On July 31, 2024, Bausch & Lomb Corp (BLCO, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Bausch & Lomb, one of the largest vision care companies in the U.S., operates in three segments: vision care, surgical, and ophthalmic pharmaceuticals. The company reported a total revenue of $1.216 billion, surpassing the analyst estimate of $1.172 billion. However, the net loss attributable to Bausch & Lomb widened to $151 million, compared to a net loss of $32 million in the same quarter last year.
Company Overview
Bausch & Lomb, previously a subsidiary of Bausch Health, became a public company in 2022. The company operates in three main segments: vision care, surgical, and ophthalmic pharmaceuticals. Vision care includes contact lenses and ocular health products like Biotrue and Lumify. The surgical segment offers intraocular lenses and equipment for cataract and vitreoretinal surgeries. The ophthalmic pharmaceuticals segment features a diverse lineup of products, including Xipere, Vyzulta, and Lotemax.
Performance and Challenges
The company reported robust revenue growth across all segments and geographies, driven by new product launches and increased demand. However, the net loss widened significantly due to higher selling, advertising, and promotion costs, primarily related to the XIIDRA acquisition and the launch of MIEBO. The increase in the provision for income taxes and interest expense also contributed to the net loss.
Financial Achievements
Bausch & Lomb's total revenue for Q2 2024 was $1.216 billion, a 17% increase from $1.035 billion in Q2 2023. On a constant currency basis, revenue grew by 20%. The company raised its full-year 2024 revenue and Adjusted EBITDA guidance, reflecting strong performance across all segments.
Segment Performance
| Segment | Q2 2024 Revenue (in millions) | Q2 2023 Revenue (in millions) | Reported Change | Constant Currency Change |
|---|---|---|---|---|
| Total Bausch & Lomb | $1,216 | $1,035 | 17% | 20% |
| Vision Care | $697 | $646 | 8% | 11% |
| Surgical | $209 | $195 | 7% | 9% |
| Pharmaceuticals | $310 | $194 | 60% | 61% |
Income Statement Highlights
Operating income for Q2 2024 was $26 million, down from $43 million in Q2 2023. The net loss attributable to Bausch & Lomb was $151 million, compared to $32 million in the same period last year. Adjusted net income (non-GAAP) was $45 million, down from $65 million in Q2 2023. Cash flow from operations improved to $15 million, compared to a cash outflow of $24 million in Q2 2023.
Balance Sheet Highlights
As of June 30, 2024, Bausch & Lomb had $302 million in cash, cash equivalents, and restricted cash. The basic weighted average shares outstanding for Q2 2024 were 351.8 million, and diluted weighted average shares outstanding were 353.0 million.
Analysis
Bausch & Lomb's strong revenue growth across all segments and geographies is a positive indicator of the company's market position and product demand. However, the significant increase in net loss highlights the challenges the company faces in managing costs, particularly related to new product launches and acquisitions. The raised full-year guidance reflects management's confidence in sustaining growth, but investors should monitor the company's ability to control expenses and improve profitability.
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Explore the complete 8-K earnings release (here) from Bausch & Lomb Corp for further details.
