2025 Growth Expectations
Q: What's the outlook for 2025 growth and margins?
A: Management anticipates improved organic growth in 2025 as the business emerges from current disruptions like the cybersecurity incident and PPE headwinds. " They expect continued market share gains, especially in specialty products like implants and endodontics, and believe the fundamentals of the business remain intact. " The restructuring program will contribute savings, with benefits starting in the fourth quarter of 2024 and continuing into 2025. "

Manufacturer Relationships
Q: What's the status of your agreement with Dentsply Sirona?
A: Management affirmed a good relationship with Dentsply Sirona, noting they are likely Henry Schein's largest customer while Dentsply Sirona is one of their biggest global suppliers. " Although not disclosing specific contract details, they emphasized mutual commitment and ongoing collaboration across multiple countries. "

Customer Recapture Post-Cyber Incident
Q: Why expect customer recapture after cybersecurity incident?
A: Management is confident in recapturing customers lost after the cyber incident, citing sequential month-over-month improvement. " Sales teams are re-engaging smaller accounts, and outbound calls have resumed in the last six weeks. " They believe customers are receptive and expect to continue regaining market share over time. "

Current Business Trends
Q: How are trends in July and Q3 so far?
A: The positive momentum from Q2 has continued into July. " Distribution businesses are experiencing growth as they recapture market share. " Management expects this trend to persist throughout the third quarter and into the fourth quarter as well. "

Shift to Private Label Brands
Q: Is shift to private labels affecting guidance?
A: The move towards corporate brands is embedded in their guidance. " Customers are more cost-conscious, opting for lower-priced options, including Henry Schein's own brands. " This shift may slightly depress sales but is positive for gross profit margins. "

Implant Business Growth
Q: What's the growth outlook for implants?
A: The implant business is performing well in Europe, particularly in Germany and France, where they hold strong market positions. " In the U.S., growth was slower due to pending FDA approval of a new product, but approval was received in mid-June, and they expect improved performance as they launch the product. "

Medical Customers Ordering Elsewhere
Q: Are large medical customers ordering away?
A: While some large customers temporarily ordered elsewhere, most have returned, including one large customer resuming pharmaceutical orders. " The focus is now on re-engaging smaller practices where sales teams haven't had time to reconnect. " Overall, they expect recovery in this area. "

EPS Guidance for Second Half
Q: How should we think about H2 EPS guidance?
A: Management expects to maintain momentum in market share gains, with contributions from specialty and technology businesses. " The guidance reflects continued growth in the second half, supported by initiatives like the new implant product launch in North America. "