Slide 1: Earnings Conference Call Fiscal Q1 2025
Earnings Conference Call Fiscal Q1 2025 February 6, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements Safe Harbor Statement Regarding Forward-Looking Statements This presentation contains express or implied "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements
Slide 3: Agenda and Presenters
Agenda and Presenters Today’s topics: Dev Kurdikar Chief Executive Officer Strategic Priorities Q1 Highlights & Business Review Revenue and Earnings Review Jake Elguicze Chief Financial Officer Guidance Q&A Pravesh Khandelwal Vice President, Investor Relations 3
Slide 4: Strategic Priorities
Strategic 1. Strengthen core business Priorities • Brand transition • Growth opportunities 2. Expand product portfolio • Global commercial channel • High-volume manufacturing 3. Increase financial flexibility • Operational efficiency • Net leverage/debt reduction
Slide 5: Q1 Fiscal Year 2025 Enterprise Highlights
Q1 Fiscal Year 2025 Enterprise Highlights • Solid performance to begin Fiscal Year 2025 • Brand transition program progressing as planned, with U.S. and Canada expected to transition in the second half of fiscal year 2025 • Progressed in our initiatives targeted to make our pen needles available as
Slide 6: Goal: Implement and execute a seamless brand transition plan
Goal: Implement and execute a seamless brand transition plan Product Transition Drive customer Ensure compendia Execute pre-launch Drive new brand operational readiness linkage of old and commercial awareness and new products activities and adoption communications Pre-launch Launch U.S. and Canada w
Slide 7: Q1 Fiscal Year 2025 vs. Q1 Fiscal Year 2024 adjusted revenue
Q1 Fiscal Year 2025 vs. Q1 Fiscal Year 2024 adjusted revenue Dollars in Millions Three Months Ended December 31, % Increase / Decrease Adjusted Constant Reported Currency Revenue Currency Adjustment Revenue 2024 2023 Growth Impact Impact Growth Reported Adjusted Reported Adjusted Adjustment Adjustme
Slide 8: Q1 FY25 financial highlights
Q1 FY25 financial highlights Q1 FY25 reported revenue of $261.9 million, down 5.6% on a reported basis, down 4.8% on an adjusted constant currency basis; as compared to Revenue the prior year period Gross Q1 FY25 GAAP gross profit and margin of $157.1 million and 60.0%, compared to $185.9 million an
Slide 9: Fiscal Year 2025 updated financial guidance
Fiscal Year 2025 updated financial guidance Dollars in Millions, Current Previous (1) except per share and percentages Low High Low High Reported Revenue $1,075 $1,092 $1,093 $1,110 Reported Revenue Growth (%) (4.3)% (2.8)% (2.7)% (1.2)% Impact of F/X (%) (2.2)% (0.6)% Impact of Italian payback meas
Slide 10: Q&A
Q&A embecta
Slide 11: Appendix
Appendix embecta
Slide 12: Non-GAAP financial measures
Non-GAAP financial measures In evaluating our operating performance, we supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial measures including (i) Adjusted Revenues, (ii) earnings before interest, taxes, depreciation, and amortization (“EBITDA”
Slide 13: Adjusted revenue and adjusted gross profit margin reconciliation
Adjusted revenue and adjusted gross profit margin reconciliation Dollars in Millions Three Months Ended December 31, 2024 December 31, 2023 Reported Revenue $261.9 $277.3 Italian payback measure — — Adjusted Revenue $261.9 $277.3 Dollars in Millions, except percentages Three Months Ended December 31
Slide 14: Adjusted revenue and adjusted gross profit margin reconciliation - continued
Adjusted revenue and adjusted gross profit margin reconciliation - continued (1) Amortization of intangible assets is recorded in Cost of products sold. (2) One-time stand-up costs incurred are primarily attributed to brand transition. (3) Represents costs required to develop processes and systems t
Slide 15: Adjusted operating income margin reconciliation
Adjusted operating income margin reconciliation Dollars in Millions, except percentages Three Months Ended December 31, 2024 December 31, 2023 GAAP Operating Income $28.7 $45.5 GAAP Operating Income Margin 11.0% 16.4% Amortization of intangible assets (1) 0.3 0.3 One-time stand up costs (2) 10.4 28.
Slide 16: Adjusted operating income margin reconciliation – continued
Adjusted operating income margin reconciliation – continued (1) Amortization of intangible assets is recorded in Cost of products sold. (2) One-time stand-up costs incurred primarily include: (i) product registration, labeling, and brand transition costs; (ii) warehousing and distribution set-up cos
Slide 17: Adjusted net income and adjusted net income per diluted share reconciliation
Adjusted net income and adjusted net income per diluted share reconciliation Dollars in Millions, except per share amounts Three Months Ended December 31, 2024 December 31, 2023 GAAP Net Income — $20.1 Adjustments: GAAP Income tax benefit (0.7) (5.8) Amortization of intangible assets (1) 0.3 0.3 One
Slide 18: Adjusted net income per diluted share reconciliation – continued
Adjusted net income per diluted share reconciliation – continued (1) Amortization of intangible assets is recorded in Cost of products sold. (2) One-time stand-up costs incurred primarily include: (i) product registration, labeling, and brand transition costs; (ii) warehousing and distribution set-u
Slide 19: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation Dollars in Millions Three Months Ended December 31, 2024 December 31, 2023 Reported Revenue $261.9 $277.3 Italian payback measure — — Adjusted Revenue $261.9 $277.3 Dollars in Millions, except percentages Three Months Ended December 31, 2024 December 31, 2023 GAAP Net
Slide 20: Adjusted EBITDA reconciliation – continued
Adjusted EBITDA reconciliation – continued (1) Represents stock-based compensation expense incurred during the three months ended December 31, 2024 and 2023, respectively. For the three months ended, December 31, 2024, $7.4 million is recorded in Selling and administrative expense, $0.9 million is r
Slide 21: Q1’25 Supplemental Reconciliation
Q1’25 Supplemental Reconciliation Costs associated with Q1’25 Other Non-GAAP Q1’25 Dollars in Millions the discontinued patch GAAP adjustments Adjusted pump program (1) Gross Profit $157.1 $6.5 $0.6 (2) $164.2 Research and development expense 20.3 (18.3) (0.3) (3) 1.7 Selling and administrative expe
Slide 22: Fiscal Year 2025 financial guidance assumptions
Fiscal Year 2025 financial guidance assumptions Dollars in Millions, except percentages Current Prior Interest Expense, Net ~ $107 ~ $107 Adjusted Tax Rate ~ 25% ~ 25% Weighted Average Shares (in millions) 58.9 58.9 Foreign Exchange EUR/USD ~ 1.03 ~ 1.08 USD/YEN ~ 156 ~ 151 USD/CNY ~ 7.32 ~ 7.12 22