Cardinal Health, Inc. (NYSE:CAH) Q1 2024 Earnings Call Transcript
Cardinal Health, Inc. (NYSE:CAH) Q1 2024 Earnings Call Transcript November 3, 2023
Operator: Good day, and welcome to today's First Quarter Financial Year 2024 Cardinal Health Earnings Conference Call. This meeting is being recorded. At this time, I'd like to hand the call over to Matt Sims, Vice President of Investor Relations. Please go ahead, sir.
Matt Sims: Good morning, and thank you for joining us for Cardinal Health first quarter fiscal '24 earnings conference call. On the call with me today are Jason Hollar, Chief Executive Officer; and Aaron Alt, Chief Financial Officer. You can find today's press release and earnings presentation on the IR section of our website at ir.cardinalhealth.com. As a reminder, during the call, we will be making forward-looking statements. The matters addressed in the statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected or implied. Please refer to our SEC filings and the forward-looking statement slide at the beginning of our presentation for a description of these risks and uncertainties.
Please note that during the discussion today, our comments will be on a non-GAAP basis, unless they are specifically called out as GAAP. GAAP to non-GAAP reconciliations for all relevant periods can be found in the schedules attached to our press release. For the Q&A portion of today’s call, we kindly ask that you limit questions to one for participants so that we can try and give everyone an opportunity. With that, I will now turn the call over to Jason.
Jason Hollar: Thanks, Matt, and good morning, everyone. Overall, it was a great start to our fiscal year, with strong first quarter results and an improved outlook for the year, we are continuing our operating momentum into fiscal 2024. In the first quarter, we delivered significant profit growth in both segments. In Pharma, the results were driven by the strength across our business, including continued positive performance from our generics program. We also benefited from our role distributing the recently commercialized COVID-19 vaccines, which I'll elaborate on later in my remarks. Macro trends in the core distribution business remains stable, and we continue to see strong pharmaceutical demand, including the GLP-1 medications.
And both our higher-growth specialty nuclear businesses tracked ahead of plan in the quarter. In Medical, the first quarter was another proof point of the inflection we began to see last Q2 in this business. Recall, the segment was unprofitable only a year ago. Overall, results tracked slightly ahead of our expectations, and we continue to execute our Medical Improvement Plan initiatives to drive better and more predictable financial performance. In particular, we made notable progress on inflation mitigation in the quarter. At an enterprise level, we realized notable operating leverage from our efforts to manage costs across the segments. And below the operating line, our favorable capital structure and responsible capital deployment provided tailwinds, enabled by our strong cash flow generation.
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