Cardinal Health, Inc. (NYSE:CAH) Q4 2023 Earnings Conference Call August 15, 2023 8:30 AM ET

Company Participants

Kevin Moran - VP, IR

Jason Hollar - CEO

Aaron Alt - CFO

Conference Call Participants

Lisa Gill - JPMorgan

Eric Percher - Nephron Research

Kevin Caliendo - UBS

George Hill - Deutsche Bank

Elizabeth Anderson - Evercore

Daniel Grosslight - Citi

A.J. Rice - Credit Suisse

Operator

Good day, and welcome to the Fourth Quarter FY 2023 Cardinal Health Inc. Earnings Conference Call. Please note this conference is being recorded. [Operator Instructions]

I would now like to hand the call over to Kevin Moran, Vice President of Investor Relations. Please, go ahead.

Kevin Moran

Good morning and welcome. Today, we will discuss Cardinal Health’s fourth quarter and fiscal year end 2023 results, along with our outlook for fiscal year '24. You can find today’s press release and earnings presentation on the IR section of our website at ir.cardinalhealth.com. Joining me today are Jason Hollar, our Chief Executive Officer; and Aaron Alt, our Chief Financial Officer.

During the call, we will be making forward-looking statements. The matters addressed in these statements are subject to the risks and uncertainties that could cause actual results to differ materially from those projected or implied. Please refer to our SEC filings and the forward-looking statement slide at the beginning of our presentation for a full description of these risks and uncertainties.

Please note that during the discussion today, all our comments will be on a non-GAAP basis unless they are specifically called out as GAAP. GAAP to non-GAAP reconciliations for all relevant periods can be found in the schedules attached to our press release. For the Q&A portion of today’s call, we kindly ask to limit yourself to one question, so that we can try and give everyone in the queue an opportunity.

With that, I’ll now turn the call over to Jason.

Jason Hollar

Thanks, Kevin, and good morning, everyone.

Fiscal '23 was an inflection point for Cardinal Health with improved performance, strong execution and notable progress against both our short and long-term plans. We delivered record financial performance, including our highest non-GAAP EPS ever, reflecting 14% growth in the prior year.

We grew Pharma segment profit an impressive 13% and generated $2.8 billion of adjusted free cash flow. And in Medical, we drove significant sequential improvement in operating performance from a segment loss in the first quarter to over $80 million of segment profit in Q4.