Owens & Minor 1Q Revenue Ticks Up as Operating Income Drops - Modern Distribution Management

Log In

Owens & Minor 1Q Revenue Ticks Up as Operating Income Drops

The company reported 1Q 2023 revenue of approximately $2.52 billion, a slight increase compared with $2.4 billion reported in 1Q 2022.
Owens & Minor logo

Richmond, Virginia-based global healthcare products distributor Owens & Minor on May 5 reported first-quarter 2023 earnings, which showed a increase in revenue but a decrease in operating income compared with the same quarter a year ago.

The company reported consolidated revenue of $2.5 billion in 1Q 2023, compared with $2.407 billion in 1Q 2022. Owens & Minor reported net loss per common share of $(0.32) and adjusted net income per common share of $0.05 in 1Q 2023.

The company reported just $9.8 in operating income (GAAP) in 1Q 2023, compared with $61.1 million during the same quarter last year. Owens & Minor said it generated $158 million of operating cash flow during 1Q 2023, but also paid down $117 million in debt.

Segment wise, Owens & Minor’s Patient Direct segment revenue was $607 million, up 10.4% compared to 1Q 2022 on a pro forma basis. Products & Healthcare Services revenue was $1.9 billion but was negatively impacted from the decline in personal protective equipment (PPE) sales volumes and prices, which was partially offset by strong sales growth excluding PPE, the company said.

“Our Patient Direct segment continues to outperform the market and once again was a significant driver of our year-over-year top-line growth and margin expansion during the quarter,” said Edward A. Pesicka, President & CEO of Owens & Minor. “As we outlined last quarter, we took the necessary steps to initiate the total company Operating Model Realignment Program and improve our overall cost structure. These initiatives are progressing well, and we are on pace to reach our adjusted operating income target of $30 million for the year. In our Products & Healthcare Services segment, we continued to experience pressure, including destocking during the quarter, however, we were pleased with our Medical Distribution division’s ability to navigate a challenging environment and produce solid results for the quarter. Our strong cash flow generation in the quarter enabled us to pay down $117 million in debt. In the quarter, we began to effectively reduce working capital and manage our costs, while investing for future growth. We will continue to take a disciplined approach to working capital management, cost management, and capital allocation. Overall, we are encouraged by our results to start the year and continue to expect our performance will be heavily weighted toward the second half of 2023.”

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events



You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.