Haemonetics(US:HAE)2025-08-07 13:00Financial Data and Key Metrics Changes - The company reported revenue of $321 million, down 4% due to a $52 million impact from portfolio transitions, but up 13% organically excluding CSL [6][14] - Adjusted EPS grew 8% to $1.01, driven by strong growth in the base business and share buybacks [6][18] - Adjusted gross margin reached 60.8%, up 550 basis points year over year, benefiting from technology and price initiatives [16][18] Business Line Data and Key Metrics Changes - The hospital business generated $140 million in revenue, up 4% reported and organically, with Blood Management Technologies growing 14% [8][11] - Plasma revenue was $130 million, down 4% reported but up 29% organically, driven by technology upgrades and a one-time software agreement [11][12] - Blood center revenue declined 22% to $52 million due to the divestiture of the whole blood business, but organic revenue grew 4% [13][14] Market Data and Key Metrics Changes - The U.S. plasma collection volume growth was in the low single digits, with expectations for a modest recovery in the second half of the fiscal year [12][81] - The vascular closure market is projected to grow in the high single digits, with the company experiencing temporary softness in interventional technologies [46][48] Company Strategy and Development Direction - The company aims for low double-digit compounded annual growth in revenue and mid-20s adjusted EPS CAGR, focusing on three key products: plasma, hemostasis management, and vascular closure [21][22] - A strategic emphasis on cash flow and operational efficiency is in place, with plans to strengthen the interventional technologies franchise through leadership changes and targeted initiatives [23][72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting financial objectives, citing strong demand for immunoglobulins and ongoing share gains in the plasma market [22][82] - The company anticipates stronger cash generation and reaffirmed full-year free cash flow guidance of $160 million to $200 million [20][21] Other Important Information - The company is navigating $153 million in planned portfolio transitions while maintaining a focus on core products to drive organic growth [14][21] - The adjusted income tax rate was 24.9% for the quarter, reflecting lower benefits from performance share vestings [18] Q&A Session Summary Question: Can you provide details on the drivers of strong plasma performance? - Management highlighted ongoing price benefits from technology and significant share gains, with half of the 29% growth attributed to a software agreement [25][27][28] Question: What was the growth rate for MVP and MVP XL in vascular closure? - MVP and MVP XL saw roughly 6% growth, with challenges noted in the legacy Vascade product [31][32] Question: What is the outlook for U.S. plasma collections? - Management indicated a possibility of low single-digit growth in the back half of the year, with ongoing productivity gains expected to support this [78][81] Question: How does the company plan to address competition in interventional technologies? - The company is enhancing its sales and marketing efforts, reorganizing teams, and focusing on execution to regain competitiveness [70][72] Question: What is the company's appetite for further M&A? - Management stated that M&A is off the table in the near term, focusing instead on executing current strategies and improving performance [73][75]