01—Abstract
Summary
Summary of the 10-K filed November 24, 2021. Cited figures are marked; the original filing is the authoritative source.
Becton, Dickinson and Company (BDX) reported robust revenue growth of 18.3% in fiscal year 2021, reaching $20.25 billiona, driven by a significant recovery in medical procedures and strong demand across its Medical, Life Sciences, and Interventional segments.
The Life Sciences segment, in particular, saw a substantial boost from COVID-19 diagnostic testing solutions. Despite global economic uncertainties and supply chain challenges exacerbated by the pandemic, BD demonstrated strong operating performance and cash flow generation, with operating income reaching $2.8 billionb. The company continues to invest in R&D and strategic initiatives aimed at innovation and efficiency, as outlined in its BD 2025 strategy.
BD also reaffirmed its commitment to shareholder returns through dividends and share repurchases. Looking ahead, BD announced its intention to spin off its Diabetes Care business into a separate publicly traded company, a strategic move aimed at allowing both entities to focus on their respective growth strategies and capital allocation.
The company also navigated various risk factors, including the ongoing impact of the COVID-19 pandemic, supply chain disruptions, and ongoing regulatory considerations, while maintaining effective internal controls. The company's financial position remains strong, supported by healthy cash flows and access to credit facilities.
02—Key points
Key Highlights
- Total revenue for fiscal year 2021 reached $20.25 billion, an increase of 18.3% compared to the prior year, driven by volume increases, favorable foreign currency, and price adjustments.
- The Life Sciences segment experienced significant growth, up 39.7%, largely fueled by COVID-19 diagnostic testing on the BD Veritor™ Plus and BD Max™ Systems, alongside improved demand for specimen management and automated blood cultures.
- The Medical segment's revenue grew by 9.2%, with strong performance in Medication Delivery Solutions and Pharmaceutical Systems, supported by increased demand for core products and conversion to pre-filled devices.
- The Interventional segment saw a 12.7% revenue increase, benefiting from higher hospital utilization and new product offerings in its Surgery and Peripheral Intervention units.
- Operating income improved significantly to $2.8 billion from $1.48 billion in the prior year, reflecting better gross profit margins across segments and improved operating expense management.
- BD generated $4.65 billion in cash flow from operating activities, demonstrating strong cash generation to support investments, dividends, and share repurchases.
- The company announced its intention to spin off its Diabetes Care business, expected to be completed in the first half of calendar year 2022, to create two focused, publicly traded entities.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2021, Becton Dickinson & Co kept $0.11.
- Revenue$19.13B100.0%
- Cost of revenue−$10.50B54.9%
- Gross profit$8.63B45.1%
- Operating costs−$6.38B33.4%
- Operating income$2.25B11.8%
- Interest, other & tax−$158.0M0.8%
- Net income$2.09B10.9%
Where FY2021 revenue went
$19.13B- Cost of revenue: $10.50B, 55% of revenue
- SG&A: $4.72B, 25% of revenue
- Net income: $2.09B, 11% of revenue
- R&D: $1.28B, 6.7% of revenue
- Other operating costs: $383.0M, 2.0% of revenue
- Interest, other & tax: $158.0M, 0.8% of revenue
Kept 11% as net incomeInterest, other & tax $158.0M · 0.8%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2021filed November 24, 2021Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $19.13B$16.07B | +19.0% |
| Cost of Revenue | $10.50B$9.28B | +13.2% |
| Gross Profit | $8.63B$7.58B | +13.9% |
| R&D Expenses | $1.28B$1.04B | +23.1% |
| SG&A Expenses | $4.72B$4.18B | +12.8% |
| Operating Expenses | $16.88B$15.16B | +11.3% |
| Operating Income | $2.25B$912.00M | +146.7% |
| Interest Expense | $469.00M$528.00M | −11.2% |
| Net Income | $2.09B$874.00M | +139.4% |
| EPS (Basic) | $6.92$2.75 | +151.6% |
| EPS (Diluted) | $6.85$2.71 | +152.8% |
| Shares Outstanding (Basic) | 289.29M278.97M | +3.7% |
| Shares Outstanding (Diluted) | 292.09M282.40M | +3.4% |
05—Questions
Frequently Asked Questions
What was Becton Dickinson's (BDX) overall financial performance in fiscal year 2021?
Becton, Dickinson and Company (BDX) reported strong financial performance in fiscal year 2021, with total revenues of $20.25 billion, an increase of 18.3% year-over-year. This growth was driven by increased demand across all three business segments: Medical, Life Sciences, and Interventional. The company also saw a significant improvement in operating income, reaching $2.8 billion, and generated robust operating cash flow of $4.65 billion.
What were the key drivers of revenue growth in fiscal year 2021?
Revenue growth was primarily driven by increased demand for BD's products as healthcare utilization recovered from pandemic-related lows. The Life Sciences segment saw exceptional growth due to its COVID-19 diagnostic testing solutions. The Medical segment benefited from strong demand in medication delivery and pharmaceutical systems, while the Interventional segment saw increased sales for surgical and peripheral intervention products.
What is the significance of the announced spin-off of the Diabetes Care business?
BD announced its intention to spin off its Diabetes Care business into a separate, publicly traded company. This strategic move is expected to allow both BD and the new Diabetes Care entity to focus on their distinct growth strategies, optimize capital allocation, and better serve their respective markets. The spin-off is anticipated to be completed in the first half of calendar year 2022.
What are some of the major risks or challenges Becton Dickinson (BDX) faces?
BD faces several risks, including the ongoing impact of the COVID-19 pandemic on demand and supply chains, intense competition in the medical technology industry, foreign currency exchange rate fluctuations, changes in third-party payer reimbursement practices, and regulatory risks associated with medical device approvals and manufacturing. The company also faces risks related to its supply chain, including raw material availability and sterilization processes.
06—Continue