01—Abstract
Summary
Summary of the 10-K filed November 27, 2024. Cited figures are marked; the original filing is the authoritative source.
Becton, Dickinson and Company (BDX) reported revenues of $20.178 billiona for the fiscal year ended September 29, 2024, representing a 4.2% increase year-over-year.
This growth was driven by strong performance across its Medical, Life Sciences, and Interventional segments, notably boosted by the recent acquisition of Edwards Lifesciences' Critical Care product group. The company highlighted strategic objectives centered on growth, simplification, and empowerment, with a focus on innovation in smart devices, robotics, and AI. While facing some headwinds from market dynamics in China and inflationary pressures on labor and materials, BD demonstrated resilience with robust operating income and significant cash flow from continuing operations.
The company continued to return value to shareholders through dividends and share repurchases. BD is actively managing various risks, including supply chain disruptions, regulatory scrutiny (particularly with its Alaris infusion pump business and a recent FDA warning letter for dispensing products), and cybersecurity threats. The company's proactive approach to risk management and commitment to innovation position it for continued development in the global medical technology market.
02—Key points
Key Highlights
- BDX reported fiscal year 2024 revenues of $20.178 billion, a 4.2% increase year-over-year, indicating continued top-line growth.
- The acquisition of Edwards Lifesciences’ Critical Care product group (now BD Advanced Patient Monitoring) for $3.911 billion in September 2024 significantly expanded BD's Medical segment capabilities, particularly in advanced patient monitoring.
- The company generated strong cash flow from continuing operations of $3.844 billion in fiscal year 2024, supporting its investment in R&D, strategic acquisitions, and returning value to shareholders via dividends and share repurchases.
- BD is focused on strategic objectives of 'Grow, Simplify, Empower,' emphasizing innovation in areas like smart devices, AI, and improving operational efficiencies.
- While revenue grew, the company highlighted challenges including market dynamics in China (like volume-based procurement), increased labor costs, and ongoing supply chain pressures.
- BD is managing significant regulatory matters, including a consent decree related to its Alaris infusion pumps and a recent FDA warning letter for its dispensing quality management system, which have associated costs and ongoing remediation efforts.
- The company reported a gross profit margin of 45.2% for FY2024, an improvement from 42.2% in FY2023, partly due to favorable purchase accounting adjustments and productivity initiatives.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Becton Dickinson & Co kept $0.08.
- Revenue$20.18B100.0%
- Cost of revenue−$11.05B54.8%
- Gross profit$9.13B45.2%
- Operating costs−$6.73B33.3%
- Operating income$2.40B11.9%
- Interest, other & tax−$692.0M3.4%
- Net income$1.71B8.4%
Where FY2024 revenue went
$20.18B- Cost of revenue: $11.05B, 55% of revenue
- SG&A: $4.86B, 24% of revenue
- Net income: $1.71B, 8.4% of revenue
- R&D: $1.19B, 5.9% of revenue
- Other operating costs: $681.0M, 3.4% of revenue
- Interest, other & tax: $692.0M, 3.4% of revenue
Kept 8.4% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed November 27, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $20.18B$19.37B | +4.2% |
| Cost of Revenue | $11.05B$11.20B | −1.3% |
| Gross Profit | $9.13B$8.17B | +11.7% |
| R&D Expenses | $1.19B$1.24B | −3.8% |
| SG&A Expenses | $4.86B$4.72B | +2.9% |
| Operating Expenses | $17.78B$17.26B | +3.0% |
| Operating Income | $2.40B$2.11B | +13.5% |
| Interest Expense | $528.00M$452.00M | +16.8% |
| Net Income | $1.71B$1.48B | +14.9% |
| EPS (Basic) | $5.88$4.97 | +18.3% |
| EPS (Diluted) | $5.86$4.94 | +18.6% |
| Shares Outstanding (Basic) | 289.76M286.28M | +1.2% |
| Shares Outstanding (Diluted) | 291.01M288.39M | +0.9% |
05—Questions
Frequently Asked Questions
What was the overall financial performance of BDX in fiscal year 2024?
Becton, Dickinson and Company (BDX) reported revenues of $20.178 billion for the fiscal year ended September 29, 2024, a 4.2% increase compared to the prior year. The company generated strong operating income and cash flow from continuing operations, underscoring its financial stability amidst ongoing strategic initiatives and market dynamics.
What are the key strategic initiatives and growth drivers for BDX?
BD's growth strategy, 'BD 2025,' is focused on 'Grow, Simplify, and Empower.' Key drivers include accelerating innovation in smart devices, robotics, and AI, focusing on core leading products, investing in R&D, and pursuing strategic acquisitions. The recent acquisition of Edwards Lifesciences' Critical Care product group is a significant step in expanding its smart connected care solutions within the Medical segment.
What significant risks or challenges did BDX identify in its filing?
BDX faces several risks, including global economic conditions like inflation and supply chain disruptions, competitive pressures in the medical technology industry, foreign currency exchange rate fluctuations, and regulatory scrutiny. Notably, the company is managing a consent decree related to its Alaris infusion pumps and received an FDA warning letter for its dispensing quality management system, which require ongoing remediation and carry potential financial impacts.
How did the acquisition of Edwards Lifesciences' Critical Care product group impact the company?
The acquisition, completed on September 3, 2024, for $3.911 billion, significantly enhances BD's Medical segment by adding advanced patient monitoring systems and AI-enabled clinical decision tools. It is expected to contribute to the company's 'smart connected care' solutions portfolio and future growth.
06—Continue