Cardinal Health looks to at-Home Solutions for growth

DUBLIN, Ohio – Cardinal Health didn’t see much movement in revenue for its Medical segment in the fourth quarter of fiscal year 2023, but the company’s at-Home Solutions was a highlight, helping to offset losses in Products and Distribution. 

The company reported about $3.8 billion in revenue for the Medical segment in both the fourth quarters of FY23 and FY22. It reported about $15 billion in revenue for the full year, down from $15.9 billion for the previous year. 

“We saw a positive overall contribution from our growth businesses, including at-Home Solutions and OptiFreight, (a logistics solution),” said Aaron Halt, CFO, during a recent conference call to discuss financial results. “With significant profit growth in both segments, we delivered total operating earnings of $560 million, growth of 24%.” 

Cardinal Health reported about $82 million in profit for the Medical segment in the fourth quarter, driven by an improvement in net inflationary impacts, including mitigation initiatives and normalization of PPE margins. It reported about $111 million in profit for the full year, down from $216 million for the previous year. 

The company says it will continue to invest in at-Home Solutions, which provides solutions for HME providers, including products, distribution and data analytics, as more care continues to shift into the home. 

“In at-Home Solutions, we're investing in (our distribution center) network expansion to keep pace with increased demand,” said Jason Hollar, CEO, during the call. “For example, we've recently begun construction for a new 350,000-square-foot Greenville, South Carolina, DC. This facility, the 11th in our national network, will be fully operational in 18 to 24 months and equipped with advanced automation technology and robotics to drive operational efficiencies.” 

For fiscal year 2024, Cardinal Health expects about 3% revenue growth for its Medical segment and about $400 million in profit.