- Earnings call transcript Q4 2022

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Operator

Please standby. Welcome ladies and gentlemen, to the Fiscal Fourth Quarter and Full Year 2022 Embecta Earnings Conference Call. [Operator Instructions] Please that this conference call is being recorded and that the recording will be available on the company's website for replay following the completion of this call. I would now like to hand the conference call over to your host today, Mr. Pravesh Khandelwal, Vice President of Investor Relations. ahead. go Please

Pravesh Khandelwal

details and With full everyone Officer. Elguicze, release Embecta's fourth Embecta's company's Officer; webcast fiscal slides Relations Executive the Good of Chief today section XXXX welcome Chief are earnings our and the replay and call year accompany at press Jake available conference quarter Financial on to Investor www.embecta.com. morning, website today's to are me call. and and Kurdikar, The Dev

remind may future difference The but you you in slides. to our release to some our outlined we that on of will to fact, discussed uncertainties. factors cause like Before or to that begin, can be our factors matters that the events, in include today our differ subject well the are, actual risks our materially contain forward-looking accessed website. And the to, I'd in and caution actual differ limited materially. in filings event statements with events as wish We forward-looking events SEC in call such press are which conference nature as not statements regarding results as are and could

a said, for overall quarter Dev? conference I measures we these thoughts call non-GAAP call a provide business. by our financial supplement preliminary we on the the call the measures to Jake comparable will is turn financial Starting and to start opening in-depth Dev for on fiscal would GAAP and In that fiscal XXXX. for non-GAAP as for GAAP. XXXX, Dev considered the of on Dev will will measures reconciliation imperatives measures with then now follows: A for over will and fourth performance few the making remarks presentation. our more release year as for call call of in certain will is prepared a well provide be addition, X, Kurdikar. press questions. year as our of included some guidance Slide financial to a which our open our on then plan then review today's should discuss full substitute With this not financial a and in like closing strategic to fiscal XXXX CEO, results accordance

Dev Kurdikar

thank everyone joining morning, Good and you today. for us

by health to devices used well-being begin the reminding are. believe we solutions the our of and products in everyone providing become management. global diabetes recognized have that we improve is device Turning respected a Embecta X, let widely company and focused insulin people with Slide who diabetes one medical leading brands injection of on me to living and for most

we We insulin XXX in which the and aid have for broad used with million are to a countries products estimate XX over diabetes. portfolio people management nearly daily of by annually of administration

As a company to unique opportunity become a the newly-independent focused entity, we are diabetes the truly world. an in organization preeminent with

that several world. portfolio Awareness expand to We sole established and devices by year's to available to November by bell through people in proud on X, along ringing We of their diabetes to development, opening who people the Nasdaq management research our as to the company, leader we more insulin and supporting diabetes this solutions organizations representatives celebrate partnerships diabetes are and on stock Diabetes with almost foundation growth upon ago. better Month build to makes pure living make focus. years acquisitions the were as the with our around we X, on XXXX can play an BD global the intend debuted we X, April independent Moving injection Slide invest market the position as over XXX in Nasdaq leverage

improve to strong the providers our unlimited challenging care and we the to occurred honored a towards is the during our separation navigate working recognize and diabetes. of global of access by through to to continue dedicated people and macro life core education from with diabetes, health company caregivers, execution advocacy business of Thanks on progressed Our the together the to remained this progress through. organizations second team our environment notwithstanding had half fiscal BD our that team track to vision while XXXX,

minimize with in on have Our need can each great service teams who the and have products systems, progress have transition exit so in processes, that taking activities had impact and regional separation could care that new our that every made and notable day. place standup standing use we people customers we BD the up diabetes while agreements to our with oriented and offices

excited We new making remain about organic are X patch the of pump our is product specifically Type are being in behind committed progress for developed market. we to terms that and the development insulin investing

select pleased the offerings representatives partnerships of POGO acquisitions professionals not call Blood blood we seek on promote strength category add to this enables I'm continue expand our where to we and on a sales to innovative care The health Medical, will so physicians monitoring. agreement to and active recently health we Automatic that which front automatic with new promote we us it Intuity's Automatic say POGO Glucose the to only innovative to U.S. agreement within under Finally, professionals were but glucose value. our can does Monitoring co-promotional commercial capabilities care in to System to as we our signed use manufacturing Intuity

capabilities. our also to in In with existing and we with similar China addition size, agreements, co-promotional the which Intuity, in companies smaller albeit commercial agreement signed France leverage

and and actual margins called we dollar the XXXX to expectations. In respectively. also our our let's financial initial represented we provided and which an conjunction that XXXX revenue adjusted as-reported of it we EBITDA to decline compare guidance X% time Beginning results. call second quarter and revenue of second revenue guidance At and low approximately Now conference our as-reported earnings $XXX decline XXs at X to gross Slide fiscal of of fiscal currency for financial XXs, expected approximately look achieve for with a half in August, year in adjusted X.X%. revenue maintained million May, that low half the move third at constant approximately time, our of in which

was However, our adjusted that well and second X.X% currency than of our the expectations million revenue revenue a guidance. generated guidance our aligned with for we our our was EBITDA as revenue to on constant basis constant an primarily impact for guidance, announce which as raised the approximately basis. and of X.X% on as we currency of performance due I'm XXXX, both a in decline to better represented This constant decline as-reported adjusted gross August approximately $XXX largely currency margins. pleased FX a half

restrictions half in adjusted already-increased XXXX of greater-than-anticipated to as adjusted The impacted anticipated performance associated geographic of than EMEA, product the of company. XX.X%. an to a XXXX. with Our second timing up revenue as EBITDA adjusted quarter and That The XXXX with concerning favorable the completes well better-than-expected of primarily America China. combination margin also independent margin by as EBITDA mix, as better-than-expected of margin gross standing in adjusted was more and assumptions. for was than as due revenue and our an were summary turn operating exceeded generated my of North discuss the business as preliminary COVID-XX in that results underlying XX.X% our our Embecta over somewhat second revenue performance expenses and results financial manufacturing performance offset half well me and a our margins BD. XXXX let XXXX guidance Like QX that, and detail, anticipated as revenue, as bit our our gross full to well With call financial better fiscal the due contract Jake? guidance Jake in year more to certain provide we

Jake Elguicze

Dev and good you, Thank morning, everyone.

the do remind Therefore, reflect for meaningfully Embecta XX, the operated would periods and financial out results have stand-alone XX, ending on discuss the financial and were what X periods financial spun XXXX September X I carved the and results Embecta a and comparable. are pre-spin results BD the not results XX, and that from public ending XX-month April accounting on the that XXXX as company. Before been September X would had off principles XX-month based Embecta's not to XXXX investment I periods during like was of for financial September community

Given the majority preliminary periods for financial had pre-spin been have stand-alone would guidance been do that that financial time assumptions. XXXX expenses I discussing actual results the public Embecta's presented, the today Embecta's incurred the a fact and on the periods not historical of my focusing during include Embecta underlying all company plan

X to beginning Turning with and revenue. Slide

business reserve certain related exit revenue rebate positively revenue QX primarily revenue basis. legacy represented QX. basis. and comparison which $XXX.X somewhat headwinds were was BD partially and X.X% million our came anticipated decline offset During the expectations, $XXX.X on period. decrease in comparison prior that X.X% as-reported due the The in sold The to currency the product than unfavorable better America coupled reserve U.S. North certain third which fiscal headwinds the on occurred at unfavorable exist quarter previously in as well United impacted very the represented during end which QX the X.X% prior an not totaled revenue year restrictions in in the XXXX, period, our in timing contract as-reported to to to in China. both in U.S. year our stemming to in EMEA prior due volumes QX. manufacturing on stemming the occurred and on COVID-XX the fourth manufacturing aforementioned revenue occurred which related reversal the constant expected comparisons partially revenue the largely greater-than-anticipated customer an From as that was QX, distributor did year by due of in the of revenue revenues which had standpoint, we certain was which was with within a the decisions of decline and timing as well of relationships from as in was with did orders a a conference not something in contract year well constant a we quarter, totaled BD. foreshadowed to XXXX as exist of In more prior period, as a which currency anticipated, These were performance regional period. States better-than-expected offset made quarter The year by from generated offset contract primarily orders our non-diabetes million by we These had rebate currency revenue constant better of manufacturing earnings reversal than to call, basis impacted year-over-year decline which which prior

was business on a basis. decisions fiscal XX.X% International revenues The year X.X% as International to customer primarily reported of constant certain decline we to XXXX. a decrease legacy While basis at due currency an totaled exit made end million the and of in year-over-year $XXX.X or relationships on our very

as-reported the somewhat reversals XXXX, we fiscal did totaled XXXX similar The in year, that was were revenue approximately customer revenue the which prior relationships exit certain not which constant For These X.X% did decline end the an XXXX rebate year of currency the full very reserve in impacted towards as exist the of were certain approximately slight headwinds occur year not well down our in on fourth year. by currency to or manufacturing down revenues to as the COVID-XX prior took the year which restrictions basis contract full X.X% billion same legacy extent basis. the offset quarter, on geographies. Embecta's a decisions constant $X.XXX items drivers to including

Like Moving quarter increased margin quarter. indicators and $XXX.X fourth and respectively. the for margin gross and the costs. mix, impact remaining negative and XX.X% review costs the labor financial contract million impacts, during adjusted GAAP expected standup This profit impacts a to fourth of product inflation most geographic compares investments material of and continued in of agreement quarter supply the of incremental million year notably fourth primarily manufacturing and of the prior was period. key our increased to and XXXX due X decline $XXX.X totaled for Slide year-over-year in costs, the some incremental and gross XX.X%, and and revenue, the and to and cannula

be margin gross our Additionally, fourth adjusted adjusted the margins also XXs quarter to for guidance in called gross in which exceeded QX. during like my low our the comments concerning revenue, previously-provided performance

line. the Turning bottom to

its net and to, primarily the income to incurred the fiscal we charge a prior quarter million of well million approximately as of was publicly the incurred separation own as year $X million of in The compared in expenses GAAP standup in $XX.X to Embecta fourth to impairment expense period, abandon I to year-over-year as lines that gross dollars loss a is was due XXXX net related During to with decrease of the profit to that also $XXX quarter million becoming abandon just decision interest reduction traded the fourth production $XX.X incurrence the United XXXX, of of States referred million company, prior year. lines. compared non-cash incurred related of as in $XX.X of manufacturing which purchase and manufacturing costs commitments the the related certain in associated same decision those $X.X to production the to

patch Embecta in diabetes associated were development. progress As insulin component sheet. certain and spin, some were production with were which of into on continues no our progress conjunction its impaired service additional transferred impaired equipment syringe assets lines. manufacturing way a never previously included within balance in placed These our construction assets were assets property, pump as background, the to with in the were These to related to and and plant

to in Lastly, prior overachievement fourth quarter XXXX, gross slight margin previously compares and from $XXX.X also quarter the better for margin line totaled million P&L perspective, margin expected. we XX.X% EBITDA for year million our fourth the in the to expectations, our adjusted a of XX.X%. bit Due our as the than period. compared came EBITDA This to of a at the and XXXX approximately $XX.X adjusted and

with condition balance financial to sheet our and Finally, year-end. at respect

in million taken Embecta's to which and with of together a prepared we half remarks results approximately held in As months the adjusted billion equivalents last our XXXX. $X.XX of $XXX approximately XX in relates completes of net financial September cash debt XX, resulted EBITDA, That for fiscal and leverage cash XXXX, second ratio approximately as my it X.Xx.

like as a compared X% preliminary contract of will on our underlying guidance part latter volume slight during be as well we reduced manufacturing assuming to to periods currency to end are markets in headwind currently potential and saw remainder would to revenue basis, BD, those with associated China offerings. flat end within the products of product and range pressure as modestly Slide assumes guidance COVID-XX our markets constant in year-over-year decline about high care Beginning to our revenue, the coming the manufacturing with product ability contract we emerging uncertainty impact the smaller XXXX. of range, constant from due while discuss from At Embecta's On a certain of raise I currency X/X XXXX with of developed down lingering business prices like Next, will flattish to anticipate restrictions XXXX, financial that the the we our the for slightly the volumes revenue low of on result non-diabetes for revenues assumptions. us X.

range. immaterial we revenue Given guidance how amount agreements assumed XXXX as an were part we new of the of that partnership to are associated able with them revenue our execute,

X% as-reported of and of between an our were such, around during combined companies assumption presence size dollar headwind of and our $X.XXX on approximately other a time of larger foreign guidance our based rates mid-November in in a a X.XX. our FX. exchange to for thoughts initial calls decline outside and States X%, basis, of for XXXX. frame, United between than existence rate currency the revenue foreign calls a the is a as many on U.S. guidance billion that Turning billion. approximately of euro including revenue Embecta X% initial This guide resulting to exchange has $X.XX On

point most XXXX to gross representative quarter margin entity. as be business comparing Turning our date again independent XXXX fourth as an our the I'll for adjusted to is QX of jump-off adjusted XXXX gross margin,

these We that to currently inflation. the to and our costs additional anticipate as manufacturing BD of XXX of points various the XXXX, associated inclusive adjusted in from the continued TSAs, be margin increased costs, During decline with gross QX change. majority exiting will XX% that we and including because gross that expenses standup compared estimate we will being XXXX, cannulas material increased costs continue drivers supply in and chain basis largest quality, margin approximately the those drive of additional of stand-up with advance about purchased we material headwinds of raw a costs the capabilities adjusted regulatory, invest or as

a While a down we near cost during adjusted the both we the revenue X level our approximately TSA will as while costs, we development the insulin despite during to maintain totaled, invest several intend of during which fluctuation. margin underway tech improvement XX% behind in the margin incur that Continuing near expense in as revenue that And despite may that pump periods to at pressures companies most programs expect inflationary make of is compared we expect XXXX program. are XXXX gross and anticipate X% of up which XXXX. because combination med company, more SG&A R&D, notably percentage XX% of R&D size. also standup time we adjusted best-in-class of P&L, exceed heavily All other we may our a our this, to adjusted of operating will Type be remainder

earnings. to Moving

our per and as net that million near for year tax we increase XXXX, assumption range our $X.XX million share respect to have and that includes continue expectations, diluted X.XX%. and of an will During diluted full assumes that to throughout average weighted XX.X move With peaking outstanding. be approximately interest our XX% approximately guidance year, expense we'll the shares will rate an SOFR interest guidance $X. adjusted $XXX annual will initial between that expense $XXX adjusted This million, calls between our our earnings be annual

SOFR and million structure basis of instrument, floating Loan fixed plus of at a points XXX is Term $XXX approximately $XXX bearing rate debt of B are instruments. which reminder, a million As secured comprised which notes our senior approximately interest rate is capital

on While adjusted including our variables, legal with the lending from mix of deductibility. rate a expense interest a rate few standpoint, geographic tax as is based as associated key XX% limitations tax U.S. by well assumption earnings global

make very guidance standpoint, from we is the intend EBITDA down to in Finally, the approximately deliberate gross willing margin which rates constant the we the growth call sustainably mentioned of in earlier, a touch fourth to remarks, objectives. during XXXX investments do on which highlight with revenue from adjusted previously to are And Dev future. The the financial I within accelerate EBITDA XXXX I'd to during margin to cadence adjusted achieved be the expected I to XXXX to quarter XXXX. and briefly due takes some expectations of to XXXX quarterly like me considerations regarding that items our largely over to our currency expect R&D coupled final levels during we before turn revenue for provided be margin some XX%

provide any basis. not Moving ongoing further forward, commentary cadence the concerning of we may revenue an on quarterly

revenue we year of During XX% XX% during of approximately fiscal XXXX, the during the quarter. approximately including the year, first generated our half first dollars as-reported

currently our of the year During percentage annual first periods. the prior revenue quarter half lower both during as XXXX, anticipate XXXX of we to slightly a generating first compared and

That challenging this Lastly, this And as in EBITDA as exchange financial for to an XX-year adjusted as community of final And remarks. my spin, completes achievement approximately time, margin the XX% significantly to the that Dev? at I at existed well targets, and when including over more to as near provided some Dev maintaining environment investment including operating the committed to one we March back rising originally we the it interest objectives to the like rates turn remain comes of of despite provided remarks. XXXX goals headwinds. compared that highs, we now foreign a relates to prior prepared this additional those objectives, to XXXX. would those year call inflation in

Dev Kurdikar

intention XX, our accelerate you, that Jake. with priorities make Thank solidify and strategic our Wrapping you on business investments are our our see to to the profile. up imperatives Slide discussion long-term in our XXXX set growth will

do in same position will anticipate our injection our we strengthen category macroeconomic continue global many factors industry. leadership our while to to the that business of maintaining the of continue insulin First, facing impact devices. base We

our the to Our and which the help model reflects will resilience operating navigating environment. through nature date performance our the us challenging products of business non-liquid in of

to infrastructure, suspension in public own the of operations continue we of incur as an we part functions manufacturing inspections our developed our from over dedication as acquisitions finally, will temporary to for Embecta's creation the up of to costs like done the a to that, strength. time being an stand pump anticipated the That transitions, same ERP all extend our patch people and fiscal we open with everything they second to expenses various can thanks separation and our serve capabilities system. of the commercial serves would seek of independent was for for the BD, around to Second, from partnerships In colleagues mission is approvals including that facility now anticipate excited will with This with about value. company, questions. transitions in as source plan for and action stand remarks. Type for to And half intend our including we while we my associated including R&D At Also X time, increase regulatory up China manufacturing company. at the corporate XXXX. we Their my With globe diabetes and as of our operator, associated completes to up I and item Embecta Embecta. a we to the to BD strengths Suzhou, line at have market. spin-off closing, use do and remain add where continue to an my we we continue investment

Operator

come our of Morgan the Cecilia will line And question Instructions] with first Furlong from [Operator Stanley.

Cecilia Furlong

called But outlook the of kind as if about and that growth you end the well pricing recognizing markets? growth then laid you the with mix at could from lower you U.S. And start top just as emerging bit more to out high about of thinking end. wanted how stemming I a O-U.S. versus out, talked range relative the speak you about. 'XX the end that you're

pricing just could thinking how benefits you you're well? potential as If provide about some color more

Jake Elguicze

Yes.

So thanks much for the so Cecilia, very questions.

I tell half that think manufacturing contract reiterate, of decline business. assumes I think the guidance that you, which of end revenue impact would range coming something would most I notably lower is So our the low to about just from U.S.

well as in year. for we restrictions As and saw certainly additional the our effects impact some first predominantly COVID-XX fourth China possibility which lingering have into the business in did the that quarter the quarter of

As from pressure U.S. a well developed as some you mature in year-over-year us lower raise markets the developed ability if more assumes flattish volumes constant headwind some that's essentially more and volumes, whether those in prices some range for of Europe. end revenue, modestly. will, product currency volume to of high markets, lower contract or the manufacturing The the

slightly think should reduced that manufacturing offset is I price contract those sort way that about volumes. So would you the it of our to take essentially think ability

offset about be to those we to able higher only a something $X see only revenue from $XX $XX non-diabetes million the anywhere product end, to the of We're low would BD. back expect manufacturing At largely million down expect about we $X be we care headwind end guidance to worth So expect pricing volumes. of year-over-year. the lower And contract our contract year-over-year. be about $X manufacturing million million. would million range, At that of to would of that would

Cecilia Furlong

follow to you in that the partnership wanted just touch November. POGO announced strategic And could if on I up,

'XX can the the not the -- term? just pull-through transition over some recognizing the longer of As just to inputs term, And that, benefit the for fiscal it's benefit speak you over to to you guidance? potential POGO the Embecta think suppliers' long contemplated in sales, potential for also

Dev Kurdikar

Dev. Cecilia, this is

POGO is are one partnership the we about. So excited

And we gotten believe You the we long probably spoken been strategy initial see. case, but strengths. partnership. our that laid It guidance. strong to to this of over sort has U.S. X It's I also are announced might go is reaction recognize and start, is so are we mean, channel too incorporate early about this the we've leveraging and listen, traditional In out new of quite seeking where financial comment we a leverages it weeks it's or leverage sort ago And a field our we the only X POGO. are any might what one excited that of which the this did encouraging. call talking but where our it And about commercial I partnership a exactly it's don't of partnerships to about exciting of not aligned care we've it. into is U.S. has our in that go the that innovative it's quite are from gone talking Look, our system. I we'll with over physicians monitoring and with team Cecilia. want improvement, sort glucose off foreshadow a term, that very our we product. providers was dramatic frankly, done would now an we product, U.S. upon here in force health It blood as had

Operator

Thibault Our with next question BTIG. comes from the line Marie of

Marie Thibault

fourth ask 'XX. again. a your results finish fiscal strong Dev and Jake, to quarter fiscal to were congrats strong year here, on Wanted

more above what decline You've the going but be. in key seems an to you decline? on to fiscal come bit driving like margins margin talk metrics fiscal the about all targets little acceleration we seems targets in to the year were some It that 'XX 'XX a to accelerate what's me. thought certainly of sort Can guide of the

Jake Elguicze

Yes.

margin what impacts, certainly margin to inflationary included better Embecta than impacts profile of gross raw more that that had increased of XXXX communicated, EBITDA around costs fourth the the public the as quarter that margin it of and cost you material supply the adjusted would -- the obviously, -- purchase and standup I as adjusted chain from well costs, cannula Marie, including we tell representative of most separation of increased of So date XX.X%. previously a cost and as BD. while generated And was we entity. for the was we about And XX.X% generated we from

to representative date could look most certainly, margin of QX what like. profile was So Embecta's

gross XXXX to standup approximately And EBITDA from margins margin include healthy As the a incurring we're about manufacturing capabilities full own XX% the That we adjusted our related of for additional items. in quarter in there's invest a going now to fourth very related be variety we expense standup fiscal of our actually sort to and quality, to thought period things. and costs impacting chain, very, EBITDA of TSA off jump incurring some us year those advance regulatory, profile be assumptions margin. gross these to adjusted of XXXX, of so margin Costs that still is and supply adjusted which exiting we're to margins. costs continue XX% calling approximately where TSA, includes time as

assume assumptions our So that.

gross cannulas margin or in we're line, material from including costs raw increases the for associated to BD. costs, purchase the with expect going that the continuing in Additionally, call we're to

continuing is So labor actually assumptions our or as headwinds then to of side that the for well. see whatnot. on XXXX that's also part we're inflation, And whether lingering some from

really gross into take I drive, to would decline. margin that the consideration. And tried what's to going we that's So say,

most somewhat we so, And also impact be we anticipating going future. patch a top that because you company the that adjusted our margin if SG&A think Now the faster-growing the to pump. have line certainly we're behind incurring doing offsetting in to EBITDA line. some at gross We're in to drop-through anticipating create again, about by line, that additional in insulin the And then offsets the is then margin. ability we're investments margins that R&D, is going to occur what EBITDA the doing think notably

for the knew March say, EBITDA originally remain include the strong we the headwinds of which EBITDA area. would And very, as we very those XX%. what maintaining we to very at gross I longer-term adjusted to initial despite XXXX of about Adjusted guide in still provided totaled, again, margin all financial some So XXXX significantly adjusted achievement those margins approximately XX%. when margin, the more continue approximately at calls incurring, in goals, XXXX committed objectives very, XX% to for compared

Marie Thibault

Okay.

term? the to change no So long

Dev Kurdikar

half things X sort there's some down comes the out, is that year term. Yes, no it as TSAs able April the in remember to simultaneous XXXX, exit all fiscal that a to right, the of yes, not right? is we XXXX, most, on standing to you if to pointed be change spending up going our functions Jake TSAs. One corporate be this second I because long where well so really, as And the to of want think, of by

have through factor And call tackled of factor, something third inflationary these ago. X has the impacted And been factors that's obviously one addressing could team months it, investment R&D. all we the that price Second how margin we can. proud is that gross negatively is more in are anticipated, have the primarily increased than frankly, where

to of And we committed gross for that so are but sort anticipation what and X margin of 'XX adjusted factors those our drive are the combination margin the of 'XX. said we EBITDA to FY

Marie Thibault

I'll on a follow-up Okay. ask here China quick the facility.

any on You Anything impact mentioned clearances out with to watching of regulatory tell has any margin be we Can to do impact volumes, suspension the that? temporary more to sort us for? detail should things. from you a and

Dev Kurdikar

Happy address Marie. that Yes. as to well,

close. go has just was deferred to background, that through the BD at way to in and process the transfer to need presence us assets China a entity We come So China. going there. of obviously a are by

And you've to through. so there really through process are the there, go you X as work got things

There's audits a to go got You got registrations. some to quality through and get you've manufacturing product a license. business license,

And some notices steps sequence in sort these waiting some and public periods. of steps these occur of of and have

steps, of export for through sooner some to what it the resume through become for expect start to go can markets will from product is producing Suzhou producing product And and while these other suspend What so we that have steps. happens than of operations go operational again China. plant you you operations as you some manufacturing within is these

Now authorities we we 'XX. while well the we forecasting FY what manufacturing we've provided for terms had in process certainly here we the of the done was been knowledge get how in for obviously exact to and our that an mind that all expectations operations we line. that for best we FY guidance time reiterated into incorporated for 'XX sort of the what kept of as reasonable is take. regulatory to But accommodate did all we have when as building up estimates now, long a would ahead inventory that Obviously, want don't of suspension we've

Jake Elguicze

and to Yes just to that. add on

have anticipate the a expectation doing do revenue is been and as shutdown. the to there's to that of impact the inventory we no build continuing So during XXXX, point, course this Dev's of that result

thoughts As the our consideration. throughout and margin gross back revenue this thoughts But we half the lower that no margin and a as a that some move absorption incorporate result thought perspective, our -- thoughts manufacturing of certainly the the shutdown shutdown. EBITDA to is impact in temporary from year, into related take very we our did year the into of

Operator

questions Instructions] no currently Mr. at this [Operator to call Kurdikar. time. the to the like Dev over remaining I'd queue We turn showing in are

Dev Kurdikar

Thank you, Shannon.

we hope Thank just it in wanted you you enjoyable your and Embecta, And a to safe you Before for interest we opportunity appreciate thank call, your have to holiday this I this season. greatly. end we take for participation.

Operator

call. This participation. you your for concludes today's conference Thank

You may now disconnect.

Embecta (EMBC) 20 Dec 222022 Q4 Earnings call transcript