On November 2, 2023, Haemonetics Corp (HAE, Financial) released its financial results for the second quarter and first half of fiscal 2024, which ended on September 30, 2023. The company reported a 7% increase in Q2 revenue, amounting to $318 million, and a 13% increase in year-to-date revenue, totaling $630 million. The earnings per diluted share for Q2 and the first half of fiscal 2024 were $0.48 and $1.28, respectively.
Financial Performance
Haemonetics Corp (HAE, Financial) reported a gross margin of 53.6% in Q2 2024, compared to 53.1% in Q2 2023. The increase in the gross margin percentage was driven by price, volume, and mix, partially offset by inventory reserves, continuous growth investments, and increased depreciation expense. The company's operating expenses as a percentage of revenue were 42.5% in Q2 2024, compared to 37.4% in Q2 2023. The increase in operating expenses as a percentage of revenue was primarily driven by intangible asset impairments, continuous growth investments, and digital transformation costs, partially offset by lower freight costs.
Business Unit Performance
Haemonetics Corp (HAE, Financial) reported an 11% increase in Plasma revenue, a 7.6% decrease in Blood Center revenue, and a 13.5% increase in Hospital revenue in Q2 2024. The total net revenue for the quarter was $318.2 million, a 7% increase from the same period in the previous fiscal year.
Adjusted Results
The company's adjusted gross margin for Q2 2024 was 54%, up 30 basis points compared to the same period in the previous fiscal year. The primary drivers of the increase in the gross margin percentage were price, volume, and mix, partially offset by inventory reserves, continuous growth investments, and increased depreciation expense. The adjusted operating income for Q2 2024 was $68.3 million, up $7.7 million or 12.8%, compared to Q2 2023. The adjusted income tax rates were 23% and 22% in Q2 2024 and Q2 2023, respectively.
Balance Sheet and Cash Flow
As of September 30, 2023, Haemonetics Corp (HAE, Financial) had $351.0 million in cash on hand, an increase of $66.5 million since April 1, 2023. The company's cash flow from operating activities was $99.1 million, and free cash flow before restructuring and restructuring-related costs was $76.7 million during Q2 2024.
Fiscal 2024 Guidance
The company updated its fiscal 2024 GAAP total revenue and organic revenue growth guidance. The reported revenue is expected to increase by 7-9%, and the organic revenue is expected to increase by 8-10%. The company also updated its adjusted operating margin guidance, adjusted earnings per diluted share guidance, and free cash flow before restructuring and restructuring-related costs guidance.
Explore the complete 8-K earnings release (here) from Haemonetics Corp for further details.
