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Following Completion Of Pending Sale Of Kidney Care, Baxter Targets Operational Sales Growth Of 4% To 5% Annually

Author: Benzinga Newsdesk | August 13, 2024 07:05am

For 2025, the company anticipates an adjusted operating margin of approximately 16.5% on a continuing operations basis, which reflects an anticipated 100 basis point negative impact due to stranded costs, net of anticipated transition service agreement (TSA) income, and the manufacturing supply agreement (MSA) the company will enter into upon the completion of the divestiture of the Kidney Care segment.

Baxter will continue to prioritize capital allocation and expects to direct investments toward higher-growth, higher-return opportunities to drive incremental value. 

Additionally, the company currently expects to fully offset stranded costs and loss of TSA income in 2027 through cost containment initiatives, some of which are already underway, which will further support the company's objective of delivering annual adjusted operating margin expansion. 

Baxter plans to provide additional details regarding the company's longer-term strategic and financial outlook at an investor conference in 2025. 

Posted In: BAX

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