22 February 2023

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Henry Schein reports fourth-quarter, 2022 financial results

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Henry Schein, Inc., the world’s largest provider of health care solutions to office-based dental and medical practitioners, released on Feb. 16 financial results for the fourth quarter which ended December 31, 2022.

Stanley M. Bergman, chairman of the board and CEO of Henry Schein, said in a news release that the company closed out 2022 with a very good fourth quarter. We continued to execute effectively on our 2022 to 2024 Strategic Plan goals, achieving strong growth in earnings for the fourth quarter and the full year, despite macroeconomic and foreign exchange headwinds. 

“We overcame significant headwinds from lower sales of PPE products and COVID-19 test kits,” he said. “Looking ahead, we are introducing financial guidance for 2023 where we expect operating income growth in the high single-digit to low double-digit percentage range when excluding the contribution from PPE products and COVID-19 test kits.”

Bergman said fundamentals in the dental end market remain solid. In the fourth quarter, Henry Schein leaders believe global dental consumable merchandise growth was impacted by a high incidence of flu and COVID-19 cases, which caused increased rates of patient appointment cancellations and furthered staffing shortages. However, patient flows appear to have returned to more normal levels in January. 

“Demand for dental equipment in North America remains healthy, and our North America equipment order book is stable,” he said. “Although we saw very good sales for traditional equipment and steady sales for digital imaging equipment, there was a decline in sales of digital restoration equipment compared to the corresponding prior year fourth quarter, resulting from customer demand shifting from chairside mills to 3D printing, a mix shift to lower priced intra-oral scanners, and supply chain issues of an important intra-oral scanner supplier. Demand for equipment internationally held up quite well with sales moving to lower priced intra-oral scanner units, and overall equipment sales essentially in-line with last year.”

During the fourth quarter of 2022, the company repurchased approximately 3.6 million shares of its common stock at an average price of $79.55 per share, for a total of $285 million. The impact of the share repurchases on fourth-quarter diluted EPS was immaterial. At quarter-end, Henry Schein had approximately $115 million authorized and available for future stock repurchases. An additional $400 million was approved by the Company’s Board of Directors on Feb. 8, 2023.

The company held a conference call to discuss fourth-quarter and full-year 2022 financial results on Feb. 16. Individual investors are invited to listen to the replay of a conference call through Henry Schein’s website by visiting www.henryschein.com/IRwebcasts..

The Company will be posting slides that provide a summary of its fourth-quarter 2022 financial results on its website at https://www.henryschein.com/us-en/Corporate/investor-presentations.aspx

About Henry Schein, Inc.

Henry Schein, Inc. is a solutions company for health care professionals powered by a network of people and technology. With more than 22,000 Team Schein Members worldwide, the Company's network of trusted advisors provides more than 1 million customers globally with more than 300 valued solutions that help improve operational success and clinical outcomes. Our Business, Clinical, Technology, and Supply Chain solutions help office-based dental and medical practitioners work more efficiently so they can provide quality care more effectively. These solutions also support dental laboratories, government and institutional health care clinics, as well as other alternate care sites.

Henry Schein operates through a centralized and automated distribution network, with a selection of more than 300,000 branded products and Henry Schein corporate brand products in our distribution centers.

A FORTUNE 500 Company and a member of the S&P 500® index, Henry Schein is headquartered in Melville, N.Y., and has operations or affiliates in 32 countries and territories. The Company's sales reached $12.6 billion in 2022 and have grown at a compound annual rate of approximately 12.1 percent since Henry Schein became a public company in 1995.