Cencora(US:COR)2025-11-05 14:32Financial Data and Key Metrics Changes - In fiscal 2025, the company achieved adjusted operating income and adjusted diluted EPS growth of 16% [3][4] - Adjusted diluted EPS for Q4 was $3.84, a 15% increase, with consolidated revenue of $83.7 billion, up 6% [13][19] - Consolidated gross profit was $2.9 billion, up 18%, with a gross profit margin of 3.47%, an increase of 37 basis points [13][14] - Consolidated operating income was $1.0 billion, up 20% compared to the prior year quarter [14][20] - Consolidated revenue for the full year was $321.3 billion, up 9% [19] Business Line Data and Key Metrics Changes - U.S. healthcare solutions segment revenue was $75.8 billion, up approximately 6%, with operating income increasing by 25% to $872 million [15][16] - International healthcare solutions segment revenue was $7.9 billion, an increase of 8% on an as-reported basis, with operating income decreasing by 2% [16][17] - Sales of GLP-1 products increased by $876 million, or 10% year-over-year, contributing 50 basis points to segment revenue growth [15][16] Market Data and Key Metrics Changes - The international healthcare solutions segment saw a rebound in global specialty logistics business, with shipment volumes returning to growth [17][73] - The company expects international healthcare solutions revenue growth in the range of 6%-8% for fiscal 2026 [24][73] Company Strategy and Development Direction - The company is raising long-term guidance for adjusted operating income growth to 6-9% and adjusted EPS growth to 9-13% [4][28] - Strategic priorities include leading with market leaders, enhancing patient access to pharmaceuticals, and strengthening the position in specialty [4][29] - The company is focusing on growth-oriented investments and improving customer experience through advanced data analytics and technologies [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued market growth and the strength of the business [3][4] - The company is committed to advancing its leadership in the healthcare industry through significant investments [5][6] - Management highlighted the importance of enhancing productivity and efficiency in serving the pharmaceutical supply chain [6][10] Other Important Information - The company announced a $1 billion investment through 2030 to expand its distribution network [9][10] - The company generated $3 billion of adjusted free cash flow and ended the year with a cash balance of $4.4 billion [20][21] - The company approved a 9% increase to its quarterly dividend, marking the 21st consecutive annual dividend increase [21] Q&A Session Summary Question: Strategic view on the business and potential divestitures - Management emphasized a focused strategic execution and the importance of allocating resources to align with growth areas [32][35] Question: Next steps in the evolution of the MSO platform - Management discussed leveraging clinical trial expertise and back-office activities across MSO platforms to enhance care delivery [40][42] Question: Durability of growth in U.S. healthcare solutions segment - Management noted exceptional results in the U.S. segment and projected continued strong performance despite headwinds [46][49] Question: Growth rates between specialty and generics - Management indicated that specialty growth is expected to be accretive to overall operating income growth, while generic growth is moderating [66][68] Question: Confidence in international business growth - Management expressed confidence in returning to growth in the international segment, driven by strong demand for specialty logistics [72][73] Question: Potential impact of divestitures on profitability - Management acknowledged that while some businesses in the "other" segment are profitable, divestitures could lead to a more focused and higher growth portfolio [78][80]