have as, in you, good we you diabetes world. It with speak to unique focused Dev. about create have morning, next believe the company And Thank to during several preeminent pleasure everyone. years, the that opportunity truly my to we a today opportunity the Embecta is the
Before the for presentation of XXXX, results information would I to XXXX discuss and fiscal of financial background second few quarter XXXX. the and highlight financial quarter some and results I second of regarding for provide the a first the half years like items
has Embecta September a year-end. First, XX
the Embecta's second March fiscal half the first ended and quarter are six results for months for So, and XX. financial three
unaudited, accounting of and and statements Accounting historical principles in managed Accepted historically XXXX carve-out flows the Second, records half Becton Principles. operations, condensed fiscal and of consolidated results interim XXXX business, diabetes the and years position, financial the statements US financial they cash of accounting on first are results as Dickinson. derived of from reflect QX Generally conformity care These with were financial BD's based
these been to do standalone care the a statements incurred Nonetheless, had In are that all have include addition, a statements for shared Embecta were that not financial and the company diabetes historically been basis expenses certain presented. expenses during expenses which corporate BD, on within support of BD centralized include these not segment business. would BD financial allocated periods functions public and actual the general provided
financial guidance of an half Third, an represent XXXX to apples-to-apples half for for guidance release, second second a results today's items evaluation it is as earnings the in expectations forward-looking introduced the on which year historical for I'll financial These company. financial company's in as our press we have the This financial moments. review a fiscal the our bit performance makes of guidance XXXX challenging compared of independent basis. not few
during had XXXX that Embecta's been remarks incurred plan the been Embecta the discussing financial guidance. public periods that on this fact do second the historical Embecta's Given most a include morning standalone results half financial presented, not of focusing company my actual all would have expenses prepared of I
financial Embecta's quickly three and six-month Turning the to performance periods. for
generated as For the in a US decrease revenue primarily profitability. to support decline Embecta on of decline Embecta decline latter several $XXX.X quarter, reported a within due currency customers X.X% Europe. XXXX due represents premium quality, X.X% and of due management of was was brand, decrease term, team length basis. business and clinical second during in currency certain [indiscernible] basis million. constant volume of of This and revenue made to and a The located volume on an the decisions forward the to a longer This constant that portion contract to the to conscious no participate moving considerations, including the reliability
it will cause year-to-date Southeast in basis, temporary million. decrease not X% participate in in volume referred which a increase This X.X% offset by Embecta increase healthier $XXX.X increase earlier. on The basis. the and Europe, business markets The countries a revenue markets, consists represents Africa, on Mainland volume driven certain as China. to Asia, of was XXXX, Latin moving revenue America, volume Middle was East, certain Eastern While somewhat emerging an to decisions within forward. in and well customers basis during experienced currency walk we a these an as constant increase was deliberate by currency the I a to impact On certain from primarily reported emerging a constant Central as creates an away of decisions of
million due and XX.X% improvement $XXX.X margin in the second $XXX.X to The point profit profit totaled margin gross period. impairment charge margin that assets prior-year totaled On $XXX.X with the gross Gross basis, XX.X% Moving margin of basis to and quarter XX progress construction the and were in million This and year-to-date improvement respectively. mix. XXXX. write-off and and in product in million XX.X%, quarter XX.X%, the million gross prior-year profit of to primarily recorded first XXX favorable to margin. This and for gross basis compares due primarily $XX point of $XXX.X XXXX was period. The associated certain in was million a compares and a to respectively. the
year-over-year. margin would impairment improved basis If charge recorded XXXX, in normalize you approximately to the were XX for have gross points
net income. Turning to
second prior million. an spin in million, During in due the marketing totaled mentioned, income driven expense, our second well due traded compares somewhat by basis, an same our prior-year prior in specifically Interest benefit approximately year-to-date investments $XX year-over-year million zero net tax quarter insulin the factors new was XXXX $X increase as and costs approximately in standalone $X in the approximately spin $XXX.X decrease incurred of million $XXX.X On that in of due other a just expenses advertising period, as profit offset a The of the patch expenses $XX impacted of compared million $X results. second This becoming by million. to approximately of a in increased of million the The as to by $XXX.X to of to pump. products, including and operating $X is anticipation and of approximately expense quarter driven net year-to-date This dollars increase gross quarter that the as related decrease and XXXX, and that spend, increase factors, which it to increased income an year. compares as totaled headcount incurred decrease compensation million was admin of including that company, in off. publicly to an I to lower totaled the approximately in in selling that $XX.X increase is a year. development million, combination well is of million in R&D the
XXXX second and $XXX.X Lastly, in months moving XX.X% historical been to that and and million Embecta do approximately compares quarter of million six incurred again, a periods totaled and standalone to been EBITDA during the all I that like XXXX. of I referred include This adjusted Once year-ago for million the XX.X% XX.X% and would and XX.X% It $XXX.X actual and margin. $XXX.X presented. for results the to million company had the the public that to reiterate periods. expenses not just have the financial $XXX.X would
Finally, with and in equivalents cash and respect financial to XXXX, of at approximately million $XXX billion we $X.XX March debt. our condition balance sheet held in quarter-end, and as cash XX,
As created tried sheet as into our and one of opportunities. March approximately of day a ratio of level XX, shareholder financial current organically can investment the we that Effective spin, use the increase And mindful capital our profile, well levels, we we last invest to ended and initial for have of X.X returns. XXXX, XX leverage our both structure need balance leverage the partnership be as use month we business to at and times. as M&A to net stood also
completes in ability Embecta's strong future, my historical shareholders of business intend rates XX% of with targeted think return constant maintaining preserving to to while all as currency a of in also form a financial prepared dividend remarks this net while to ratio We at the a the drive sustainable shareholders the the relates revenue level investment payout in accelerated GAAP growth is to liquidity income. increase return that provide performance. it can provide we of profile. the We very to That capital that a
publicly guidance consideration XXXX have agreements we various in in Embecta months last forward for half revenue unlike incur you fiscal half which Embecta's BD, second assumptions, with Embecta attempts into at to first company. traded of Beginning year I'd result gross XXXX, like financial the contract that place to outline certain Next, XXXX. that This the various as key margin. will little moving with the includes for costs our an very of of take for independent will third-party guidance six manufacturing
inputs in BD, certain While are used are as Embecta offerings. supply which agreements that obtain that for such from cannulas needs product other Embecta's to
to assumes lease worth manufacturing receivable well financial and of will of these to level. expense These months' that with services of assumes factor continuing services very half we'll last exceed Holdridge, incur that period supply addition defined not that a can TSAs earlier transition half XXXX for of a BD Nebraska certain determined BD, also by notice guidance our contract accounts we two financial expense incremental period. from our expenses our six and as impacts, the can additional In detailed Furthermore, item expenses will because to line guidance XXXX second transition years, of as result also were for behalf. Embecta's agreement related facility terminated second of variety at as on BD incur a be Embecta The a things out costed Embecta. to perform and a of
having attempted war of well treasury, we into second other estimates second such such consideration from we functions As include impacts Ukraine, public also on with expenses chain, and XXXX financial of of as exchange we the infrastructure, based and we markets, company. associated some that legal inflation own geopolitical having the also costs part disruptions. costs prepared guidance, incurring stemming tax, of supply our is impact audit and as notably, fees, listing with projections, and finance, quality. that chain HR, These compensation, to external associated IT, the stock up COVID-XX associated take half expenses and as China as our stand most included and corporate half anticipate our various the negative creation Moreover, in regulatory as XXXX we fees, concerns, with supply financial as stock
to have but is inherently these the we future to We due attempted give of elements, realize that trajectory consideration factors unpredictable. these
rates including approximately second X.X. wanted April, and XXXX we a yen of dollar/Japanese Chinese euro/dollar, the end our dollar assumptions given approximately moment and of rate yuan. of to that approximately rate rate Embecta's a of compared a that We half estimates $X.XX, of to pairs to yuan of Those to the CNY derived I These what half half rates spot currency the affect Japanese some ¥XXX, at euro existed financial approximately and second of CNY a Lastly, on of the of key dollar/Chinese business ¥XXX assumed XXXX being dollar highlight our that yen, business. X.X, internationally, is $X.XX, for and take approximately dollar to respectively. based
basis to original diabetes of of ago. foreign removed it fiscal as as-reported few of XXXX remainco items. an down one million X.X%. currency approximately I'd like expected fiscal amount you outlined is of BD guidance revenue recently half represent constant we drivers some XXXX about billion the provide results. to a I've as approximately to half of and approximately XX would XXXX decline, with some for $XXX week take expect we revenue the assumption negative what second approximately six revenue anticipated $XXX to X% drive the the approximately second the revenue a XXXX guidance first provided change revenue in approximately main to This months through to currency the our generate revenue, as some that assumptions, to largely of perspective Beginning that Now year are, in in headwinds XXXX care, for of what financial of as last is guidance $X.X constant year revenue with half months on see our the The well of XXXX. had now is as expect The consistent its when to decline of are dollar due second XXXX key that decrease of million currency the for be or -year half in of it half key compared while included the
that increase we be and two the a during in XXXX, in forms saw our headwind, were this First, half and of as of an rebound COVID a purchased. the COVID-XX second comes products continues to volume from
now countries. we're the some of with impacting in dynamics comparable difficult a for XXXX, and us half COVID XXXX. China create second second faced of These other revenue half the during While disruption
been throughout However, and continuity to our period. this operations able we maintain to date, have of supply
to not XXXX material half participate Next, half are second for business half earlier the an resulting forward. have I well. first revenue expected XXXX. not the and we headwind of Embecta is second be as third, war and latter moving the the amount certain referenced of decisions our will in certain business a Russia XXXX, impact results a and in geopolitical part second second also on XXXX that while in modest do of This in headwind to And in Ukraine, Like a have of to this half we compare of of the the the year half as made results. the XXXX temporary of we the certainties adverse
Lastly, spin, reversals of revenue occurred the of is recognize of to half headwind liabilities. rebate us to that established reserves, we for not us XXXX XXXX we the reverse been half the additional for would analyze as to which prepare reoccur and which in half caused a rebate second our second XXXX, XXXX. during This expected previously some XXXX. second in us the in These in caused have
year related one being manufacturing this is BD. almost worth of the one $XX will we second by expect revenue half to that approximately we million offset generate to of to product sell for during However, contract
gross adjusted to Turning margin.
the that in during be that One achieved half due somewhere up XXXX, This XX% decrease level first represents the we to Embecta. we increased of the expect During adjusted and XXXX, margin will a low second XXs. it's being relating expenses the to factors. few incur standing of to from gross half a we our
both that supply incur incremental at of product to and digit back And gross in year. combined are purchasing as perspective and supply costs as margin. certain material BD markup, impact selling the from single contract manufacturing with being well upper cannula the BD, during the being a Second third chain of of agreements the inflation, half place at we from raw to from second only BD expect
TSA to Moving next expense.
stated I years. the to for As last two TSAs earlier, up
XXXX. Assuming every every that during of we maintain million $XX charged or half total period, TSA we during $XX we maintain be of first to will approximately us. the second TSA, the assumes available that million XX-month currently is a Again,
Finally, primary we an second first Embecta of margin margin, few we half the decline positioned in in embark to is costs incremental that incremental earlier, to additional margin, to second of of XXXX half and Like XXXX as include adjusted investments the which in expect gross investments, company. completes due well EBITDA gross the a R&D. the adjusted low drivers. XXXX, adjusted in with XXs. These EBITDA EBITDA margins very these change robust during the takes discussed That to me from remarks. half is be independent standup my margin Despite as the prepared
Let call me now turn Dev. the back over to Dev?
