Cardinal Health : Q2 2023 Press release

Exhibit 99.1

FOR IMMEDIATE RELEASE

Cardinal Health Reports Second Quarter Fiscal Year 2023 Results

and Raises Fiscal Year 2023 Non-GAAP EPS Guidance

• Revenue increased 13% to $51.5 billion
• GAAP1 operating loss was $119 million due to a non-cash,pre-tax goodwill impairment of $709 million related to the Medical segment; GAAP diluted loss per share was $0.50
• Non-GAAPoperating earnings of $467 million were in-line with the second quarter of last year; non-GAAP diluted EPS increased 4% to $1.32
• Fiscal year 2023 non-GAAP EPS guidance raised to $5.20 to $5.50, from $5.05 to $5.40

DUBLIN, Ohio, February 2, 2023 - Cardinal Health (NYSE: CAH) today reported second quarter fiscal year 2023 revenues of $51.5 billion, an increase of 13% from the second quarter of fiscal year 2022. Second quarter GAAP operating loss was $119 million due to a non-cash,pre-tax goodwill impairment of $709 million related to the Medical segment. GAAP diluted loss per share was $0.50, primarily due to this impairment, net of tax effects. Second quarter non-GAAP operating earnings of $467 million were in-line with the second quarter of last year. Non-GAAP diluted earnings per share (EPS) increased 4% to $1.32, due to lower interest expense and a lower share count, partially offset by a higher non-GAAP effective tax rate.

"Our second quarter results demonstrate continued momentum against our plans, led by better-than-expected performance in the Pharmaceutical segment and Medical results in-line with our prior commentary," said Jason Hollar, CEO of Cardinal Health. "With the first half of fiscal year 2023 behind us, we are pleased to raise our full year non-GAAP EPS guidance and outlook for the Pharmaceutical segment. In the Medical segment, we remain confident in our Medical Improvement Plan, including the actions we are taking to mitigate supply chain inflation and drive improved performance."

Q2 FY23 summary

		Q2 FY23		Q2 FY22	Y/Y
Revenue		$51.5 billion		$45.5 billion		13%
Operating loss		$(119) million		$(950) million	(87)%
Non-GAAP operating earnings		$467 million		$467 million		-%
Net earnings/(loss) attributable to Cardinal Health, Inc.		$(130) million		$49 million	N.M.
Non-GAAP net earnings attributable to Cardinal Health, Inc.		$346 million		$357 million		(3)%
Effective Tax Rate2	5.4%	105.0%
Non-GAAP Effective Tax Rate		23.0%		19.4%
Diluted EPS attributable to Cardinal Health, Inc.	$(0.50)	$0.17		N.M.
Non-GAAP diluted EPS attributable to Cardinal Health, Inc.		$1.32		$1.27		4%

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Segment results

Pharmaceutical segment

				Q2 FY23				Q2 FY22			Y/Y
	Revenue		$	47.7	billion		$	41.4	billion		15%
	Segment profit	$	464	million	$	426	million	9%

Second-quarter revenue for the Pharmaceutical segment increased 15% to $47.7 billion, driven by brand and specialty pharmaceutical sales growth from existing and net new customers.

Pharmaceutical segment profit increased 9% to $464 million in the second quarter, driven by a higher contribution from brand and specialty products and generics program performance, partially offset by inflationary supply chain costs.

Medical segment

				Q2 FY23				Q2 FY22			Y/Y
	Revenue		$	3.8	billion		$	4.1	billion		(7)%
	Segment profit	$	17	million	$	50	million	(66)%

Second-quarter revenue for the Medical segment decreased 7% to $3.8 billion, driven by lower Products and Distribution sales, including PPE pricing and volumes. Growth in at-Home Solutions partially offset this decline.

Medical segment profit decreased 66% to $17 million in the second quarter, primarily due to lower Products and Distribution volumes and net inflationary impacts, partially offset by an improvement in PPE margins.

Fiscal year 2023 outlook1

The company updated its fiscal year 2023 guidance range for non-GAAP diluted earnings per share attributable to Cardinal Health, Inc. to $5.20 to $5.50, from $5.05 to $5.40.

This guidance includes an update to fiscal year 2023 Pharmaceutical segment profit outlook to 4% to 6.5% growth, from 2% to 5% growth. Additionally, the company updated expectations for fiscal year 2023 interest and other to $115 million to $130 million, from $140 million to $160 million.

The company does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. See "Use of Non-GAAP Measures" following the attached schedules for additional explanation.

Investor Day

The company plans to host an Investor Day on June 8 in New York City to discuss its long-term financial outlook, growth strategies, and conclusions from the Business Review Committee's comprehensive review. The event will be live-webcast and archived on Cardinal Health's Investor Relations website.

Recent highlights

• Cardinal Health and its board of directors announced that Aaron Alt will become the company's new chief financial officer (CFO) effective February 10. Alt most recently served as EVP and CFO for Sysco Corporation, the leading global food service distribution company.
• Cardinal Health released its fiscal year 2022 Environmental, Social, and Governance (ESG) report which reflects significant progress in ESG efforts and highlights the company's commitment to helping build a more sustainable, equitable world, and a healthier future for employees, customers and communities.
• Cardinal Health completed its $1 billion dollar accelerated share repurchase (ASR) program and initiated a new $250 million dollar ASR program in the second quarter, resulting in a total of $1.25 billion year-to-date share repurchases in fiscal year 2023.

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• Cardinal Health announced the launch of Velocare™, a supply chain network and last-mile fulfillment solution capable of reaching patients in one to two hours with critical products and services required for hospital-level care at home. Through a strategic collaboration with Medically Home, Cardinal Health at- Home Solutions is now supporting a Medically Home health system customer with Velocare, collectively enabling scaled, high-acuity care in the home.
• Cardinal Health's U.S. Medical Products and Distribution business opened its expanded Sustainable
  Technologies™ facility in Riverview, Florida, doubling the manufacturing facility to roughly 100,000 square feet. Sustainable Technologies™ is a leading provider of single-use device collections, reprocessing and recycling services in the U.S., helping to deliver supply resiliency, sustainable solutions, and cost savings for customers.

Webcast

Cardinal Health will host a webcast today at 8:30 a.m. Eastern to discuss second-quarter results. To access the webcast and corresponding slide presentation, go to the Investor Relations page at ir.cardinalhealth.com. No access code is required.

Presentation slides and a webcast replay will be available on the Investor Relations page for 12 months.

About Cardinal Health

Cardinal Health is a distributor of pharmaceuticals, a global manufacturer and distributor of medical and laboratory products, and a provider of performance and data solutions for health care facilities. With more than 50 years in business, operations in more than 30 countries and approximately 46,500 employees globally, Cardinal Health is essential to care. Information about Cardinal Health is available at cardinalhealth.com.

Contacts

Media: Erich Timmerman, [e-mail] and 614.757.8231

Investors: Kevin Moran, [e-mail] and 614.757.7942

1GAAP refers to U.S. generally accepted accounting principles. This news release includes GAAP financial measures as well as non-GAAP financial measures, which are financial measures not calculated in accordance with GAAP. See "Use of Non-GAAP Measures" following the attached schedules for definitions of the non-GAAP financial measures presented in this news release and see the attached schedules for reconciliations of the differences between the non-GAAP financial measures and their most directly comparable GAAP financial measures.

2The second quarter fiscal year 2022 and 2023 GAAP effective tax rates reflect the tax effects of the goodwill impairment charge included in the company's estimated annual effective tax rate for each year.

Cardinal Health uses its website as a channel of distribution for material company information. Important information, including news releases, financial information, earnings and analyst presentations, and information about upcoming presentations and events is routinely posted and accessible on the Investor Relations page at ir.cardinalhealth.com. In addition, the website allows investors and other interested persons to sign up automatically to receive email alerts when the company posts news releases, SEC filings and certain other information on its website.

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Cautions Concerning Forward-Looking Statements

This release contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "will," "should," "could," "would," "project," "continue," "likely," and similar expressions, and include statements reflecting future results or guidance, statements of outlook and various accruals and estimates. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. These risks and uncertainties include risks arising from ongoing inflationary pressures and supply chain constraints, including the risk that our plans to mitigate such effects may not be as successful as we anticipate and the possibility that costs to source certain personal protective or other equipment, increased costs for transportation, shipping, freight and commodities, reduced price or demand for certain products may result in additional inventory reserves or disruptions and may negatively impact our ability to meet our long-term guidance; the possibility that our Medical unit goodwill could be further impaired due to the increase in global interest rates, possible unfavorable changes in the U.S. statutory tax rate or additional changes to our long-term financial plan; competitive pressures in Cardinal Health's various lines of business; the performance of our generics program, including the amount or rate of generic deflation and our ability to offset generic deflation and maintain other financial and strategic benefits through our generic sourcing venture or other components of our generics programs; ongoing risks associated with the distribution of opioids, including the financial impact associated with the settlements with governmental authorities, the risk that challenges to our plans to take tax deductions for opioid-related losses could adversely impact our financial results; risks arising from the Department of Justice investigation which we believe concerns our anti-diversion program and risks associated with the injunctive relief requirements under the national settlement, including the risk that we may incur higher costs or operational challenges in the implementation and maintenance of the required changes; risks associated with the manufacture and sourcing of certain products, including risks related to our ability and the ability of third-party manufacturers to import or export certain products or component parts and to comply with applicable regulations; our ability to manage uncertainties associated with the pricing of branded pharmaceuticals; and risks associated with our cost savings initiatives or other business initiatives, such as the Medical Improvement Plan, including the possibility that they could fail to achieve the intended results. Cardinal Health is subject to additional risks and uncertainties described in Cardinal Health's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports. This release reflects management's views as of February 2, 2023. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement. Forward-looking statements are aspirational and not guarantees or promises that goals, targets or projections will be met, and no assurance can be given that any commitment, expectation, initiative or plan in this report can or will be achieved or completed. Cardinal Health provides definitions and reconciliations of non-GAAP financial measures and their most directly comparable GAAP financial measures at ir.cardinalhealth.com.

												Schedule 1
	Cardinal Health, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings (Unaudited)
				Second Quarter					Year-to-Date
(in millions, except per common share amounts)			2023		2022	% Change			2023		2022	% Change
Revenue		$	51,469	$	45,457	13 %		$	101,072	$	89,425	13 %
Cost of products sold			49,806		43,841	14 %			97,795		86,167	13 %
Gross margin			1,663		1,616	3 %			3,277		3,258	1 %
Operating expenses:
Distribution, selling, general and administrative expenses			1,191		1,151	3 %			2,388		2,265	5 %
Restructuring and employee severance			17		7				46		25
Amortization and other acquisition-related costs			71		79				142		158
Impairments and (gain)/loss on disposal of assets, net1			710		1,295				863		1,293
Litigation (recoveries)/charges, net			(207)		34				(180)		52
Operating earnings/(loss)			(119)		(950)	(87)%			18		(535)	N.M.
Other (income)/expense, net			(7)		(13)				(5)		(17)
Interest expense, net			25		37	(32)%			50		77	(35)%
Loss on early extinguishment of debt			-		-				-		10
Gain on sale of equity interest in naviHealth			-		(1)				-		(1)
Loss before income taxes			(137)		(973)	(86)%			(27)		(604)	(96)%
Benefit from income taxes 2			(7)		(1,022)	N.M.			(8)		(925)	N.M.
Net earnings/(loss)			(130)		49	N.M.			(19)		321	N.M.
Less: Net earnings attributable to noncontrolling interests			-		-				(1)		(1)
Net earnings/(loss) attributable to Cardinal Health, Inc.		$	(130)	$	49	N.M.		$	(20)	$	320	N.M.
Earnings/(Loss) per common share attributable to Cardinal Health,
Inc.:
Basic	$	(0.50)	$	0.17	N.M.	$	(0.08)	$	1.13	N.M.
Diluted			(0.50)		0.17	N.M.			(0.08)		1.12	N.M.
Weighted-average number of common shares outstanding:
Basic			261		279				266		283
Diluted			261		281				266		285

1. Impairments and (gain)/loss on disposal of assets, net included pre-tax impairment charges related to the Medical segment of $709 million and $863 million recorded during the three and six months ended December 31, 2022, respectively. During the three and six months ended December 31, 2021, impairments and (gain)/loss on disposal of assets, net included a pre-tax impairment charge of $1.3 billion related to the Medical segment.
2. For fiscal 2023, the estimated net tax benefit related to the impairments is $68 million and is included in the annual effective tax rate. As a result, the amount of tax benefit increased approximately by an incremental $118 million and $140 million for the three and six months ended December 31, 2022, respectively, and is expected to increase the provision for income taxes during the remainder of the fiscal year.