Q2 2024 Henry Schein Inc Earnings Call Transcript
Key Points
- Henry Schein Inc (HSIC) delivered solid second-quarter financial results with strong operating cash flow.
- Gross margin increased, driven by high-growth, high-margin products and services, and successful performance of recent acquisitions.
- North American dental equipment sales showed positive growth across traditional equipment, digital imaging, CAD/CAM, and parts and services.
- The subscription-based Thrive signature program saw an increase in membership, driving customer loyalty.
- The restructuring plan aims to integrate recent acquisitions and right-size operations, targeting $75 million to $100 million in annual savings.
- The pace of recovery from the cyber incident last year has been slower than anticipated, impacting sales.
- Economic challenges in certain markets have led to a revision of the 2024 full-year financial guidance.
- International dental equipment sales were negatively impacted by changes in DSO legislation in France, a slow equipment market in Italy, and the expiration of tax incentives in Australia.
- Sales were affected by ongoing migration to generic alternatives for certain branded pharmaceuticals and lower sales of PPE products.
- Some dental practices are facing cash flow challenges due to reimbursement delays, impacting demand for certain software products and equipment.
Good morning, ladies and gentlemen, and welcome to Henry Schein's second-quarter 2024 earnings conference call. (Operator Instructions) 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. 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 second 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 including information that is forward looking. Risks and uncertainties involved in the company's business may affect the matters referred to in forward-looking statements, and
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