Organon & (OGN) - 2024 Q4 - Annual Results

Revenue Performance - Full year 2024 revenue was $6.4 billion, an increase of 2% as-reported and 3% at constant currency compared to 2023[18]. - Fourth quarter 2024 revenue was $1.592 billion, flat on both an as-reported and ex-FX basis compared to Q4 2023[6]. - Women's Health revenue for full year 2024 increased 4% as-reported and 5% at constant currency, driven by Nexplanon® growth of 17%[19]. - Biosimilars revenue increased 12% for full year 2024, primarily due to growth in Hadlima following its U.S. launch in July 2023[21]. - The full-year 2024 revenues reached $6,403 million, representing an increase of 2.2% from $6,263 million in 2023[49]. - Total revenues for the three months ended December 31, 2024, were $1,592 million, a slight decrease from $1,598 million in the same period of 2023[55]. - The U.S. market generated $416 million in revenues for the three months ended December 31, 2024, compared to $411 million in 2023, reflecting a growth of 1.2%[55]. - Revenues from Europe and Canada were $420 million for the three months ended December 31, 2024, compared to $414 million in 2023, indicating a growth of 1.4%[55]. - The Asia Pacific and Japan region reported revenues of $244 million for the three months ended December 31, 2024, down from $261 million in 2023, a decline of 6.5%[55]. Financial Metrics - Full year 2024 Adjusted EBITDA was $1.96 billion, representing a 30.6% Adjusted EBITDA margin[4]. - Non-GAAP Adjusted diluted earnings per share for full year 2024 was $4.11, a decrease of 1% compared to 2023[24]. - Adjusted EBITDA margin for full year 2025 is expected to range from 31.0% to 32.0%[35]. - The diluted earnings per share (EPS) for Q4 2024 was $0.42, down from $2.13 in Q4 2023, while full-year diluted EPS was $3.33, compared to $3.99 in 2023[49]. - Non-GAAP adjusted net income for the year ended December 31, 2024 was $1,065 million, slightly up from $1,061 million in 2023, indicating a growth of 0.4%[62]. - Non-GAAP diluted earnings per share for Q4 2024 was $0.90, compared to $0.88 in Q4 2023, representing an increase of 2.3%[63]. - Adjusted EBITDA for Q4 2024 was $448 million, nearly unchanged from $449 million in Q4 2023, maintaining an adjusted EBITDA margin of 28.1%[65]. Profitability - Gross profit for Q4 2024 was $896 million, down 2.1% from $915 million in Q4 2023, while full-year gross profit was $3,715 million, a decrease of 0.9% from $3,748 million[49]. - GAAP gross profit for the three months ended December 31, 2024, was $896 million, compared to $915 million in 2023, resulting in a GAAP gross margin of 56.3%[57][59]. - Adjusted non-GAAP gross profit for the same period was $965 million, with an adjusted non-GAAP gross margin of 60.6%[57][59]. - GAAP reported net income for Q4 2024 was $109 million, compared to $546 million in Q4 2023, reflecting a decrease of 80.1%[62]. - Full-year net income at $864 million compared to $1,023 million in 2023[49]. Expenses and Costs - Research and development expenses for Q4 2024 were $130 million, slightly lower than $134 million in Q4 2023, with full-year R&D expenses totaling $469 million, down from $528 million[49]. - Selling, general and administrative expenses for the three months ended December 31, 2024, were $470 million, slightly up from $469 million in 2023[59]. - Research and development adjustments for Q4 2024 amounted to $11 million, up from $7 million in Q4 2023, showing a 57.1% increase[62]. - Restructuring costs for Q4 2024 were $8 million, significantly lower than $58 million in Q4 2023, a decrease of 86.2%[65]. - Spin-related costs for the year ended December 31, 2024 totaled $121 million, down from $254 million in 2023, a reduction of 52.4%[66]. - Interest expense for the year ended December 31, 2024 was $520 million, slightly down from $527 million in 2023, a decrease of 1.3%[65]. Cash and Debt Position - As of December 31, 2024, cash and cash equivalents were $675 million, with total debt at $8.9 billion[31]. Strategic Initiatives - Organon is focusing on expanding its portfolio in women's health and biosimilars, with over 70 medicines and products currently offered[37]. - The company is pursuing collaborations with biopharmaceutical partners to leverage its scale in fast-growing international markets[37]. - Organon has recently acquired Dermavant Sciences Ltd., which is part of its strategy to enhance its product offerings[45]. - The company has provided non-GAAP financial measures to enhance understanding of its financial performance, including Adjusted EBITDA and Adjusted net income[39].