Owens & Minor 2Q Sales Show Modest Increase - Modern Distribution Management

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Owens & Minor 2Q Sales Show Modest Increase

Despite strong numbers from the company's Patient Direct segment, overall sales increased just 2.5%.
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On Aug. 4, Richmond, Virginia-based global healthcare products distributor Owens & Minor reported its 2023 second-quarter earnings, which showed small sales growth despite another strong quarter from its Patient Direct segment.

Consolidated revenue for the quarter was $2.56 billion, an increase of 2.5% as compared to the second quarter of 2022, the company announced.

Patient Direct revenue for 2Q was $633 million, up 10.5% compared to the same quarter last year. Products & Healthcare Services revenue was $1.93 billion, “virtually flat” versus the prior-year period as 5.1% growth in the Medical Distribution division was nearly offset by lower S&IP product sales.

Operating income in 2Q was $10.8 million, and adjusted operating income was $62.0 million. Owens & Minor said this represents sequential margin expansion of 3 basis points on a GAAP basis and expansion of 53 basis points on an adjusted basis as compared to the first quarter of 2023.

“The second quarter of 2023 shows a continuation of our Patient Direct segment’s exceptional performance, with another quarter of double-digit growth and strength across the major categories that we serve,” said Edward A. Pesicka, President & CEO of Owens & Minor. “Our Products and Healthcare Services segment demonstrated resilience during the quarter with sales growth in the Medical Distribution division, but the segment experienced continued revenue headwinds in our higher margin Global Products division. In addition, the progress we have made in the Operating Model Realignment Program is encouraging, and we are beginning to see financial benefits from the work already completed.”

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