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Baxter International Created a New Reporting Structure for 2018

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Reporting structure

For fiscal 2018, Baxter International (BAX) changed its reporting structure from the previous year. The company has two segments—Hospital Products and Renal—with a range of one to six global businesses. The company plans to report the performance of each of these businesses in three regions—the Americas, the Asia-Pacific, and EMEA (Europe, Middle East, and Africa).

In its fiscal 2018 guidance, Baxter International won’t include the impact of strategic exits that concluded more than a year ago. The company won’t include the sales of products acquired from Mallinckrodt, as the deal is currently pending and is expected to be concluded in 1H18.

The chart above shows Baxter International’s 2017 revenue performance, segregated across geographic markets and reclassified by the new reporting structure.

BAX’s peers Abbott Laboratories (ABT), Boston Scientific (BSX), and Becton Dickinson (BDX) reported revenues of ~$27.4 billion, $9.0 billion, and $12.1 billion, respectively, for fiscal 2017.

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Segmental performance

Baxter International (BAX) expects its Renal Care business to report YoY (year-over-year) sales growth of 3.0%–4.0% on a constant currency basis for fiscal 2018. The company has projected sales growth of 6.0%–7.0% on a constant currency basis for its Medication Delivery business. This business includes reconstitution products, large and small volume parenterals, and infusion systems.

For fiscal 2018, Baxter International expects to witness flat YoY performance for its Pharmaceuticals segment, which involves generic injectables, critical care products, anesthesia products, and hospital compounding services. The company has projected YoY revenue growth of 3.0%–4.0% on a constant currency basis for its Nutrition business. 

Baxter International’s Acute Therapies business is expected to report YoY sales growth of 8.0%–9.0% on a constant currency basis in fiscal 2018. The company expects to a witness a low single-digit revenue drop in its Other business, which mainly involves contract manufacturing services.

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