Steve Collis: Yes. So on our logo business, and of course, our World Courier business which does more specialized logistics, are both performing very well. And we expect to see continued growth in those businesses. We have a logo closely linked with our traditional RCS business in the U.S., and we’re getting away from those names as we move to Cencora and global programs. But those businesses continue to be of significant interest to manufacturers. They help with the commercialization process. They provide efficiency both for large and small manufacturers and are a key element of our growth. In Europe, we have some stronger competitors there. And it’s a more established industry, I’d say. And of course, every country is a little bit different.
But as a generalization, I’d say we have stronger competitors there. And certainly Cencora intends to raise the bar. Our leadership is very focused on becoming the leader in that industry in all the major markets we’re in. And you’ll continue to see us making progress because we have a great understanding of the whole healthcare ecosystem that is hard for others to have. We have it from the provider, the manufacturer perspective, the health system perspective, and we have it across so many different countries and healthcare ecosystems that I think it just gives us some business intelligence that is hard to replicate, and you’ll expect us to continue to do very well in those areas. Jim, the second part was for you.
Jim Cleary: Sure. With regard, Lisa, to the moderation of generic deflation, and as we’ve indicated over the last several months, there’s been a moderation in generic deflation, particularly in certain pockets of the market and we’ve certainly benefited from that to the extent that it’s been a smaller headwind. And if the moderation in generic deflation sustains and is more broad, it would really be a benefit to us — continued benefit to us as the annual headwind would be smaller. In terms of ranking them, just one point I want to make, just the volumes were so strong this quarter with 15% revenue growth and, as you well know, when you can have 13% gross profit growth and 8% OpEx growth, that really is kind of a big driver.
That operating leverage is a big driver of operating income growth. And so that volume is driven by a number of things, including commercial COVID-19 vaccines were a really good benefit for us during the quarter. And so I really wouldn’t make too much of the ranking though. And the generic moderation trends were certainly positive for us during the quarter. Thank you, Lisa.
Operator: Our next question comes from Eric Percher with Nephron Research. Your line is open. Please go ahead.
Eric Percher: Thank you. Jim, the gross profit was strong despite the downward pressure you mentioned from GLP-1s and government COVID treatments. Can you remind us when the — how the GLP-1 volumes and also the gross profit have trended over the last year and specifically when the shift in sell side discount occurred, how that plays through for the remainder of the year and whether there’s any impact on generic discounts built in there?
Jim Cleary: Yes. And so let me kind of address that with regard to your questions on kind of the GLP-1 growth and the GLP-1 profitability and the impacts it has on our business. And as we talked about, we’ve continued to see strong growth in drugs in the GLP-1 class. The revenue this quarter grew by $2.2 billion versus the first quarter of fiscal year 2023. As I talked about in the prepared remarks, our consolidated revenue was up 15%. And if we exclude the increase in GLP-1s, our consolidated revenue growth would have been 12% during the quarter. And then with regard to profitability, my comment there is consistent with what we’ve said in the past. GLP-1s continue to be more impactful from a revenue growth perspective and are minimally profitable for us given that they’re a brand with cold chain requirements also, Eric.
Bennett Murphy: Next question, please.
Operator: Our next question comes from Daniel Grosslight with Citi. Your line is open. Please go ahead.
Daniel Grosslight: Hi guys, thanks for taking the question and congrats on the strong start here. On the international side, you called out strength in your Canadian business. I know you have a strong vaccine distribution business up there, but I’m curious if it’s vaccines — COVID vaccines there that’s driving that strength, or if there’s some other piece of the business on the Canadian side that is performing well. Thanks.
Steve Collis: Yes. No, thank you. Nice to get a question about Canada, which has been a strong business for us a long time. We did several acquisitions there many years ago, and we have an integrated business model there. The business goes by the name of Innomar, and it’s both distribution on the specialty side, we run some infusion centers which are really part of a manufacturer commercialization. We have a lot of patient programs. We do 3PL, and it’s a health system that is very relevant to our expansion into other countries. And certainly, if you look at the value and the way the Canadian government thinks about new products, and that it’s very illustrative of the types of pharmacy and healthcare models we see in Europe. So it’s been a good formative business for us and one that we continue to do well in.
I would also say that we have an entrepreneurial team that understands the market there that’s pretty stable, that’s — have been with us for a long time. Many of them are actually helping us now in international development, so good business for us and really punches outside of their weight and especially marketing Canada and having a global impact for Cencora now. So thanks for the call out. Jim, you want to add something?
