Bausch & Lomb Corp (BLCO) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and ...

In This Article:

  • Total Revenue: $1.196 billion for the third quarter, reflecting 19% growth and 10% organic growth.

  • Vision Care Revenue: $684 million, a 6% increase driven by growth in consumer and contact lens portfolios.

  • Contact Lens Revenue Growth: 12% with strong performance across modalities and geographies.

  • Surgical Segment Revenue: $206 million, an increase of 12%.

  • Pharmaceutical Segment Revenue: $306 million, representing 76% growth and 25% organic growth.

  • Adjusted Gross Margin: 63%, up 170 basis points compared to Q3 2023.

  • Adjusted EBITDA: $227 million, a 21% growth versus Q3 2023.

  • Adjusted EPS: $0.17 excluding acquired IPR&D $0.13 including IPR&D investments.

  • Cash Flow from Operations: $159 million in the third quarter.

  • Full-Year Revenue Guidance: Raised to $4.725 billion to $4.825 billion.

  • Full-Year Miebo Revenue Guidance: Increased to $165 million to $170 million.

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Bausch & Lomb Corp (NYSE:BLCO) reported a strong revenue growth of 19% on a constant currency basis and 10% on an organic basis for the third quarter.

  • The company's vision care segment saw a 6% increase in revenue, driven by growth in both consumer and contact lens portfolios.

  • The surgical business experienced a 12% constant currency revenue growth, with significant contributions from consumables and premium IOLs.

  • BLCO's pharmaceutical segment achieved a 76% constant currency revenue growth, with Miebo and Xiidra playing key roles.

  • The company is investing in digital capabilities, such as the Opal e-commerce marketplace, to enhance customer experience and streamline operations.

Negative Points

  • Currency fluctuations posed a $5 million headwind to revenue in the third quarter.

  • The eye vitamins franchise experienced a 9% decline due to disruptions in the US drugstore channel and retailer inventory rebalancing.

  • The Inflation Reduction Act and rebate discussions are anticipated to be headwinds for Xiidra sales in 2025.

  • Despite strong revenue growth, adjusted EBITDA guidance has remained steady, indicating that topline strength has not fully translated to the P&L.

  • The company is in a significant investment phase, which may impact short-term profitability as it focuses on launching new products.

Q & A Highlights

Q: What has been the biggest factor in Bausch & Lomb's recent success, and how do you plan to balance investment in product launches with margin growth? A: Brent Saunders, CEO, emphasized the importance of a clear strategy focused on sales excellence, operational excellence, and innovation. The company's relentless focus on execution has driven broad-based performance, with significant growth in contact lenses and other segments. Balancing investment in product launches with margin growth is crucial, as seen with products like Miebo, where early investment is critical for long-term profitability.

Waiting for permission
Allow microphone access to enable voice search

Try again.