On August 1, 2024, Bausch Health Companies Inc (BHC, Financial) released its 8-K filing detailing its financial performance for the second quarter of 2024. Bausch Health Companies Inc is a global specialty pharmaceutical, consumer health, and medical device company with a focus on branded products for the gastroenterology, hepatology, neurology, and dermatology markets. The company reports revenue in five segments: Salix, International, Solta Medical, Diversified Products, and Bausch + Lomb, with the latter generating the maximum revenue.
Performance Overview
Bausch Health Companies Inc (BHC, Financial) reported consolidated revenues of $2.40 billion for Q2 2024, an 11% increase from $2.17 billion in Q2 2023. This performance fell short of the analyst estimate of $2.41 billion. However, the company's GAAP earnings per share (EPS) came in at $0.03, falling short of the analyst estimate of $0.43.
Segment Revenue Breakdown
| Segment | Q2 2024 Revenue (in millions) | Q2 2023 Revenue (in millions) | Reported Change |
|---|---|---|---|
| Total Bausch Health Revenues | $2,403 | $2,167 | 11% |
| Bausch Health (excl. B+L) | $1,187 | $1,132 | 5% |
| Salix segment | $558 | $557 | 0% |
| International segment | $276 | $259 | 7% |
| Solta Medical segment | $102 | $88 | 16% |
| Diversified segment | $251 | $228 | 10% |
| Bausch + Lomb segment | $1,216 | $1,035 | 17% |
Financial Achievements and Challenges
The company reported a consolidated GAAP net income attributable to Bausch Health Companies Inc of $10 million, down from $26 million in Q2 2023. This decline was primarily due to higher selling, advertising, and promotion expenses, as well as increased interest expenses. Despite these challenges, the company achieved a consolidated adjusted EBITDA of $798 million, up 10% from $727 million in the same period last year.
We continued our momentum in the second quarter, delivering our fifth consecutive quarter of year-over-year growth in revenues and adjusted EBITDA, underscoring the strength of our product and geographic footprint and reinforcing our strategy," said Thomas J. Appio, Chief Executive Officer, Bausch Health.
Income Statement Highlights
Consolidated operating income for Q2 2024 was $389 million, compared to $412 million in Q2 2023, a decrease of $23 million. The company's consolidated adjusted net income attributable to Bausch Health (non-GAAP) was $328 million, up from $300 million in Q2 2023.
Balance Sheet and Cash Flow
As of June 30, 2024, Bausch Health Companies Inc reported consolidated cash and cash equivalents of $595 million. The company generated $380 million of cash from operating activities in Q2 2024, compared to $206 million in Q2 2023, reflecting improved operating results and favorable working capital changes.
Intellectual Property and R&D Updates
The company provided updates on its intellectual property, particularly concerning Xifaxan®. The U.S. Court of Appeals for the Federal Circuit affirmed the decision that prevents the FDA from approving Norwich’s ANDA for Xifaxan® 550 mg tablets until October 2029. Additionally, Bausch Health Companies Inc is advancing its R&D pipeline with several ongoing projects, including Amiselimod for ulcerative colitis and RED-C for hepatic encephalopathy.
2024 Financial Outlook
Bausch Health Companies Inc raised its consolidated full-year revenue and adjusted EBITDA guidance. The company now expects full-year revenues to be between $9.40 billion and $9.65 billion, with adjusted EBITDA ranging from $3.21 billion to $3.36 billion.
For more detailed insights and the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Bausch Health Companies Inc for further details.
