Sector: Healthcare|Industry: Medical Distribution|Market Cap: $8.95B|Employees: 25K
Henry Schein, Inc. provides health care products and services to dental practitioners, laboratories, physician practices, and ambulatory surgery centers, government, institutional health care clinics, and other alternate care clinics worldwide. It operates through two segments, Health Care Distribution, and Technology and Value-Added Services. The Health Care Distribution segment offers dental products, including infection-control products, handpieces, preventatives, impression materials, composites, anesthetics, teeth, dental implants, gypsum, acrylics, articulators, abrasives, dental chairs, delivery units and lights, X-ray supplies and equipment, personal protective equipment, and high-tech and digital restoration equipment, as well as equipment repair services. This segment also provides medical products, such as branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products, X-ray products, equipment, and vitamins. The Technology and Value-Added Services segment offers software, technology, and other value-added services that include practice management software systems for dental and medical practitioners; and value-added practice solutions comprising practice consultancy, education, revenue cycle management and financial services, e-services, practice technology, and network and hardware services, as well as consulting, and continuing education services. Henry Schein, Inc. was founded in 1932 and is headquartered in Melville, New York.
The company's net sales increased to $3,172 million, up from $3,060 million in the prior year, primarily due to acquisitions in the technology and value-added services segment. Internally generated local currency sales decreased by 1.8% due to the cyber incident and lower PPE sales.
Gross profit margin increased to 31.9% from 31.6% in the prior year, despite a decrease in internally generated local currency sales. The improvement is attributed to a favorable sales mix of higher-margin products and acquisitions.
Operating expenses increased to $862 million from $791 million, driven by payroll, travel, acquisition costs, and cyber incident expenses. This resulted in a decrease in operating income to $150 million from $175 million in the prior year.