Baxter International Inc. (NYSE:BAX), a leading global medtech company, has announced its financial results for the fourth quarter and full year ending Dec. 31, 2023, alongside providing financial guidance for full-year and first-quarter 2024.
José (Joe) E. Almeida, Chair, President, and CEO, expressed satisfaction with Baxter’s performance in 2023, highlighting the company’s strategic initiatives aimed at bolstering future performance. These initiatives included the implementation of a new operating model, the sale of the BioPharma Solutions business, and progress on the proposed separation of the Kidney Care segment. Almeida emphasized the solid demand for Baxter’s medically essential products and the improvement in the macroeconomic and supply chain environment. He underscored the company’s commitment to building on this momentum in 2024 through business transformation efforts and preparations for the proposed Kidney Care segment separation.
Fourth-Quarter Financial Results
In the fourth quarter, worldwide sales from continuing operations reached approximately $3.89 billion, marking a 4% increase on a reported basis and a 3% increase on a constant currency basis. U.S. sales from continuing operations totaled around $1.82 billion, a 2% increase on a reported basis. International sales from continuing operations amounted to approximately $2.07 billion, reflecting a 6% increase on a reported basis and a 4% increase at constant currency rates. The quarter’s sales performance exceeded Baxter’s previous guidance, driven by strong sales across various segments, including Medical Products and Therapies, Kidney Care, and Pharmaceuticals.
Total net income attributable to Baxter for the fourth quarter, according to U.S. GAAP, was $245 million, or $0.48 per diluted share. This included $0.14 from continuing operations and $0.34 from discontinued operations. Special items totaling $189 million, primarily related to intangible amortization, tax matters, separation-related costs, and investment impairments, impacted these results. Adjusted income from continuing operations was $0.88 per diluted share.
Full-Year Financial Results
For the full year 2023, worldwide sales from continuing operations amounted to $14.81 billion, up 2% on a reported basis and 3% on a constant currency basis. U.S. sales from continuing operations totaled $7.00 billion, growing 1% on a reported basis. International sales from continuing operations reached $7.81 billion, reflecting a 3% increase on a reported basis and a 4% increase at constant currency rates.
Net income attributable to Baxter for the full year, according to U.S. GAAP, was $2.66 billion, or $5.25 per diluted share. This included ($0.15) from continuing operations and $5.40 from discontinued operations. Special items totaling $1.18 billion after-tax, primarily driven by the gain on the divestiture of Baxter’s BPS business, impacted these results. Adjusted income from continuing operations totaled $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
Preparations are underway for the proposed separation of Baxter’s Kidney Care segment into a standalone company named Vantive. Chris Toth, designated CEO of Vantive, is building out the senior management team, recently appointing Matt Harbaugh as VP of Finance, Kidney Care, and designated CFO of Vantive. Harbaugh previously served as CFO at NuVasive Inc.
