Viatris Inc (VTRS, Financial), formed in November 2020 through the combination of Upjohn and Mylan, is one of the largest generic drug manufacturers globally, servicing over 165 countries. The company focuses on generics, biosimilars, and legacy products, with key areas in dermatology, ophthalmology, and gastroenterology.
Performance Overview
For the second quarter of 2024, Viatris Inc (VTRS, Financial) reported total revenues of $3.8 billion, slightly above the analyst estimate of $3.776 billion. However, the company posted a U.S. GAAP net loss of $326 million, translating to a loss of $0.27 per share, which fell short of the estimated earnings per share of $0.14.
Key Financial Achievements
Despite the net loss, Viatris Inc (VTRS, Financial) achieved several financial milestones:
- Adjusted EBITDA grew by approximately 2% to $1.2 billion on a divestiture-adjusted basis.
- Adjusted EPS increased by 3% to $0.69 per share on a divestiture-adjusted basis.
- New product revenues reached $210 million, driving growth across segments.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Total Net Sales | $3,785.9 million | $3,909.5 million | (3)% |
| U.S. GAAP Gross Profit | $1,445.4 million | $1,608.6 million | (10)% |
| U.S. GAAP Net (Loss) Earnings | ($326.4) million | $264.0 million | NM |
| Adjusted Net Earnings | $826.5 million | $905.4 million | (9)% |
| Adjusted EBITDA | $1,207.9 million | $1,305.7 million | (7)% |
Balance Sheet and Cash Flow
Viatris Inc (VTRS, Financial) reported a decrease in cash and cash equivalents to $917.2 million from $991.9 million at the end of 2023. The company generated U.S. GAAP net cash provided by operating activities of $379 million and free cash flow of $426 million, excluding transaction costs related to divestitures.
Commentary and Future Outlook
"I am pleased to report strong second quarter results in which we delivered divestiture-adjusted operational revenue growth across all segments, including strong growth in Greater China. This represents our fifth consecutive quarter of divestiture-adjusted operational revenue growth and demonstrates our ability to execute and grow our base business," said Scott A. Smith, CEO, Viatris.
"Our solid fundamentals, including our growing base business, our financial strength and our ability to generate significant cash flow drove our second quarter results," said Doretta Mistras, CFO, Viatris.
Analysis
Viatris Inc (VTRS, Financial) continues to demonstrate resilience and growth potential despite facing challenges such as a net loss and declining gross profit. The company's focus on new product launches and divestiture-adjusted growth indicates a strategic shift towards a more diversified and innovative portfolio. The increase in adjusted EBITDA and EPS highlights the company's operational efficiency and financial strength.
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Explore the complete 8-K earnings release (here) from Viatris Inc for further details.
