Summary
Cardinal Health, Inc. reported a significant increase in revenue for fiscal year 2023, reaching $205.0 billion, driven primarily by its Pharmaceutical segment. The company's consolidated GAAP operating earnings improved to $727 million from a loss of $596 million in the prior year, largely benefiting from litigation recoveries. On a non-GAAP basis, operating earnings increased by 3% to $2.1 billion, reflecting growth in the Pharmaceutical segment's profit, partially offset by a decline in the Medical segment's profit. The company faced challenges in its Medical segment, which saw a 5% decrease in revenue due to lower volumes and unfavorable product mix, compounded by ongoing inflationary impacts. Significant goodwill impairment charges totaling $1.2 billion were recognized in the Medical segment during fiscal 2023, following a $2.1 billion charge in fiscal 2022, reflecting revised long-term financial plan assumptions. The company continues to manage substantial long-term liabilities, including a significant accrual for opioid litigation, with payments expected through 2038. Financially, Cardinal Health returned $2.0 billion to shareholders through share repurchases and paid $525 million in dividends in fiscal 2023. The company maintained a strong liquidity position, with cash and equivalents of $4.0 billion at year-end. Looking ahead, the company expects continued inflationary impacts in the Medical segment, albeit at a reduced level, and anticipates sales growth in its branded medical products.
Financial Highlights
49 data points| Revenue | $204.98B |
| Cost of Revenue | $198.10B |
| Gross Profit | $6.87B |
| SG&A Expenses | $4.80B |
| Operating Income | $752.00M |
| Interest Expense | $84.00M |
| Net Income | $330.00M |
| EPS (Basic) | $1.27 |
| EPS (Diluted) | $1.26 |
| Shares Outstanding (Basic) | 261.00M |
| Shares Outstanding (Diluted) | 262.00M |
Key Highlights
- 1Total revenue increased by 13% year-over-year to $205.0 billion, driven by a 15% increase in Pharmaceutical segment revenue, while Medical segment revenue decreased by 5%.
- 2GAAP operating earnings turned positive at $727 million in fiscal 2023, a significant improvement from a GAAP operating loss of $596 million in fiscal 2022, mainly due to litigation recoveries.
- 3Non-GAAP operating earnings increased by 3% to $2.1 billion, with Pharmaceutical segment profit growth being the primary driver.
- 4The Medical segment recorded $1.2 billion in goodwill impairment charges in fiscal 2023, following $2.1 billion in fiscal 2022, due to changes in financial plan assumptions.
- 5The company accrued $5.87 billion for opioid litigation settlement agreements, with payments expected through 2038.
- 6Cardinal Health returned $2.0 billion to shareholders through share repurchases and paid $525 million in dividends during fiscal 2023.
- 7Cash and equivalents stood at $4.0 billion as of June 30, 2023, while operating activities generated $2.8 billion in cash.