- Becton Dickinson and Co's (NYSE: NYSE:BDX) pure-play diabetes spin-off Embecta Corp (NASDAQ: EMBC) has reported Q2 sales of $274.5 million, down 3.4% on a reported basis, down 1.3% on a constant currency basis.
- Of the decrease, $6.0 million was attributable to unfavorable effects from foreign currency translation.
- Volume unfavorably impacted revenues by approximately $3.7 million, primarily driven by customers in the U.S. and Europe.
- Gross profit and margin were $191.2 million and 69.7%, compared to $196.3 million and 69.1% a year ago.
- Net income was $79.6 million, compared to $107.9 million in Q1 FY21.
- Adjusted EBITDA and margin were $116.8 million and 42.6%, compared to $141.6 million and 49.8% a year ago.
- Guidance: Embecta expects 2H FY22 sales of approximately $555 million, down about 7% Y/Y.
- Excluding foreign currency exchange rate fluctuations, revenue is expected to decrease by approximately 3.5%.
- The company expects contract manufacturing revenue of approximately $15 million.
- Adjusted gross margin is expected to be in the "low-60%s, with an adjusted EBITDA margin in the "low-30%s".
- Price Action: EMBC shares are down 7.34% at $26.76 during the premarket session on the last check Friday.
Read at Benzinga