Henry Schein’s Global Dental sales for Q2 of 2021 of $1.9 billion increased 102.9% versus the prior-year period.
Henry Schein Inc, Melville, NY, reported record second-quarter financial results from continuing operations.
Total net sales for the quarter that ended June 26, 2021, were $3.0 billion, up 76.2% compared with the Q2 of 2020, when a significant number of dental and medical practices suspended activity because of the COVID-19 pandemic. The 76.2% increase included 65.5% internal growth in local currencies, 5.5% growth from acquisitions and 5.2% growth related to foreign currency exchange. When compared with the pre-pandemic second quarter of 2019, sales were up 21.2% and included 15.2% internal growth in local currencies, 4.2% growth from acquisitions and 1.8% growth related to foreign currency exchange.
GAAP net income attributable to Henry Schein, Inc from continuing operations for the Q2 of 2021 was $155.7 million, or $1.10 per diluted share, compared with prior-year GAAP net loss from continuing operations of $11.4 million, or $0.08 per diluted share. Non-GAAP net income from continuing operations for the Q2 of 2021 was $157.3 million, or $1.11 per diluted share, compared with prior-year non-GAAP net income from continuing operations of $0.6 million, or $0.00 per diluted share.
“We are pleased to report record Q2 financial results as we continue to execute on our key strategies. Strengthening demand in the global dental and medical markets drove strong year-over-year increases in sales versus the prior year when many of our customers had temporarily closed their offices. Notably, compared with a pre-COVID-19 environment in the Q2 of 2019, Henry Schein’s worldwide internal sales in local currencies increased by 15.2%,” said Stanley M. Bergman, chairman of the board and chief executive officer of Henry Schein. “We are also pleased with operating margin expansion that reflects a favorable product mix as well as operating expense leverage.”
Bergman continued, “With solid execution in the first half of 2021 and a favorable outlook for the remainder of the fiscal year, we are raising our guidance for 2021 non-GAAP diluted EPS from continuing operations to be at or above $3.85, representing a floor for fiscal 2021. We will continue to monitor any potential impact to our business that resulted from COVID-19.”
Global Dental sales for the Q2 of 2021 of $1.9 billion increased 102.9% versus the prior-year period. In local currencies, internally generated sales increased 87.0% with 7.3% growth from acquisitions and 8.6% growth related to foreign currency exchange. The 87.0% internal growth in local currencies included an increase of 105.3% in North America and an increase of 64.9% internationally.
Global Dental consumable merchandise internal sales increased 90.5% in local currencies. Excluding sales of personal protective equipment (PPE) and COVID-19 related products, growth was 96.2%. In North America, dental consumable merchandise internal sales in local currencies increased 112.5%, or 119.1% excluding sales of PPE and COVID-19 related products, and dental equipment internal sales in local currencies increased 82.0%. Internationally, dental consumable merchandise internal sales in local currencies increased 64.4%, or 70.2% excluding sales of PPE and COVID-19 related products, and dental equipment internal sales in local currencies increased 66.6%.
“Global Dental sales experienced strong growth, with gains in both consumable merchandise and equipment. More specifically, consumable merchandise sales in North America and in our international markets experienced double-digit growth versus the same period in 2019,” noted Bergman. “Compared with the Q2 of 2019, North America dental equipment sales growth was modest, primarily reflecting delays with certain U.S. manufacturers of chairs, units, and lights, resulting in longer lead times. We reported strong equipment growth in our international markets with no significant delays. Our overall dental sales performance reflects a continued recovery in patient traffic compared to pre-pandemic levels, and we remain optimistic about dental practices investing in technology and equipment over the long term.”
