Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Haemonetics Corp (HAE, Financial) reported first quarter revenue of $336 million, reflecting an 8% growth on a reported basis.
- The company achieved 68% revenue growth on a reported basis and 19% organic growth in its interventional franchise.
- Haemonetics Corp (HAE) reaffirmed its Plasma revenue growth guidance for FY 2025, indicating confidence in its strategic direction.
- The company successfully launched new products and continued to integrate acquisitions, contributing to higher margins.
- Haemonetics Corp (HAE) ended the first quarter with an adjusted gross margin of 55.3%, up 110 basis points from last year.
Negative Points
- Plasma revenue declined 3% in the first quarter after growing 35% last year, indicating a slowdown in this segment.
- North America disposables revenue was down 5%, driven by CSL's planned transition.
- Adjusted earnings per diluted share decreased by 3% compared to the strong first quarter of the prior year.
- The adjusted operating margin was down 150 basis points compared with a very strong quarter last year.
- The company faced geopolitical challenges, particularly in China, impacting its performance in that region.
Q & A Highlights
Q: On the plasma end, where do you think we are in the cycle post-COVID regarding inventory builds at fractionators? Are we approaching supply-demand equilibrium?
A: Demand remains robust, with an expected increase in fractionation capacity over the next decade. Near-term, there's a shift towards inventory rebuild and lowering cost per liter, which increases demand for productivity improvements. The agreement with CSL remains unchanged, with purchases according to forecast.
Q: Regarding VASCADE MVP, what is the attach rate to pulse field ablation (PFA), and how will the introduction of XL benefit this?
A: PFA is a disruptive force, and MVP XL is a game changer. The XL product has performed exceptionally well in limited market release, and we are proceeding with full market release. It allows participation in the growing market of PFA and increases adoption in procedures like left atrial appendage closures.
Q: Is there still a pricing tailwind in the plasma business with the upgrade to Express Plus and Persona?
A: Yes, we anticipate all North American customers on Nexus will upgrade to Express Plus and Persona by the end of the fiscal year. The product is priced to reflect its technological advantages.
Q: Can you provide an update on the non-CSL plasma business growth and share gains?
A: We expect growth from underlying collection demand, price premiums for new technology, and share gains. These factors are back-end loaded, and we remain confident in our guidance, expecting upgrades and share gains to build over the year.
Q: What is the market opportunity for VASCADE MVP XL, and what are your rollout plans?
A: The limited market release of MVP XL has been successful, with over 350 procedures showing outstanding feedback. We are proceeding with full market release and compiling real-world evidence to support broader label expansion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
