Baxter International (BAX) has the following three geographic segments:
- Americas (North and South America)
- Asia Pacific (or APAC)
- Europe, the Middle East, and Africa (or EMEA)
Revenues by segment
Baxter generates a major part of its revenues from the Americas segment, which contributed $1.44 billion to the company’s total revenues in the first quarter, from $1.37 billion in Q1 2017. Operating income from the Americas segment increased from $533 million in Q1 2017 to $566 million in Q1 2018. The increase was attributable to higher net sales and gross margin from Baxter’s Claris acquisition, higher Brevibloc sales, and improved US intravenous solutions volumes.
The company generated $724 million of revenue from its EMEA segment in the first quarter of 2018 compared to $631 million in the first quarter of 2017. In line with its revenue increase, operating income from the EMEA segment increased from $127 million in Q1 2017 to $151 million in Q1 2018. The increase was primarily due to higher sales in Western Europe and better margins due to a favorable product mix.
Revenues from the APAC segment increased from $471 million in Q1 2017 to $511 million in Q1 2018. Despite the increase in revenues, operating income from the APAC region was nearly flat at $117 million in the first quarter of 2018 compared to $116 million in Q1 2017, indicating an increase in expenses during the period. The total segmental operating income of Baxter International was $834 million in the first quarter of 2018 compared to $776 million in Q1 2017. These results were driven by increased sales from China and Australia, offset by lower margins due to an unfavorable product mix in the region.
For fiscal 2018 and 2019, Baxter International is expected to generate total sales of $11.4 billion and $11.9 billion, respectively.
In the next part of this series, we’ll take a look at the performance of Baxter’s global business units.