Bausch + Lomb (US:BLCO)2024-02-21 18:07Financial Data and Key Metrics Changes - Total company revenue for Q4 was $1.173 billion, reflecting a growth of 19% on a constant currency basis. For the full year, total revenue was $4.146 billion, showing a growth of 12% on a constant currency basis [36][67] - Adjusted EBITDA for Q4 was $231 million, representing a 28% growth compared to Q4 2022. Full year adjusted EBITDA was $738 million, negatively impacted by currency headwinds of $51 million [38][39] - Adjusted gross margin for Q4 was 62.5%, up 470 basis points compared to Q4 2022. For the full year, adjusted gross margin was 61%, up 130 basis points compared to last year [38] Business Line Data and Key Metrics Changes - Vision care revenue for Q4 was $662 million, increasing by 8% on a constant currency basis. For the full year, vision care revenue was $2.543 billion, up 10% on a constant currency basis [37] - Surgical segment revenue for Q4 was $204 million, a 7% increase on a constant currency basis. For the full year, growth was also 7% on a constant currency basis [29] - Pharma segment revenue for Q4 was $307 million, representing constant currency growth of 66%. For the full year, pharma revenue was $836 million, reflecting constant currency growth of 24% [65] Market Data and Key Metrics Changes - Daily silicone hydrogel (SiHy) lenses reported a revenue growth of 31% in Q4. The overall contact lens market is growing around 7% to 8% globally [10][56] - The premium intraocular lens (IOL) portfolio grew by 30% in constant currency in Q4, indicating strong demand in the surgical market [48] Company Strategy and Development Direction - The company is focused on driving margin expansion sustainably, with expectations for margin improvement in 2024, 2025, and 2026 [3][17] - Significant investments are being made in R&D capabilities and business development to build a robust pipeline across all business segments [9][43] - The company aims to optimize its supply chain to become a competitive advantage, with ongoing efforts to streamline operations and reduce complexity [70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2024, highlighting a strong focus on execution and the potential for significant growth driven by recent and upcoming product launches [20][41] - The company is committed to investing in marketing and sales for Miebo and Xiidra to unlock their full potential in the dry eye market [41][67] Other Important Information - The company expects 2024 revenue guidance in the range of $4.6 billion to $4.7 billion, reflecting expected constant currency growth of approximately 12% to 14% [67] - Currency headwinds are anticipated to negatively impact revenue by approximately $40 million for the full year [67] Q&A Session Summary Question: What percentage of your contact lenses are silicone hydrogel today versus a year ago? - The company reported that silicone hydrogel lenses are currently around 10% of their portfolio, growing rapidly with double-digit growth [10] Question: How are you feeling about M&A at this stage? - Management indicated that the priority is to digest and delever the Novartis assets, while also exploring smaller products and R&D assets for future growth [9] Question: Can you provide insights on Xiidra's performance and future expectations? - Xiidra delivered $106 million in revenue in Q4, exceeding guidance. The company expects to generate approximately $400 million in revenue for Xiidra in 2024 [65][66] Question: What is the outlook for Miebo's contribution to growth? - Miebo is expected to contribute approximately $95 million in revenue in 2024, with strong early performance and positive feedback from eyecare professionals [67]