HAEMONETICS CORP Q3 FY2025 earnings call

Management Statement and Operational Highlights

• Financial Performance: Third quarter revenue was $349 million, 4% reported growth and flat organically. Adjusted earnings per share (EPS) were up 14% at $1.19. Adjusted gross margin was 57.7% in Q3, up 240 basis points. Adjusted operating margin guidance was updated to the high end of the previous range at approximately 24%.
• Business Units: Hospital business continued to grow with strength in Blood Management Technologies and Interventional Technologies. Plasma business was gaining share, with CSL transition on track and Whole Blood divestiture aligning resources to higher growth opportunities.
• Innovation and Partnerships: New long-term agreements with BioLife and Grifols were signed, progress was made in transitioning customers to Persona and Express Plus, and TEG 6s and VASCADE MVP XL were driving growth in respective segments.

Segment Performance

• Hospital: Third quarter revenue was $349 million, with 4% reported growth and flat organically. Hospital revenue grew 24% on a reported basis in Q3 and 28% year-to-date (YTD), with organic growth of 12% and 14% respectively. Blood Management Technologies (largest hospital franchise) saw 10% revenue growth in Q3 and 11% YTD. Hemostasis management had 26% revenue growth in the U.S. Transfusion management and Cell Saver also saw growth. Interventional Technologies grew 47% in Q3 and 58% YTD. Sensor Guided Technologies and Esophageal cooling contributed 12% to hospital reported revenue in Q3 and 15% YTD. Hospital revenue guidance was updated to a range of 24% to 26% on a reported basis and 12% to 14% on an organic basis.
• Plasma and Blood Center: Plasma revenue declined 9% in Q3 and 5% YTD, with North America disposables revenue down 11% in Q3 and 6% YTD. Excluding CSL, U.S. disposables revenue grew. Organic plasma revenue guidance is a 5% to 7% decline, inclusive of ~$100 million from CSL U.S. disposables. Blood Center revenue declined 3% in Q3 and 2% YTD, primarily due to whole blood portfolio rationalization. Apheresis revenue grew 5% in Q3 and 3% YTD. Whole Blood divestiture impacted guidance, with reported revenue guidance at a decline of 7% to 9% and organic decline reduced to 2% to 4%.

Guidance

• Reported revenue guidance: 3% to 5% growth on a reported basis, flat to 3% organic. Adjusted operating margin guidance updated to the high end of the previous range at approximately 24%. Adjusted EPS guidance tightened to $4.50 to $4.70.
• Plasma organic revenue guidance: 5% to 7% decline, inclusive of ~$100 million from CSL U.S. disposables.
• Hospital revenue guidance: 24% to 26% on a reported basis and 12% to 14% on an organic basis.
• Whole Blood divestiture impact: Reported revenue guidance at a decline of 7% to 9%, organic decline reduced to 2% to 4%.

Risks

• External market disruptions such as temporary pullback in plasma collections, difficult market conditions in China, and rapidly evolving trends in electrophysiology.
• Competition in vascular closure and interventional cardiology affecting growth.
• Tariff dynamics impacting manufacturing in Mexico and Canada, though limited exposure to China.