Baxter International Inc. · NYSE:BAX
Baxter International — Q4 2024 Earnings Presentation
41 slides from Baxter International's earnings presentation, Feb 20, 2025
Slide 1: Fourth-Quarter 2024 Earnings
FO U R T H - Q UA R T E R 2 0 24 E A R N I N G S Baxter International Inc. February 20, 2025 1
Slide 2: Forward-Looking Statements
FO RWA R D - LO O K I N G S TAT E M E N T S This presentation includes forward-looking statements concerning the company’s financial results (including the outlook for first-quarter and full-year 2025) and business development and regulatory activities. These forward-looking statements are based on
Slide 3: Use of Non-GAAP Financial Measures
USE OF NON-GAAP FINANCIAL MEASURES To supplement Baxter’s consolidated financial statements presented on a U.S. GAAP basis, the company discloses certain non-GAAP financial measures. These non-GAAP financial measures are not in accordance with generally accepted accounting principles in the United S
Slide 4: Table of Contents
TA B L E O F C O N T E N T S Performance Summary 5 Financial Results 15 2025 Outlook 23 Non-GAAP Reconciliations 27 4
Slide 5: Performance Summary
P E R FO R M A N C E S U M M A RY Fourth-Quarter 2024 Earnings February 20, 2025 5
Slide 6: Executing on Our Strategy for Value Creation: 2024 Highlights
E X E C U T I N G O N O U R S T R AT E GY FO R VA LU E C R E AT I O N 2024 HIGHLIGHT S Q4 2024 Results1 Worldwide Baxter sales from continuing operations grew 1% on a reported basis and 2% on a constant currency basis, exceeding previously announced guidance, driven by better-than-expected sales i
Slide 7: Executing on Our Strategy: Growth Opportunities and Launches
E X E C U T I N G O N O U R S T R AT E GY FO R VA LU E C R E AT I O N 2024 HIGHLIGHT S Investing In Growth Opportunities And Executing On A Robust Pipeline Of Launches1 Received U.S. Food and Drug Administration (FDA) 510(k) clearance of Novum IQ large volume infusion pump (LVP) with Dose IQ Safet
Slide 8: Performance Highlights
P E R FO R M A N C E H I G H L I G H T S C O N T I N U I N G O P E R AT I O N S 1 Fourth-Quarter 2024 Full-Year 2024 $2.8B +1% Reported +2% Constant Currency2 $10.6B +3% Reported +3% Constant Currency2 Sales Sales Key Metrics GAAP Adjusted3 Key Metrics GAAP Adjusted3 Gross Margin 34.8% 44.5% Gross M
Slide 9: Key Financial Metrics: Fourth-Quarter Snapshot
KEY FINANCIAL METRICS F O U R T H - Q U A R T E R 2 0 2 4 S N A P S H O T ( C O N T I N U I N G O P E R AT I O N S ) 1 Global Reported Sales Adjusted Operating Margin Adjusted Diluted EPS $2.7B $2.8B 17.1% $0.65 15.2% $0.58 +2% Constant Growth 2 (190 bps) (11%) Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 202
Slide 10: Key Financial Metrics: Full-Year Snapshot
KEY FINANCIAL METRICS F U L L - Y E A R 2 0 2 4 S N A P S H O T ( C O N T I N U I N G O P E R AT I O N S ) 1 Global Reported Sales Adjusted Operating Margin Adjusted Diluted EPS $10.6B 14.7% $1.89 $10.4B 13.9% $1.70 +3% Constant Growth 2 (80 bps) +11% FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024
Slide 11: Fourth-Quarter Adjusted Financial Results
FO U R T H - Q UA R T E R 2 0 24 A DJ U S T E D F I N A N C I A L R E S U LT S 1 ( C O N T I N U I N G O P E R AT I O N S ) Q4 2023 Q4 2024 Change Adjusted Gross Margin 44.6% 44.5% (10 bps) Adjusted SG&A Expense 22.8% 24.7% +190 bps (% of Sales) Adjusted R&D Expense 4.7% 4.8% +10 bps (% of Sales) Ad
Slide 12: Fourth-Quarter Performance vs Guidance
FO U R T H - Q UA R T E R 2 0 24 P E R FO R M A N C E 1 ( C O N T I N U I N G O P E R AT I O N S ) Metric Q4 2024 Q4 2024 Guidance Actual Sales Growth Decline LSD2 +1% Reported Sales Growth Decline LSD2 +2% Constant Currency GAAP Diluted EPS N/A ($0.95) Growth vs. Prior-Year Period NM3 Adjusted Dilu
Slide 13: Full-Year Adjusted Financial Results
F U L L -Y E A R 2 0 24 A DJ U S T E D F I N A N C I A L R E S U LT S 1 ( C O N T I N U I N G O P E R AT I O N S ) FY 2023 FY 2024 Change Adjusted Gross Margin 44.4% 43.5% (90 bps) Adjusted SG&A Expense 24.9% 25.0% +10 bps (% of Sales) Adjusted R&D Expense 4.9% 4.8% (10 bps) (% of Sales) Adjusted Op
Slide 14: Portfolio Management Actions and Disciplined Capital Allocation Strategy
E X E C U T I N G P O R T FO L I O M A N AG E M E N T AC T I O N S TO AC C E L E R AT E D I S C I P L I N E D C A P I TA L A L LO C AT I O N S T R AT E GY PORTFOLIO SHARE MANAGEMENT DEBT REPAYMENT DIVIDENDS REPURCHASES Disciplined portfolio Taking actions toward achieving Paid quarterly dividend of
Slide 15: Financial Results by Operating Segment
F I N A N C I A L R E S U LT S BY O P E R AT I N G S E G M E N T Fourth-Quarter 2024 Earnings February 20, 2025 15
Slide 16: Fourth-Quarter Sales by Product Category
FO U R T H - Q UA R T E R 2 0 24 S A L E S BY P RO D U C T C AT E G O RY 1 Q4 2024 Revenue Total Growth $ In Millions U.S. International Total Reported Constant Infusion Therapies & Technologies $561 $461 $1,022 (2%) (1%) Advanced Surgery $157 $135 $292 +5% +6% Medical Products & Therapies $718 $596
Slide 17: Full-Year Sales by Product Category
F U L L -Y E A R 2 0 24 S A L E S BY P RO D U C T C AT E G O RY 1 FY 2024 Revenue Total Growth $ In Millions U.S. International Total Reported Constant Infusion Therapies & Technologies $2,279 $1,824 $4,103 +4% +4% Advanced Surgery $603 $501 $1,104 +5% +6% Medical Products & Therapies $2,882 $2,325
Slide 18: Fourth-Quarter Business Drivers
FO U R T H - Q UA R T E R 2 0 24 B U S I N E S S D R I V E R S 1 Product Category Sales CC Growth2 Quarterly Performance Drivers Sales in the quarter benefited from significant growth for U.S. infusion systems portfolio as the rollout of Novum IQ pump platform continues to build momentum with orders
Slide 19: Medical Products & Therapies FY 2024 Results
M E D I C A L P RO D U C T S & T H E R A P I E S FY 2024 Results Increase / (Decrease) $ In Millions FY 2024 FY 2023 $ Change % Change Net Sales $5,207 $5,011 $196 +4% Cost of Sales $2,867 $2,720 $147 +5% Gross Margin $2,340 $2,291 $49 +2% % of Sales 44.9% 45.7% (80 bps) Selling, General and Adminis
Slide 20: Healthcare Systems & Technologies FY 2024 Results
H E A LT H C A R E SY S T E M S & T E C H N O LO G I E S FY 2024 Results Increase / (Decrease) $ In Millions FY 2024 FY 2023 $ Change % Change Net Sales $2,951 $3,013 ($62) (2%) Cost of Sales $1,464 $1,532 ($68) (4%) Gross Margin $1,487 $1,481 $6 +0% % of Sales 50.4% 49.2% +120 bps Selling, General
Slide 21: Pharmaceuticals FY 2024 Results
P H A R M AC E U T I C A L S FY 2024 Results Increase / (Decrease) $ In Millions FY 2024 FY 2023 $ Change % Change Net Sales $2,411 $2,249 $162 +7% Cost of Sales $1,612 $1,400 $212 +15% Gross Margin $799 $849 ($50) (6%) % of Sales 33.1% 37.8% (470 bps) Selling, General and Administrative Expenses $3
Slide 22: Fourth-Quarter and Full-Year Results
FO U R T H - Q UA R T E R A N D F U L L -Y E A R 2 0 24 R E S U LT S 1 Q4 2024 Results Adjusted Adjusted Reported Reported Constant Operating Operating YoY Margin $ In Millions Revenue Growth Growth Income Margin Change2 Baxter Continuing Operations $2,753 +1% +2% $419 15.2% (190 bps) FY 2024 Result
Slide 23: 2025 Outlook
2 0 2 5 O U T LO O K Fourth-Quarter 2024 Earnings February 20, 2025 23
Slide 24: First-Quarter Guidance
F I R S T- Q UA R T E R 2 0 2 5 G U I DA N C E 1 Q1 2025 Guidance Sales Growth 3% - 4% Reported (Continuing Operations) Kidney Care MSA (~250 bps) Exit of IV Solutions in China ~60 bps Foreign Exchange >200 bps Sales Growth ~ ~4% Operational Growth (Continuing Operations)2 Adjusted Diluted EPS $0.47
Slide 25: Full-Year Guidance
F U L L -Y E A R 2 0 2 5 G U I DA N C E 1 FY 2025 Guidance Sales Growth 5% - 6% Reported (Continuing Operations) Kidney Care MSA (~350 bps) Exit of IV Solutions in China ~60 bps Foreign Exchange ~200 bps Sales Growth 4% - 5% Operational Growth (Continuing Operations)2 Adjusted Diluted EPS $2.45 - $2
Slide 26: Full-Year Guidance by Segment
F U L L -Y E A R 2 0 2 5 G U I DA N C E BY S E G M E N T 1 Sales Growth FY 2025 Operational Growth Guidance Medical Products & Therapies ~5% Healthcare Systems & Technologies ~3% Pharmaceuticals 5% - 6% 1Non-GAAP financial metrics referenced in this slide include operational sales growth from contin
Slide 27: Non-GAAP Reconciliations
NON-GAAP R E C O N C I L I AT I O N S Fourth-Quarter 2024 Earnings February 20, 2025 27
Slide 28: Non-GAAP Reconciliations as of February 20, 2024
NON-GAAP RECONCILIATIONS AS OF FEBRUARY 20, 2024 Non-GAAP Reconciliations: As part of its Q4 2024 earnings announcement on February 20, 2025, Baxter presented its financial results for the fourth quarter of 2024. Baxter also presented guidance for the first quarter and full year of 2025. In these pr
Slide 29: Adjustments and Reconciliations: Three Months Ended December 31, 2024
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Three Months Ended December 31, 2024 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the three months ended December 31, 2024 included special items which impacted the
Slide 30: Adjustments and Reconciliations: Three Months Ended December 31, 2023
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Three Months Ended December 31, 2023 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the three months ended December 31, 2023 included special items which impacted the
Slide 31: Adjustments and Reconciliations: Three Months Ended December 31, 2024 and 2023
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Three Months Ended December 31, 2024 and 2023 (unaudited) For more information on the company's use of non-GAAP financial measures in this presentation, please see the company's Current Report on Form 8-K filed with the
Slide 32: Adjustments and Reconciliations: Twelve Months Ended December 31, 2024
DESCRIPTIONS OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Twelve Months Ended December 31, 2024 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the twelve months ended December 31, 2024 included special items which impacted
Slide 33: Adjustments and Reconciliations: Twelve Months Ended December 31, 2023
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Twelve Months Ended December 31, 2023 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the twelve months ended December 31, 2022 included special items which impacted t
Slide 34: Adjustments and Reconciliations: Twelve Months Ended 2024 and 2023
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Twelve Months Ended December 31, 2024 and 2023 (unaudited) For more information on the company's use of non-GAAP financial measures in this presentation, please see the company's Current Report on Form 8-K filed with th
Slide 35: Adjustments and Reconciliations: Twelve Months Ended 2024 and 2023
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Twelve Months Ended December 31, 2024 and 2023 (unaudited) For more information on the company's use of non-GAAP financial measures in this presentation, please see the company's Current Report on Form 8-K filed with th
Slide 36: Operating Cash Flow to Free Cash Flow
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Operating Cash Flow to Free Cash Flow (unaudited) (in millions) Free cash flow is a non-GAAP measure. For more information on the company's use of non-GAAP financial measures in this presentation, please see the company's Current Report on Form 8-K filed
Slide 37: Constant Currency Sales Growth: Three Months
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Change in Net Sales Growth As Reported to Constant Currency Sales Growth From The Three Months Ended December 31, 2023 to The Three Months Ended December 31, 2024 (unaudited) Sales By Product Category: *Totals may not add across due to rounding Change in
Slide 38: Constant Currency Sales Growth: Twelve Months
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Change in Net Sales Growth As Reported to Constant Currency Sales Growth From The Twelve Months Ended December 31, 2023 to The Twelve Months Ended December 31, 2024 (unaudited) Sales By Product Category: *Totals may not add across due to rounding Change i
Slide 39: Projected 2025 GAAP to Operational Sales Growth
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Projected First Quarter and Full Year 2025 U.S. GAAP Sales Growth to Projected Operational Sales Growth and Full Year 2025 U.S. GAAP Sales Growth to Projected Operational Sales Growth (unaudited) 39 *Totals may not foot due to rounding
Slide 40: Projected 2025 Adjusted Operating Margin, Tax Rate and EPS
Projected Full Year 2025 Projected Adjusted Operating Margin, Projected Full Year 2025 Projected Adjusted Tax Rate, and Projected First Quarter and Full Year 2025 Projected Adjusted Earnings Per Share (unaudited) Baxter calculates forward-looking non-GAAP financial measures based on forecasts that o
Slide 41: Fourth-Quarter 2024 Earnings
FO U R T H - Q UA R T E R 2 0 24 E A R N I N G S Baxter International Inc. February 20, 2025 41