Cardinal Health reports $24.1 billion in Q1 revenue, names new CFO and CEO Pharmaceutical segment
DUBLIN, Ohio — Cardinal Health on Thursday reported fiscal year 2015 first-quarter revenue of $24.1 billion, representing a 2% decline from the year-ago period, in large part due to the expiration of the Walgreens contract in the prioryear first quarter. The decline was partially offset by growth from new and existing customers as well as continued strong growth in China.
"Fiscal year 2015 is off to a good start. Our organization has committed itself to anticipating and acting on the evolving needs of a fast-changing market," stated George Barrett, chairman and CEO Cardinal Health. "Both segments reported solid earnings growth and progress on all strategic fronts. Our pharmaceutical segment continued its momentum, and we are excited about the potential from Red Oak Sourcing, our generic sourcing joint venture with CVS Health. The medical segment continued its growth with strategic accounts and our direct-to-customer platforms, now rebranded as Cardinal Health at Home. Our physician preference item program addresses significant health system pain points and now spans orthopedics, interventional cardiology and wound management."
Revenue for the pharmaceutical segment declined 3% to $21.2 billion. However, segment profit increased 4% to $451 million driven by growth from new and existing customers, as well as strong performance from generic programs.
Revenue for the medical segment was up 5% to $2.9 billion, driven by strong performance from acquisitions and the positive net impact of customer volume. Segment profit increased 6% to $113 million due to growth in Cardinal Health-branded products, as well as select service offerings partially offset by a reduction in contribution from national brand products.
In addition, Cardinal Health named Michael Kaufmann as CFO and Jon Giacomin to the role of CEO of the Pharmaceutical segment, currently held by Mike Kaufmann, with both positions to be effective on Nov. 11.