Becton, Dickinson(BDX) - 2025 Q1 - Quarterly Results

Revenue Performance - Revenue for Q1 FY2025 was $5.2 billion, representing a 9.8% increase year-over-year, with 9.6% growth on a currency-neutral basis and 3.9% organic growth[4] - BD Medical segment revenue was $2.615 billion, up 17.3%, driven by strong performance in Medication Delivery Solutions[12] - BD Life Sciences segment revenue was $1.297 billion, showing a slight increase of 0.7%[12] - BD Interventional segment revenue reached $1.257 billion, reflecting a 5.8% increase[12] - Revenues for the three months ended December 31, 2024, were $5,168 million, representing a 9.8% increase compared to $4,706 million in the same period of 2023[31] - Total revenues for the three months ended December 31, 2024, were $5,168 million, representing a 9.8% increase compared to $4,706 million in 2023[38] - BD Medical segment revenues increased to $2,615 million, up 17.3% from $2,230 million in the prior year[41] - Organic revenue for BD Medical was $2,343 million, reflecting a 5.1% growth compared to $2,230 million in 2023[41] - BD Life Sciences reported total revenues of $1,297 million, a slight increase of 0.7% from $1,288 million in the previous year[38] Earnings and Guidance - GAAP diluted EPS was $1.04, an increase of 8.3%, while adjusted diluted EPS grew by 28.0% to $3.43[4] - BD increased its FY25 adjusted diluted EPS guidance to a range of $14.30 to $14.60, reflecting a growth of approximately 10% at the midpoint[15] - Reported diluted earnings per share for the three months ended December 31, 2024, were $1.04, an increase of 8.3% from $0.96 in 2023[44] - Adjusted diluted earnings per share rose to $3.43, marking a 28.0% increase from $2.68 in the same period last year[44] - For FY 2025, BD expects reported revenue growth of 7.9% to 8.4%, with organic revenue growth projected at 4.0% to 4.5%[47] - The company anticipates total revenues for FY 2025 to be approximately $21.7 to $21.9 billion[49] Costs and Expenses - Research and development expenses rose by 18.2% to $343 million, compared to $290 million in the previous year[31] - Total operating costs and expenses increased by 10.5% to $4,715 million, up from $4,267 million in the prior year[31] - The company incurred $67 million in accruals impacting revenues due to recent developments related to Italian government medical device payback legislation[54] - A charge of $38 million was recorded to cost of products sold for future product remediation efforts[54] - The company recognized a $175 million charge related to an estimated liability for an SEC investigation concerning reporting issues with BD Alaris infusion pumps[54] - Costs associated with the Advanced Patient Monitoring acquisition included transaction costs recorded in integration and restructuring expenses[52] - Significant costs were incurred to comply with the European Union Medical Device Regulation, categorized as one-off costs limited to a specific period[53] - Integration and restructuring activities resulted in additional costs that impacted overall financial performance[51] - The separation of BD's former Diabetes Care business incurred costs recorded in other operating expenses[52] Cash Flow and Assets - Cash and equivalents decreased to $711 million from $1,717 million at the end of the previous quarter[32] - Total assets decreased to $54,665 million from $57,286 million in the prior quarter[32] - The company generated $693 million in net cash from operating activities, down from $855 million in the same period last year[33] Strategic Initiatives - The company announced plans to separate Biosciences and Diagnostic Solutions to enhance growth and innovation in their respective markets[2] - The BD Onclarity™ HPV Assay was added to the ASCCP guidelines, enhancing its market position in cervical cancer screening[11] - The Advanced Patient Monitoring unit, newly integrated into BD Medical, contributed to the overall revenue growth but was not reported in the previous year[39] Legal and Compliance Issues - Legal matters and asset impairment charges have affected the company's financial results, reflecting unusual operational impacts[54] - The company is focused on developing processes for compliance with new regulatory frameworks, impacting research and development expenses[53] - The company recorded certain income and expense items affecting comparability, including product remediation costs and legal matters[54]