Today, Baxter, a prominent player in the global medtech arena, disclosed its financial outcomes for the fourth quarter and the entirety of 2023, concluding on December 31st. Additionally, the company outlined its financial projections for both the full-year and the initial quarter of 2024.
José (Joe) E. Almeida, the Chair, President, and CEO, remarked, “Baxter’s performance in 2023 reflects our building momentum as we executed upon several strategic initiatives designed to enhance our future performance, including the implementation of a new operating model, the sale of our BioPharma Solutions business and steady progress on the proposed separation of our Kidney Care segment.”
Fourth-Quarter Financial Highlights
In the fourth quarter, Baxter’s worldwide sales from continuing operations reached approximately $3.89 billion, marking a 4% increase on a reported basis and a 3% rise on a constant currency basis. Excluding Baxter’s BioPharma Solutions (BPS) business, acquired by Advent International and Warburg Pincus in the previous quarter of 2023, sales from continuing operations exhibited robust performance.
U.S. sales from continuing operations in Q4 totaled around $1.82 billion, showing a 2% increase on a reported basis. Meanwhile, international sales from continuing operations in the same period amounted to roughly $2.07 billion, marking a 6% increase on a reported basis and a 4% growth at constant currency rates.
The company surpassed its previously announced guidance for the quarter, driven by strong sales across various segments, including Medical Products and Therapies, Kidney Care, and Pharmaceuticals.
In the fourth quarter, total net income attributable to Baxter on a U.S. GAAP basis was $245 million, or $0.48 per diluted share. Adjusted income from continuing operations stood at $0.88 per diluted share, excluding special items.
Full-Year Financial Performance
For the entirety of 2023, Baxter’s worldwide sales from continuing operations totaled $14.81 billion, reflecting a 2% increase on a reported basis and a 3% rise on a constant currency basis. U.S. sales from continuing operations grew by 1% on a reported basis, reaching $7.00 billion, while international sales from continuing operations amounted to $7.81 billion, marking a 3% increase on a reported basis and a 4% growth at constant currency rates.
Full-year net income attributable to Baxter on a U.S. GAAP basis totaled $2.66 billion, or $5.25 per diluted share. Adjusted income from continuing operations amounted to $2.60 per diluted share. Baxter generated $1.70 billion in operating cash flow from continuing operations and $1.01 billion in free cash flow for the full year.
Kidney Care Separation Update
Baxter continues to make progress on the proposed separation of its Kidney Care segment into a standalone company named Vantive. Chris Toth, designated CEO of Vantive, is actively building out the senior management team for the standalone entity.
Recent Highlights and Corporate Responsibility
Baxter achieved several milestones across its business segments in 2023, focusing on innovation and strategic growth. Notable launches include advancements in Healthcare Systems and Technologies, Medical Products and Therapies, Pharmaceuticals, and Kidney Care.
Furthermore, Baxter remains committed to corporate responsibility, aligning with its 2030 Corporate Responsibility Commitment and reporting transparently on environmental, social, and governance topics.
2024 Financial Outlook
For the full year 2024, Baxter anticipates sales growth of approximately 2% on both a reported and constant currency basis. Adjusted earnings are expected to range between $2.85 to $2.95 per diluted share.
In the first quarter of 2024, the company projects sales growth of about 1% on a reported basis and 1% to 2% on a constant currency basis, with adjusted earnings expected to range from $0.59 to $0.62 per diluted share.
Investor Call Access
Interested parties can access a webcast of Baxter’s fourth-quarter 2023 conference call for investors through the Investor Relations section of the company’s website at www.baxter.com, commencing at 7:30 a.m. CST on Feb. 8, 2024. Further details regarding this and future investor events and webcasts are available on the website.
