Q1 2024 Henry Schein Inc Earnings Call Transcript
Key Points
- Henry Schein Inc reported solid earnings for Q1 2024, driven by gross margin expansion and a strong recovery from the previous quarter's cyber incident.
- The company's recent acquisitions have positively contributed to profitability in the first quarter.
- Henry Schein Inc is affirming its expectations for 2024 non-GAAP diluted EPS and 2024 adjusted EBITDA growth, reflecting confidence in continued financial performance.
- The THRIVE Signature program in the U.S. has contributed to sales growth, with membership increasing significantly.
- Henry Schein Inc has seen strong growth across dental specialties such as oral surgical products, endodontics, and orthodontics, largely driven by acquisitions and organic market share gains.
- Sales of PPE products continued to decrease, primarily due to lower glove prices compared to the previous year.
- The cyber incident from the last quarter negatively impacted merchandise sales growth by low to mid-single-digit percentages during Q1 2024.
- Global Dental equipment sales were only consistent with the prior year, with a slight decrease in international equipment sales.
- The company experienced a decline in GAAP operating margin by 101 basis points compared to the prior year, indicating increased costs or reduced efficiency.
- Henry Schein Inc's first quarter results still reflect challenges from the cyber incident, impacting sales growth and operational aspects.
Good morning, ladies and gentlemen, and welcome to Henry Schein's First Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. (Operator Instructions) And as a reminder, this call is being recorded. I would now like to introduce your host for today's call, Graham Stanley, Henry Schein's Vice President of Investor Relations and Strategic Financial Project Officer. Thank you. Please go ahead, Graham.
Thank you, operator, and my thanks to each of you for joining us to discuss Henry Schein's financial results for the first quarter of 2024. With me on today's call are Stanley Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein; and Ron South, Senior Vice President and Chief Financial Officer.
Before we begin, I'd like to state that certain comments made during this call will include information that's forward-looking. Risks and uncertainties involved in
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