Embecta Corp (EMBC) 2025 Q2 法說會逐字稿

Welcome, ladies and gentlemen, to Embecta Corp's Fiscal Second Quarter 2025 Earnings Conference Call. (Operator Instructions) Please note that this conference call is being recorded and a replay will be available on the company's website following the call. I would now like to hand the conference call over to your host today, Mr. Pravesh Khandelwal, Vice President of Investor Relations. Mr. Khandelwal, please go ahead.

女士們、先生們，歡迎參加 Embecta Corp 2025 財年第二季財報電話會議。（操作員指示）請注意，本次電話會議正在錄音，通話結束後將在公司網站上提供重播。現在，我想將電話會議交給今天的主持人、投資者關係副總裁 Pravesh Khandelwal 先生。Khandelwal 先生，請繼續。

Thank you, operator. Good morning, everyone, and welcome to Embecta's fiscal second quarter 2025 earnings conference call. The press release and slides to accompany today's call and webcast replay details, are available on the Investor Relations section of the company's website at www.embecta.com. With me today are Dev Kurdikar, Embecta's President and Chief Executive Officer; and Jake Elguicze, our Chief Financial Officer.

謝謝您，接線生。大家早安，歡迎參加 Embecta 2025 財年第二季財報電話會議。新聞稿以及與今日電話會議和網路直播重播詳情配套的幻燈片，可在公司網站 www.embecta.com 的「投資者關係」板塊獲取。今天與我一同出席的嘉賓有 Embecta 總裁兼執行長 Dev Kurdikar 和財務長 Jake Elguicze。

Before we begin, I would like to remind you that some of the matters discussed in the conference call will contain forward-looking statements regarding future events as outlined in our slides. We wish to caution you that such statements are, in fact, forward-looking in nature and are subject to risks and uncertainties and actual events or results may differ materially. The factors that could cause actual results or events to differ materially include, but are not limited to, factors referenced in our press release today as well as our filings with the SEC, which can be accessed on our website.

在我們開始之前，我想提醒您，電話會議中討論的一些事項將包含有關幻燈片中概述的未來事件的前瞻性陳述。我們希望提醒您，此類聲明實際上具有前瞻性，並受風險和不確定性的影響，實際事件或結果可能存在重大差異。可能導致實際結果或事件發生重大差異的因素包括但不限於我們今天的新聞稿中提到的因素以及我們向美國證券交易委員會提交的文件（可在我們的網站上查閱）。

In addition, we will discuss certain non-GAAP financial measures on this call, which should be considered a supplement to and not a substitute for financial measures prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to the comparable GAAP measures is included in our press release and conference call presentation. Our agenda for today's call is as follows: Dev will begin by providing some remarks on the overall performance of our business during the fiscal second quarter of 2025 as well as an overview of our strategic priorities.

此外，我們將在本次電話會議上討論某些非 GAAP 財務指標，這些指標應被視為依照 GAAP 編制的財務指標的補充，而不是替代方案。我們的新聞稿和電話會議報告中包含了這些非 GAAP 指標與可比較 GAAP 指標的對帳。我們今天電話會議的議程如下：Dev 將首先就我們 2025 財年第二季業務的整體表現發表一些評論，並概述我們的策略重點。

Jake will then review our financial results for the fiscal second quarter of 2025 as well as discuss the updated financial guidance for fiscal year 2025. Following these updates, we will open the call for questions. With that said, I would now like to turn the call over to our CEO, Dev Kurdikar.

傑克隨後將回顧我們 2025 財年第二季的財務業績，並討論 2025 財年的最新財務指引。在這些更新之後，我們將開始提問。話雖如此，我現在想將電話轉給我們的執行長 Dev Kurdikar。

Good morning and thank you for taking the time to join us. Since we announced the termination of our patch pump program five months ago, we have been advancing the next phase of Embecta's transformation. At the heart of this transformation are three strategic priorities that are guiding our execution and shaping our future.

早安，感謝您抽空加入我們。自從五個月前我們宣布終止貼片幫浦計畫以來，我們一直在推動 Embecta 轉型的下一階段。這一轉變的核心是指導我們實施和塑造我們未來的三大戰略重點。

First, strengthening our core business. We are making solid progress on our global brand transition with implementation in the U.S. and Canada underway and on track for substantial completion in the second half of fiscal year 2025. Simultaneously, we are pursuing initiatives within our core portfolio that solidify our customer relationships and reinforce our leadership in insulin injection devices.

第一，做強主業。我們的全球品牌轉型正在穩步推進，美國和加拿大的實施工作正在進行中，預計將於 2025 財年下半年基本完成。同時，我們正在核心產品組合內採取措施，鞏固我們的客戶關係並加強我們在胰島素注射設備領域的領導地位。

Second, expanding our product portfolio. We are advancing initiatives to bring market-appropriate products to patients by leveraging our strengths in high-volume manufacturing and global commercial reach. This includes partnerships with generic drug manufacturers to co-package our pen needles with their potential generic GLP-1 drugs and expanding availability of our pen needles in appropriately-sized retail packaging for use with branded GLP-1 drugs delivered via pen injectors.

第二，擴大我們的產品組合。我們正在利用我們在大批量生產和全球商業影響力方面的優勢，推進為患者提供適合市場的產品的計劃。這包括與仿製藥製造商合作，將我們的筆式針頭與其潛在的仿製 GLP-1 藥物一起包裝，並擴大我們的筆式針頭在適當大小的零售包裝中的可用性，以便與透過筆式註射的品牌 GLP-1 藥物一起使用。

Third, increasing our financial flexibility. With the insulin patch pump program restructuring plan substantially complete, we remain on track to deliver meaningful cost synergies. In fiscal 2025, we remain committed to our goal of paying down approximately $110 million in debt. With strong free cash flow generation and the majority of the overall separation-related costs behind us, we believe we are well-positioned to strengthen our balance sheet and enhance our financial agility. We believe consistent execution against these priorities will position Embecta for sustainable performance and long-term success.

第三，增強財務靈活性。隨著胰島素貼片幫浦專案重組計畫基本完成，我們仍有望實現有意義的成本綜效。在 2025 財年，我們仍然致力於償還約 1.1 億美元的債務的目標。憑藉強勁的自由現金流產生和大部分與分離相關的整體成本，我們相信我們有能力加強資產負債表並提高財務靈活性。我們相信，持續執行這些優先事項將使 Embecta 獲得可持續的業績和長期的成功。

Turning to some fiscal second quarter highlights. Second quarter revenue totaled $259 million, which exceeded our expectations of between $250 million and $255 million that we provided on our last earnings call. As compared to the midpoint of our prior guidance range, approximately half of the overachievement in the quarter was due to constant currency performance, while the other half was due to foreign exchange being less of a headwind than we previously anticipated. Turning to some additional highlights. During the second quarter, we published the updated FITTER Forward Expert Recommendations in Mayo Clinic Proceedings.

談談第二財季的一些亮點。第二季的營收總計 2.59 億美元，超過了我們上次收益電話會議上給出的 2.5 億美元至 2.55 億美元的預期。與我們先前指導範圍的中點相比，本季超額完成業績的大約一半是由於貨幣表現穩定，而另一半是由於外匯的阻力小於我們先前預期。轉向一些額外的亮點。在第二季度，我們在《梅奧診所學報》上發表了更新的 FITTER Forward 專家建議。

This is an important milestone in our commitment to improving clinical outcomes as the recommendations support the best global practices for insulin injection technique, device optimization and provider training. Additionally, during Q2, Embecta conducted a company-wide employee engagement survey through Great Place to Work, a global authority on workplace culture, employee experience and the leadership behaviors proven to deliver market-leading revenue, employee retention and increased innovation.

這是我們致力於改善臨床結果的一個重要里程碑，因為這些建議支持胰島素注射技術、設備優化和提供者培訓的最佳實踐。此外，在第二季度，Embecta 透過 Great Place to Work 開展了一項全公司範圍的員工敬業度調查，Great Place to Work 是一家全球權威的職場文化、員工體驗和領導行為研究機構，被證明能夠帶來市場領先的收入、員工保留率和增強的創新能力。

We had a tremendous response rate from our employees worldwide and we are pleased to announce that we have received certification as a Great Place to Work for 2025 in eight countries. This recognition is a testament to the effort our teams have put into building a strong, authentic and inclusive culture. I am also pleased to announce that we are continuing to advance our efforts to co-package our pen needles with potential generic GLP-1 drugs as well as making our pen needles available in retail packaging appropriate for use with branded GLP-1 drugs delivered by pen injectors.

我們收到了來自全球員工的熱烈回應，我們很高興地宣布，我們已在八個國家獲得了 2025 年最佳工作場所認證。這項認可證明了我們的團隊為建立強大、真實和包容的文化所付出的努力。我也很高興地宣布，我們將繼續努力將我們的筆式針頭與潛在的仿製 GLP-1 藥物共同包裝，並將我們的筆式針頭以適合與筆式註射器輸送的品牌 GLP-1 藥物一起使用的零售包裝提供。

We expect this will enable us to expand into a fast-growing market, while leveraging our world-class distribution and commercial expertise. We have received several purchase orders from generic manufacturers to co-package our pen needles and we look forward to sharing more details about these partnerships and the market potential at our upcoming Analyst and Investor Day. We have completed the majority of the steps required to implement the discontinuation of our insulin patch pump program and the associated restructuring plan announced in November 2024. This progress has occurred within our previously expected time line. Additionally, our stand-up activities are largely complete with only India yet to be transitioned to our ERP system and distribution network within the next few months. Therefore, we continue to be focused on reducing our cost structure.

我們期望這將使我們能夠擴展到快速成長的市場，同時利用我們世界一流的分銷和商業專業知識。我們已收到來自仿製藥製造商的幾份採購訂單，要求共同包裝我們的筆式針頭，我們期待在即將舉行的分析師和投資者日上分享有關這些合作夥伴關係和市場潛力的更多詳細信息。我們已完成實施停止胰島素貼片幫浦計畫和2024年11月宣布的相關重組計畫所需的大部分步驟。這項進展發生在我們先前預期的時間內。此外，我們的獨立活動已基本完成，只有印度仍需在未來幾個月內過渡到我們的 ERP 系統和分銷網絡。因此，我們持續致力於降低成本結構。

And during the second quarter, we initiated a separate restructuring plan aimed at streamlining our organization. We expect the plan to be substantially complete by the end of fiscal year 2025. As a result, we anticipate incurring total pre-tax charges of between $4 million to $5 million, the majority of which are expected to be cash-related. This action is expected to drive meaningful efficiencies with estimated pre-tax cost savings of between $7 million to $8 million during the second half of fiscal 2025.

在第二季度，我們啟動了一項單獨的重組計劃，旨在精簡我們的組織。我們預計該計劃將在 2025 財年末基本完成。因此，我們預計總稅前費用將在 400 萬至 500 萬美元之間，其中大部分預計與現金相關。預計這項措施將帶來顯著的效率提升，預計 2025 財年下半年的稅前成本節省將達到 700 萬至 800 萬美元。

Turning to the next slide. In line with our commitment to enhancing financial flexibility, we continued to reduce our debt, making an aggregate principal payment of approximately $27 million on our Term Loan B facility during the quarter. While on a year-to-date basis, we have reduced debt by approximately $60 million, which puts us well on-track to achieve our goal of reducing debt by approximately $110 million during fiscal 2025.

翻到下一張投影片。為了履行我們增強財務靈活性的承諾，我們繼續減少債務，本季對定期貸款 B 類產品支付了總計約 2,700 萬美元的本金。從年初至今，我們已減少了約 6,000 萬美元的債務，這使我們有望實現在 2025 財年減少約 1.1 億美元的債務的目標。

Finally, as we reflect on our second quarter results and look ahead to the remainder of the year, we are updating our fiscal 2025 guidance. While our teams delivered slightly better than expected financial performance during the first six months of the year, we are adjusting our full year 2025 constant currency revenue outlook to account for lower projected U.S. volumes primarily associated with anticipated reductions in customer inventory levels tied to store closures at a specific U.S. retail pharmacy customer.

最後，當我們回顧第二季的業績並展望今年剩餘時間時，我們正在更新 2025 財年指引。雖然我們的團隊在今年前六個月的財務業績略好於預期，但我們正在調整 2025 年全年固定匯率收入預期，以考慮美國預計銷量的下降，這主要與預計客戶庫存水準的下降有關，而客戶庫存水準的下降與特定美國零售藥局客戶的門市關閉有關。

That said, our as-reported revenue guidance remains largely intact, supported by favorable foreign exchange movements as compared to our previously provided guidance. In terms of gross margins, we have updated our guidance to reflect the lower constant currency revenue expectations as well as the estimated impact of currently implemented incremental tariffs, which are expected to be a headwind of approximately 25 basis points to our full year adjusted gross margins.

也就是說，與我們先前提供的指引相比，由於外匯走勢有利，我們的報告收入指引基本上保持不變。在毛利率方面，我們已更新我們的指引，以反映較低的恆定貨幣收入預期以及當前實施的增量關稅的估計影響，預計這將對我們全年調整後的毛利率造成約 25 個基點的阻力。

However, even with these headwinds, we are raising our guidance ranges for adjusted operating and adjusted EBITDA margins for the year due to disciplined expense management and the initiation of the previously mentioned restructuring plan in the second quarter. We are also reaffirming our adjusted earnings per share outlook for fiscal year 2025.

然而，即使面臨這些不利因素，由於嚴格的費用管理以及第二季度啟動了前面提到的重組計劃，我們仍然提高了今年調整後營業利潤和調整後 EBITDA 利潤率的指導範圍。我們也重申了 2025 財年的調整後每股盈餘預期。

Turning to the next slide, I would like to provide an update on our brand transition plan and walk through the key elements of its execution. This initiative has been in planning since our spin, and I am pleased to report that the transition is now underway in the U.S. and Canada. We are executing the program in phases, as intended, and are preparing to transition most of the remaining markets in the next fiscal year, in line with our original plan. We continue to expect the global transition to be completed within the next couple of years.

翻到下一張投影片，我想提供有關我們品牌轉型計劃的最新信息，並介紹其執行的關鍵要素。自從我們分拆以來，這項計劃就一直在規劃中，我很高興地報告，目前美國和加拿大正在進行過渡。我們正在按計劃分階段實施該計劃，並準備在下一個財政年度按照原計劃轉型大部分剩餘市場。我們仍然預計全球轉型將在未來幾年內完成。

On the slide, you will see an example of the new Embecta-branded packaging contrasted with the legacy BD Nano 2nd Gen packaging. Importantly, product names and color cues will remain unchanged, a deliberate decision informed by customer research. At the same time, we are introducing a modern, refreshed look, while maintaining the visual elements that help healthcare providers and people with diabetes easily recognize our products.

在投影片上，您將看到新的 Embecta 品牌包裝與傳統 BD Nano 2nd Gen 包裝的比較範例。重要的是，產品名稱和顏色提示將保持不變，這是根據客戶研究做出的謹慎決定。同時，我們引入了現代、清新的外觀，同時保留了有助於醫療保健提供者和糖尿病患者輕鬆識別我們產品的視覺元素。

We remain focused on ensuring operational readiness along the supply chain, including inventory management, customer communication and regulatory compliance. This thoughtful, phased approach is designed to ensure a smooth transition, while preserving the trust of those who rely on our products every day.

我們始終致力於確保整個供應鏈的營運準備就緒，包括庫存管理、客戶溝通和法規遵循。這種周到的分階段方法旨在確保平穩過渡，同時保持每天依賴我們產品的用戶的信任。

Now let's review our revenue performance for the second quarter. During the second quarter of fiscal year 2025, Embecta generated $259 million in revenue, reflecting a 9.8% decline year-over-year on an as-reported basis or a 7.7% decline on an adjusted constant currency basis. Within the U.S., revenue for the quarter totaled $135.2 million, reflecting a year-over-year decline of 8.4% on an adjusted constant currency basis. The year-over-year decline was expected and is primarily due to two factors, both of which relate to the timing of price increases that went into effect.

現在讓我們回顧一下第二季的營收表現。2025 財年第二季度，Embecta 的營收為 2.59 億美元，以報告基礎計算年減 9.8%，以調整後固定匯率計算下降 7.7%。美國境內本季營收總計 1.352 億美元，以調整後固定匯率計算年減 8.4%。年比下降是意料之中的，主要歸因於兩個因素，這兩個因素都與價格上漲生效的時間有關。

First, in advance of a price increase that went into effect on April 1st of 2024, we saw certain customers purchase additional products that positively impacted our second quarter of 2024 results. Similarly, in advance of a price increase that went into effect on January 1st of 2025, we saw certain customers purchase additional products and that positively impacted our first quarter of 2025 results and resulted in an offsetting reduction in the second quarter.

首先，在 2024 年 4 月 1 日價格上漲生效之前，我們發現某些客戶購買了額外的產品，這對我們 2024 年第二季的業績產生了積極影響。同樣，在 2025 年 1 月 1 日生效的價格上漲之前，我們看到某些客戶購買了額外的產品，這對我們 2025 年第一季的業績產生了積極影響，並導致第二季的抵銷減少。

As such, the combination of these two factors led to a difficult comparable for our U.S. business. Turning to our international business. During Q2, revenue totaled $123.8 million, which equated to a 7% and a $10 million decline on an adjusted constant currency basis as compared to the prior year period. Like the U.S., this decline was expected and due to certain customers purchasing additional products in advance of ERP implementations in certain regions in the prior year period.

因此，這兩個因素的結合導致我們的美國業務難以比較。轉向我們的國際業務。第二季度，總營收為 1.238 億美元，與去年同期相比下降 7%，以調整後的固定匯率計算下降 1,000 萬美元。與美國一樣，這種下降是預料之中的，因為某些客戶在去年某些地區實施 ERP 之前購買了額外的產品。

While from a product family perspective, during the quarter, pen needle revenue declined approximately 12.1%, syringe revenue grew by approximately 1.7%, safety products grew approximately 4.2% and contract manufacturing grew approximately 73%. The decline in year-over-year pen needle revenue was primarily driven by the timing issues associated with price increases that went into effect within the U.S., coupled with the unfavorable prior-year comparison stemming from ERP-related inventory builds within our international markets.

從產品系列的角度來看，本季度，筆針收入下降約 12.1%，注射器收入成長約 1.7%，安全產品成長約 4.2%，合約製造成長約 73%。注射筆針頭收入年減的主要原因是與美國境內生效的價格上漲相關的時間問題，再加上我們國際市場上與 ERP 相關的庫存增加導致的與去年同期相比的不利影響。

Turning to our syringe products. They grew in the quarter by 1.7%, driven by international markets, specifically Latin America and Asia. While our safety products grew 4.2% as compared to the prior year period due to the annualization of share gains resulting from a competitor discontinuing their product and exiting the market. That completes my prepared remarks.

轉向我們的注射器產品。本季度，受國際市場（特別是拉丁美洲和亞洲）的推動，其銷售額增長了 1.7%。而由於競爭對手停止生產其產品並退出市場，導致市場份額年化增長，我們的安全產品與去年同期相比增長了 4.2%。我的準備好的發言到此結束。

And with that, let me turn the call over to Jake to review other Q2 financial highlights as well as provide our updated financial guidance for fiscal year 2025. Jake?

接下來，我將把電話交給傑克，讓他回顧第二季度的其他財務亮點，並提供我們 2025 財年的最新財務指導。傑克？

Thank you, Dev, and good morning, everyone. Given the discussion that has already occurred regarding revenue, I will start my review of Embecta's second quarter financial performance at the gross profit line. GAAP gross profit and margin for the second quarter of fiscal 2025 totaled $164.1 million and 63.4%, respectively. This compared to $185.4 million and 64.6% in the prior year period, while on an adjusted basis, our Q2 2025 adjusted gross profit and margin totaled $165 million and 63.7%. This compared to $185.8 million and 64.7% in the prior year period.

謝謝你，Dev，大家早安。鑑於已經就收入進行的討論，我將從毛利線開始審查 Embecta 第二季度的財務表現。2025 財年第二季的 GAAP 毛利和利潤率分別為 1.641 億美元和 63.4%。相較之下，去年同期為 1.854 億美元，利潤率總計 64.6%，而經調整後，我們 2025 年第二季的調整後毛利和利潤率總計 1.65 億美元和 63.7%。相較之下，去年同期為 1.858 億美元，增幅為 64.7%。

The year-over-year decline in adjusted gross profit and margin was primarily driven by the impact of net changes in profit in inventory adjustments as well as the lower year-over-year revenue that Dev mentioned earlier. These headwinds were partially offset by manufacturing cost improvement programs, lower supply chain functional spend, lower freight costs and our ability to drive year-over-year price increases.

調整後毛利和利潤率的同比下降主要是由於庫存調整的利潤淨變動以及 Dev 先前提到的同比收入下降的影響。這些不利因素被製造成本改進計劃、較低的供應鏈功能支出、較低的運費以及我們推動價格同比上漲的能力部分抵消。

Turning to GAAP operating income and margin. During the second quarter, they were $62.9 million and 24.3%. This compared to $39.2 million and 13.6% in the prior year period, while on an adjusted basis, our Q2 2025 adjusted operating income and margin totaled $81.4 million and 31.4%. This compared to $74.9 million and 26.1% in the prior year period.

轉向 GAAP 營業收入和利潤率。第二季度，這兩個數字分別為 6,290 萬美元和 24.3%。相較之下，去年同期為 3,920 萬美元和 13.6%，而經調整後，我們 2025 年第二季的調整後營業收入和利潤率總計 8,140 萬美元和 31.4%。相比之下，去年同期為 7,490 萬美元，增幅為 26.1%。

The year-over-year increase in adjusted operating income and margin is primarily due to lower R&D expenses associated with the discontinuation of our insulin patch pump program as well as lower SG&A expenses, primarily driven by lower TSA costs as well as lower compensation and marketing expenses. This was offset by the adjusted gross profit changes I just outlined. Turning to the bottom line. GAAP net income and earnings per diluted share were $23.5 million and $0.40 during the second quarter of fiscal 2025 as compared to $28.9 million and $0.50 in the prior year period.

調整後營業收入和利潤率的同比增長主要歸因於與停止胰島素貼片幫浦專案相關的研發費用的降低，以及銷售、一般和行政費用的降低，這主要得益於 TSA 成本的降低以及薪酬和行銷費用的降低。這被我剛才概述的調整後的毛利變化所抵消。回到底線。2025 財年第二季度，GAAP 淨收入和每股攤薄收益分別為 2,350 萬美元和 0.40 美元，而去年同期分別為 2,890 萬美元和 0.50 美元。

While on an adjusted basis, during the second quarter of fiscal 2025, net income and earnings per share were $40.7 million and $0.70 as compared to $38.9 million and $0.67 in the prior year period. The increase in year-over-year adjusted net income and diluted earnings per share is primarily due to the adjusted operating profit drivers I just discussed as well as a reduction in interest expense. This was partially offset by an increase in our adjusted tax rate from approximately 18% in Q2 of 2024 to approximately 25% in Q2 of 2025.

經調整後，2025 財年第二季的淨收入和每股盈餘分別為 4,070 萬美元和 0.70 美元，而去年同期的淨收入和每股收益分別為 3,890 萬美元和 0.67 美元。調整後淨收入和每股稀釋收益的同比增加主要歸因於我剛才討論的調整後營業利潤驅動因素以及利息支出的減少。這部分被我們調整後的稅率從 2024 年第二季的約 18% 增加到 2025 年第二季的約 25% 所抵銷。

Lastly from a P&L perspective, for the second quarter of 2025, our adjusted EBITDA and margin totaled approximately $97.1 million and 37.5% as compared to $90.8 million and 31.6% in the prior year period. Turning to the balance sheet and cash flow. At the end of the second quarter, our cash balance totaled approximately $212 million, while our last 12 months net leverage as defined under our credit facility agreement stood at approximately 3.7 times. As a reminder, our net leverage covenant requires us to stay below 4.75 times.

最後從損益表的角度來看，2025 年第二季度，我們的調整後 EBITDA 和利潤率總計約為 9,710 萬美元和 37.5%，而去年同期分別為 9,080 萬美元和 31.6%。轉向資產負債表和現金流。截至第二季末，我們的現金餘額總計約 2.12 億美元，而根據我們的信貸安排協議定義，我們過去 12 個月的淨槓桿率約為 3.7 倍。提醒一下，我們的淨槓桿契約要求我們保持在 4.75 倍以下。

As Dev mentioned earlier, we continue to be focused on more aggressively delevering. And during the second quarter, we paid down $27.4 million of Term Loan B debt. I'm pleased to say that we remain on track to achieve our goal of reducing our gross debt by $110 million during fiscal 2025 as well as getting our net leverage levels to approach approximately 3 times by year-end.

正如 Dev 之前提到的，我們將繼續致力於更積極地去槓桿。在第二季度，我們償還了 2,740 萬美元的定期貸款 B 債務。我很高興地說，我們仍有望實現我們的目標，在 2025 財年將總債務減少 1.1 億美元，並在年底前將淨槓桿水準提高到接近 3 倍左右。

That completes my prepared remarks on our second quarter 2025 results. Next I would like to discuss Embecta's updated 2025 financial guidance and certain underlying assumptions. Before I begin, I want to acknowledge the evolving tariff landscape and provide some important context regarding our global operations. As a reminder, we manufacture our products across three key facilities: Dun Laoghaire, Ireland; Holdrege, Nebraska; and Suzhou, China. We do not perform any manufacturing in either Canada or Mexico.

這就是我對 2025 年第二季業績的準備發言。接下來我想討論 Embecta 更新的 2025 年財務指導和某些基本假設。在開始之前，我想了解不斷變化的關稅情況並提供一些有關我們全球業務的重要背景資訊。提醒一下，我們的產品在三個主要工廠生產：愛爾蘭敦勞海爾、內布拉斯加州霍爾德里奇和中國蘇州。我們在加拿大和墨西哥都沒有進行任何製造。

It's important to note that tariff regulations extend beyond manufacturing location and require detailed analysis of trade classifications and rules of origin to determine potential exposure. As it relates to our global operations, we have now incorporated the impact of tariffs currently in effect, notably the incremental 125% tariffs for raw material and finished goods being imported into China with the U.S. as the country of origin, the incremental 145% tariffs for imports into the U.S. from China and incremental baseline 10% tariffs for imports into the U.S. from certain other countries.

值得注意的是，關稅法規不僅限於製造地點，還需要對貿易分類和原產地規則進行詳細分析，以確定潛在的風險。就我們的全球業務而言，我們現在已經納入了當前生效的關稅的影響，特別是對從美國作為原產國進口到中國的原材料和製成品徵收的125%的增量關稅、對從中國進口到美國的商品徵收的145%的增量關稅以及對從某些其他國家進口到美國的商品徵收的10%的增量關稅。

We have also assumed that certain exemptions are applicable to certain materials and finished goods being imported into the U.S. We have not incorporated the potential incremental tariffs that may be implemented after the current pause on tariffs has expired. Given the uncertainties surrounding the evolving global trade environment, our estimates remain subject to change and we will continue to monitor the situation and provide updates when appropriate. As always, we remain committed to mitigating potential impacts where possible to make sure we continue supporting our customers and the people living with diabetes who rely on our products.

我們也假設某些豁免適用於進口到美國的某些材料和成品。我們沒有考慮到當前關稅暫停期結束後可能實施的潛在增量關稅。鑑於全球貿易環境不斷變化的不確定性，我們的估計仍可能發生變化，我們將繼續監測情況並在適當的時候提供更新。像往常一樣，我們將繼續致力於盡可能減輕潛在影響，以確保我們繼續支持我們的客戶和依賴我們產品的糖尿病患者。

Now let me discuss our updated guidance. Beginning with revenue. On an adjusted constant currency basis, we are lowering our previously provided guidance range by 150 basis points on both the low and high ends as we now call for revenue to decline between 2.5% and 4% as compared to 2024. At the low end of the range, we estimate that volume will be a headwind of approximately 3% and that pricing will be a headwind of approximately 1%. Meanwhile, at the high end of our constant currency revenue guidance range, we estimate that volume will be a headwind of approximately 1.5% and that pricing will be a headwind of approximately 1%. As Dev noted earlier, the additional 1.5% volume headwind which we have incorporated into our outlook is driven by lower projected U.S. volumes, primarily associated with anticipated reductions in customer inventory levels tied to store closures at a specific U.S. retail pharmacy customer. We believe this is transitory and does not reflect any fundamental change in the stability of our base business.

現在讓我討論一下我們更新後的指南。從收入開始。以調整後的固定匯率計算，我們將先前提供的指導範圍的低端和高端都下調了 150 個基點，因為我們現在預計收入將比 2024 年下降 2.5% 至 4%。在該範圍的低端，我們估計交易量將面臨約 3% 的阻力，而定價將面臨約 1% 的阻力。同時，在我們恆定貨幣收入指導範圍的高端，我們估計交易量將面臨約 1.5% 的阻力，定價將面臨約 1% 的阻力。正如 Dev 先前指出的，我們在展望中納入的額外 1.5% 的銷售逆風是由於預計美國銷售下降所致，這主要與預計與特定美國零售藥局客戶的門市關閉相關的客戶庫存水準下降有關。我們認為這只是暫時的，並不反映我們基礎業務穩定性的任何根本變化。

Turning to our thoughts on FX. Since we provided our updated fiscal 2025 financial guidance in early February, the U.S. dollar has weakened against most currencies. And as a result, we currently expect FX to be a headwind of approximately 0.8% as compared to our prior guidance which called for FX to be a headwind of approximately 2.2%. Additionally, our as-reported 2025 GAAP revenue will not be impacted by the 2015 through 2023 amount that we needed to accrue associated with the Italian payback measure which impacted our 2024 as-reported GAAP revenue. This equates to a tailwind of approximately 0.4%. On a combined basis, our as-reported revenue guidance remains largely unchanged at a range of between $1.73 billion and $1.90 billion.

談談我們對外匯的看法。自從我們在 2 月初提供更新的 2025 財年財務指引以來，美元兌大多數貨幣都出現走弱。因此，我們目前預計外匯將帶來約 0.8% 的逆風，而我們先前的預測是外匯將帶來約 2.2% 的逆風。此外，我們報告的 2025 年 GAAP 收入不會受到 2015 年至 2023 年與義大利回報措施相關的金額的影響，該金額影響了我們 2024 年報告的 GAAP 收入。這相當於約 0.4% 的順風。總體而言，我們報告的收入預期基本保持不變，仍為 17.3 億美元至 19 億美元之間。

Turning to adjusted gross margin. We are lowering our previously provided guidance range by 50 basis points and now expect adjusted gross margin to be in the range of between 62.75% and 63.75%. The reduction in our current versus prior adjusted gross margin guidance is primarily due to the reduction in our constant currency revenue as well as the incremental impact of tariffs. This is somewhat offset by favorable profit in inventory adjustments and cost improvement actions we are taking within cost of sales, while from an adjusted operating margin standpoint, we are raising our guidance from a range of between 29.5% and 30.5% to a new range of between 29.75% and 30.75%. This improvement in adjusted operating margin is primarily driven by the expected cost savings associated with the restructuring plan announced this quarter.

轉向調整後的毛利率。我們將先前提供的指導範圍下調了 50 個基點，現在預計調整後的毛利率將在 62.75% 至 63.75% 之間。我們目前調整後的毛利率指引較先前的指引有所下調，主要是由於我們恆定貨幣收入的減少以及關稅的增量影響。這在一定程度上被我們在銷售成本範圍內採取的庫存調整和成本改進措施所帶來的有利利潤所抵消，而從調整後的營業利潤率的角度來看，我們將預期從 29.5% 至 30.5% 之間的範圍提高到 29.75% 至 30.75% 之間的新範圍。調整後營業利益率的提高主要得益於本季宣布的重組計畫預期帶來的成本節約。

Moving to earnings. Our better than expected second quarter earnings performance, coupled with the restructuring plan we announced today as well as favorable shifts in foreign exchange, are enabling us to absorb the impact of the lower adjusted constant currency revenues and incremental tariffs, thereby allowing us to maintain our previously provided adjusted diluted earnings per share guidance range of between $2.70 and $2.90. Our updated guidance range continues to assume that our annual net interest expense will be approximately $107 million; that our annual adjusted tax rate will be approximately 25%; and that our weighted average diluted shares outstanding will be approximately 58.9 million.

轉向收益。我們第二季的獲利表現優於預期，加上我們今天宣布的重組計劃以及有利的外匯匯率變化，使我們能夠吸收調整後固定匯率收入下降和增量關稅的影響，從而使我們能夠維持先前提供的調整後稀釋每股收益2.70美元至2.90美元的指引區間。我們更新後的指引區間仍假設我們的年度淨利息支出約為1.07億美元；我們的年度調整後稅率約為25%；以及我們的加權平均稀釋流通股約為5,890萬股。

Our guidance also continues to assume that we will use between $50 million and $60 million of cash during fiscal 2025 associated with separation costs largely related to brand transition. While as it relates to capital expenditures, we now expect to incur approximately $15 million during the year, down from our prior estimate of approximately $20 million.

我們的指導也繼續假設我們將在 2025 財年使用 5,000 萬至 6,000 萬美元的現金，用於主要與品牌轉型相關的分離成本。就資本支出而言，我們現在預計今年的支出約為 1500 萬美元，低於先前估計的約 2000 萬美元。

For cash usage associated with the discontinuation of our insulin patch pump program, our guidance now assumes that we will use between $20 million and $25 million as compared to our previous estimates of between $25 million and $30 million. Lastly, for the same reasons we increased our adjusted operating margin guidance range, we are also raising our adjusted EBITDA margin guidance range from a range of between 36% and 37% to a new range of between 36.25% and 37.25%.

對於與停止胰島素貼片幫浦計畫相關的現金使用，我們現在的指導假設是我們將使用 2,000 萬至 2,500 萬美元，而我們先前估計的是 2,500 萬至 3,000 萬美元。最後，出於與我們上調調整後營業利潤率指導範圍相同的原因，我們還將調整後的 EBITDA 利潤率指引範圍從 36% 至 37% 之間上調至 36.25% 至 37.25% 之間的新範圍。

And before I turn the call over to the operator, I wanted to take a moment to remind everyone that we will be hosting our inaugural Analyst and Investor Day on May 22 in New York City. We are looking forward to providing a deeper look into our portfolio, value creation opportunities and long-term financial objectives. We hope to see many of you there.

在我將電話轉給接線員之前，我想花點時間提醒大家，我們將於 5 月 22 日在紐約市舉辦首屆分析師和投資者日。我們期待更深入地了解我們的投資組合、價值創造機會和長期財務目標。我們希望在那裡見到你們。

Please RSVP by following the instructions on this slide. With that, I would like to now turn the call over to the operator for questions. Operator?

請按照此投影片上的說明回覆。說完這些，我現在想將電話轉給接線生來回答問題。操作員？

Thank you. At this time we'll conduct the question and answer session. (Operator Instructions) Our first question comes from the line of Kallum Titchmarsh of Morgan Stanley. Your line is now open.

謝謝。現在我們將進行問答環節。（操作員指示）我們的第一個問題來自摩根士丹利的 Kallum Titchmarsh。您的線路現已開通。

Great, thank you guys. Good morning. Would love for you to maybe dig a bit deeper into kind of growth and demand dynamics across pen and syringes. Just walk us through what you're seeing domestically and internationally? How we should think about modeling these products for the remainder of the year? Kind of most keen to get a bit more color on some of those moving parts in the U.S. You called out the customer inventory bits and store closures.

太好了，謝謝大家。早安.希望您能更深入了解注射筆和注射器的成長和需求動態。請向我們介紹一下您在國內和國際上看到的情況？我們應該如何考慮在今年剩餘時間內對這些產品進行建模？最想了解的是有關美國一些活動部件的更多細節。您提到了客戶庫存和商店關閉的情況。

Are you now comfortable that they are kind of isolated issues and behind you? Thanks a lot.

現在您是否認為這些問題都已成為孤立的問題並且已經解決了？多謝。

Good morning, Kallum. Thanks for the question. So maybe some context is in the order here. As you may remember, fiscal 2024, we had a number of rolling ERP implementations throughout the year. U.S. and Canada went live in the first quarter, then we had EMEA and Asia in quarter two and then we had China and Latin America in the following quarters, Latin America as recent as Q1 2025.

早上好，卡勒姆。謝謝你的提問。因此，也許這裡的一些上下文是按順序排列的。您可能還記得，在 2024 財年，我們全年進行了多次滾動 ERP 實施。美國和加拿大在第一季上線，然後我們在第二季度進入了歐洲、中東和非洲地區以及亞洲，接下來的幾個季度我們進入了中國和拉丁美洲，拉丁美洲最近在 2025 年第一季度上線。

And our goal, as we did that was to ensure that we maintain product continuity. As you know, these implementations, in our case, coupled with changes in distribution network and setting up new shared services are pretty complex. And so we were very careful to make sure that the distributors through which our products flow had enough inventory of these products that they could maintain continuity of supply in case there were any hiccups. Now the executions went very well. We did not have hiccups, but that leads to unfavorable year-over-year comparisons for both our U.S. business and our international business. That was obviously further compounded by the fact that at the end of last year, as we mentioned on prior calls, there was a looming port strike. And so particularly in the U.S., some distributors purchased products ahead of that port strike in September. And certainly, that impacted our Q1 2025 results and year-to-date 2025 results. And then finally, the third effect that just to keep in mind because it does impact certainly geographic year-over-year comparisons as well as comparisons for product family was the shift in price increases, which obviously from a business standpoint is a good thing.

我們這樣做的目的是確保保持產品的連續性。如您所知，在我們的案例中，這些實施加上分銷網絡的變化和新共享服務的建立非常複雜。因此，我們非常小心地確保我們的產品流經的經銷商擁有足夠的產品庫存，以便在出現任何問題時能夠保持供應的連續性。目前處決進行得很順利。我們沒有遇到任何問題，但這導致我們的美國業務和國際業務與去年同期相比表現不佳。正如我們在之前的電話中提到的那樣，去年年底港口罷工迫在眉睫，這顯然進一步加劇了這種情況。因此，特別是在美國，一些分銷商在 9 月港口罷工之前就購買了產品。當然，這影響了我們 2025 年第一季的業績和 2025 年年初至今的業績。最後，需要記住的第三個影響是價格上漲的變化，因為它確實會影響地理同比比較以及產品系列的比較，這顯然從商業角度來看是一件好事。

Last year, which is in fiscal 2024, we had a U.S. price increase on the 1st of April of 2024. And this year, we had it on January 1, 2025. So certainly, that's going to help us through the remainder of the year, but again, leads to unfavorable comparisons. So those were the dynamics that really drive both for the quarter and the year-to-date comparisons for adjusted revenue by geography and in total.

去年，也就是 2024 財年，我們在 2024 年 4 月 1 日提高了美國的價格。今年是 2025 年 1 月 1 日。因此，這肯定會幫助我們度過今年剩餘的時間，但同樣也會導致不利的比較。因此，這些才是真正推動本季和今年迄今按地區和整體調整後收入比較的動力。

And you can imagine with pen needles being approximately 76% of our total revenue, that impacts the pen revenue business quite significantly, particularly when you think about the ERP implementations in which regions they occurred, because in certain regions, they are primarily a pen needle business. So those are really the factors. Now with syringes, we are again, seeing some strength in both Latin America and Asia. And we have the opportunity to optimize our pricing in the U.S. and that has helped our syringe results as well.

你可以想像，由於筆式針頭約占我們總收入的 76%，這對筆式針頭業務的影響相當大，特別是當你考慮到它們在哪些地區實施 ERP 時，因為在某些地區，它們主要是筆式針頭業務。這些才是真正的因素。現在，我們再次看到注射器在拉丁美洲和亞洲都有一定的優勢。我們有機會優化我們在美國的定價，這也有助於我們的注射器表現。

The second part of your question was about the adjustments that we've made for store closures. So maybe some background there. Obviously, we are aware of some planned store closures at a major U.S. retail pharmacy chain. But I do want to point out that we sell product to a third-party distributor that serves that aforementioned pharmacy chain, but also serves other customers.

您問題的第二部分是關於我們針對關閉商店所做的調整。那裡可能有一些背景資訊。顯然，我們知道美國一家大型零售連鎖藥局計劃關閉一些門市。但我想指出的是，我們將產品銷售給服務上述連鎖藥局的第三方經銷商，同時也服務其他客戶。

Now obviously, we don't have any particular insight into the timing of the planned store closures. But what we did notice was in the late Q2, we noticed a change in the ordering pattern by the distributor that we supply product to. Now we believe it's linked to the planned store closures. And so what we have tried to do is estimate and be prudent in the incorporation of that impact into full year guidance. I should also note that in case of store closures, obviously, the pharmacy chain is going to obviously try to retain those patients within their own network.

現在顯然，我們對計劃關閉商店的時間沒有任何特別的了解。但我們確實注意到，在第二季末，我們向其供應產品的經銷商的訂購模式發生了變化。現在我們認為這與計劃中的商店關閉有關。因此，我們嘗試做的是估計並謹慎地將該影響納入全年指導中。我還應該指出，如果商店關閉，連鎖藥局顯然會試圖將這些患者保留在自己的網路內。

Sometimes these patients might leave and go to other pharmacy chains. But at the end of the day, our products are chronic use, medically necessary products. And so we do expect that these patients, if they are not purchasing it from a store that they used to, but is now closed, will go into other retail outlets to purchase those products. And given our strength in the U.S., it is quite possible that those patients will continue using our products. There might be a timing lag here because, as I mentioned, the product flows through distributors and it takes time for these demand signals to adjust.

有時這些病人可能會離開並前往其他連鎖藥局。但歸根究底，我們的產品是長期使用的、醫療必需的產品。因此，我們確實預計，如果這些患者不再從他們以前常去但現在已經關閉的商店購買，他們就會去其他零售店購買這些產品。鑑於我們在美國市場的實力，這些患者很可能會繼續使用我們的產品。這裡可能存在時間滯後，因為正如我所提到的，產品流經分銷商，這些需求訊號的調整需要時間。

So look, I mean, long -- to sort of sum it up, we've tried to be as prudent as we can in estimating this. We recognize it's early in the process of store closures, and certainly, we'll update as we go along here.

所以，我的意思是，長遠來看——總而言之，我們試著盡可能謹慎地估計這一點。我們認識到商店關閉過程尚處於早期階段，當然，我們會在過程中不斷更新資訊。

Great. Just a follow-up there. I think the Street is kind of shaking out at, I think, 7%, 8% quarter-over-quarter growth into fiscal year Q3. Are you happy with that given the guide cut? Where should we be taking that little guide cut out of our numbers for the year? Thanks a lot.

偉大的。這只是後續行動。我認為華爾街對此感到震驚，我認為第三財季的環比成長率為 7% 到 8%。考慮到指南的剪輯，您對此滿意嗎？我們該把從今年的數字中剪下來的小指南帶到哪裡呢？多謝。

Yes. Kallum, thanks for the question. This is Jake. Maybe I'll jump in here. I think what -- if you think about our guide, for the first half of the year, we always thought for the reasons that Dev outlined that the second half of the year was going to be stronger than the first half of the year.

是的。卡勒姆，謝謝你的提問。這是傑克。也許我會跳進這裡。我認為——如果你考慮我們的上半年指南，我們總是認為，由於 Dev 概述的原因，下半年將比上半年更強勁。

And really nothing has necessarily changed in that thought pattern in terms of second half strength versus the first half because of just all the one-off items that sort of impacted the first half of 2024 in terms of the ERP go-lives and whatnot. So we were down on a six-month basis, I think our constant currency revenues were down around 6.3%.

事實上，就下半年的實力與上半年相比而言，這種思維模式並沒有什麼變化，因為所有一次性項目都對 2024 年上半年的 ERP 上線等產生了影響。因此，以六個月計算，我們的固定貨幣收入下降了約 6.3%。

And in the second half of the year, I think it's probably reasonable to think that we would sort of see flat to slightly positive overall constant currency revenue growth in the second half of the year and probably, I would say, low-single-digit constant currency revenue growth, if you will, particularly in the third quarter. So hopefully, that gives a little bit more context into sort of the -- our thoughts in the second half of the year regarding constant currency revenue. So we certainly expect to see, despite the 150 basis point call down, if you will, to our full year constant currency revenue guidance range, we certainly do expect there to be an improvement and see some momentum as we move throughout the second half of the year.

而在今年下半年，我認為，我們有理由相信，我們會看到下半年整體固定匯率收入增長持平或略有正增長，而且，如果你願意的話，可能會看到低個位數的固定匯率收入增長，特別是在第三季度。所以希望這能給我們更多關於下半年固定貨幣收入的想法。因此，儘管我們的全年固定匯率收入指導範圍下調了 150 個基點，但我們確實預計，隨著下半年的推進，情況會有所改善，並看到一些發展勢頭。

Thank you.

謝謝。

Thank you one moment for our next question. Our next question comes from the line of Marie Thibault of BTIG. Your line is now open.

感謝您的提問。我們的下一個問題來自 BTIG 的 Marie Thibault。您的線路現已開通。

Hi, good morning. Thank you for taking the questions. I wanted to ask my first one here on tariffs. I heard you say 25 bps of full year adjusted impact to adjusted gross margins there. Wanted to get a little bit more detail on some of this. How much of that impact is coming from sort of the U.S. China tariffs as we get those trade talks hopefully started here this weekend?

嗨，早安。感謝您回答這些問題。我想在這裡問第一個關於關稅的問題。我聽說您說全年調整後毛利率將受到 25 個基點的影響。想要獲得有關這方面的更多詳細資訊。我們希望本週末開始貿易談判，而中美關稅將帶來多大影響？

And in terms of annualizing some of this, given you're kind of on a different fiscal year, how should we think about this in the next fiscal year? Of course, I understand there will be mitigation and a lot of fluid dynamics here.

就年度化而言，考慮到您處於不同的財政年度，我們應該如何在下一個財政年度考慮這個問題？當然，我知道這裡會有緩解措施和大量的流體動力學。

Yes. Marie, thanks for the question. Yes, so you're correct. I mean, our -- right now, just given our manufacturing footprint and the way that our products flow, we are thinking that there is going to be around a $3 million or 25 basis point impact to our full year margins, $3 million of incremental expense associated with these tariffs in the second half of the year. That does relate to exactly what you were referring to, the dynamic between China and the U.S. and the reciprocal tariffs with each of those countries.

是的。瑪麗，謝謝你的提問。是的，你是對的。我的意思是，現在，僅考慮到我們的製造足跡和產品流動方式，我們認為這些關稅將對我們的全年利潤率產生約 300 萬美元或 25 個基點的影響，下半年與這些關稅相關的增量費用為 300 萬美元。這確實與您所提到的中國和美國之間的關係以及與這兩個國家的互惠關稅有關。

Right now, obviously, we're going to try and do whatever it is that we can in order to offset those impacts to the extent possible, whether that's taking costs out of the system or potentially trying to find ways to pass along any of those cost increases in the form of pricing. Based on what we know right now, if we had to provide sort of an estimate for maybe an annualized impact -- and again, keep in mind, this is obviously very, very fluid, just even given some of the news coming out this morning regarding the talks this weekend. But if we had to think about like an annualized impact, I think it's probably reasonable to think that we would see maybe around, call it, $8 million to $9 million impact in 2026 based on what we know right now. And that's obviously a gross number, right?

現在，顯然，我們將盡一切努力盡可能地抵消這些影響，無論是從系統中消除成本，還是試圖找到以定價形式轉嫁任何成本增加的方法。根據我們目前所掌握的情況，如果我們必須對年度影響做出某種估計，再次強調，請記住，即使考慮到今天早上傳出的有關本週末會談的一些消息，這顯然也是非常不穩定的。但如果我們必須考慮年度影響，我認為，根據我們目前所了解的情況，我們可以合理地認為，到 2026 年，我們可能會看到大約 800 萬至 900 萬美元的影響。這顯然是一個總數，對吧？

That doesn't take into consideration any potential offsets that we would try and do. And it only really relates to sort of the U.S. China dynamic. It doesn't take into consideration, if you will, any of the tariffs that have sort of been put on pause right now.

這還沒有考慮到我們嘗試做的任何潛在抵消措施。這其實只與美國和中國的動態有關。如果你願意的話，它沒有考慮到目前已暫停的任何關稅。

Yes. Incredibly helpful, Jake. Thank you for the detail. And then I guess I'll ask my follow-up. I heard you say that Embecta had received several POs from generic GLP-1 makers. Very exciting to see that step.

是的。非常有幫助，傑克。謝謝你的詳細說明。然後我想我會問我的後續問題。我聽您說 Embecta 已經收到了來自仿製 GLP-1 製造商的幾份採購訂單。看到這一步非常令人興奮。

What does that actually mean a PO? Does that mean they sort of said, hey, we want to work with you and we need to understand how your packaging will work so we can put this together for the regulators or is it a step further than that? I'm not sure exactly where this falls in kind of the pharma regulatory process.

PO 其實是什麼意思？這是否意味著他們說，嘿，我們想與你們合作，我們需要了解你們的包裝如何運作，以便我們可以將其整合到監管機構，或者這還有更進一步的措施？我不確定這究竟屬於哪種製藥監管流程。

Yes, good morning, Marie. So it is a very exciting and a really important strategic milestone in this process. As we've commented before, we've been in discussions with multiple generic drug manufacturers as they are pursuing a generic GLP-1 entry in markets around the world. And this is a substantive step forward of them -- several of them actually sending purchase orders for bulk pen needles that they will then acquire and use for their own internal purposes, including any testing they might have to do as part of their regulatory submissions. So we are very excited about it.

是的，早上好，瑪麗。因此，這是這一進程中非常令人興奮且非常重要的戰略里程碑。正如我們之前所評論的，我們一直在與多家仿製藥製造商進行討論，因為他們正在尋求將仿製 GLP-1 打入全球市場。這是他們向前邁出的實質一步——他們中的一些人實際上發送了批量筆式針頭的採購訂單，然後他們將獲得這些針頭並將其用於自己的內部目的，包括他們可能需要作為監管提交的一部分進行的任何測試。因此我們對此感到非常興奮。

It's a very tangible and specific milestone that has been accomplished. And we'll certainly share more about all of this at our Investor Day coming up here in a couple of weeks.

這是一個非常切實和具體的里程碑。我們肯定會在幾週後舉行的投資者日上分享更多有關這些內容的資訊。

Okay, very good looking forward to it thanks so much.

好的，非常期待，非常感謝。

Thank you, Mary.

謝謝你，瑪麗。

Thank you, one moment for our next question.

謝謝，請稍等片刻，回答我們的下一個問題。

Our next question comes from the line of Anthony Petrone of Mizuho Financial Group. Your line is not open.

我們的下一個問題來自瑞穗金融集團的安東尼‧佩特羅內 (Anthony Petrone)。您的線路未開通。

Thank you and good morning. Maybe just a follow-up on tariffs. Just in terms of pull forward of stockpiling, did you notice any of that in the first quarter? Any of the retail chains sort of buying ahead? And did that sort of flow through to Embecta in terms of the revenue performance in the first quarter here? And then I'll have a couple of follow-ups. Thanks.

謝謝，早安。或許只是關稅的後續行動。就提前囤貨而言，您在第一季注意到了這一點嗎？有沒有零售連鎖店提前採購？那麼，就第一季的營收表現而言，這種影響是否對 Embecta 產生了影響？然後我會進行一些後續跟進。謝謝。

Yes. Anthony, maybe I'll take that. So specifically about -- I assume you're specifically talking about the U.S. here. A couple of points to note, right? The tariffs that we have incorporated into our guidance are really U.S. China related for the majority of the impact, vast majority of the impact. In the U.S., we have historically benefited from certain exemptions that apply to finished goods -- that apply to our category of finished goods. So we don't really pay a tariff currently on those products given they are for chronic medical use.

是的。安東尼，也許我會接受。所以具體來說——我認為你在這裡具體談論的是美國。有幾點要注意，對嗎？我們納入指導意見的關稅其實與美國和中國有關，其影響大部分、絕大多數。在美國，我們一直受益於適用於成品的某些豁免權——適用於我們的成品類別。因此，考慮到這些產品是用於慢性醫療用途，我們目前實際上並未為它們支付關稅。

We did not see any stockpiling in the U.S. as a result of potential tariff impacts. And let me also point out that really the product that's coming from China into the U.S. is very, very limited to begin with. I mean, it's in low-single-digit percent of our U.S. revenue.

我們沒有看到美國因潛在關稅影響而出現任何囤貨行為。我還要指出的是，從中國進口到美國的產品其實非常非常有限。我的意思是，它只占我們美國收入的低個位數百分比。

So for all those reasons, finished good product being imported into China just being -- being imported from China into U.S. just being a low, low number in our U.S. -- of our U.S. business and the fact that we do benefit from certain exemptions, help us.

因此，由於所有這些原因，進口到中國的成品——從中國進口到美國的成品在我們美國業務中所佔比例很低——而且我們確實受益於某些豁免，這對我們有幫助。

That's helpful. Maybe a follow-up would just be on the type two market specifically. I had the pump companies out there with a decent quarter here; last night, one reported, earlier last week reported. Maybe just like an update on the dynamic between multiple daily injection and pumps, what you're seeing there? And if you could segment the market in type two where MDI is more sticky? Is there a specific segment where you really just see durability there? Thanks, thanks for taking the question.

這很有幫助。也許後續行動將專門針對第二類市場。我了解到一些泵公司本季業績表現不錯；昨晚有一家公司報告了業績，上週早些時候也有報告。也許就像對每日多次注射和泵之間的動態進行更新一樣，您在那裡看到了什麼？那麼，您是否可以將市場細分為第二類，其中 MDI 的黏性更強？是否存在一個特定的領域，您真正關注的是它的耐用性？謝謝，感謝您提出這個問題。

Yes. Anthony, the best indicator that we track internally to see what's going on for our pen needle business, in particular, is the TRxs for insulin pens, right? That's something that we've been tracking for a long period of time. And so far, we've seen stability in the U.S., both in insulin pens as well as what we believe the underlying pen needle market to be. And obviously, we have better data on insulin pens than the pen needle market, just given that we are such a large portion of the pen needle market, right?

是的。安東尼，我們內部追蹤的、用於了解我們的筆針業務進展的最佳指標是胰島素筆的 TRxs，對嗎？這是我們長期追蹤的事情。到目前為止，我們看到美國的胰島素筆以及我們認為的基礎筆針市場都保持穩定。顯然，我們擁有有關胰島素筆的數據比有關筆針市場的數據更好，因為我們在筆針市場中佔有很大的份額，對嗎？

I mean, we see our numbers, but it's hard to get total market numbers. And so I would say that's the best indicator. Obviously, we follow what market participants are saying. I also want to point out just the vastness of the numbers, right? We are talking about 7 million, 8 million people on injection in the U.S.

我的意思是，我們看到了我們的數字，但很難獲得整個市場的數字。所以我認為這是最好的指標。顯然，我們關注市場參與者的聲音。我還想指出這個數字是多麼龐大，對嗎？我們談論的是，美國有 700 萬到 800 萬人注射毒品。

And when you compare to pump numbers, they're typically talking about maybe tens of thousands. So it's going to take some time before any big change in -- before any big changes gets reflected in our numbers, not to mention that the incidence of type 2 diabetes, I mean, that's still a growth factor here, right? So all these things wash out, which is why the indicator that we most closely track is the total prescriptions for insulin pens and we've seen stability so far.

當你與泵的數量進行比較時，他們通常談論的可能是數萬。因此，任何重大變化都需要一段時間才能反映在我們的數字中，更不用說 2 型糖尿病的發生率，我的意思是，這仍然是一個增長因素，對吧？因此，所有這些事情都會消失，這就是為什麼我們最密切追蹤的指標是胰島素筆的總處方，到目前為止我們已經看到了穩定性。

Thank you very much, Deb.

非常感謝，Deb。

Yeah.

是的。

Thank you. One moment for our next question. (Operator Instructions) And our next question comes from the line of Michael Polark of Wolfe Research. Your line is now open.

謝謝。請稍等片刻，回答我們的下一個問題。（操作員指示）我們的下一個問題來自 Wolfe Research 的 Michael Polark。您的線路現已開通。

Hey, good morning, thank you, I have two. I want to follow-up first on the retail pharmacy store closure call out. I feel like U.S. retail pharmacies have been closing stores for a long time. So I guess, what's different about this?

嘿，早上好，謝謝，我有兩個。我想先跟進一下有關零售藥局關閉的呼籲。我覺得美國零售藥局關店已經很久了。那我想，這有什麼不同呢？

Is it simply the scale? And I'm curious if you might name the name? I know Walgreens has announced 1,200 store closures expected over the next three years, but CVS also has a large program, too. And Rite Aid, I think, is dealing with BK. So if it's worth spiking out the brand, I would appreciate that.

僅僅是規模嗎？我很好奇您能否說出這個名字？我知道沃爾格林已宣布預計未來三年將關閉 1,200 家門市，但 CVS 也有一個大型計畫。我認為，Rite Aid 正在與 BK 打交道。因此，如果值得大力推廣該品牌，我會非常感激。

But any further color on why this is different given kind of long-running trend of store wind-downs?

但是，考慮到商店關閉的長期趨勢，能否進一步解釋為什麼會出現不同的情況？

Yes, Mike, I think it's the scale. And respectfully, I'll avoid naming any specific customers. But it's really the scale and the pace at which it could happen. That's the reason why we called it out. And like I said, we saw a change in the buying pattern for this distributor that serves that particular chain as well as serves other customers. And we just wanted to make sure that we were prudent in reflecting that as we thought about our guidance for the rest of the year.

是的，麥克，我認為這是規模。恕我直言，我不會透露任何具體客戶的名字。但這確實是可能發生的規模和速度。這就是我們提出這項呼籲的原因。正如我所說的，我們看到這家為特定連鎖店和其他客戶提供服務的經銷商的購買模式發生了變化。我們只是想確保在考慮今年剩餘時間的指導時能夠謹慎地反映這一點。

Now as you saw in our guidance, I mean, in spite of that, we did raise our adjusted operating margins and adjusted EBITDA margins guidance either. So everything that we can control to ensure that we still pursue our priorities of maintaining profitability and paying down debt, we are absolutely going to execute on.

正如您在我們的指導中看到的，我的意思是，儘管如此，我們確實提高了調整後的營業利潤率和調整後的 EBITDA 利潤率指引。因此，我們絕對會執行一切我們能夠控制的措施，以確保我們仍然追求保持盈利和償還債務的優先事項。

For the follow-up, I want to ask on the new efficiency program that was discussed here. Where is it focused? What are you doing? And the savings number, $7 million to $8 million in the second half, is it fair to multiply that by two to get a full year impact as we think about fiscal '26? Thank you so much.

作為後續問題，我想問這裡討論的新效率計劃。重點在哪裡？你在幹什麼？下半年的節省金額為 700 萬至 800 萬美元，當我們考慮 26 財年時，將其乘以二以獲得全年影響是否公平？太感謝了。

Yes, Mike. So regarding the new restructuring program, I think if you step back over the last several years as we've sort of been separating from our former parent and standing ourselves up, very, very intentionally, we did not make any material changes to the organization. And we've always talked about how we would look for opportunities to continue to sort of rightsize the organization to continue to take cost out of the organization. And I think now that we are largely complete with all of the major separation activities, we're continuing to look for ways just to become more efficient. And we're certainly going to continue to do that moving forward as well.

是的，麥克。因此，關於新的重組計劃，我想，如果你回顧過去幾年，我們一直在與前母公司分離，並非常有意地重新站起來，我們沒有對組織進行任何實質性的改變。我們一直在談論如何尋找機會繼續調整組織規模，以繼續降低組織成本。我認為，現在我們基本上已經完成了所有主要的分離活動，我們正在繼續尋找提高效率的方法。我們當然也會繼續這麼做。

So if you think about the costs that we were able to take out, it's largely, I would say, in sort of the SG&A area. And I think this year, as we said, we would expect to see savings of between $7 million to $8 million in the second half of the year. And I do think it's reasonable on an annualized basis to think about something in or around that kind of $15 million mark as we sort of walk into 2026. Thank you.

因此，如果你想想我們能夠削減的成本，我想說，這主要集中在銷售、一般和行政費用 (SG&A) 領域。我認為，正如我們所說，今年下半年我們預計可節省 700 萬至 800 萬美元。我確實認為，當我們進入 2026 年時，以年度化為基礎考慮 1500 萬美元左右的規模是合理的。謝謝。

Thank you. I'm showing no further questions at this time. I'll now turn it back to CEO, Dev Kurdikar, for closing remarks.

謝謝。我目前沒有其他問題。現在，請執行長 Dev Kurdikar 致最後總結。

Thank you. As we close the call, I just want to express my sincere gratitude to my colleagues at Embecta around the world. Our global team remains focused on executing the priorities we've laid out even as uncertainty exists in the macroeconomic and the global trade environment. And then finally, we look forward to engaging with all of you at our upcoming conferences and at our Investor Day on May 22 where we'll share more about our vision for Embecta. Thanks again for calling in and for your interest in Embecta.

謝謝。在我們結束通話之前，我只想向世界各地的 Embecta 同事們表達最誠摯的感謝。即使宏觀經濟和全球貿易環境存在不確定性，我們的全球團隊仍然專注於執行我們制定的優先事項。最後，我們期待在即將召開的會議和 5 月 22 日的投資者日上與大家交流，屆時我們將分享更多關於 Embecta 的願景。再次感謝您的來電以及對 Embecta 的關注。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝大家參加今天的會議。該計劃確實就此結束。您現在可以斷開連線。