Henry Schein 2009 Annual Report Download - page 46

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34
2009 Compared to 2008
Net Sales
Net sales for 2009 and 2008 were as follows (in thousands):
2009 2008 (1) $
Healthcare distribution (2):
Dental (3) ........................................ 2,509,921$ 38.4 % 2,567,064$ 40.2 % (57,143)$ (2.2) %
Medical (4) ..................................... 1,457,102 22.3 1,428,968 22.4 28,134 2.0
International (5) ............................... 2,398,105 36.7 2,221,092 34.8 177,013 8.0
Total healthcare distribution ........ 6,365,128 97.4 6,217,124 97.4 148,004 2.4
Technology (6) ...................................... 173,208 2.6 163,289 2.6 9,919 6.1
Total ............................................. 6,538,336$ 100.0 % 6,380,413$ 100.0 % 157,923$ 2.5
% of % of Increase / (Decrease)
Total Total %
(1) Adjusted to reflect the effects of discontinued operations.
(2) Consists of consumable products, small equipment, laboratory products, large dental and medical equipment, equipment repair
services, branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products and
vitamins.
(3) Consists of products sold in the United States and Canada.
(4) Consists of products and equipment sold in the United States’ medical and animal health markets.
(5) Consists of products sold in the dental, medical and animal health markets, primarily in Europe.
(6) Consists of practice management software and other value-added products and services, which are sold primarily to healthcare
providers in the United States, Canada, the United Kingdom, Australia and New Zealand.
The $157.9 million, or 2.5%, increase in net sales for the year ended December 26, 2009 includes an
increase of 5.7% local currency growth (0.9% internally generated revenue and 4.8% growth from
acquisitions) offset by a decrease of 3.2% related to foreign currency exchange. Excluding sales of influenza
vaccines, sales increased 6.6%. Sales of influenza vaccines declined in 2009 compared to 2008 due to
manufacturers’ supply shortage.
The $57.1 million, or 2.2%, decrease in dental net sales for the year ended December 26, 2009 includes a
decrease of 1.6% in local currencies (4.0% decline in internally generated revenue offset by 2.4% growth
from acquisitions) and a decrease of 0.6% related to foreign currency exchange. The 1.6% decline in local
currency sales was due to a decline in dental equipment sales and service revenues of 10.6% (11.3% decline
in internally generated revenue reduced by 0.7% growth from acquisitions) offset by dental consumable
merchandise sales growth of 1.9% (1.2% decrease in internally generated revenue reduced by 3.1% growth
from acquisitions).
The $28.1 million, or 2.0%, increase in medical net sales for the year ended December 26, 2009 includes
an increase in internally generated revenue of 0.8% and acquisition growth of 1.2%. Excluding sales of
influenza vaccines, which declined in 2009, medical sales increased 5.9%.
The $177.0 million, or 8.0%, increase in international net sales for the year ended December 26, 2009
includes sales growth of 16.4% in local currencies (6.2% internally generated growth and 10.2% growth from
acquisitions) offset by a decrease of 8.4% related to foreign currency exchange.
The $9.9 million, or 6.1%, increase in technology net sales for the year ended December 26, 2009
includes an increase of 8.3% in local currency growth (6.7% internally generated growth and 1.6% growth
from acquisitions) offset by a decrease of 2.2% related to foreign currency exchange. During the year, we
experienced continued growth in electronic services as well as solid sales of technology products in our
international markets.