As I step into my new role as CEO of Cardinal Health, I want to express my gratitude for the trust and confidence our Board of Directors is placing in me. It is a privilege to take on this new responsibility and move our organization forward.
Our fiscal 2022 financial performance
Fiscal 2022 brought great challenges to our customers, to our industry and to Cardinal Health. I have been both impressed and inspired by the work of our customers and am tremendously proud of the dedication and resilience of our employees around the world as they continue to rise to meet these challenges.
Despite the often difficult year, we generated $3.1 billion of operating cash flow, enabling both the return of capital to shareholders and future investment to support our strategic priorities. This, in addition to our strong balance sheet, positions us well to deploy capital in the best interest of shareholders.
We did not hit all of our fiscal 2022 performance targets, primarily due to the inflation and supply chain constraints that significantly impacted our Medical Segment performance.
I also want to acknowledge my predecessor, Mike Kaufmann. Mike was part of this company and industry for more than 30 years and, like many, I'm inspired by his passion for Cardinal Health and his drive to make healthcare better. He joined Cardinal Health as a director in finance before progressing through roles in sales, procurement, general management and senior leadership across our business segments and the corporate enterprise. Mike is well-known for his integrity, authenticity and humility. He helped build Cardinal Health into what it is today: a Fortune 15 company that improves lives every day as a distributor of pharmaceuticals, a global manufacturer and distributor
of medical and laboratory products, and a provider of performance and data solutions for healthcare facilities. On behalf of all of us at Cardinal Health, I'd like to thank Mike for his many years of service to our customers and partners, to the patients they care for, to our employees and to the communities where we live and work.
FY22 financial summary
GAAP results include cumulative non-cash,pre-tax goodwill impairment charges of $2.1 billion in the Medical segment recorded in fiscal 2022.
Attributable to Cardinal Health, Inc.
Please see "Explanation and Reconciliation of Non-GAAP Financial Measures" in our Fiscal Year 2022 Form 10-K for GAAP to Non-GAAP reconciliations.
What we value
We hold ourselves to the highest ethical standards.
We embrace differences to drive the best outcomes.
We develop new ways of thinking, operating and serving customers.
We bring passion, determination and grit to deliver on our commitments.
We serve the greater goal of healthcare.
However, our Pharmaceutical Segment finished the year strong at 5% segment profit growth, consistent with our guidance and driven by continued stability in overall pharmaceutical demand and within our generics program. This continued stability in our generics program, our strong positioning with a diverse customer base and our investments in technology and innovation position the Pharmaceutical Segment well for continued future growth.
We recently announced that Debbie Weitzman, formerly President of Pharmaceutical Distribution at Cardinal Health, became CEO of the company's Pharmaceutical Segment, effective September 19. Weitzman replaces Victor Crawford, who will remain with Cardinal Health until November 13 to ensure a smooth transition. The role of President of Pharmaceutical Distribution will be eliminated, and we are further streamlining the Pharmaceutical Segment
by restructuring and eliminating additional roles. The Pharmaceutical and Specialty Distribution businesses will both report directly to Debbie Weitzman. I believe this new design will allow us to have added focus on specialty distribution, which is a key growth area for the company, and to simplify how our customers and manufacturers work with us.
In the Medical Segment, we continue to take actions to improve performance. We have introduced a Medical Improvement Plan, including a streamlined organizational structure, that will return the business to profitable growth. We are focused on mitigating supply chain inflation, optimizing and growing the Cardinal Health™ Brand Portfolio, accelerating our growth businesses - primarily at-Home Solutions - and continuing our cost optimization and simplification. I firmly believewe are on the right track to achieve at least $650 million in Medical Segment profit by fiscal 2025.
While there is a lot of work to be done, I am honored to lead our more than 46,500 teammates around the world as we execute our plans to grow in fiscal 2023 and beyond.
Important Information RegardingForward-LookingStatements: This Report includes forward-looking statements addressing expectations, prospects and other matters that are dependent upon future events or developments. These forward-looking statements may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "will," "should," "could," "would," "continue," "likely," and similar expressions. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. For more information about these risks and uncertainties, please review our Forms 10-K,10-Q and 8-K and Exhibits to those Reports, which are available at ir.cardinalhealth.com. Except to the extent required by applicable law, we undertake no obligation to update or revise any forward-looking statement.
Cardinal Health Inc. published this content on 19 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 September 2022 21:25:01 UTC.