Henry Schein 2009 Annual Report Download - page 49

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37
2008 Compared to 2007
Net Sales
Net sales for 2008 and 2007 were as follows (in thousands):
2008 (1) 2007 (1) $
Healthcare distribution (2):
Dental (3) ........................................ 2,567,064$ 40.2 % 2,447,841$ 41.6 % 119,223$ 4.9 %
Medical (4) ..................................... 1,428,968 22.4 1,540,269 26.2 (111,301) (7.2)
International (5) ............................... 2,221,092 34.8 1,769,881 30.0 451,211 25.5
Total healthcare distribution ........ 6,217,124 97.4 5,757,991 97.8 459,133 8.0
Technology (6) ...................................... 163,289 2.6 131,893 2.2 31,396 23.8
Total ............................................. 6,380,413$ 100.0 % 5,889,884$ 100.0 % 490,529$ 8.3
% 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 $490.5 million, or 8.3%, increase in net sales for the year ended December 27, 2008 includes an
increase of 7.5% local currency growth (1.3% internally generated revenue and 6.2% growth from
acquisitions) and 0.8% related to foreign currency exchange.
The $119.2 million, or 4.9%, increase in dental net sales for the year ended December 27, 2008 includes
an increase of 4.8% in local currencies (4.0% internally generated revenue and 0.8% growth from
acquisitions) and 0.1% related to foreign exchange. The 4.8% local currency growth was due to dental
consumable merchandise sales growth of 5.0% (4.2% internally generated revenue and 0.8% growth from
acquisitions) and dental equipment sales and service growth of 4.2% (3.6% internally generated revenue and
0.6% growth from acquisitions). The growth in equipment sales was primarily due to gains in both traditional
equipment and high-tech products.
The $111.3 million, or 7.2%, decrease in medical net sales for the year ended December 27, 2008
includes a decrease in internally generated revenue of 7.8% offset by acquisition growth of 0.6%. During
2008, we stopped selling certain low margin pharmaceutical products, which represented approximately
$153.0 million of net sales in 2007. Excluding sales of these lower-margin pharmaceutical products, internal
medical net sales increased by 0.9%.
The $451.2 million, or 25.5%, increase in international net sales for the year ended December 27, 2008
includes sales growth of 22.8% in local currencies (17.9% growth from acquisitions and 4.9% internally
generated growth) and 2.7% related to foreign currency exchange.
The $31.4 million, or 23.8%, increase in technology net sales for the year ended December 27, 2008
includes sales growth of 25.3% in local currency growth (8.7% internally generated growth and 16.6% growth
from acquisitions) offset by a decrease of 1.5% related to foreign currency exchange. The internal net sales
growth was driven by growth in electronic services, financial services and support revenue.