The company’s dental business saw a 41.2% decrease in sales versus Q2 2019, but sales rebounded in the latter part of Q2 as dental practices reopened.
Henry Schein Inc reported its second quarter 2020 financial results. Net sales were $1.7 million, a decrease of 31.2% compared to Q2 2019. The company attributes the decrease to the impact of the COVID-19 pandemic.
“Team Schein rose to the significant challenges caused by the global COVID-19 pandemic. These efforts are clear attributes of our corporate culture, which is rooted in care and respect for one another, as well as a commitment to our customers, suppliers, investors, and corporate social responsibility,” said Stanley M. Bergman, chairman of the board and CEO of Henry Schein. “While results for the second quarter are reflective of the current challenging environment, we remain confident in our strategy. Throughout this pandemic, we have focused our dental and medical practice recovery programs to assist our customers with solutions ranging from management of temporary office closures to practice safety, new protocol implementation, patient communications, and financial assistance, among many other solutions to help restore practices.
“Regarding our second quarter financial results, COVID-19 significantly impacted our worldwide results, particularly in our Dental business, yet sales improved relative to our original expectations across all our business groups as we progressed through the quarter. This was directly related to a resumption of operations for both our dental and medical customers, which occurred faster than we had anticipated, first in our international markets and then in North America,” said Bergman. “We remain cautiously optimistic about the immediate future while closely monitoring global diagnosed COVID-19 cases and the potential impact on customer activity, and focusing on cash management. Our enthusiasm for both our near- and long-term business prospects remains unchanged.”
The company’s dental business reported sales of $941.3 million, down 41.2% versus the prior year. According to the company, in North America, the decrease was 46.9%, while internationally, the company reported a decrease of 29.5%.
In North America, dental consumable merchandise internal sales in local currencies declined 47.5% and dental equipment internal sales in local currencies declined 44.9%. Internationally, dental consumable merchandise internal sales in local currencies declined 29.2% and dental equipment internal sales in local currencies declined 30.5%.
The company reported that in the latter part of Q2 sales were trending up as dental practices reopened and patients returned for oral care visits. Bergman said this was resulting in dental sales in Q2 that were ahead of the company’s original expectations. In addition, the company reported that Henry Schein One dental software sales improved as the company progressed through Q2—in line with the reopening of dental practices.
On the medical side, the company’s medical sales decreased 11.4% versus 2019, for $617.8 million in sales. Bergman called the Q2 medical sales “fairly resilient,” due to strong demand for personal protective equipment, or PPE.