EMBC - Earnings call transcript Q1 2025

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Operator

Good day, and thank you for standing by. Welcome, ladies and gentlemen, to the Embecta Fiscal First Quarter 2025 Earnings Conference Call. Please note that today's conference is being recorded, and a replay will be available on the company's website following the call. [Operator Instructions] I would now like to hand the call over to your speaker, Mr. Pravesh Khandelwal Vice President of Investor Relations. sir. ahead, go Please

Pravesh Khandelwal

details Good With XXXX and Chief and press Officer. Earnings accompany Embecta's company's Chief webcast slides operator. Relations and the Fiscal of President today section release to Elguicze, are; First Jake Financial to the replay and call Quarter Conference at today's Officer, available morning, you, our on welcome Investor www.embecta.com. everyone, website Embecta's and are me Thank Executive Call. Kurdikar, The Devdatt

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

measures financial In of these for non-GAAP should and addition, not included with A call reconciliation will financial our accordance is GAAP. presentation. GAAP measures in and discuss conference a measures a measures supplement on non-GAAP the we this which substitute considered press call, certain be to prepared release comparable in to

of fiscal for first year XXXX. as Jake of our as some strategic review will as our first Our the agenda performance updated our on will remarks today's the financial follows: quarter financial begin Dev during of fiscal the XXXX overall results well as of then for quarter providing the discuss is call overview as well guidance for priorities. business fiscal by XXXX an

to now turn we our to the said, With CEO, open I call call Dev like questions. the that Following these for Kurdikar. over will updates, would

Devdatt Kurdikar

us. Embecta's Having outlook, now transformation. morning, for Good of thank on X-year you pivoted and delivered have next successfully time to to phase the our join previous taking the we

As on that and focused growth are priorities forward, we X our drive will success. move we key

core business. First, strengthening our

We are ensure to injection opportunities core identify the while our brand of execute resonates to our At time, our a in continuing seamless our to insulin that targeting transition we portfolio leadership position maintaining identity customers. bolster the same trust are within devices. globally

our flexibility. approximately decision finally, initiate restructuring by to strength during plan in Second, And sell financial already believe $XXX introduce this began insulin that debt products well-positioned plan our November and manufacturing manufactured portfolio. the generate debt XXXX. with to to include increasing expanding global products presence manufacture to commercial cost including the utilizing use products channel. prioritize initiatives in Such past global reduction, savings, high-volume our pump discontinue a significant intended We are as and program, our pay million others. we of down This to our leverage commercial channel partners market-appropriate as commercial capabilities well product for our expertise our that a to our patch have potentially

of activities to materially flow given towards for able coupled our enhancing evolve be for us and will thereby our behind these years, successful with sustainable position used continue agility. the future. few cash next to the execution company, is capabilities transform the priorities expect as that Importantly, the to we success of financial The we cash generation free the us, Embecta during separation reduce debt fact outstanding largely

highlights. Turning fiscal first-quarter to some

an and expectations. slightly a We our revenue, $XXX adjusted X.X% year-over-year basis a the basis. to internal year constant The exceeding X.X% Embecta, fiscal currency representing on first decline on decline million reported quarter marked a approximately solid generated start for in a

As before, by associated in during year-over-year implementations. phased XXXX ERP comparisons that of occurred distributor growth these changes and rate impacted fiscal we have be mentioned the implementations the inventory quarterly will in advance

to I'm a executing seamless on and clear, markets. focus track important resonates remains that our this report strengthens remains to with identity, a pleased transition initiative Turning across consistent, our transition brand our it program. on that ensuring global

We are and securing in also making agreements progress external partnerships. distribution

our use products the fiscal in discontinuation approximately leveraging on of our remains an XXXX our we quarter. of continue a flexibility, with expected of our completion first with the the part our reduce world-class insulin year the retail fast-growing into the drugs commitment of to generic market XXXX. commercial our of $XX and half related to announced financial network line packaging, Execution program restructuring plan strategy, we facility pen making the of needles enhancing our track, co-package payment B to enabling November As in advancing during expertise. GLP-X aggregate of are patch our In efforts potential Term on with to by us while distribution Loan debt, our principal and end to pump million expand

the our ranges. for on when financial XXXX updating are exchange the which of Finally, foreign remainder first-quarter initial unfavorable fiscal the rates and set guidance. updated This used exchange outlook our rates, based guidance are as we compared our guidance reflects foreign performance year, we to recent

constant remains our currency Importantly, unchanged. revenue guidance

previously and range headwind exchange $X.XX operating foreign guidance while EBITDA the from adjusted provided to our an share having ranges adjusted despite our incremental pressure. maintaining raised aforementioned per we earnings absorb Additionally, guidance margin

like its update upcoming to Turning elements to brand our I'd X. transition on through walk provide plan and of Slide key an execution. the

intend spin, since starting year XXXX, transition the and fiscal program phases of this half to U.S. beginning execute with Canada. the planning been and second in the in we have We

the will next couple complete of We in expect be we years. globally

from design old to On example, branded the an our slide, packaging. packaging as will you see, the transition new Nano BD Embecta our

have will conducted. the identify to maintaining changing. modern our are products. we associated refreshed research At the enable packaging with product This names cues we diabetes customers colors is our a are and based same while people and the that product choice visual conscious time, to the that will note look You on with packaging a and providing not

ensuring on are trust We This intended healthcare daily. products the supply is and approach the regulatory diabetes management, inventory chain, including to phased transition customer communications, on a ensure thoughtful while and people operational throughout our maintaining and providers compliance. of rely focused seamless readiness who with

Now let's review quarter. for our the first revenue performance

as a revenue quarter first decline currency primarily of a the on the basis reflecting basis. year on from decline $XXX.X our driven decline generated benefited The X.X% expected comparison year-over-year advance prior was year period an by an as-reported million timing in adjusted revenue, During was or year-over-year of XXXX, orders Embecta and fiscal in an X.X% ERP our North the system distributors then certain of constant unfavorable looming U.S. to in our to we revenue port generated our our America. QX. this regard fourth during primarily mentioned normalize quarter call, as QX and the in expect prior in implementation product In in additional fiscal from to purchased timing, strike. to mitigate prior XXXX And due came potential the as ahead, disruptions expectations, slightly

year factors the for currency comparison of an primarily year-over-year by Within the was decline This prior the the period the which and year fourth totaled looming constant basis. to to last a occurred challenging due the million, additional same related strike. ago U.S. ERP which $XXX.X to reflecting quarter during driven to mentioned year timing implementation distributor decline X.X% of quarter X due adjusted the in on the port order the orders, U.S., a period then U.S., previously, revenue benefited

year X.X% difficult to business decline a The rebalancing ERP revenue within period. international to our totaled in which purchases Turning $XXX.X on compared international QX to constant a adjusted primarily equated million, inventory business, due as the was our decline prior advance currency comparison of implementation. as distributor well due our to year-over-year basis as to an

primarily While safety syringe distributors with and from XXX%. pen strike a pen inventory procured the perspective, manufacturing was of U.S. X.X%, fourth needle grew decline quarter revenue associated during the implementations. products XX.X% approximately advance incremental as approximately generated approximately approximately declined family revenue XXXX contract well that revenue in revenue during product occurred of grew the additional due X.X%, to as XXXX The in potential declined the quarter, port as ERP needle during revenue

Turning products. to syringe our

the during of decline within recently. lower we U.S., was than have rate what declines to volume the X.X% experienced declined the of they While due quarter

review due While the exiting our let prepared year safety the call products remarks. annualization a the period, the share other over Jake. to And turn financial completes our as as to for and fiscal of competitor will gains my grew due to updated year He highlights provide XX.X% prior as financial product XXXX. compared well with their that, market. Jake? guidance discontinuing to That me the

Jake Elguicze

morning, good Thank everyone. you, and Dev,

Embecta's totaled of million the start year occurred margin first regarding gross in Given performance for line. profit that first the financial to prior period. and and will $XXX.X XX%, review already gross at compared revenue, GAAP of quarter my quarter I This the $XXX.X fiscal million XX% XXXX respectively. profit the has and discussion

totaled price year-over-year on were our XX.X% margin period. profit in our drive primarily XX.X%. lower This year impact the costs revenue net and that partially earlier and inventory and headwinds of decline by profit the by in lower million adjustments. gross offset While XXXX adjusted margin $XXX.X increases. gross mentioned prior $XXX.X to in basis, driven adjusted from These well to profit Dev an and as million was and adjusted The year-over-year compared QX changes the and freight as ability year-over-year

margin. GAAP income to Turning operating and

$XX.X This compared in the period. million the and they prior and million were first year quarter, XX.X% XX%. $XX.X During to

totaled margin discontinuation SG&A in year-over-year and period. adjusted to driven recognized in due XX.X%. year associated costs lower outlined gross basis, well our period. and margin TSA expense our to pump in current profit patch prior an in above. and the lower is operating addition on as was adjusted increase of and offset adjusted XXXX the While million million adjusted the insulin by income by The This primarily lower program $XX.X expenses, I income marketing the to operating and compared This as QX lower compensation changes expenses XX.X% R&D $XX.X with primarily

net bottom the year per the the were as $X.XX income and XXXX of $XX.X GAAP million and during in share fiscal prior earnings quarter period. to compared line. both X first diluted Turning to

to were approximately basis, the million and income to $X.XX and an year-over-year primarily The the tax $X.XX of as XXXX, adjusted to offset quarter operating planning net first adjusted well prior QX in reduction increase tax and QX XXXX. as While of in from impact adjusted and during compared X. in the our partially in drivers per of XX% on The just tax earnings fiscal year of share diluted $XX.X is million adjusted share earnings year-over-year per $XX.X due period. income net rate in approximately XX% due lower XXXX was profit to the initiatives, I adjusted discussed rate as by Pillar a

Lastly, EBITDA perspective, from first $XX.X compared to year million a the and in adjusted P&L period. prior $XX.X XX.X% and margin for as million and the approximately our of XXXX, quarter XX.X% totaled

the while our At million, flow. quarter, approximately to the credit balance totaled sheet our last defined XX agreement leverage our the X.Xx. cash Turning as $XXX stood under and first balance net facility end at approximately cash of months

reminder, our X.XXx. requires leverage a net As covenant us below stay to

quarter earlier, on of during on on to we our year track we debt, my mentioned aggressively of $XXX goal by Term remain first down more $XX.X paid Dev remarks XXXX. we fiscal And That As the prepared our delevering. achieve Loan our results. completes focused million during be B debt million to XXXX quarter, reducing continue and

Embecta's Next, guidance financial would underlying discuss XXXX assumptions. to certain and I like updated

the begin, some we to important want global regarding evolving I Before operations. provide and tariff our landscape acknowledge context

XXXX. the as Dunleer, facilities: Canada elements should specific We require of not in provided and Ireland; and any updated and following to fiscal year administration note regulations impact. China. other initial manufacturing determine factor in the First, not with our manufacturing Suzhou, newly tariffs in three Nebraska; does such, beyond Mexico. change perform any across or either that manufacture in XXXX Holdrege, products tariff recent rules analysis location November We include our those when late of we do the or tariffs guidance guidance implemented remain financial place consistent our proposed We

domestically Regarding within sell in U.S., of that States U.S. the the are the manufactured United most either Ireland or products the we in

into in In revenue currently derived less from exempt U.S., our manufacture than X% tariffs. are the and from we of those fact, and sell global products products China is

our are relates from of sell manufacture products plant global China tariffs. it most from China. than is our China, X% in our and revenue China, those in Less the exempt currently manufactured to revenue at is into from As of products and products derived we U.S. in

derived were is subject recently revenue sell tariffs, though included global into in our of retaliatory products published, to but the this U.S. products X% from not approximately we Canada, to Turning delayed, the and in and Canada, manufacture change. our remains

Mexico, in Finally, as is derived into to sell of relates the products revenue Mexico. X% States it United our from global approximately and we manufacture

to continue and both to closely living We possible where our to rely and developments committed mitigating remain people impact with diabetes monitor these who our potential any on customers products.

compared headwind as range, relatively be discuss revenue. which an are adjusted basis, our Now will that On approximately of our price we end assume currency calls high to guidance constant XXXX. revenue guidance. to previously that let X.X% volumes we At the Beginning range, for continue to flat me reaffirming X% a revenue remain be between down and with updated provided X%. currency our constant of and

impacting to the with end, end, at we year-over-year our factors of While low potential high headwinds greater same assume associated all for the except volumes. the continue

be prior to we timeframe, that on continued Since fiscal guidance, rate U.S. FX financial currencies. headwind in around the foreign to on against thoughts X.X%. provided for be assumption is the to FX versus as a to This of about compares our approximately currently of strengthen euro the has January late prior Turning This November, And result, XXXX headwind based called rates exchange late our a we existence U.S. X.XX. a year. exchange which in expect initial X.X% dollar dollar of most approximately our to including were FX. to guidance a

to XXXX not impacted of will be is GAAP approximately payback revenue that Italian of needed associated updated amount through XXXX measure, our our revenue. On revenue FX as-reported basis, $X.XX a range This XXXX decline billion. an Somewhat X.X% in XXXX X.X%, and by now we the and as-reported with between calls billion for our X.X%. the impacted accrue offsetting which the that as-reported combined fact guidance equates between tailwind of a revenue to $X.XXX resulting a guidance GAAP

adjusted gross to margin. Turning

We guidance are our range XX.XX%. of previously reaffirming provided XX.XX% between and

our by range and operating improve While XX% improvement to our guidance base. raising from is of adjusted an new from margin between of be a range are to our to efficiency ongoing XX.X% operational and expense XX.X%. driven expected we standpoint, between This and XX% reduce a initiatives

to earnings. Moving

due by equally. X approximately exceeded we $X.XX, things per internal earnings contributed expectations QX, and During this our was that for adjusted almost share to

anticipated, to mentioned reverse earlier, in came revenue Dev timing. the overperformance which expect And attribute First, in better as than revenue initially we we we QX to QX. itself during

driver adjusted QX to second EPS the expenses. SG&A of due our during lower was While overperformance

our $X.XX we impact us approximately range headwinds, thereby between adjusted foreign to previously to per such, As negatively which expect containment earnings cost provided us efforts exchange guidance allowing ongoing $X.XX, our of by of the incremental absorb and share impacted $X.XX. diluted the reaffirm

weighted and guidance outstanding million, annual approximately approximately will million. updated will that be approximately expense Our assume rate continues annual adjusted our tax our $XX.X be $XXX range XX% will diluted average be that that to net interest shares our

million between and we separation assume related between costs cash and $XX will the Our in discontinuation our $XX guidance cash largely million $XX capital with associated $XX usage XXXX approximately million during and $XX expenditures. fiscal of associated with of program use insulin to million pump brand patch to continues million transition, in that

guidance adjusted regarding quarterly highlight during of range like like from And new XX.X% XX%. cadence are XX% raising revenue and over the XX.X% between range, between to and a XXXX. we call before a to the I'd also some the margin operating our I our Lastly, of considerations and EBITDA adjusted operator, to expectations turn margin range of

approximately on between remarks. generate prepared to will this the we the the implied my XX% quarterly to guidance, on any over a revenue. our expect That annual an concerning of outlook, of in which to we XXXX, not for million. $XXX half our basis. Consistent year quarter at percentage initial lower the and in the $XXX second of ongoing Operator? the be And fiscal we cadence operator guidance revenue year million our that of to during further second approximately commentary the revenue financial turn updated call I'd would like forward, anticipate of completes time, with continues of our annual as half to this first provide Moving may XX% slightly revenue Based questions. generate range compared

Operator

[Operator instructions] to is Kallum come line Our first question of Titchmarsh Stanley. going with from Morgan the

Kallum Titchmarsh

Just a couple from me.

First the and the year. of of key be of X other. to some of all, one would if numbers. a year-over-year categories from perform product I could each in walk pricing the given through just of you ERP category the they've expect it how that off calibrate just noticeable us kind through great last kind dynamics Any you dynamics these thrown for over year, of more are the some kind bit of appreciate,

to So be would appreciated. how just clarity for any that 'XX play you expect out in

Devdatt Kurdikar

I'll augment. start off ask then and to Jake

So was about And it of in few all, general we our performance better maybe revenue. expected. QX, was first than QX, majority the in total pen anything, slightly from obviously, ago as of product if category as months think a revenue. comprise needles our in the expectations

really expect pointed of phased that's rates quarters implementations growth year. lumpy point be most the this we somewhat in So we that two, do year given point as world all And last to you sort the one. of carried out, the out

looming QX Now was product it particularly, U.S. needles, as future the in I would and talking distributors inventory sure before most mitigate one, quantitatively performance QX well, pull strike disruptions advance 'XX talk as we supply. the in additional forward affected of the probably of one or pen sort avoid was X categories procured that potential about Number in I'm remember specifically the quarters, in to then the QX that important though major port factors. FY of other I by in you sort about say, driven had

that's So sort factor. the of first

those the X the sort bled indeed slots, in the of X and was primary factor later QX this and so One, And XXXX factors. that QX fell implementations some in the those and into time affected year. will. rate through of second part you in The growth year-over-year the of as prior inventory sort of ERP if year, of were

most decline actually category, than the of been. Now will. U.S. And single if factor, discontinued products, you a smaller that's volume syringe we able the bit to market was in did their if the have declines, as in largely-- some in And rates notice factor. little And the better Safety actually because exited the the improve, a becomes certain that that's that you'll and share in declines the probably as what historically the fact, we competitor largest were product and markets. grew, the declines win

the that X were in of those impacted the So factors categories product 'XX. QX

go seen to go do decreases those we each we've as as back a just slight to far year, primarily factors overall in in sort lumpiness implementations. syringes in in expect safety Now growth market about and our regarding pen historical needles talked at seen increases growth is that the we've that nothing of imply historically, been categories, I've forward, products and of rates. the there rates change that in has would due our through some There so well. growth look step we ERP product the this I in same and If

you to given our categories by needle So fiscal comprises if product of assume overall you certainly majority rates at year. category, revenue it's think will in to don't the that look our revenue. anything those guidance reflected we guidance it I through for add? fair the pen XXXX, the see give Jake, But

Jake Elguicze

that say first were. expectations do I'll Dev here with of even about. line I our certainly some everything talked before maybe was Kallum, maybe off, I'd that in And occurred that, items that what quantify the original

of first due had to In timing was revenue that And with than XXXX. a terms effect we anticipated, because quarter category, needle orders the the impacted us revenue I fact fact, year first better to. that $X that to business our sort we quarter quarter, pulled price we originally largely probably of we the But impacted additional of fiscal resulted And increase in in our implementation pen in million do occurred in about in was business that QX, the first particularly XXXX. I port the prior forward XXXX some another placing think North get about putting secondly, fourth estimated probably referred about to by go strike. did ERP million. that place in in the $XX going saw had that result. And during we impacting, really think, the that Dev quarter item of talked the million. to into the what in as of between And into somewhere $X on That quarter distributors by American revenue we of $X about item our million were a then X/X

our So factors. of in XXXX inventory X quarter some we we impacted that sort in by distributors business To largely lesser first million. probably about and of $X China those extent, rebalancing the levels, a estimate saw some

those had again, into the better needle performance. actually the So certainly originally what coming pen items a little year. really X anticipated drove probably we bit than But

$XXX the would pen quarter saw quarter guidance the million this to to needle be And what that in revenue second very somewhere $XXX the in we implied for very, essentially As between quarter year. performance -- would second we that of similar to million. our points our indicate first

And terms the expect go there. safety of an we as of product then category. we as would needle So similar the pen as expected is the half the performance in back year, well into improvements

of reasons the be second the the some to compared provides think half I that drivers as better hopefully, going little to more first. sequentially, then the you with color we're a the little some and bit year we So bit think why a regarding of of in

Kallum Titchmarsh

there. I the color And fantastic. one appreciate that's Yes, then really just more.

love then of outside quantifications bit progress the to more progress around opportunity, On for of on you sort can the And the same the pen outlook Germany would hear us GLP-X program. there? Germany needle and any a give

Devdatt Kurdikar

be and distinguish Mounjaro world, follow in of follow around hard is what and in over used to the sort adopted be KwikPen per needles Germany going and in channels pen progress it that for used as needles are do us that monitor for can reimbursed Mounjaro because might our continues to get striving procurement in gets to to our needles bought. if actually for they're used expectations. GLP-Xs making number Obviously, small we our the X-month markets sure are that revenue going a that is how will, KwikPen not quantifying, pen out-of-pocket GLP-Xs. our via prescription diabetes. you where we are the out pocket It's We're Kallum, we for to will going frankly, the to for the going KwikPen there Germany. GLP-Xs pen And take a where you are be and for they Germany. of the same of can It's if launches imagine, Mounjaro prescriptions from be going time. going are And other GLP-X, filled to procure as only packs in countries some as patients

make certainly small So through do procured via channels, our cannot want we used for certainly is between I volume that needles the distinguish pen identify the be administered might to pens, can that we are being packs. GLP-Xs point while but normal that's

are going having we to is GLP-X where some generic in the Frankly, bigger the pen entrants we opportunity for Now that's are GLP-Xs that to certainly with discussions working to our of for going be I the pen co-package take think providing towards generic able this being needles use at well. that XXXX. around XX-plus We generic needles entrants think with Analyst for a our bigger is discussions anticipate GLP-Xs. over very, potential We GLP-X May opportunity. are the with going long-term that, And color those very planned do certainly more Day time. those

then we over So of bit mean could a get I'd us at least years. few little wait the of next range request more this a sort what for to until

Operator

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

Sam Eiber

M&A the start Maybe medium-to-longer on to ratio opportunity looking there's or Congrats allocation progressing expanding capital product for I quarter. Things a maybe certain nice a But Sam portfolio. more leverage a you wondering guess more I'm comfortable the term. on where is I I and if question. This more near-term initiatives. can debt on on paydown of comments clearly at related become that's guess wondering about perhaps if opportunistic a your Marie.

Jake Elguicze

Yes.

thanks the So question, Sam. for

over year, and from year, think continuing next this really try into focused we're certainly, So I create and I think additional think to some financial I our on standpoint, flexibility.

Our net leverage last of the leverage this XX our net of as end is X.Xx. -- around quarter months

our Now to X.XXx. to allows covenant go up us

should will Now end on this continue aggressively Xx to focus into think pay probably more we way likely I net that. And obviously, we and us levered to XXXX, to sheet And debt, mark want which that million to go anywhere by then we move more our create to flexibility. on close some assuming we wouldn't $XXX the the end of in around by well of year, fiscal XXXX. around doing, paying we be debt down our that are balance I a allowing think down we as additional it's

will bit probably it's XXXX. into that Xxs the and likely Xx of think we trend terms we into in lower somewhere more net little I as than So get a leverage

to So from right? million an standpoint, our $XX obviously, drive I by opportunistic, very year up is for rates need revenue M&A incremental currency per revenue million only constant about M&A to an growth $XX very, But of us, X%. think we

use will think the programs, value repayment. really near think and term, is create it which shareholders. allow to necessarily here keep to So I continuing more need our us flow in to highly that But about order for the in do cash M&A I really don't transformative separation free focus towards we debt to finalize

Sam Eiber

any Jake. about follow-up there. maybe can I maintaining on Maybe here use that of 'XX? beyond helpful, color thinking in how should margin have going I even we the be on Really either long-term initiatives appreciate guys progressions and perhaps terms you just all my fiscal margins or expanding

Devdatt Kurdikar

Investor sort that our certainly Day. Analyst that's discussing with be respect in I and we'll mean, of long-term May margin Sam, something progression, to XXXX

where what portfolio expanding going different to as manufactured I are right, for already very at that around as that of presence are script, that will vectors, frankly, this say you we or profiles. commercial comprises in I'm potential manufacture said can distribute But by us. that of our So think companies Both -- products giving priorities those, going for is X have reserve important to to product have time. imagine, can that ranges the are be I I products And others. margin a

opportunities the we through the work progression that here, and more expect those and information we'll Analyst base in the provide work our need to during need that out we just against as so And Day. business. the to we through, margin puts certainly takes that But see we net are to

Jake Elguicze

back Yes. just quarter Sam, guidance. to maybe I our updated the and And think coming

QX, being earnings. saw our the our two, importantly, little original But going really One, to in of expect in for $X.XX you around FX in we expectations then from that guidance. think this remarks, would bit earnings of associated and us our And the reverse standpoint, think a SG&A entirety stay was quarter see an or had against that up will, about that drove original absorb drop-through of allows headwind the really of is performing us, QX if to and rates expect to almost expectations. compared due to I impacting to improvement of our our the sort to year alluded $X.XX we by as I I -- the up to internal ended to relation and better working it we we which think because we ended really equally. revenue and we X incremental -- And things sort in internal to in better than prepared $X.XX. actually

really for out and year it be the and of -- up an is be So the done the first cost system. really complete going of well focused the and half It's of this focused is to aggressively to the then to and which to team by company, to on be on third, pump expenses has our base that more having continuing excellent to going we're program, further the driven optimize track it's going finishing year. delever. And on really about job, discontinuation patch trying take the also completing

opportunity ways now look you at was and terms just how and they cost out, through And when really, to to XXXX a and doing. as of terms there's a and find things things. shift cost I lift we think an BD, what of spun If a obviously, we organization. did how take the did to our amount, continue there in try that's years we're fair from And larger next base we in sort really few go to recall, of into much and

Operator

line [Operator Instructions] the next question Our Schiller Research. of Ryan comes from with Wolfe

Ryan Schiller

This is Ryan for on Mike Polark.

could products You to that others. your portfolio commercial mind come talked this distribute your fit there when Are expanding that specific your financial by channel to product from into leveraging of your about And model? into might types well products start model? layering

Devdatt Kurdikar

breadth commercial of And types channel. would products clearly products world, those given through want channel the might the in across our we that our those different. commercial The of are be reasonably fit that

going to example, hospitals. do I'm give you we call In some examples. on China, for So

we add and sales could portfolio side, know, payer on our other you hospitals. sell as So actually strong can the team that be U.S., to presence with strong to retailers the the products able have into a we relationships. In

retail products And several in that channel. we served might Europe. present fit we And through we is So call therefore, channel. by Japan, also are might for pharmacy look that can countries and Germany channel that for look In in on that endocrinologists. products that

our I going it's working -- products I is Day, time. these think speak that add to certainly Analyst We portfolio, in at hard place market, think some but that our to at we're unifying where where about leverage anticipate every strength. to differ being can to upcoming really to able examples or look providing theme our commercial products I So going that some more and the be to forward

Operator

to Thank would questions you. like remarks. And Dev I'm further back the Kurdikar to over this for showing closing at conference no And time. hand I

Devdatt Kurdikar

around want close the sincere my express at we As Embecta my call, colleagues the world. gratitude just I to to

vision more some you remains our our in for laid that our your we'll out. upcoming with all you conferences Our XXXX, May company. we priorities of at discussed for to look on Investor the Embecta. where global share executing and about focused today late And interest and topics of Day forward we and at team in engaging our for the we've in Thank certainly that calling finally,

Operator

you and conference today's participating, have a Thank great disconnect. concludes for This call. Everyone, you may now day.

Embecta (EMBC) 6 Feb 252025 Q1 Earnings call transcript