• Total Revenue (Q4 2024): $1.28 billion, reflecting 11% growth.
• Total Revenue (Full Year 2024): $4.791 billion, reflecting 17% growth.
• Vision Care Revenue (Q4 2024): $723 million, increased by 11%.
• Vision Care Revenue (Full Year 2024): $2.739 billion, increased by 10%.
• Surgical Segment Revenue (Q4 2024): $231 million, increased by 15%.
• Surgical Segment Revenue (Full Year 2024): $843 million, increased by 11%.
• Pharma Segment Revenue (Q4 2024): $326 million, increased by 7%.
• Pharma Segment Revenue (Full Year 2024): $1.209 billion, increased by 45%.
• Adjusted Gross Margin (Q4 2024): 62.5%.
• Adjusted Gross Margin (Full Year 2024): 62.6%, up 160 basis points from last year.
• Adjusted EBITDA (Q4 2024): $259 million, 14% growth versus Q4 2023.
• Adjusted EBITDA (Full Year 2024): $878 million, up 20% versus 2023.
• Adjusted Cash Flow from Operations (Full Year 2024): $263 million, compared to $56 million in 2023.
• 2025 Revenue Guidance: $4.95 billion to $5.05 billion, reflecting 5.5% to 7.5% constant currency growth.
• 2025 Adjusted EBITDA Guidance: $900 million to $950 million.

• Warning! GuruFocus has detected 5 Warning Signs with BLCO.

Release Date: February 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Bausch & Lomb Corp (NYSE:BLCO) achieved its fifth consecutive quarter of double-digit constant currency revenue growth, contributing to a 17% growth for the year.
• The company has successfully introduced new products across various geographies and optimized its manufacturing processes, including the deployment of AI.
• BLCO's R&D organization has been overhauled, leading to a promising pipeline filled with innovative products, such as a first-of-its-kind Biomimetic contact lens.
• The company's dry eye portfolio is nearing $1 billion in annual revenue, with significant contributions from products like Miebo and Xiidra.
• BLCO's contact lens segment reported strong growth, with daily SiHy lenses achieving over 70% revenue growth for the year.

Negative Points

• The company faces currency headwinds, which impacted revenue by $69 million and adjusted EBITDA by $11 million for the full year.
• BLCO anticipates a $25 million impact from the Inflation Reduction Act in 2025, affecting adjusted gross margin.
• The company is investing heavily in R&D and direct-to-consumer campaigns, which may impact short-term profitability.
• BLCO's guidance for 2025 reflects a slowdown in revenue growth to 5.5% to 7.5%, compared to the previous year's 17% growth.
• The company is absorbing a $20 million impact related to the recent acquisition of Elios, which may affect short-term financial performance.

Q & A Highlights

Q: Can you elaborate on the customer growth and execution component relative to innovation? A: Brent Saunders, CEO, highlighted that Bausch & Lomb has focused on operational excellence, stabilizing supply chain issues, and achieving selling excellence. The company has seen a 10% organic revenue growth over the past two years, with broad-based growth across all segments. The focus is now on driving continued growth, margin expansion, and profitability improvement, with a strong emphasis on innovation and execution.

Q: What are your thoughts on the continuous growth of contact lenses, particularly the biomimetic lens and myopia control? A: Brent Saunders, CEO, expressed pride in the contact lens performance, noting 11% growth for the year. The company is optimistic about market growth in 2025 and has a robust product pipeline, including the biomimetic lens and myopia control programs. Yehia Hashad, Head of R&D, added that the biomimetic lens is designed to mimic the natural environment inside the eye and is undergoing promising clinical studies.

Q: What are the expectations for the dry eye franchise, particularly Miebo and Xiidra, in 2025? A: Brent Saunders, CEO, stated that Miebo is the most successful launch in ocular surface history, with high expectations for continued growth in 2025. Xiidra is expected to drive TRX growth, with investments in managed care coverage. Sam Eldessouky, CFO, added that Miebo's Q4 sales of $53 million provide a good baseline for 2025, and Xiidra's strategy is working well, with continued volume growth expected.

Q: Why is the 2025 revenue growth guidance set at 6.5% despite recent strong performance? A: Sam Eldessouky, CFO, explained that the guidance reflects market dynamics, aiming to grow above market rates. The guidance also accounts for headwinds from the Inflation Reduction Act and market access investments. The company believes the guidance is balanced and reasonable, considering all business elements.

Q: How is the managed care and contracting for Miebo progressing, and when is profitability expected? A: Brent Saunders, CEO, reported strong managed care coverage for Miebo, with 74% commercial and 64% Medicare coverage. The company expects Miebo to drive profitability starting next year, following the typical pharmaceutical launch path where the first two years are investment years.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.