Richmond, Virginia-based global healthcare products distributor Owens & Minor on May 5 reported first-quarter 2023 earnings, which showed a increase in revenue but a decrease in operating income compared with the same quarter a year ago.

The company reported consolidated revenue of $2.5 billion in 1Q 2023, compared with $2.407 billion in 1Q 2022. Owens & Minor reported net loss per common share of $(0.32) and adjusted net income per common share of $0.05 in 1Q 2023.

The company reported just $9.8 in operating income (GAAP) in 1Q 2023, compared with $61.1 million during the same quarter last year. Owens & Minor said it generated $158 million of operating cash flow during 1Q 2023, but also paid down $117 million in debt.

Segment wise, Owens & Minor’s Patient Direct segment revenue was $607 million, up 10.4% compared to 1Q 2022 on a pro forma basis. Products & Healthcare Services revenue was $1.9 billion but was negatively impacted from the decline in personal protective equipment (PPE) sales volumes and prices, which was partially offset by strong sales growth excluding PPE, the company said.

“Our Patient Direct segment continues to outperform the market and once again was a significant driver of our year-over-year top-line growth and margin expansion during the quarter,” said Edward A. Pesicka, President & CEO of Owens & Minor. “As we outlined last quarter, we took the necessary steps to initiate the total company Operating Model Realignment Program and improve our overall cost structure. These initiatives are progressing well, and we are on pace to reach our adjusted operating income target of $30 million for the year. In our Products & Healthcare Services segment, we continued to experience pressure, including destocking during the quarter, however, we were pleased with our Medical Distribution division’s ability to navigate a challenging environment and produce solid results for the quarter. Our strong cash flow generation in the quarter enabled us to pay down $117 million in debt. In the quarter, we began to effectively reduce working capital and manage our costs, while investing for future growth. We will continue to take a disciplined approach to working capital management, cost management, and capital allocation. Overall, we are encouraged by our results to start the year and continue to expect our performance will be heavily weighted toward the second half of 2023.”