Henry Schein: Revenue +1.3%
2020 revenue: $10,119,141,000
No change in headcount
Medical and dental supply company Henry Schein saw increased demand for personal protective equipment and other products needed against COVID-19, which in turn enabled it to end 2020 with sales up slightly.
The Melville, N.Y.–based company previously grew 6.2% from 2018 to 2019.
“Against the backdrop of a most challenging year in our history due to the COVID pandemic, with unprecedented human toll and economic impact worldwide, we were successful in supporting practices that were initially open for emergency services and also assisting customers preparing to restore practices to increased operating capacity as restrictions eased,” CEO Stanley Bergman said in a Q4 earnings call transcribed by The Motley Fool.
Henry Schein’s employee count remained at 19,000 between 2019 and 2020. In comparison, the company employed 18,000 people in 2018, representing a 5.6% growth in headcount when there wasn’t a global pandemic.
To help combat the coronavirus, Henry Schein launched a point-of-care antibody rapid test on March 26, 2020, through an emergency use guidance from the FDA. The antibody rapid blood test, Standard Q COVID-19 IgM/IgG Rapid Test, delivered results within 15 minutes of a pinprick with no other instrumentation required. The company also announced early in the pandemic that it would undergo certain cost reduction measures, including payroll cuts. Chairman and CEO Bergman agreed to a temporary reduction of 100% of his base salary on April 6, 2020, and extended the agreement through its fourth fiscal quarter.
Henry Schein’s medical sales reached $1 billion for the first time during its third-quarter after the Centers for Medicare and Medicaid Services lifted some of its guidance on elective procedures. The company cited increased demand for personal protective equipment and COVID-19 related products for driving the 27.8% jump in revenues.
“Over time, our dental and medical customers, we believe, will experience patient traffic that will improve to pre-COVID-19 levels,” Bergman said.
Next >>