Henry Schein (HSIC) FY2024 10-K Annual Report

Filed: Feb 25, 2025
Consumer Discretionary
Wholesale-Medical, Dental & Hospital Equipment & SuppliesSEC EDGAR

Henry Schein (HSIC) 10-K annual report for fiscal year 2024, filed with SEC EDGAR on Feb 25, 2025. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Henry Schein FY2024 10-K Analysis

Business Overview

  • Core business model: Global distributor and manufacturer of dental, medical, specialty healthcare products, and practice management technologies
  • New segment reporting structure in 2024: three segments — Global Distribution and Value-Added Services, Global Specialty Products, Global Technology
  • Strategic shift: 2024 restructuring plan initiated for integration and efficiency following recent acquisitions and prior restructuring completion
  • Quantitative highlight: Net sales increased 2.7% to $12.67B; Global Specialty Products sales up 8.7%, driven by acquisitions of TriMed, Biotech Dental, S.I.N.
  • Noteworthy fact: Restructuring charges of $73M in 2024 including $13M goodwill impairment related to Global Specialty Products segment disposal

Management Discussion & Analysis

  • Revenue $12.339B, down 2.4% YoY; Global Dental flat at $6.65B (+0.3%), Global Medical down 10% to $3.91B
  • Gross margin 31.7% vs 31.3%; Global Specialty Products margin 54.1% vs 53.3%, Global Technology margin 67.4% vs 69.2%, Global Distribution margin 25.6% vs 25.2%
  • Best segment: Global Technology sales up 9.6% to $602M with 67.4% gross margin; worst: Global Medical sales down 10% to $3.91B
  • Operating expenses $3.245B (26.3% of sales) vs $3.084B (24.4%); net cash from operations $848M vs $500M; capex and acquisitions $430M outflow vs $1.135B prior year; repurchases ongoing with $380M remaining authorization
  • Management impacted by 2023 cyber incident affecting sales and working capital; expects continued share repurchases and monitors emerging global tax rules (OECD Pillar Two) and market conditions

Risk Factors

  • Regulatory risk: non-compliance with EU Medical Device Regulation impacting global specialty products manufacturing
  • Geopolitical risk: disruptions from ongoing wars including Ukraine and Israel-Gaza conflicts affecting international trade and operations
  • Operational risk: October 2023 cyberattack caused $9M expenses and decreased sales in North American and European distribution segments
  • Competitive risk: pressure from third-party online commerce sites challenging traditional distribution channels
  • Financial risk: reliance on $60M cyber insurance claim with $20M still under review potentially affecting coverage realization

Henry Schein FY2024 Key Financial Metrics
XBRL

Revenue

$12.7B

+2.7% YoY

Net Income

$390M

-6.3% YoY

Gross Margin

31.7%

+40bp YoY

Operating Margin

4.9%

-8bp YoY

Net Margin

3.1%

-29bp YoY

ROE

11.5%

+11bp YoY

Total Assets

$10.2B

-3.4% YoY

EPS (Diluted)

$3.05

-3.5% YoY

Operating Cash Flow

$848M

+69.6% YoY

Source: XBRL data from Henry Schein FY2024 10-K filing on SEC EDGAR. All figures in USD.

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