Summary: Henry Schein, Inc. reported solid financial results for Q2 2024, with total net sales of $3.1 billion, a 1.1% increase from Q2 2023. Despite challenges from a cyber incident, the company saw improving sales trends and announced a restructuring plan targeting $75-$100 million in annual savings.

Key Takeaways:

  • Financial Performance: Henry Schein’s Q2 2024 net sales were $3.1 billion, up 1.1% from Q2 2023, driven by acquisitions and high-margin products.
  • Challenges and Recovery: Sales trends improved despite a slower-than-expected recovery from a late 2023 cyber incident and lower PPE sales.
  • Restructuring Plan: The company announced a restructuring plan to integrate acquisitions and increase efficiencies, aiming for $75-$100 million in annual savings.

Henry Schein, Inc reported financial results for the second quarter ended June 29, 2024.

“We delivered solid second quarter financial results, including strong operating cash flow, that reflected stable end markets. Gross margin continued to increase, driven by our strategies to expand our high-growth, high-margin products and services and by the successful performance of our recent acquisitions,” said Stanley M. Bergman, chairman of the board and chief executive officer of Henry Schein. “We are experiencing improving sales trends in our distribution businesses, however, the pace of recovery in these businesses since the cyber incident late last year has been slower than anticipated.”

Second-Quarter 2024 Financial Results

Total net sales for the quarter were $3.1 billion, an increase of 1.1% compared with the second quarter of 2023. This reflects 4.0% sales growth from acquisitions, a 0.5% sales decrease resulting from foreign exchange rates, a 0.5% sales decrease from lower sales of personal protective equipment (PPE), primarily the result of lower glove pricing, and the pace of recovery from the cyber incident late last year.

Global dental sales totaled $3.8 billion for the quarter, a decrease of 0.5% from the previous quarter.

Restructuring Plan

Henry Schein announced a restructuring plan to integrate recent acquisitions, right-size operations and further increase efficiencies, targeting $75 million to $100 million in annual run-rate savings.

The Company expects to record restructuring charges in the second half of 2024 and in 2025; however, an estimate of the amount of these charges has not yet been determined as plans are still being finalized. Restructuring charges are expected primarily to include severance pay and facility-related costs.

The restructuring plan announced in the third quarter of 2022 was completed on July 31, 2024.