HAE - Earnings call 4 2023 | Haemonetics Corporation

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Operator

Good day, and thank you for standing by. Welcome to the Fourth Quarter 2023 Haemonetics Corporation's Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker today, David Trenk, Investor Relations. Please go ahead.

David Trenk

everyone. morning, Good joining conference for Haemonetics' quarter fourth Thank and us webcast. XXXX call fiscal you for I'm by our CFO. joined James and today Chris Simon, CEO; our D'Arecca,

morning, we XXXX guidance XXXX the analytical quarter Relations This the along to and our information on with our call. that website, fiscal to refer Investor fiscal our with tables posted we will results fourth this

results as GAAP P&L, organic provided sheet, of summary discussed financial flows a to exit cash strategic our of complete rates balance fluctuation product guidance. currency noted, well we and otherwise reconciliations lines. Additionally, of as growth impact Unless all and non-GAAP statement of and exclude revenue the are today

understand past, non-GAAP Please to this the As performance. for results. measures same periods this exclude in note including reconciliation that to fiscal refer excluded GAAP these and release earnings with we'll to charges details Please the refer ongoing on a items. our Haemonetics' items, XXXX and measures morning's income business help financial investors certain throughout call of to comparisons

it harbor those actual in We include may forward-looking other do our our anticipated obligation update include now statements, any to and to results. differ filings. in statement cause these release to statements. And may earnings and Our remarks in like differ from today Factors materially safe forward-looking over that the turn today's SEC results results the referenced to our not undertake Chris. I'd

Christopher Simon

reported XX%, per $X.XX 'XX, joining. share of we in XX% the of XX% in in in XXXX. David. and and Thanks, and all adjusted XX% diluted increases quarter organic reported fourth Good morning, earnings growth and revenue fiscal $X.XX you We respectively. Today, of fourth thank quarter for fiscal

momentum transformational world. Haemonetics time, building the journey. Despite are creating our donors, patients around macroeconomic growth the annual the essential For caregivers in and delivering for eclipsed environment, $X and we by value a challenging in milestone revenue, billion first

throughout XXXX fueling start to performance long-range drivers fiscal strong plan. X marked outstanding our Our consistently are value success. an our

the technology vascular providing recovery, in collections penetration and First, plasma by successful and continue with supply anticipate capacity to and offset from across second, to excellence, inflation world; unprecedented Haemonetics accelerated and greater coupled hospitals aided management, success demand and fund unique in the of budgets growth. We agile benefits our improving productivity operational hemostasis distinguish volumes and third, value moving robust staffing resilient closure U.S. performance account upgrades; and will drivers meet drive our these forward. our to

company our our We are of transformational businesses. realizing and growth

a business in our unit Plasma results by quarter revenue and grew strove volume XX% revenue XXXX. represented in disposables was safety the Let's depleted our and XX% fiscal fractionators of in revenue pandemic. America during fiscal turn XX% replenish benefits. in and XX% XX% driven It Plasma and guidance. year the plasma price to in that fiscal stocks growth North to the as XXXX, quarter XXXX, fourth growing historic dangerously fourth were

term. we of expect near trend volumes As throughout we record year, collection a don't in saw any the abatement this and the result,

majority our the CSL comparable at rate disposables business, a overall U.S. which of to retain also disposables We business. U.S. grew

their per operational meet investments Our will in is devices normalizes. Nexsys as end revenue increased our demand create reported efficiencies We enabling market XX% with lower production for global accounted time plasma to XXXX. chain meet supply and cost disposables. These and of CSL Persona over liter. and business demand fiscal customers approximately to strengthened demand our our also safely heightened meaningful for

outbreak orders will improved and QX globally business fiscal of America. XXXX, the in quarter its such was back-office guided sales penetration in management. software continue U.K. Cell and in budgetary Hospital TEG year top grew X% the QX and by in improvements in management benefited revenue utilizing XXXX first sales that Salvage by of the strong U.S. and red and the declined and revenue we benefits revenue At in fiscal grew grew and in was X% were new by industry offset Japan in and is XXXX. Hemostasis XXXX. Apheresis Global driving X% sales timing Europe infrastructure, largest QX XX% flat fiscal fiscal primarily including closure adoption XXXX. among after X% XX% revenue in vascular fiscal year. Whole standard. benefited the growth these in and not in in quarter last fiscal timing we in disposables implementations fiscal in Haemonetics by in In X% unrivaled realized that share and The grew favorable growth the Management revenue XX% 'XX. in the revenue capital U.S. was the driven encouraged the collection in U.S. Hospitals. we with order reducing significant onetime during and are among and VASCADE XXXX. quarter EP the Cell as quarter our the force year. Blood Growth we staffing plasma in fiscal quarter our $XXX and in in in XXXX. Transfusion fiscal In by APAC the XX% a quarter The quarter and for gains orders and QX, vascular are in did optimistic driven of and due plasma offset delivered quarter, in double-digit North expansion We share Hospital revenue declined quarter growth Fiscal International QX from grew Fourth in stocking advance XXXX. and fourth North achieved underway, XX% hemostasis in of built QX, their cell strong X% constraints. growth first fiscal revenue Egyptian quarter hybrid XX% The EMEA had from easing we and both Center unfavorable in year. Salvage sales in will million we distributors distributors. lower that Nexsys strong gain COVID fiscal Hospital in XX% and platform our pandemic. in continue quarter unit trends periods hemostasis develop and leveraging successes, growth meet forecast. Trends partially by in driven XXXX. upwardly negatively to blood and order Hospital the the declined management XX% this opening XX% in XXXX. market, expect to fourth large We periods. Vascular beginning revenue we and by were X% grew accounts stocks models to the commercialization customers in China XX% fiscal existing in utilization that safety America, and in both convalescent revised our revenue closure. to raised when to to XX% in the August, compared the collections the QX guidance affected XXXX, Closure prior

XXXX, X%, when our fiscal share not. driven Whole grew enabled customers Blood to could in competitors as For by revenue gains us serve chain resilient North supply America

XXXX fiscal to turning revenue guidance. Now

long-term pursue goals. about confident deliver short- We we to forward as opportunities our and are going our momentum

fiscal expect XXXX. company in of We total to revenue organic X% growth X%

contributing excluding several in business XXXX, line about rate volume meaningfully. in and expect growth XXXX next fiscal our over our We growth Plasma the with Plasma the After that in in is as communicated mid-teens fiscal forecast, both in CSL, we with the years LRP. exceptional anticipate opportunities and are X% growth revenue price Plasma recovery business of and to our enthusiastic X%

we CSL, the our fiscal XXXX. expect Regarding their in share business plasma to of decrease half of second

includes XXXX excess $XXX CSL is minimum fiscal for a nonexclusive supply commitment from agreement of under our guidance Our slightly purchase that in million.

service business to in committed meaningful fiscal all to to XXXX. We customers provide support. and with CSL of expect the Plasma our We will revenue CSL our that providing level continue highest Plasma and a contribution remain of

of are a long-term about as the future growth driver We business. our for excited Hospital

commercial in to clinical ahead vascular deliver hemostasis fiscal long-range of we In are expect XX% we management. the growth and Our tracking plan. working, of business XX%, and our driven Hospital closure revenue XXXX, to by strength strategies and are

Blood Our of with impact about in XXXX. In year back-end we the half is are year-over-year unfavorable fiscal very in order with business this new the X% is pacing loaded of enthusiastic decline flat. revenue our compared a summary, Center the exciting Haemonetics, time for first of a timing The guidance and when year. revenue prospects this to is for fiscal

competitiveness and improving capitalizing are to innovative on strengthening through and our opportunities We operational higher opportunities accelerating hospital-based our higher excellence. plasma growth, pivot productivity while margin in

are We leadership, taking industry margins improve steps to revolutionary growth, sustain and deliver advance momentum results. evolutionary our to using our

earnings James the I'll discuss to to call turn our guidance. Now financial results and over

James D'Arecca

everyone. you, Thank good morning, Chris, and

decrease by in a in year pressures points, compared basis same the price of affected margin our completed fiscal fourth period gross quarter be supply manufacturing benefits. the and the to and inflationary adjusted earlier continued in global due the was XX Our respectively, XX.X% increased exchange, volume XXXX, expense and and year. conversion foreign chain, offset in prior points XX.X% depreciation when Adjusted gross with of basis the Nexsys to by partially margins XXX and

Persona positive by Nexsys on conversions. Price had driven impact margins, and predominantly a

of U.S. the pricing the compared to of $XXX.X year. prior fiscal an the XXXX. million X% increase of As fourth related end operating were or fully expenses conversions quarter the the quarter reminder, by second fourth in Nexsys the benefits Adjusted will in quarter with a million, annualize $X.X

a expenses expenses million, fiscal by or percentage compared XX%. decreased adjusted $XXX.X for $XX.X of year. operating prior the XXXX operating million As basis XXX to of increase with revenue, were Adjusted points an XX%

outbound basis offset compensation, higher expenses in increases, productivity of return million million, the marketing network in savings partially higher and were and fiscal operating collections, from upfront manufacturing as and fourth As such shipping by R&D an expenses demands normal freight our decreased 'XX, both in $XX.X the fiscal were was unprecedented operating cost operational and to in higher some by by and meet cost increase expedited quarter spending sales operating a prior adjusted helped or freight offset expenses year. points with fiscal of of compensation, within costs the quarter costs. Contributions with program higher income performance-based investments activities, operating our in performance-based by compared operations adjusted savings. In $XX.X $X.X income 'XX. Fourth XX $XXX.X for driven and headwinds, percentage of XX% driven and the adjusted to along to or revenue, a million XX%, XX.X%. In was improving investments an million, increase plasma operating 'XX excellence quarter,

adjusted the environment approximately compared incurred inflationary XXX were the of margins operating impacts percentage points 'XX same adjusted points basis our inflationary our a periods raw in respectively, was impact in XXX XXXX. basis points, XX on materials and compared macroeconomic-driven in XXXX, broad-based, revenue, up down of and from As operating XX.X% basis and the XXXX. The with We fiscal margin in fiscal XX.X% adjusted fourth quarter fiscal margin XX in points approximately income in income fiscal basis operating freight, fiscal 'XX including to labor. impact pressures upon

in addition, fiscal In higher prior compensation we in 'XX the incurred performance-based year. than

an savings. efficiency lever plan. program this of important program million we $XX additional cumulative program, in slightly fiscal our our freeing Our is resources of generated in ahead savings have excellence of investments. our inception gross XXXX, savings, to In $XX ability gross fund operational Since million the this create and up to delivered

We also operating vascular towards margins closure. from had contributions positive

business higher positively impacting this expect As our we margins. leverage grows, can

earnings and income its higher in the quarter in and tax about up growth and when compared fiscal continue the and beginning compared to at was share on XX%, earnings the $X.XX, when full million, for diluted the $XX adjusted prior fund $X.XX, income adjusted with quarter fourth was fiscal We per quarter up and the million was year. Changes expense of $XX.X year. share opportunities quarter XX%, hand fourth $X.X for restructuring fiscal of Free markets. FX was a fourth was $XXX.X net and Adjusted share diluted Cash the on with compensation. Fourth $XXX vascular income million, we'll adjusted XX% or year. when a negative up both The fiscal at income with restructuring-related in or XXXX. $XXX existing end per due and net are comparative last for since million closure diluted had the compared jurisdictional costs quarter million flow before rate adjusted new end income XX% the impact adjusted prior $XXX 'XX year. and compared the rate of year tax to and up XX% 'XX the compared on higher rate, the executive fourth year. million negative with XX% was earnings for impact was $XX.X prior the adjusted the 'XX million was periods XX% earnings with up $X.XX million, of $X.XX allocate per fiscal interest the to tax of in The both excited investments cash adjusted

from benefited Haemonetics offset by $XX share 'XX, fiscal operating increased repurchases. flow, During cash million in partially

Additionally, the in Medical. and paid a $XX related investment Vivasure million payments made company to earnout million XX acquisitions previous of EUR

fiscal guidance. Moving on to XXXX earnings

at operating We expect fiscal were required continued of In that components inputs created XX% prices, spot to ensure XX%. we which margins XXXX affected fiscal the needs, To to XXXX, atypical our purchase customers' our negatively adjusted in fulfill growth and in we to unprecedented margins. manufacturing range operational pressures. other Plasma

abate the near but persist operating first second guidance margin half half the in to be is second to below back-end our to in margins to Therefore, full range XXXX. start inefficiencies our year expect loaded before guidance We half. the expected in with growing these fiscal of term,

to we addition an In benefit from the Hospital to sales improving mix a improving our and manufacturing of business. will profitability continue favorable environment,

total deliver expansion we program XXXX. end plan are operational which million, of on the operational with of our the additional savings net benefiting million million in $XXX by goals cumulative our excellence our bottom expect approximately to of savings near-term Despite margin $XX presented reaching fiscal our We savings additional challenges, track. the long-range are $X gross line

$X.XX, up PCS expenses devices range representing to of XX% guidance to 'XX to to turnaround and free the compared ramp earnings our adjusted with $XX support fiscal growth XXXX production fiscal to growth a $XXX of in customer in be a for Our $X.XX cash share restructuring when diluted is XX% expected XXXX. And lastly, rate requirements. as million U.S. flow NexSys fiscal is before Plasma million per we

share followed unchanged, to inorganic priorities we allocation capital opportunities will repurchases. prioritize investments capital by remain and and to continue Our allocate organic

Before Q&A, we a for to thoughts. like closing up conclude with open I'd the call few

long-range stellar a First, Hospital. plan, our thanks performance was XXXX fiscal great in and installment initial by Plasma to

the Our by a as line is The business fueled growth will us powerful with is in strong to experienced and and investments long-range quarter. market Plasma along robust with driver expand demand. fiscal the compelling and heels momentum start a to record strong leadership top revenue our fiscal utilization of be in expectations, base XXXX. Hospital our business end continue XXXX strengthen in to on further accounts, Penetration value share. gives business will recovery continues strategic deliver

underlying capital capacity our we've with this enable Second, consistent as our will taken unchanged, and -- coupled expansion capital year we stabilizes, we the priorities $XX value $XX up additional further the further will projects you. ROI remaining will by capital fiscal be now strength savings of to end are ourselves finally, with making the to support of with disciplined being high-impact margins. And allocation the opportunities. and with We benefits to program macro environment committed to our to open customers' plan creation. Thank of for achieve needs, These that to our our the million would business, of line in along part million for investments, excellence I as up steps And XXXX. allocating accelerate to the expand will set investments investments target Q&A. growth to create and like high the efficiency growth continue operational

Operator

Securities. Instructions] Anthony with comes [Operator Petrone first question Our from Mizuho

Anthony Petrone

revenue total on Maybe good And basis? I'll we basis. for of to of XX% a just And bit going CSL to the the sort couple million that there. think then How Congratulations and have just on a about $XXX in dynamics a calendar extending loaded? or and an a little of back-end forward, for 'XX. looking bit just comments follow-ups the to to minimum when Plasma that just then Maybe, Maybe here estimate Chris, Is then margin. 'XX strong fiscal backward, start on as-needed little the revenue, Is through it year flows clarify there. on into Jim year. the Is start that the that? of fiscal recap a Plasma. out on just

Christopher Simon

across the participated in the a Plasma, that for thanks CSL banner comments XX%. Anthony, drive in helping question. fully year for and the had we growing board that Yes, in recovery.

the of great customers number, only about includes XX% not them where offer global so all prepared we So were The volume it. U.S. CSL serve and is in 'XX. disposable and software; and a our feel ability our corporate-wide to but throughout it also Europe number fiscal that our remarks,

part U.S. as is number aggregate peel important of the that agreement back, you that. the that's an So obviously,

coming through remarks, about As both for our There's this deliver through around in a sensitivities delivery CSL's the think uphold. we over should in our ability orchestrated volume is perspective we And FY million delivery our FY excess effectively need we we big confidence But our essentially that What 'XX us ramp we've from in all think meaningful that way value part of FY have I commitment as and we to period, you and a prepared and of said to in of revenue 'XX, to our a and part them. we're broader that's that parties lot to that this again, a Plasma and -- doing and grow gives there's period. X-year communicated. the smooth recognize corporation slightly a well. down retained lot substantially for minimum a there. anticipate in 'XX, of $XXX And of is

Anthony Petrone

half year? throughout conversion the of we should you Jim, what we half? idea what mentioned the trends how half. when first should thinking on still spot to be the second just inflationary saw for ramp margin sort And margin. roll gross inputs of that be XQ fiscal of we terms first of here, you inputs then, then expect a -- the cycle inflationary And Can sort through gross upward we're us an through margins and margin give in off, sort in just then the working the shift in Is profile, the some expecting

James D'Arecca

Yes.

we on address of me really Anthony, the gross questions. see I But don't the can margins. So help if guide let some

for inflationary through referred us, half more Those into that First, yes, inefficiencies, I reenter which demand. with you're first and right. and have XXXX of us take what temporary to previously. pressures into it long to that flow the then will fiscal our arrangements, to as will continue commensurate The the are

will you So see uptick. an

position So we manufacturing of headwinds for points pressures portion of decent all my fairly abate we a half that our the macro you'll but as expand of get it, of will the at sense to through then we had move -- forward for into the margin as the operating portion LRP. see year. almost next other us XXX not sorry, basis margin And previous full really put a and level, quarter. but year. more that And that, And is, is a at this that through of decent both definitely I'm in the importantly gross level second us

Operator

question CJS Securities. with Solow have from We Larry a

Lawrence Solow

-- of we pricing of where kind price. on there of us Can can you in of Is update a mix mostly your long-term Persona, that mix of stand terms of kind just sort us on where part? that, you XX% guys LTL imagine in update penetration -- is and maybe Chris, it's a Persona I you and of your driven that customers? an on the just give volume the Plasma. -- by for Is for today growth But

Christopher Simon

question. volume of think for it's bit perhaps definitely mix well. thanks and When Plasma, and price Larry, as we Yes, the about a

real is floor not Most with patients no the in having inventory. put our right? they're to They're part customers, are side, the volume and customers the They us of treat time. the conversations the demand. abatement we're are being sight, in fractionated end to doing market everything -- their meet to On with they're accelerators market collecting telling building

business. aggregate So That's slowdown positive -- price component, demand. begin tied build, see we in think real technology the the and the upgrade. anticipate unless When to a all a inventories about it's until don't we to the for we

fall, FY you was last as largely through software, on next enablement, that. upgrade So fiscal 'XX we lap early Nexsys December. We the summer, a which and know, to ago associated done late upgrading point least the get an the year, last in completed Nexsys with the in we the we'll midway are a pricing at fall, to year link the persona. And upgrade procedure where volume

And that that the yet be it, have so customers in the working system. on trials, all and get deep come able systems adopt their required unique to not neck changes yield to it discussions, The that's adopted ongoing. with through that are enhancements to to our are

of So we an I that about and the our through that feel and progress quite important as FY way will good pace be work beyond. contributor the 'XX

Lawrence Solow

it. outlook Cardiva of the the maybe got both in top inning just internationally? what you last high-level gears And stand you give feels been stand switching low-hanging you It kind Clearly, and and accounts, of penetrating maybe U.S. phenomenal acquired like the just analyst, us you year, large to staff growth, a on top guys fruit and you then accounts? hospitals. in for VASCADE lot still a just these good pretty where you of growth penetration there showed some Could since has

Christopher Simon

of our U.S.-based story, it standard a electrophysiology closure. accounts. that, opening to new of accounts, accounts expanding and the then hospitals. the making vascular VASCADE real the top opening really deliver is fully it the U.S. And in product. today, to presence Larry. once second in into half for It's continues well closure and XXX new is uptake that Yes, a hit team All agree combination with this And hard success the those

by growth market, we've predominantly is of the interventional now expansion force in the additional sales meaningful which based. put we XX% although MVP product place, with so that. It's cardiology electrophysiology, in support see clinical and the seeing And more the the in driven we're other

ramp the from succeed ready as to where a getting the then stop prepared we to will run in closure. vascular the mentioned approval with remarks, the product to we're continue U.S. care good feel global. Europe we'll in And we to the that first about good playbook. we potential this our take There's of And sit So globalize And new there. standard be truly in hand, for

Lawrence Solow

If in. I could just squeeze one more

exit margin you I give guide just know of up year fiscal to sort 'XX nice to goal versus I sort plus you help expenses. that. that? XXs, X of of bridge as for us you this even sort say, targeted. can of goals. over guys That's reaffirming operating that high you of the you mean shared improvement still from, don't to jump gross XXX But get Are I operating sort maybe years, sort just XXs guess, low a 'XX. on bps Just the you

Christopher Simon

Yes.

operating X% at first to they're to X%, our 'XX, in FY our of X-X income in at we tandem, at that that the addition looked we to I'll And we what in XX% a 'XX, And prepared for weigh take and already line long-range to bottom line invite into feel guidance grew like X-year EPS an FY he's where XX%. XX%. outstanding me plan. of Let Look, with top James said right, we which growth growth cut in, remarks. look

remainder on this of making. we not sizable quite a It's are about plan. So us and lost where good have we progress of are over still that the we feel opportunity the for margin any expansion we

last But there. when even than not plan different anticipated we us. June have meaningfully that's upon we manifested could is the out it's lost put way So this

exchange, And challenges Plasma again, cost. that is everyone a supply the the so mitigate, came as grew give of a but to few order was additional, to unprecedented there in and so. some right? But We rally at we has that right? of able and demand, it, foreign price expediting that James highlights challenges let meet in faced came incur obviously, volume you last but else same addition costs, highlighted do some couple well, of as that volume there had and were we the sizable cost, needed able macroeconomic me which the at on demand. that which script, But we to a proud did, we sheer successfully XX% inflation, we're is to uptick in was alone in were of the tremendous, to And fact year. it they

is is, bit to think lost part which which a there's think we're I this a 'XX. That a third about FY meant And margin in grow as very ability XX% story, line year excited more top I mix. little our in of Plasma the the that, gets this lot because a example, anticipated versus business. margin it more plan we of Hospital, gross much wrote Persona percent a than Nexsys total of higher there. revenue, in we our is Plasma, the was course, for with to which, lot have the the Within PCSX of addition retention when would

meaningfully gross more change and the on the that margin of the Plasma did technology complexion of Plasma old out more combination So going profile.

demand where different only that The a we on to this, at from 'XX mark transition sit perspective, have then factors we our and margins. When very plan. this ahead at test what current we we attention normalizes we do just even have macroeconomic that we great back going feel question we effect the that pay of comfortable are things earnings the perhaps drivers. But look a threefold work on you the we we'll XX% the plan our control. can overall year it's ago. when in sheer from to overall productivity. we'll is broader guide, be than we're about of growth look But point macro way up and again, than would can And in to abate, in right, confidence and There's the put occurs, that what or going as a the where forecasted, volume, the we beyond. we are earnings, through obviously FY at some As lot at the when will drive you're a close those as see as very and company

James D'Arecca

we'll that at savings comments, on then add other only well. side time. get thing over will us volumes margin level us Chris' to OEP make increase would more That our really efficient as The manufacturing the too, help is and I tailwind is the in the the

to that add that Chris' to that's and what So the explanation, there. we're gives going get us confidence

Operator

Turkaly JMP question a have We from from Securities. David

David Turkaly

love to play I've of are the ]? they product know you that [ watching manufacturing about what asked out Rica in sort I'd there in your happening past, do this centers? get there we're with here, data. but issues? rollout? is I what just given And Like think and out its what are Are you updated hearing

Christopher Simon

center strength don't I right? want who were that as I to product we're more and -- and can you you of We fall, our much in and this I the the making Individual value have off -- forward customers, strength. to the just plays more will, individual platform, this summer level. go they are of that excited was prepared customers. next really plan, that for platform pre-pandemic. the the think and is already to what road map about And really where we've to same-store the say doing, what delivering lean help free just Persona, and sales, on Dave, flow been proposition competitors charts our from I if think basis, right? standard funding achieve, kind that is to the I but certainly said able it's one Nexsys customers. increase James about invest on and comment remarks, talking about with it about cash to we'll behind from even creates forward, the we And volume taking behind the things that all we're contemplated have industry I in development delivering Yes, Nexsys this, the been tell or

David Turkaly

comments looking then contract And for based on for meaningful what place a there or XXXX, and north 'XX your the of is in them? would sort at something of from of in suggest half minimum you're

Christopher Simon

Dave, 'XX. you gave just 'XX want guide. the you We

David Turkaly

all. it want We

Christopher Simon

good And for our anticipated feel our included. What very we'll now going too. think to of that down be customers all to our ramp too. about CSL we serve shareholders, say Us is is good is I the smooth that ability

Operator

from Next Wuensch question from comes Joanne Citi.

Unknown Analyst

This Joanne. is Anthony for on

Plasma catch you of Can Or give think a trying new pre-pandemic these Are established sort pre-pandemic. back of an established to up? on are are they I ones quarter, just centers last versus levels? update? versus more breakdown volumes still us centers you to the gave

Christopher Simon

in full pre-pandemic for away doing get the I that No, to centers not positive. And to to which back to are in we they there's chip we a across -- thanks months, the X can fit continue open network. model whether does established centers first new cetera. its our centers. is their that They track at what continue to many can productivity it, get the have consistent know think Anthony, customers way, are to question. very an we've ongoing of The they They've around a the positive years, levels. X its as so throughout, debate everything first level. And in long-term new said very center et

away. chipping mature held. The have that are those -- centers So models

outstanding where less could invested some towns in structural around close we devices mature on want ones are growth. In cities centers the so, because and world point, so our it for little capital. doing that vantage markets example, those we the studying. obviously think been the that about potentially other But we device I turn are -- to aspect around some on from centers. our or country, drives because That's opened a the still mostly and the and rates have proximity it they're in our a customers there individual we be all. and of care seeing new of return unprecedented But many border,

propels on number total the profitability optimize. versus a important, is the and turn individual what's And something factor lot that's growth centers the mature and our the that we're rate So to devices. real of our new customers support but from manage of getting

So we recovery, clearly, that. or results the full showing can without our and succeed with are

Unknown Analyst

from said contribution then what Europe? share VASCADE, on commercialization maybe Europe from this quarter. starting I fiscal in guidance think And you is Can in embedded you

Christopher Simon

guidance right? investments focused internationally, And the hybrid didn't what and direct forward on. be of model our account in into we've Mark put upon. long-range exist for product back It approval. our lean is what with model most to That's which the The And ago, will use exclusively predicated selling where own here we We're definitely is of we're office. 'XX the a take excited there. We're CE making a FY Yes. will almost predicated coupled we'll it. our excited mix guidance penetration resources, X months U.S., markets original have distributor and was VASCADE upon. deal and plan our is that's utilization to the what new That's

for U.S., opportunity more confident about if so be that, dependent feel the And will a a we will ramp. ramp what's happening can we in is and year But great plan what almost so. we're which accelerate look we'll there. upon be do happen, every this to it It our entirely success modest

Operator

next our Matson Mike from & Company. question comes Needham And with

Michael Matson

wanted can donor one a Ripples thing? there's plasma guess Is payments a about Is and XX%. But for guess I talked be good how ways interpreted. customers they reported it bad I by interpret your I to of you cutting volumes? that it? thing recently, start with do it different

Christopher Simon

to prepared in it's macroeconomic for plasma. of there. this I rates openings said in there's at for us of aggregate, remuneration and manifest out that it. for of pay that earlier have new All manifest is into to in And amount and vantage number lot liter. all per plays the the to track motivating that is everyone see to to I seeing obviously It's environment remarks, per because work visibility We and on. over positive seen which center. And reimbursement are most another relates forward. back That platform the cost our superior this into cost -- a got the of very some balance created ways, that center the an a that. point, variety on the that's unabated of pull we've We use closely reimbursement. And think a in is reinforcement is terms opportunity Mike, unequivocally at challenges it. else are for the the close said, all norm as it's more as our the demand best, customers our liter, different in we've think the we It's how donor. here. many we don't philosophies first-hand individual that in of on not What From a attention we'll stage, this reduce focus time, donors I if back metric ability historically, they the

from that with our to point, And answer vantage adoption of the Persona driving question. so is Nexsys

Michael Matson

particular. sometimes on and U.S. Europe the the know that competitors in outside And launch some different these in cardio over in in -- just region. are of VASCADE I there then markets, some in

here? I it more there? know U.S.? markets is the vascular the you're lot would So not sensitive. those products the similar Are that maybe there question competitive cost for how the then of that Is of with there second part -- to does landscape any be, And also look kind closure are a guess I competing

going is price VASCADE adoption? be to So the to of a barrier potentially

Christopher Simon

to do But Japan is U.K., think do the Mike, and like in product different they fast-growing Germany be market fit them successful throughout market are in as And than a all each we what for the It's global is look in a what markets. of are cetera. different, relevant the the et for right? an What points, MEA right? we'll will right? of applicability outstanding We global VASCADE electrophysiology, those we well.

of reimbursement are There the different uptick And care. so and that's rates, planning and different there the work underway. standards are that's

arguments out improves product play have care. do some one of part the helping the so and our product this U.S. that And been here those the of think the that of we right? It of differently, the those in of may the end evolve markets so trifecta, in because is we'll day, at powerful the hit health economic standard

got use approach. health of economically starting countries, it's It's and the drives and some had ablation are for EP heal discharge, we've back versus where closure It on compression gets they that on to see a up. you at comfortable why can. reduces fronts, it understand hard for maximizing you'd better have system-wide or just a better we are sure the markets not particularly more we And points. those this for it different is because where suturing, ground nothing The ramp data the the make your different home choice, it and both and are to and procedures very working If we viable folks it you same-day in patients costs. those ramp may

Operator

Morgan Drew have We from a question Ranieri with Stanley.

Andrew Ranieri

to But on end. plasma Just maybe kind X% the X flat. guidance of centers, quick down my ones first on for

years. the one that outlooks I few company the posted has think of better is for the past guidance

to improvement then So businesses you're can follow-ups. the versus in the kind I you seeing what talk a really trends maybe in maybe start? about couple just XXXX historical had of other And of fiscal

Christopher Simon

Drew, for Yes. to just thanks question. the I clarify. want

a purposes apheresis fractionation. very Both evolving on more flat to for are centers apheresis, of for worked It's whole year in stories to X% focus plasma We've a in minus continually different blood the They're collecting cases center between the some of medical blood where market our the apheresis. a blood. So the for Nexsys plasma, a example. job of is blood customers. other combination and line Egypt, hard as That's the one a those. part with has within with we're cases about that -- bit line blurring. one is as Nexsys to of great outstanding kind of there. We and in all success for customers talked us. plasma attractive and walks role does experiencing those center an an

So driving the term, U.S. our success that's near of with in a what's filter whole we've it. had blood big real part the In products.

when certainly what weighing to unable X share because that's seeing here we of to the we're able we're I and market the or filters taking for back been X the over the expect have cannot. us market and over market. continue 'XX into Some competitors supply last It's us a supply think quarters, years. that And is our to FY

that's so be there see but it's as our with helping delighted we're we customers how center in for guide the we'll is, And blood to all customers, -- 'XX. for certainly it those of lived and long are

Andrew Ranieri

CSL think that. about And as incremental previously being I XX% think clarity it period, on thinking the second, in prior like I your fiscal just margins laid CSL? on XXXX, last the I should a contribution about the quarter in we And But on kind couple the stocking for this wanted that Persona orders add fiscal a 'XX? is but you're the you've about are do XXXX midway there that volumes experienced third, and same little then additional mean, of for fiscal we was quarter. you here. collections, up Persona of mentioned looked in bit stocking year mean, think when wins as then out? any I procedure order we -- from Plasma you Plasma, more a And any on adjust contract if just for embedding you follow-ups out to But

Christopher Simon

The Let Yes. question, me see next. is if holding I hot the just either are vagaries ability you look quarter we've of on much we're to have most are working the to run the about And main, U.S. in can is the customers X you'll X our don't do not Drew. to justice always -- see. how at inventory. given hold capital, when reality inventory demand, you our to the talk year next the right. And There

reporting organic in X demand, the right? think market and being It's at are most. what we going next used usually the weeks, the we X into is So

seeing we're not real. What 'XX. of there, FY So and a FY is quite lot puts takes and organic 'XX versus

On margins, a that's the I think safe assumption. CSL

no drive sizable in really technology our hesitant order and include unless need leaning to be out to And our upgrades we've until what they've historically. with And to put as make customers Persona, able change then that. been even to we've we're are contracted. changes yes, broad-based use there into reason to has Just adoption. norm, There -- the gains There's we're been that. that from

to take a tend that. more we stance on So conservative

should what we've progresses, lap reflected you as put we've for the accordingly. say update and the Nexsys out successful, as But in the about about existing be fact over to to expect that thinking more of persona we'll that contracts, be we'll about plan. If some for and year to you're in this a of the when contributor, think that our We happy and main, year. the them there's course price

Operator

Research. question Michael from have Petusky from Barrington a We

Michael Petusky

Great, great finish guide. and

know don't PCSX? any disclosed So questions. at you CSL, I of am installed percentage what point, guys this but guess you of uses still your have One, a if curious, if exclude I base couple I

Christopher Simon

none. the In U.S.,

Michael Petusky

apologize. terms was wondering -- puts but I may here, this the I but in if help half, some and first I and any then -- missed may have takes missed I I of as well, the that, second in have or EPS again, the And of cadence half 'XX,

Christopher Simon

No.

said basically the abate. better operating inefficiencies we said manufacturing basically the than a begin would it that So bit second And be margin half -- first in the I the half to talked first the we would half be that sorry, as line. context of the about

Michael Petusky

mean, So you in adjusted like any give I mean of terms second XX-XX weighted the heard I that just and to EPS. I there been the Plasma. half. it help can curious, is I'm commentary around

Christopher Simon

it's weighted that less Yes, the even probably than bit to that. a maybe half. around little it's somewhere range, and in Yes, second

Operator

that's all the conclude Thank have. you This participating. today's conference questions for we And call. does

You may now disconnect.

Haemonetics (HAE) 11 May 232023 Q4 Earnings call transcript