01—Abstract
Summary
Summary of the 10-K filed November 22, 2022. Cited figures are marked; the original filing is the authoritative source.
Becton, Dickinson and Company (BDX) reported revenues of $18.87 billiona for the fiscal year ended September 30, 2022, a slight decrease of 1.4% compared to the prior year.
This decline was primarily driven by a significant drop in COVID-19 related diagnostic test sales, which decreased from $1.956 billion in FY2021 to $511 millionb in FY2022. Excluding the impact of COVID-19 testing, the company experienced a volume increase of 6.2%, indicating growth in its core product lines across all three segments: Medical, Life Sciences, and Interventional. The company completed the acquisition of Parata Systems for $1.548 billion in July 2022, strengthening its presence in pharmacy automation.
Concurrently, BD completed the spin-off of its Diabetes Care business, Embecta Corp., on April 1, 2022. The company continues to focus on strategic objectives of growth, simplification, and empowerment, including investments in R&D and portfolio expansion. Despite inflationary pressures and supply chain challenges, BD maintained a strong financial position, with $2.471 billionc in cash flows from continuing operations and returning value to shareholders through dividends and share repurchases.
02—Key points
Key Highlights
- Total revenues decreased by 1.4% to $18.87 billion in fiscal year 2022, primarily due to a substantial decline in COVID-19 related diagnostic test sales.
- Excluding COVID-19 testing, company volume increased by 6.2%, demonstrating underlying demand for core products across all segments.
- Acquisition of Parata Systems for $1.548 billion closed in July 2022, bolstering the Medical segment's Medication Management Solutions unit.
- Completed the spin-off of its Diabetes Care business (Embecta Corp.) on April 1, 2022.
- Generated $2.471 billion in cash flow from continuing operations, maintaining a strong financial position.
- Returned value to shareholders through $1.082 billion in dividends and $500 million in share repurchases during fiscal year 2022.
- Navigated inflationary pressures and supply chain disruptions, implementing cost-containment measures and strategic procurement.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2022, Becton Dickinson & Co kept $0.09.
- Revenue$18.87B100.0%
- Cost of revenue−$10.39B55.1%
- Gross profit$8.48B44.9%
- Operating costs−$6.20B32.8%
- Operating income$2.28B12.1%
- Interest, other & tax−$503.0M2.7%
- Net income$1.78B9.4%
Where FY2022 revenue went
$18.87B- Cost of revenue: $10.39B, 55% of revenue
- SG&A: $4.71B, 25% of revenue
- Net income: $1.78B, 9.4% of revenue
- R&D: $1.26B, 6.7% of revenue
- Other operating costs: $230.0M, 1.2% of revenue
- Interest, other & tax: $503.0M, 2.7% of revenue
Kept 9.4% as net incomeOther operating costs $230.0M · 1.2%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2022filed November 22, 2022Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $18.87B$19.13B | −1.4% |
| Cost of Revenue | $10.39B$10.50B | −1.0% |
| Gross Profit | $8.48B$8.63B | −1.8% |
| R&D Expenses | $1.26B$1.28B | −1.8% |
| SG&A Expenses | $4.71B$4.72B | −0.2% |
| Operating Expenses | $16.59B$16.88B | −1.7% |
| Operating Income | $2.28B$2.25B | +1.4% |
| Interest Expense | $398.00M$469.00M | −15.1% |
| Net Income | $1.78B$2.09B | −15.0% |
| EPS (Basic) | $5.93$6.92 | −14.3% |
| EPS (Diluted) | $5.88$6.85 | −14.2% |
| Shares Outstanding (Basic) | 285.00M289.29M | −1.5% |
| Shares Outstanding (Diluted) | 287.36M292.09M | −1.6% |
05—Questions
Frequently Asked Questions
What was the primary driver of the revenue decrease in FY2022?
The primary driver of the revenue decrease was the significant decline in sales from COVID-19 diagnostic tests. These sales dropped from $1.956 billion in FY2021 to $511 million in FY2022.
How did the company's core business perform excluding COVID-19 related sales?
Excluding the impact of COVID-19 testing, BDX experienced a positive volume growth of 6.2% across its business segments, indicating healthy demand for its core medical technologies and devices.
What were the significant corporate actions taken during FY2022?
BD completed two major corporate actions: the acquisition of Parata Systems for $1.548 billion to enhance its pharmacy automation offerings, and the spin-off of its Diabetes Care business (Embecta Corp.) as a separate public company.
How is the company managing inflationary pressures and supply chain challenges?
BD is mitigating these challenges through strategic procurement initiatives, exploring alternative sourcing for raw materials and transportation, implementing cost-containment measures, optimizing its product portfolio, and improving operational efficiencies. Despite these efforts, the company acknowledges that these pressures could impact future results.
06—Continue