Haemonetics(US:HAE)2025-05-08 13:02Financial Data and Key Metrics Changes - The company reported total revenue of $1.4 billion, reflecting a 4% growth on a reported basis and 1% organic growth. Excluding $148 million from CSL and the whole blood divestiture, organic growth was 8% [9][10] - Adjusted gross margin for the fourth quarter was 60.2%, an increase of 620 basis points compared to the prior year, driven by volume growth and improved product mix [27][29] - Adjusted net income for fiscal year 2025 was $231.5 million, up $28 million or 14%, with adjusted earnings per diluted share at $4.57, up 15% compared to the prior year [32] Business Line Data and Key Metrics Changes - Hospital revenue grew 12% in the quarter and 24% in fiscal year 2025 on a reported basis, with organic growth of 9% respectively [12] - Blood Management Technologies revenue grew 6% in the quarter and 10% in fiscal year 2025, driven by strong utilization and share gains [12][13] - The Interventional Technologies franchise delivered 21% reported growth in the quarter and 46% in fiscal year 2025, with 16% organic growth respectively [14] Market Data and Key Metrics Changes - Plasma revenue declined 9% in the quarter and 6% in fiscal year 2025 due to the planned CSL transition, but excluding CSL, plasma revenue grew 11% in the fourth quarter and 5% for fiscal year 2025 [20][22] - Blood center revenue declined 22% in the quarter and 8% in fiscal year 2025 on a reported basis due to the whole blood divestiture [23] - The company anticipates plasma revenue to decline 7% to 10% on a reported basis in fiscal year 2026, with organic growth expected to be 11% to 14% excluding CSL [22][25] Company Strategy and Development Direction - The company is focused on advancing its innovation agenda and sharpening its focus on high-growth opportunities following the divestiture of the whole blood business [31] - The leadership team has been strengthened with new appointments to support scalable long-term growth, particularly in hospital businesses [11] - The company expects to achieve adjusted operating margin improvement to 26% to 27% in fiscal year 2026, supported by continued gains in adjusted gross margin [36] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the strong growth trajectory of the hospital business, projecting reported and organic revenue growth of 8% to 11% in fiscal year 2026 [17] - The company anticipates challenges in the first half of fiscal year 2026 but expects a rebound in collections in the second half [98] - Management highlighted the importance of cash flow generation and expects free cash flow in fiscal year 2026 to be in the range of $160 million to $200 million [38] Other Important Information - The company executed a $150 million share buyback, repurchasing approximately 2.4 million shares, reflecting its commitment to value creation [11] - The adjusted income tax rate was 22% for the fourth quarter and 23% for fiscal year 2025, compared to 21% to 23% for the respective periods of the prior year [31] Q&A Session Summary Question: Insights on plasma collections and guidance - Management remains bullish on plasma, indicating that the 11% to 14% growth guidance is primarily driven by share gains and technology adoption, with modest growth expected in the first half of fiscal year 2026 [46][48] Question: EPS guidance and drivers - The operating margin guidance of 26% to 27% is supported by continued improvement in gross margin and operational efficiencies, with a $0.20 impact from tariffs factored into the guidance [50][53] Question: Vascular closure portfolio performance - Management noted strong growth from newer products like MVP and XL, with efforts focused on improving performance in the legacy PCI side of the business [59][61] Question: Revenue and EPS progression throughout the year - Management indicated that revenue and margin expansion will progress over the course of the year, with a second half load expected due to ongoing growth initiatives [94][97] Question: Update on VIVUSURE Medical acquisition - The company maintains a long-term appetite for acquisitions, with a focus on integrating recent acquisitions before pursuing new opportunities [78][80]