Summary
Becton, Dickinson and Company (BDX) reported revenues of $4.995 billion for the three months ended December 31, 2021, a decrease of 6.0% compared to the prior year period. This decline was largely driven by a significant reduction in COVID-19 diagnostic testing revenues, which were $185 million in the current quarter compared to $866 million in the prior year. Despite the revenue decrease, the company managed operating costs effectively, resulting in a net income of $677 million, or $2.28 per diluted share, compared to $1,003 million, or $3.35 per diluted share, in the prior year. The company is actively managing its strategic direction, including the planned spin-off of its Diabetes Care business, Embecta Corp., which is expected to be completed in the first half of calendar year 2022. The company also reported ongoing investments in research and development and strategic acquisitions to support its long-term growth strategy, anchored in its BD 2025 pillars of grow, simplify, and empower. However, persistent challenges in global supply chains, including rising raw material and freight costs, along with labor shortages, are impacting gross profit margins and operating expenses.
Financial Highlights
53 data points| Revenue | $4.72B |
| Cost of Revenue | $2.50B |
| Gross Profit | $2.22B |
| R&D Expenses | $314.00M |
| SG&A Expenses | $1.19B |
| Operating Expenses | $4.03B |
| Operating Income | $692.00M |
| Interest Expense | $98.00M |
| Net Income | $677.00M |
| EPS (Basic) | $2.30 |
| EPS (Diluted) | $2.28 |
| Shares Outstanding (Basic) | 284.69M |
| Shares Outstanding (Diluted) | 286.72M |
Key Highlights
- 1Revenues decreased by 6.0% to $4.995 billion, primarily due to a significant drop in COVID-19 diagnostic testing sales, which fell from $866 million to $185 million year-over-year.
- 2Net income declined to $677 million ($2.28 per diluted share) from $1,003 million ($3.35 per diluted share) in the prior year period, reflecting the lower revenue base.
- 3The company is proceeding with the planned spin-off of its Diabetes Care business, Embecta Corp., with a distribution date set for April 1, 2022.
- 4Despite overall revenue decline, core product demand showed strength across Medical and Interventional segments, with Medication Delivery Solutions, Pharmaceutical Systems, Surgery, and Urology and Critical Care units reporting growth.
- 5Gross profit margin decreased to 48.5% from 51.4%, impacted by lower COVID-19 testing profitability, higher raw material costs, and unfavorable operating performance, partially offset by price initiatives and foreign currency translation.
- 6Selling and administrative expenses as a percentage of revenue increased due to the revenue decline and other operational factors, while R&D expenses also increased as a percentage of revenue due to project timing and ongoing investment in growth initiatives.
- 7The company continues to manage its debt, with total debt at $17.424 billion and a leverage coverage ratio of 40.4% of total capital.