Bausch + Lomb (BLCO) - 2025 Q1 - Quarterly Results

Financial Performance - Total reported revenue for Q1 2025 was $1.137 billion, a 3% increase from $1.099 billion in Q1 2024, with a 5% increase on a constant currency basis[4] - GAAP net loss attributable to Bausch + Lomb for Q1 2025 was $212 million, compared to a net loss of $167 million in Q1 2024[13] - Adjusted EBITDA excluding Acquired IPR&D for Q1 2025 was $126 million, down from $180 million in Q1 2024, a decrease of $54 million[16] - Adjusted net income (non-GAAP) for Q1 2025 was $24 million, compared to a loss of $54 million in Q1 2024, resulting in an adjusted EPS of $0.07 versus a loss of $0.15[46] - Total revenues for Q1 2025 were $1,137 million, a 3.5% increase from $1,099 million in Q1 2024, driven by product sales of $1,133 million[45] - The net loss attributable to Bausch + Lomb Corporation for Q1 2025 was $212 million, compared to a net loss of $167 million in Q1 2024, with a diluted loss per share of $0.60 versus $0.48[45] - Adjusted EBITDA (non-GAAP) for Q1 2025 was $98 million, down from $180 million in Q1 2024, reflecting a decrease of 45.6%[50] Segment Performance - Vision Care segment revenue was $656 million, a 3% increase from $635 million in Q1 2024, with a 5% increase on a constant currency basis[9] - Surgical segment revenue was $214 million, a 9% increase from $197 million in Q1 2024, with an 11% increase on a constant currency basis[10] - Pharmaceuticals segment revenue remained flat at $267 million, with a 1% increase on a constant currency basis[11] - Vision Care segment revenue increased to $669 million in Q1 2025, up 5% from $635 million in Q1 2024[51] - Surgical segment revenue grew by 11% to $218 million in Q1 2025, compared to $197 million in Q1 2024[51] - Pharmaceuticals segment revenue remained stable at $269 million in Q1 2025, with a slight increase of 1% from $267 million in Q1 2024[51] Operational Costs - Operating loss for Q1 2025 was $83 million, compared to an operating income of $6 million in Q1 2024, a change of $89 million[12] - Cash flow used in operations for Q1 2025 was $25 million, down from $41 million in Q1 2024[14] - Cost of goods sold (excluding amortization and impairments) increased to $481 million in Q1 2025 from $423 million in Q1 2024, reflecting a 13.7% rise[45] - Selling, general and administrative expenses rose to $563 million in Q1 2025, up from $504 million in Q1 2024, marking an increase of 11.7%[45] - Research and development expenses were $86 million in Q1 2025, slightly up from $82 million in Q1 2024, indicating a 4.9% increase[45] - The company incurred $38 million in restructuring, integration, and transformation costs in Q1 2025, compared to $28 million in Q1 2024[50] Guidance and Future Outlook - Full-year 2025 revenue guidance updated to $5.000 billion - $5.100 billion, reflecting a constant currency growth of approximately 4.5% - 6.5%[18] - Bausch + Lomb's 2025 full-year guidance is based on current management expectations and includes anticipated growth in key products like XIIDRA® and MIEBO®[25] - The company is undergoing a separation from Bausch Health Companies Inc., which may involve transferring equity interests to shareholders, contingent on achieving targeted debt leverage ratios[25] - Future business development transactions may lead to recurring costs related to Acquired In-Process Research and Development (IPR&D) as the company continues to pursue growth opportunities[36] Risks and Challenges - Risks associated with the separation include potential business disruptions, regulatory approvals, and market conditions that may affect the transaction's completion[26] - The anticipated impact of tariffs and global supply chain disruptions is a concern for the company's revenue and expenses moving forward[26] - The company is actively managing the expected impact of inflation and interest rate fluctuations on its financial performance[26] - The voluntary recall of certain enVista® IOL products is expected to affect market supply, with enhanced inspection protocols in place to address quality concerns[26] Financial Metrics and Adjustments - The company reported a total of $191 million in non-GAAP adjustments for Q1 2025, compared to $158 million in Q1 2024[46] - Amortization of intangible assets decreased to $67 million in Q1 2025 from $74 million in Q1 2024[47] - The company utilized constant currency revenue growth metrics to assess performance, indicating that foreign exchange fluctuations can obscure underlying business trends[39] - Management emphasized the importance of adjusted financial metrics for evaluating operational performance and making strategic decisions[38] - The company has excluded costs related to share-based compensation and separation activities from its financial measures to provide clearer insights into operational performance[34]