Cardinal Health posts revenue growth in Q1
Cardinal Health reported its first-quarter fiscal year 2020 revenue, which was $37.3 billion, an increase of 6% from the same period last year.
The Dublin, Ohio-based company posted a first-quarter GAAP operating loss of $5.3 billion, which included a $5.6 billion accrual related to opioid litigation. Non-GAAP operating earnings increased 6% to $577 million.
For the quarter, the company’s GAAP diluted loss per share was $16.65, while non-GAAP diluted EPS decreased 2% to $1.27.
“We are off to a solid start to fiscal year 2020, giving us confidence in our operating rigor and path forward," Cardinal Health CEO Mike Kaufmann said. "Our disciplined cost management is enabling strategic investment across the enterprise. We recognize that as our industry and the healthcare sector continue to evolve, there is more work to be done. Our core capabilities, deep industry knowledge and scale position us to adapt and deliver long-term shareholder value."
First-quarter revenue for the pharmaceutical segment was $33.4 billion, which, despite being 6% greater than revenue in the same quarter last year, was accompanied by a 3% drop in profit for the segment. Cardinal Health attributed the segment’s profit decrease to the adverse impact of pharmaceutical distribution customer contract renewals, which was partially offset by benefits from cost savings initiatives and the performance of specialty solutions, it said.
First-quarter revenue for the medical segment increased 3% to $3.9 billion. Medical segment profit increased 26% to $170 million, driven by the benefits from cost savings initiatives, as well as growth in products and distribution, services, and Cardinal Health at Home. This was partially offset by the divestiture of the naviHealth business, the company said.