Bausch + Lomb (BLCO) - 2024 Q4 - Annual Results

Revenue Performance - Fourth-quarter 2024 revenue was $1.280 billion, a 9% increase from $1.173 billion in Q4 2023, with 11% growth on a constant currency basis[5]. - Full-year 2024 revenue reached $4.791 billion, up 16% from $4.146 billion in 2023, with a 17% increase on a constant currency basis[5]. - Product sales for Q4 2024 reached $1,275 million, a 9.1% increase from $1,168 million in Q4 2023[61]. - Total revenues for the twelve months ended December 31, 2024, were $4,791 million, compared to $4,146 million for the same period in 2023, reflecting a 15.6% growth[61]. - Vision Care segment revenue for the three months ended December 31, 2024, was $723 million, reflecting a 9% increase from $662 million in the same period of 2023[71]. - The Pharmaceuticals segment saw a 45% revenue increase for the full year 2024, totaling $1.209 billion, driven by the launch of MIEBO® and the acquisition of XIIDRA®[16]. Profitability Metrics - Adjusted EBITDA for Q4 2024 was $259 million, compared to $231 million in Q4 2023, reflecting a $28 million increase[23]. - Full-year adjusted EBITDA for 2024 was $878 million, an increase of $140 million from $738 million in 2023[23]. - Adjusted EBITDA (non-GAAP) for the twelve months ended December 31, 2024, was $204 million, with total non-GAAP adjustments amounting to $521 million[63]. - Adjusted EBITDA for the twelve months ended December 31, 2024, was $860 million, up from $738 million in 2023, representing a 16% increase[69]. - Adjusted net income (non-GAAP) for Q4 2024 was $89 million, or $0.25 per diluted share, compared to $83 million, or $0.24 per diluted share in Q4 2023[63]. Cash Flow and Financial Position - Cash flow from operations for 2024 was $232 million, a significant improvement from a cash flow used in operations of $17 million in 2023[21]. - Cash, cash equivalents, and restricted cash totaled $316 million as of December 31, 2024[27]. Future Guidance and Expectations - The company provided 2025 revenue guidance of $4.950 billion to $5.050 billion, representing a constant currency growth of approximately 5.5% to 7.5%[26]. - The company anticipates its 2025 full-year guidance to reflect growth in key products, including XIIDRA® and MIEBO®[30]. - Future performance may be affected by the successful completion of the separation and the anticipated benefits from recent acquisitions[31]. Operational and Strategic Developments - Bausch + Lomb is in the process of separating from Bausch Health Companies Inc., which may involve transferring equity interests to shareholders[31]. - The company has incurred restructuring and transformation costs related to operational improvements and the separation process, which are expected to fluctuate significantly[45]. - The company is committed to maintaining a strong research and development footprint to enhance its product offerings and market position[29]. Cost and Expense Management - The cost of goods sold for Q4 2024 was $499 million, up from $461 million in Q4 2023, indicating an 8.2% increase[61]. - Total adjusted selling, general and administrative expenses for the twelve months ended December 31, 2024, were $2,000 million, up from $1,650 million in 2023, marking a 21.2% increase[65]. - Research and development expenses for the twelve months ended December 31, 2024, totaled $343 million, compared to $324 million in 2023, marking a 5.9% increase[61]. Risks and Challenges - The company faces risks related to economic conditions, including inflation and interest rates, which could impact revenue and margins[33]. - The company anticipates that future acquisitions may lead to additional amortization of intangible assets, impacting future financial results[51]. Non-GAAP Measures - Adjusted EBITDA (non-GAAP) is used to assess the company's financial performance, focusing on underlying operational results[41]. - The company excludes certain costs from its non-GAAP measures, including asset impairments and acquisition-related costs, to provide a clearer view of operational performance[43]. - Bausch + Lomb's management emphasizes the importance of non-GAAP measures for evaluating performance and setting operational goals[38]. - The company utilized Constant Currency revenue growth to assess performance, indicating that foreign currency fluctuations can obscure underlying business trends[55].