level detail our the performance up to increase was both the income Health increased X Distribution

closing approximately have X.X%. billion I senior is ahead XXXX, fees a will not expense Alliance of XX% fiscal of senior for the full The debt we the Healthcare which the billion of did $X.X note and new roughly raise, $X coupon which we with interest of due year. Though During coupon notes acquisition. the associated to of debt interest net a and issued will interest of be notes new up debt likely quarter, due have that [indiscernible] $X.X of expense, XXXX, X.XXX% due the comprised billion

expense adjusted transaction future updated our closes. included Our fiscal EPS of does guidance interest the not this Alliance but XXXX includes P&L in be course, would operating which, consolidated Healthcare include incremental after income,

for to the second quarter. Moving tax rate our now effective income

XXXX. up Our quarter fiscal from second was tax XX.X%, rate the of XX.X% in

stock fiscal approximately million impact The count XXX does share we year the million at shares, XXX count shares count dilution for Our up to and not revised will count. testing million reflect impact from that of to million close guidance average Alliance expect range from now share shares. be a year's shares, roughly the the XXX.X the We flat of deliver to share XXX compared of transaction. approximately last was X comp Healthcare million for diluted share our

you we following close. AmerisourceBergen that $X we would As your ratings. Alliance down announced the committed total you we begin immediately a noted remind over billion credit investment-grade when transaction to will through paying in are years repurchases, strong over I period revisit ensure the that Accordingly, acquisition, we share next to the maintains a model, deleveraging get to of X debt and

the to now cash Turning adjusted flow. free

Our with cash flow on $XXX fiscal million, approximately year-to-date the of free guidance adjusted billion track our was flow keeping adjusted year. free us cash $X.X for

balance. ended Regarding in our with billion the just consolidated We review senior cash discussed. from our including $X.X billion the of the I notes issuance cash, quarter $X.X the approximately of completes This that results. of proceeds

turn our I'll to results. segment Now

of up Pharmaceutical Services is the the in higher important as resulting income year-over-year products, does pharmaceutical COVID-XX First, year, be current and which specialty compared increased segment revenue context an in year year onset up business, may basis operating and in point solid income our the Pharmaceutical X.XX%. many We growth sales X quarter, year sales purchases have Distribution customers increased COVID-XX driven to last by March. was including This environment experienced have profit. of in ION differentiator. continues period. therapies. therapies negatively Services to of with level margin of The COVID-XX, Solutions March on month increased sales demand to comparisons Segment there a gross million the prior the quarter revenue rate regarding growth the business for being of year, impact Distribution X% impacted days keep our $XXX less to performance for by products, period segment, to the related saw specialty quarter. we the at X about in been to for This increased continued of the rate their X% elevated including Last year prior $XX.X billion, operating it

was fourth growth subsequent income will reversal no comparing resulting debt quarter the with growth to recorded the have headwind in and in quarter and a to in current we reminder, fiscal XXXX. a of operating full that be but The in reserve fiscal the in to As tailwind quarter, XXXX, both originally XXXX bad reversed operating will fourth the XXXX quarter. when impact the second fiscal happened reserve therefore, income a fiscal

includes income in-home and quarter, trials $X.X direct-to-patient World total Services AmerisourceBergen businesses performance to I up traction capabilities turn to MWI. billion, on the MWI. Operating driven the which that Courier's market for differentiate XX% was Now and Courier, the the have Courier XX%, segments, will World meaningful including the operating was Commercialization and Animal and across the focus $XXX primarily World to revenue Consulting have for the up Global In utilizing X as Other, of business due and by Health, growth million, Courier. begun particularly continued growth group clinical gained in setting. World

MWI our manufacturing logistics commercial expertise in has higher complex. are and pet at industry Courier offerings closer Additionally, to maintained has resulting the market partners, in parents companion growth when ownership continue a to particularly where rise by and be pet's World to time the attention be their pet paying continue its traditional health. on valued strong weight, and global animal been in volumes trajectory,

Our innovative remain a in our technologies, investments allowed and offer and to us distribution provider new health our partners. the have services data best-in-class including animal solutions to analytics across businesses, center and

digits, will and growth implies guidance high low single by a the rate double-digit continued fundamentals for performance and group World the Courier the X-year growth note the range annual of of strong to fiscal in we a As low other, single-digit I result for to exceptional business mid- operating growth our from guidance new helped group that are performance this income of MWI. double-digit year. growth raising of compound the in high

touch to that quarter reminders models. your color third now you provide the Turning and some in on to build

discrete operating quarter we the only in EPS raise; higher to Healthcare transaction growth to profit counts. rate performance due factors: expect due business lap to as year-over-year comparison debt. be Alliance we across up share year, result favorable hold in gross rate repurchase quarter to to Below our second, income of and slightly higher Given revenue fiscal operating elevated. last third higher and expense expense first, strong X is main third, on as the third be of we share line, to the interest and the XXXX; tax expect a The the continued strong remain items the a the debt and

our and expect of guidance We to driven growth move business. segment by point XXXX our by income to continue stock The share to operating to new is EPS been count both seeing range and to to Commercialization EPS X% this the of across versus Distribution we At happy the we comp. debt, and and raise are clearly in Global a up Group. year, driven X% are our represents Services have growth due strong able Animal in the Pharmaceutical Health strong expected performance Services

I this my prepared Before a I conclude on provide morning, Healthcare will transaction. remarks the brief update Alliance

remain discussions in at with make possibility to of teams preparation track in the have close quarter. valuable continue of acquisition with closing the third to and closing. and the towards by We leadership end our fiscal year, We the transaction progress continue Alliance closing fiscal on our for to the

our future EPS acquisition financial as important the and into profile key we teens and accretion is partners customer margin percent This distribution and the and in acquisition create to strong our innovation. to scale after free cash is value As to pharmaceutical the AmerisourceBergen high commitment our for of generate post differentiators long-term our through leadership months well-positioned it XX will a first build on capabilities. step relationships, flow enhance service and to generation commercial manufacturer reminder, specialty global and expect close. adjusted our an strategic

all ensure stewardship value to the stakeholders. corporate continuing our on our create also benefits are We build to we of

Council, of As GRI Global UN aligned and Goals. Sustainability the annual this ESG I'm excited by release Corporate with Global fifth [indiscernible] Responsibility Frameworks, our Sustainable Sustainability including Report, of executive Development co-sponsor quarter's which and

aligns the sustainability on TCFD and report For and is frameworks own first micro site. Forum also with its the the Economic World time, presented

our remiss a to April, Collis ESG microsite AmerisourceBergen's FASB to and updates recognition AmerisourceBergen and approach as would the acknowledgment reason commitment to on I encourage did study member look moment presented country recent for In featured received. forward Award of reporting the and ESG. a Americanism Steve Group, for Advisory the case award League is an across of also fighting world. to value the continuing workshop. important Steve leading that the everyone not This and Philadelphia to in take As to I Steve the locally be is a AmerisourceBergen a purpose. our Standards provide I Anti-Defamation AmerisourceBergen, goals stakeholders. to if our CEO, remains all the communities with living highlight the people serve to committed our continue In to closing, businesses, eye will AmerisourceBergen our and business in future investing and running and visit

being united our create and We by driven our and of differentiation interest on in strengths, enhancing are value building responsibility to Thank in AmerisourceBergen. for our our in for long-term growth purpose you healthier the your marketplace positioning futures. our creation, business

Now to will to Operator? I operator turn over start the call our the Q&A.

Operator

from with Glen first Santangelo Guggenheim. [Operator comes Today's Instructions] question

Glen Santangelo

now, reports you changes to generics by with calling what Steve received varied generic business, we've maybe in you've supply in pricing and Jim, been changes in out? season, different respect this notable Could pricing. worth I'm guessing but both on you've chain? earnings seeing from Any terms comment of your companies and heard earlier the

Jim Cleary

There product-specific year-to-date. be for With update. Thanks And dynamics the for to trending in but year. still year. question. currently asked with with relatively a we the the our our few balance to in sell remain continues couple Supply of are line are deflation for relatively market generally But be balanced. of are pressure. years. relatively the overall deflation overall generic original pricing expect the pockets and about, deflation rate the generic rates line is the last with overall, of on expectations demand regard significant with line you when then for Generic And competitive side expectations to the consistent no year, stable with the in

Operator

comes question next from with Coldwell Baird. The Eric

Eric Coldwell

less little X relation heard selling bit joined I amount if what And hoping in unfortunately, to And of to. money, a a days. in thought about obviously get I relation was little was that, that's is I something distribution selling late, on specificity Okay. what to. but tremendous that you in a more a I was mention day that

the So of update factors higher. The was which the that bit was if I'm Street, a just versus curious in revenue one

Jim Cleary

Yes.

Let tend to X time, and versus days comment includes have One then the of on that. things been quarter Those this the AmerisourceBergen less that for was to us quarter long of days for selling it simply year. exposed distribution we calendar. me call everyone -- to sorts who a selling were the last same about due there are on and which

The that, on our MLK this not other operate important. we did was we the was Day, due centers to felt which year, fact distribution

so a that selling quarter. why had the second was during less And day we

on revenue growth revenue uptick say, And where I anyways, real quite a comping would probably we the impact so of of days, during there we the year was during pandemic. the have during on in But the overall, the onset feel good revenue the selling about We're month last some quarter the during the March, quarter. against quarter. the

range the and that growth with our which the most I we the keeping year. year. then growth we're revenue single-digit importantly, And growth against think, we percent And revenue same, the pleased were comping in so for also, fiscal strong guidance quarter the quarter the that high were last revenue is high during

Operator

Gill comes JPMorgan. question next Lisa The with from

Lisa Gill

go and cost, share higher to around count. to want interest comments I back your rate tax Jim, just the

we everything you the those neighborhood fact looks to -- end the equal, X math, the that would have numbers I the another think be of been my correctly? close by the in by $X.XX. math to raised combined of incremental today guidance? Am doing things So it like When were upside about there Was your else would and if there but $X.XX? your numbers lower somewhere

Jim Cleary

Yes. operating Thank to for quarterly you expecting income was the what growth. and slightly And quarter. that think we revenues but continue much guidance EPS obviously, very the only expecting the question. jump expecting it very we're key up for GDP And give is is continue strong, I color. to be the to indicated our solid really we be we're that we're thought third to thing important in during adjusted strong, And

higher that a tax items that of it, quarter benefited below-the-line third the because year-over-year the tax really item last are had we driving year. rate it's So the discrete

the We done because acquisition higher financing the before during third closing the have the quarter we've interest acquisition. expense Alliance

course, have slightly close related have deal. expense it our but the count guidance, have until Alliance a we the guidance to also. of then higher we we share the So in interest operating income our we in And won't

I think of in we those standpoint, what guidance business high the in operating as the things well. the expect key is we business to single-digit the guidance I are some for -- so an overall quarter. are driving so have the operating income And growth kind the from said kind But that yes, our that, to continue thing in perform third And rate. percent of

Operator

The Robert next from question comes with Jones Goldman Sachs.

Robert Jones

follow Jim, about guess, up talked slightly. maybe being on just that, you to I up EPS XQ

EPS last an have more called specific benefit line this well. was the then specifically. COVID clear, I bit Just would mostly you maybe is willing if that quarter the you'd to wondering that share to in out quarter be a treatment that growth as for the little looking quarter, And contribution subdued? be below

Jim Cleary

Yes.

I'll address X were of there. things there those. both So

end would The was quarter, adjusted just first and EPS we solid quarter. in we the things below Yes, of guidance that the only second was expecting our our was the the they the slightly growth. growth and our sales did all during high on as is benefit the is it be it roughly quarter -- in treatment incompatible are year. percent half detail third -- during of income income the COVID half And the of first all are quarter, the that through. quarter and fiscal large once is on single-digit And the line some operating year went caused operating one

balance only And so positive a half over as we of fiscal year. it the about and during still it the the continue much impact, to expect quarter, it to had second while was decline do

Operator

comes Morgan next The Goldwasser question with from Stanley. Ricky

Ricky Goldwasser

wanted to on focus segment. the I pharma

operating income and You growth. reported growth revenue about X.X% X.X%

these So terms trends April we level, see in are line? And you to normalized along in the through and up of more as early a prescriptions more May? utilization to flowing seeing lines, pick bottom what in should leverage

Jim Cleary

the activity, been resilient noise been isn't the a diagnostic And have cold had been blue, our low now. of They and flu which significant during lower hold driver year. of script pandemic, of external of but COVID-XX the data our forward, cost across cough Yes. With pandemic. we're onset and our preventative regards sales business. But begun speaking, to to season. that optimistic the physician broadly a being said, some moving compare utilization, there's There's past in will very against course. businesses lap lot We around

we As and procedures of vaccines, diagnostic for conditions. incidence the situation to a of will referrals the current treat balance to getting with scheduling that people physicians country, look many year COVID-XX the parts of and be these in and lower the

Operator

question comes Nephron next Percher with Research. The Eric from

Eric Percher

more struck was intently Is specialty Your chord. to a the having there in a ago? and oncology value CRO well are consider combination, regulatory customers even business? time comment to bit a Courier than little years of the thinking with if fit relative not on it working proposition expanded And that could that of commercialization and large-scale upstream with supporting World a it bring role affairs couple I'm pharma And areas of the or innovation an worth kind

Steve Collis

that post Yes. which services helping we particularly commercialization those patient -- and industry find include invite physicians so would patients challenges, specialty Eric, broadly and helping with with market pandemic. our accruals

understanding, trials. very that our We resumption clinical approved. has been those be focused expect therapies and of on will in innovation the the FDA, more in Obviously, from pandemic there

that holes But And our don't is portfolio serve. history do on or analytics needs of physician always stand adequately willing now. with mining. a very specific had feel need have right we positioned, we our have customers and working to we So any data to and

we accruals, So the from important. could clinical we're oncologists in well-positioned, benefits using to particularly but in keep that like community very so mind feel trial come and important it's

Operator

question with Cowen. from Charles comes The next Rhyee

Charles Rhyee

some follow-up guidance about to the puts the Lisa, with of the from and want talk with here I a question James, on Yes. and when offsets. the the you of rest takes about talked

But trends you talked other little cetera. the Can seems guidance well given the to that a there, you that think expense World in the here Courier to here. and segment, et the you in doing higher seeing Alliance a you're financing, quite be about bit of you infrastructure. you process more I rest be related great talk raised about fiscal the capabilities besides built yourself Courier, this trial guys capabilities support 'XX? about clinical And thought at manufacturers I you -- different more in itself? Have adding more World the the Would adding guess piece? pharma to see can logistics maybe with you've

Jim Cleary

Yes. Sure.

seeing think and across strong health is, we pharmaceuticals, Other, physician specialty our the called systems. We're And businesses, performance business businesses, moving seeing the course, I Courier. some trends kind to as trends, And in also of and to on of beyond expect in in to the growth lap services. prepared these utilization. both pieces We're seeing MWI performance this World we beginning biosimilar the positive year-over-year that and then rates in growth positive particularly Courier rest of seeing our in are I there those you've some debt second see strong So we're part, businesses. out thing good the And distribution the combination there moving very We're the Animal about significant a call. positive key remarks for in one talked number in continued year. businesses in in overall pieces then seeing both more World businesses. really and on general our are first higher-margin strong of these also question of of the in a and It's positive execution businesses. And in all about your across we're is think and of the specifically part the commercialization guidance of trends Health that was we related trends

the operating will of rates fiscal continue quarters saw the we to percentage growth X the income year. was last quarter so during biosimilars as of probably first really at and utilization that not increasing grow from And last same this the year

And assume of good is we the lower as we're guidance, the Our therapy sales that of that. we're COVID do there. in doing that what it half. course, feel second than will they half very were I first proud in And does said, be

Of so year, operating at We of the that in course, of had, last utilization operating of second than lapping will be very half. therapies expense had the year year. less low we're we COVID lower last lapping fiscal half in we then that fact, we're expense growth, had feel of back the part And do X% growth expense growth. out

with of Healthcare associated X months transaction. interest have a the also We Alliance

our feel the anything guidance. there And want positive those about you And across overall, of to are are that things Steve, execution and impacting we good so some the add there? is trends businesses. very But our that

Steve Collis

and innovative India, Courier this I be high highly important of No, shipment World on for is different there because find and turns to opportunities business Alliance area presence. of that the our it's is of invested more having of combination India targeted characteristic I be to in that to where just in now, just uses Healthcare World markets, niche to importantly But more the believe and are. thesis you we say continue want lot they just strong there, relevant synergy Courier run additive a An finding do example we to another what -- products for I it footprint, World really we future. of ways such and for we new going facilitate with course, continued surprise keep to how to around stakeholders. using a is give we the for trials. were that of at [indiscernible] Courier's resilient I and the clinical part so majors do believe capability, our also for. about talked capabilities is that team the think management We've able that a looking

Operator

Valiquette from Steven question is The next Barclays. with

Steven Valiquette

will guidance seconds [indiscernible] could off such or disruption that are are pricing a in Maybe [indiscernible] in relation pockets signal been more whether to you other just there of on India, quick cut the that answer the have first Or on bit. Jim, the dynamics XX India I screen? of it permanent surge or seemed pressure the the those generic engineering little that to pockets especially is in Or your Is but generic question supply exports. was generic might XX early not of reduction, the first a at Guess any just curious The range? just convert. there now under the be you to at on just radar buy side. pricing suppliers COVID ? given on, question your often in U.S., mentioned

Jim Cleary

will take part a I'll I'll then out important you first part part question, during What cut really second that. the And that of of handle say it's is can Steve I Yes. do and the question. And I the that. say of

kind important let because, for topic. answer is an me again obviously, of it such the So go

noted, And in I broadly so and the while with and rates we there guidance are deflation in remain said, regarding relatively line deflation. don't but year. expectations of overall dynamics metrics, of the the And our to expect year. have product-specific generally consistent year-to-date. the with And as both Overall, deflation with And line years brand are year, it relatively and been trending be pockets the in generic few have specific turn our with original the for balance that, pricing is of last we speaking, couple rate over as I'll Supply a with line you the Steve. demand and overall, to balanced. pressure, expectations for relatively generic still

Steve Collis

Yes.

situation far heartbreaking. obviously, in as As India -- is the

outbreak would in most this and areas. the be high other on media's attention of unfortunately out focused course, seen the Of areas, we've play

Now point here. mitigating factors to to just few a

could First manufacturers continuity be business prepared expectation and it. had of plans all, we some there and believe the that outbreaks for have they're that

was able interruptions very operations continue. currently very be normal transported as has, especially situations. cover in crisis, to expect the also to continuing almost solutions is to [indiscernible] have large supply chain. functioning, materials. which usual, is AmerisourceBergen throughout raw don't China's all supply important been this any levels, for with closely we important the So our chain. very in We've And worked

were so. organization we that for [indiscernible] are support able can on. into that [indiscernible] we'll And this as and as throughout cognizant just So through going get were to but proud tremendously work to brands the And and week we an get this well. unique do in our very we what's about foundation very the India feel corporate we product it just

Operator

comes next with The Kevin from UBS. Caliendo question

Kevin Caliendo

of biosimilar and You to seeing some to mentioned month. also you're biosimilar continue some COVID therapies the benefit. every going to of the lap increase start We're uptake

biosimilars? always you've forward. that you about know So the any therapy I'm guys? think size wondering benefit of of COVID tailwind be wouldn't you that would include a modeling or can sort be I still why you've could, biosimilars, from for in bit if gotten also we up really if of us going And sort given a shape little form, But the some helpful heads sales. around as we way,

Jim Cleary

Yes. Thanks.

And -- regard from so dollars the we'll continue grow we income with that to to continue to guidance they'll operating biosimilar biosimilars. sale, our believe in absolutely

were that high it in been expect do But to point biosimilar into The to to growth the dollars specifically will to have we it as meaningful do but percentage absolutely biosimilars expect operating and both we specialty utilization we has a the from continued was the percentage haven't growth when be smaller last much year, base. sized growing meaningful was income figure continue we dollar the contributor rate as dollar And from business. not there. the making growth a grow profit improvement. our So gross

Steve Collis

Yes.

for high in quarter therapies, utilization the [indiscernible] trends biosimilars see positive biosimilars, biosimilars. but systems. XX% we're also significant systems, where And to health of see utilization in continue second to seeing begun oncology, in we've We in the including some

cutting to So for up. when the quite adoption hasn't other important been it edge. create innovative to to to that trials specialty And mentioned before, on come to has as not But room it specialties, other in community tends as so more important therapies been and -- be as when quick. oncology, the comes comes [relevant], very and

that well. other believe be the strength led into as specialties oncology, we continue but will So by will

important and please. time are future. our So is will With question, for that, off, one [indiscernible] more very have for be continue to we we think

Operator

Bank. from is question next The George Hill with Deutsche

George Hill

the volumes. just rate kind I could I of ask versus I business the as was a you kind guess, it talk about regular the of could if quarter. of follow-up to relates wondering outperformance in specialty if Jim,

days You a of mentioned quarter, the But like fewer revenue in lot the numbers things during expectations. hear how in kind of quarter. bit explains coming think around I'd below oncology the to X which I commentary the little love a performed

Jim Cleary

in supply ION Yes. of physician business performance in address strong GPO. business, services other happy including parts saw the our continued and our that. I'd in specialty be to oncology We

if the in performance, rate in of health quarter really have the and at we strong across very we saw also strong company, noted during we during execution performance overall during the revenue our growth focusing will say, many the on quarter. systems. I businesses look We as

last quarter there Of a surge we during in the the year again, was where coming onset month course, once COVID. against real of of March were business a during

quarter that which we March the included So quite our the and were the pleased by we're is during performance trends of the in our guidance. seeing year, for balance

Steve Collis

to attention -- many their I'm people, you're I more In wrap by for call, thanking today. telling for covering. his preparing this me many typically Bennett how all was just with how going Okay. up and were everyone they and consulting

future on for we we ahead tremendous AmerisourceBergen. So attention focus appreciate your a really as

staying an closing is broadening industry all we're a And in We're the months year forward that proud you healthier united key in fiscal in as for our coming XX-year role looking today. responsibility incredibly our in confident we distribution very our a anniversary up pandemic and create looking to proposition. And purpose We're pandemic. the forward in and played AmerisourceBergen's and your of As our to many history. the been footprint more times clear time which we're ever, said are this and during Alliance and our has to global we Thank ahead key, development during futures. transaction, this as I'm value our that to has business industry.

Operator

now presentation, now The may you Thank concluded. has disconnect. you conference and for today's attending

Cencora (COR) 5 May 212021 Q2 Earnings call transcript