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Embecta Corp. Reports Fiscal 2024 Fourth Quarter and Full Year Financial Results; Provides Initial Fiscal Year 2025 Financial Guidance; Discontinues Insulin Patch Pump Program; and Announces Restructuring to Streamline Operations and Reduce Costs
Embecta Embecta (US:EMBC) GlobeNewswire News Roomยท2024-11-26 11:30

Core Viewpoint - Embecta Corp reported strong financial results for the fourth quarter and fiscal year 2024, exceeding expectations across key metrics, while also announcing a restructuring plan to streamline operations and focus on core business areas [2][3]. Financial Performance Fourth Quarter Fiscal Year 2024 Highlights - Reported revenues of $286.1 million, an increase of 1.5% compared to $281.9 million in the prior year [5]. - Adjusted revenues of $290.2 million, up 4.1% on an adjusted constant currency basis [5]. - U.S. revenues increased by 10.3% on both reported and adjusted constant currency basis [5]. - International revenues decreased by 8.8% on a reported basis and 3.1% on an adjusted constant currency basis [5]. - Gross profit of $173.8 million with a margin of 60.7%, down from $181.8 million and 64.5% in the prior year [5]. - Net income of $14.6 million, or $0.25 per diluted share, compared to $6.0 million and $0.10 per diluted share in the prior year [5]. Twelve Months Ended September 30 Fiscal Year 2024 Highlights - Reported revenues of $1,123.1 million, up 0.2% from $1,120.8 million in the prior year [6]. - Adjusted revenues of $1,127.2 million, an increase of 1.1% on an adjusted constant currency basis [6]. - U.S. revenues increased by 1.0% on both reported and adjusted constant currency basis [6]. - International revenues decreased by 0.7% on a reported basis but increased by 1.3% on an adjusted constant currency basis [6]. - Net income of $78.3 million, or $1.34 per diluted share, compared to $70.4 million and $1.22 per diluted share in the prior year [6]. Strategic Initiatives - The company successfully transitioned approximately 98% of its revenue to its own ERP system and distribution infrastructure, with India as the only deferred market [2]. - The launch of small-pack GLP-1 needles in Germany has been successful, with plans for expansion into other markets [2]. - The decision to discontinue the insulin patch pump program and initiate an organizational restructuring plan aims to streamline operations and enhance profitability [3][4]. Cost Management and Future Guidance - The restructuring plan is expected to incur pre-tax charges of $35 million to $45 million in fiscal year 2025, with anticipated annualized pre-tax cost savings of $60 million to $65 million [3][4]. - Preliminary fiscal year 2025 guidance includes reported revenues of $1,093 million to $1,110 million, with a reported revenue growth of -2.7% to -1.2% [14]. Balance Sheet and Liquidity - As of September 30, 2024, the company had $274.2 million in cash and equivalents, with total debt principal outstanding at $1.601 billion [18]. - The Board of Directors declared a quarterly cash dividend of $0.15 per share, payable on December 18, 2024 [18].