The company’s total net sales—$2.9 billion, are up by 20.4%; and global dental sales—$1.8 billion, increased 21.3% versus Q1 in 2020.
Henry Schein Inc reported its Q1 financial results from continuing operations. Total net sales for the quarter were $2.9 billion, up 20.4% compared with Q1 of 2020. The 20.4% increase included 14.9% internal growth in local currencies, 3.3% growth from acquisitions, and 2.2% growth related to foreign currency exchange.
GAAP net income attributable to Henry Schein from continuing operations for Q1 of 2021 was $166.0 million, or $1.16 per diluted share, compared with prior-year GAAP net income from continuing operations of $130.5 million, or $0.91 per diluted share. Non-GAAP net income from continuing operations for Q1 of 2021 was $177.7 million, or $1.24 per diluted share, compared with prior-year non-GAAP net income from continuing operations of $134.1 million, or $0.94 per diluted share.
“We are pleased with exceptional Q1 global financial performance versus the comparable 2020 period, additionally compared to the Q1 of 2019, which is the result of planning and excellent execution across all of our businesses,” said Stanley M. Bergman, chairman of the board and chief executive officer of Henry Schein. “We also delivered a very strong operating margin for the quarter. While end markets in most geographies still face challenges due to the ongoing pandemic, the overall market recovery and our improving financial results have continued. Our positive momentum reflects the adaptiveness of our business model as well as the commitment of Team Schein members to our customers and our communities.”
Global dental sales for Q1 2021 of $1.8 billion increased 21.3% versus Q1 2020. In local currencies, internally generated sales increased 13.7% with 4.2% growth from acquisitions and 3.4% growth related to foreign currency exchange. The 13.7% internal growth in local currencies included an increase of 10.9% in North America and an increase of 17.9% internationally.
Global dental consumable merchandise internal sales increased by 13.2% in local currencies. Excluding sales of personal protective equipment (PPE) and COVID-19 related products, growth was 10.9%. In North America, dental consumable merchandise internal sales in local currencies increased 9.3%, or 6.9% excluding sales of PPE and COVID-19 related products, and dental equipment internal sales in local currencies increased 17.4%. Internationally, dental consumable merchandise internal sales in local currencies increased 19.2%, or 16.7% excluding sales of PPE and COVID-19 related products, and dental equipment internal sales in local currencies increased 12.9%.
“For Q1, our dental sales in both North America and international markets were strong, including significant growth in North America dental equipment sales versus Q4 in 2020,” noted Bergman. “Global Dental Specialty sales were also strong with year-over-year internal growth of 18.3% in local currencies. We remain optimistic about the stability and health of the global dental markets we serve, despite rising COVID-19 cases in certain geographies, as patient traffic and practice spending have steadily improved since the first few months of the pandemic.”
PPE products have begun to moderate from recent quarterly growth rates in both the company’s dental and medical businesses, with expectations that PPE sales will remain at elevated levels as dental professionals and physicians implement new standard-of-care best practices.
Bergman added: “Throughout these unprecedented times, Henry Schein has remained focused on the safety of our team and on responding to our customers’ needs, as well as on driving innovation, gaining market share, enhancing our margin profile, and optimizing our cost structure. We believe all of this positions us well to continue to drive earnings growth and create value over the long-term.”