Pharmaceuticals distributor Cardinal Health reported its 2024 fourth quarter and full-year financial results on Aug. 14, showing a considerable year-over-year jump in April-June sales and an improved outlook for 2025.

Fiscal 4Q Results

For the period ended June 30, Cardinal Health posted 4Q total sales of $59.9 billion, a 12% increase from the same period a year prior. The company’s 4Q gross profit increased  5% year-over-year with margin of 3.1%.

The company’s net profit of $235 million was up 76% from the same period a year prior.

Operating profit of $401 million increased 72% year-over-year, driven by segment profit increases in Global Medical Products and Distribution and Pharmaceutical and Specialty solutions.

By Segment in 4Q

• The Pharmaceutical and Specialty segment 4Q revenue of $55.6 billion increased by 13% year-over-year, driven by brand and specialty pharmaceutical sales growth from existing customers. Segment profit increased by 8% in 4Q to $482 million, driven by positive generics program performance.
• The Global Medical Products and Distribution (GMPD) segment 4Q revenue of $3.1 billion increased 2% year-over-year, driven by volume growth from existing customers. The segment’s 4Q profit increased by $40 million to $47 million, driven by an improvement in net inflationary impact.
• The 4Q revenue for ‘Other’ increased to $1.2 billion by 15% year-over-year, driven by growth across three operating segments: At-Home Solutions, Nuclear Precision Health Solution and OptiFreight Logistics. The 4Q segnebt profit of $111 million increased by 11%, driven by OptiFreight Logistics’ performance.

2024 Fiscal Year

Cardinal Health’s total fiscal 2024 sales of $226.8 billion increased 11% from the $205 billion in fiscal year 2023.

The company’s net profit of $852 million was up by 61% from the $330 million in fiscal year 2023.

Operating profit of $1.2 billion increased by 65% from $752 million in fiscal year 2023, driven primarily by segment profit increase in GMPS and Pharmaceutical and Specialty Solutions.

“Fiscal 2024 marked a year of strong operational execution and record financial results, delivered in tandem with key strategic progress in the portfolio,” Cardinal Health CEO Jason Hollar said the company’s financial release. “We delivered robust cash flow generation, continued profit growth in the Pharmaceutical and Specialty Solutions segment and significant improvement driven by our GMPD Improvement Plan. We enter the new fiscal year with momentum and confidence, evidenced by our raised fiscal year 2025 guidance.”

2025 Outlook

In releasing its 2025 guidance, Cardinal Health said it expects its Pharmaceutical and Specialty segment to decline by 4% to 6% in revenue, but profit will grow between 1% to 3%. The company expects its GMPD segment will grow in revenue between 3% to 5%, and segment profit will be approximately $175 million. Meanwhile, Cardinal Health expects its ‘Other’ segment revenue to increase 10-12%, with profit up 10%.

Cardinal Health was No. 3 on MDM’s Top Distributor List for Pharmaceuticals & Healthcare.