Despite a 3.5% decrease in total net sales in the third quarter, Henry Schein is still up overall in 2022 compared to last year.
Henry Schein reported a decrease in sales in the third quarter but pointed to record non-GAAP financial results as a sign of its underlying strength.
Total net sales for the quarter were $3.1 billion, a decrease of 3.5% compared with the third quarter of 2021. The 3.5% decrease included a 2.4% decrease in local currencies excluding acquisitions, 1.8% growth from acquisitions, and a 2.9% decrease related to foreign currency exchange.
Sales of PPE and COVID-19 test kits in the third quarter were $244 million, which is $260 million lower than the prior-year period. When excluding sales of PPE and COVID-19 test kits, Henry Schein’s third-quarter internal sales growth in local currencies was 6.8% compared with the prior-year period.
GAAP net income for the quarter was $150 million compared with the third-quarter 2021 GAAP net income of $162 million. Non-GAAP net income for the quarter was $157 million compared with the third-quarter 2021 non-GAAP net income of $155 million.
“Our financial results for the third quarter of 2022 reflect solid underlying growth across our business and in most geographies,” said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein. “We grew our non-GAAP diluted EPS compared with the third quarter of 2021, despite currency headwinds and lower sales of personal protective equipment (PPE) and COVID-19 test kits.”
Global Dental sales were $1.8 billion for the quarter, a decrease of 2.1% compared with the prior-year period. Internally generated sales increased by 1.2% in local currencies and acquisitions contributed to 1.4% growth. The growth was offset by a 4.7% decrease related to foreign currency exchange. The 1.2% internal sales increase in local currencies reflects a 0.1% decrease in North America and 3.3% growth internationally.
“Today, we are narrowing our 2022 non-GAAP diluted EPS guidance range, which reflects our confidence in the underlying strength and stability of our business,” said Bergman. “Overall, we feel very good about the outlook for the company and remain highly focused on delivering on our BOLD+1 strategy, as we continue to increase the sustainable profitability of the business.