Cardinal Health(CAH) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter fiscal year 2024 revenues reached $59.9 billion, a 12% increase from the prior year[2] - Non-GAAP operating earnings for Q4 FY24 increased 14% to $605 million, while non-GAAP diluted EPS rose 29% to $1.84[5] - Fiscal year 2024 revenues totaled $226.8 billion, an 11% increase from fiscal year 2023, with non-GAAP operating earnings growing 16% to $2.4 billion[3] - Revenue for Q4 2024 was $59,867 million, a 12% increase from $53,421 million in Q4 2023[25] - Total revenue for the fiscal year 2024 was $210,019 million, representing an 11% growth compared to $188,814 million in 2023[33] - The Pharmaceutical and Specialty Solutions segment reported revenue of $55,608 million in Q4 2024, a 13% increase from $49,373 million in Q4 2023[33] - Total segment revenue for Fiscal Year 2024 reached $226,912 million, reflecting an 11% growth compared to the previous year[45] - Pharmaceutical and Specialty Solutions segment revenue was $210,019 million, with a growth rate of 11%[45] - GAAP revenue for fiscal year 2024 reached $7,414 million, representing an 8% increase compared to $6,874 million in fiscal year 2023[39] Earnings and Profitability - Cardinal Health's operating earnings for fiscal year 2024 were $1,243 million, a 65% increase from $752 million in fiscal year 2023[25] - Net earnings attributable to Cardinal Health, Inc. for Q4 2024 were $235 million, compared to a net loss of $56 million in Q4 2023[25] - Basic earnings per share for Q4 2024 was $0.96, a significant improvement from a loss of $0.22 per share in Q4 2023[25] - The company reported a net income of $1,201 million for fiscal year 2024, with a diluted EPS of $3.45, compared to a net income of $663 million and diluted EPS of $1.26 in fiscal year 2023[39] - Non-GAAP operating earnings for fiscal year 2024 were $2,414 million, a 16% growth from $2,076 million in fiscal year 2023[39] - Non-GAAP diluted EPS for Q4 2024 was $1.84, a 29% increase from $1.43 in Q4 2023[36] - Total segment profit for Fiscal Year 2024 was $2,530 million, representing a 19% increase year-over-year[45] Cash Flow and Assets - Cash flows from operating activities for Q4 2024 were $2,082 million, up from $871 million in Q4 2023[31] - The net cash provided by operating activities for fiscal year 2024 was $3,762 million, up from $2,844 million in fiscal year 2023[42] - Non-GAAP adjusted free cash flow for fiscal year 2024 was $3,942 million, compared to $2,853 million in fiscal year 2023, indicating a significant increase[42] - Cardinal Health's cash and equivalents increased to $5,133 million as of June 30, 2024, compared to $4,076 million as of June 30, 2023[29] - Total assets increased to $45,121 million as of June 30, 2024, compared to $43,349 million as of June 30, 2023[29] Segment Performance - The Pharmaceutical and Specialty Solutions segment reported Q4 FY24 revenue of $55.6 billion, a 13% increase year-over-year[7] - Segment profit for Global Medical Products and Distribution increased to $47 million in Q4 2024, compared to $7 million in Q4 2023, indicating a notable improvement[33] - Global Medical Products and Distribution segment profit improved significantly to $47 million in Q4 FY24, driven by net inflationary impacts mitigation[10] - The Other segment's revenue increased 15% to $1.2 billion in Q4 FY24, supported by growth across multiple operating segments[11] - Global Medical Products and Distribution segment revenue decreased slightly to $12,381 million, with a growth rate of 1%[45] Guidance and Future Outlook - The company raised its fiscal year 2025 non-GAAP EPS guidance to $7.55 to $7.70, up from at least $7.50 previously communicated[5] - Cardinal Health aims for approximately $300 million in segment profit from the GMPD Improvement Plan by fiscal year 2026[15] - The company anticipates ongoing inflationary pressures and competitive challenges impacting future performance[23] - The company plans to continue its market expansion and product development strategies in the upcoming fiscal year[39] - Cardinal Health is focusing on restructuring efforts, with $175 million allocated for employee severance and restructuring costs in fiscal year 2024[39] Impairments and Adjustments - The company recorded pre-tax goodwill impairment charges of $675 million related to the GMPD segment in fiscal year 2024[26] - Cardinal Health recorded cumulative pre-tax goodwill impairment charges of $675 million during fiscal 2024, impacting overall financial performance[36] - The company incurred $634 million in impairments and gains/losses on disposal of assets for fiscal year 2024[39] - The company incurred $90 million in pre-tax goodwill impairment charges related to GMPD in Q3 2024[52] Non-GAAP Measures - Non-GAAP operating earnings exclude various charges and costs, providing a clearer view of operational performance[70] - Non-GAAP net earnings attributable to Cardinal Health, Inc. adjust for specific items, reflecting the company's true profitability[72] - Non-GAAP diluted earnings per share attributable to Cardinal Health, Inc. is calculated based on adjusted net earnings divided by diluted weighted-average shares outstanding[74] - Non-GAAP adjusted free cash flow measures cash generated from operations after capital expenditures, excluding certain litigation-related payments[75] - Non-GAAP effective tax rate is adjusted for specific charges, providing insight into the company's tax efficiency[73] - The focus on non-GAAP measures indicates a strategy to present a more favorable view of financial health to investors[72] - The exclusion of litigation recoveries and charges in cash flow calculations emphasizes the company's commitment to transparency in financial reporting[75]