Bausch + Lomb Corporation · NYSE:BLCO
Bausch + Lomb — Q4 2024 Earnings Presentation
43 slides from Bausch + Lomb's earnings presentation, Feb 19, 2025
Slide 1: 4Q24 & FY24 Financial Results
4Q24 & FY24 Financial Results
Slide 2: Forward-Looking Statements; Non-GAAP Information
Forward-Looking Statements; Non-GAAP Information This presentation contains forward-looking information and statements, within the meaning of applicable securities laws (collectively, “forward-looking looking statements, including the assumption that the risks and uncertainties outlined above will n
Slide 3: Q4 & FY24 Highlights, Financial Results & Outlook, Growth Drivers
Q4 & FY24 Highlights Financial Results & Outlook Growth Drivers 2
Slide 4: Strong Execution, Driving Innovation
1 Strong Execution, Driving Innovation Growing Revenue Building Selling & Prioritizing Pipeline At or Above Market Operational Excellence Innovation +11% CC2,3 (+10% organic3) Continuing to deliver broad-based Reloading next cycle of best-in-class revenue growth vs 4Q23 growth across all segments in
Slide 5: Delivering on Phase 2 of the Roadmap
1 Delivering on Phase 2 of the Roadmap PHASE 2 • Launch new products to fuel growth Driving broad-based growth with ~10% • Build on broad-based sales execution organic revenue CAGR2,5 over past two years3 • Strengthen and optimize supply chain • Drive operating efficiencies and margin expansion Exec
Slide 6: Pipeline to Elevate Standard Of Care
1,2 Pipeline to Elevate Standard Of Care CONTACT LENS CONSUMER SURGICAL PHARMA Biomimetic AREDS3 Elios® Dual-Action Contact Lens Vitamins MIGS Lifitegrast DD Myopia Ocular Pain Control Lens enVista Next-Gen Beyond Lumify® Glaucoma Neuroprotection Next-Gen DD SiHy Lens Cataract / Retina Intermediate
Slide 7: Strong FY24 Performance Across All Segments
Strong FY24 Performance Across All Segments Delivered +17% Growth CC FY241 Growth Across All Segments Growth Across Franchises FY24 Segment FY24 Franchise B+L CC Revenue Growth1 CC Revenue Growth1 Reported Revenue / Growth2 +17% $172M $364M +12% +10% Vision Care FY revenue FY revenue FY23 FY24 +73%
Slide 8: Financial Results
Financial Results 1) ————= th TA ml BAUSCH +LOMB
Slide 9: 4Q24 Revenue Drivers
4Q24 Revenue Drivers Vision Care Surgical Pharmaceuticals 25% $1,280M 34% 75% $1,173M $723M 49% $231M $326M 66% 25% 26% 4Q23 4Q24 Consumer Contact Lens Implantables Equipment U.S. International Consumables/Other 4Q24 Revenue Growth +9% Reported 4Q24 CONSTANT CURRENCY REVENUE GROWTH 1 4Q24 Revenue Gr
Slide 10: FY24 Revenue Drivers
FY24 Revenue Drivers Vision Care Surgical Pharmaceuticals 35% 24% $4,791M 74% $4,146M $2,739M 51% $843M $1,209M 65% 26% 25% FY23 FY24 Consumer Contact Lens Implantables Equipment U.S. International Consumables/Other FY24 Revenue Growth +16% Reported FY24 CONSTANT CURRENCY REVENUE GROWTH 1 FY24 Reven
Slide 11: 4Q24 Bausch + Lomb P&L (Non-GAAP)
4Q24 Bausch + Lomb P&L (Non-GAAP)1 Reported Constant Currency Bausch + Lomb 4Q24 4Q23 Change Change1 Vision Care Revenue $723M $662M 9% 11% Surgical Revenue $231M $204M 13% 15% 4Q24 Highlights Pharmaceuticals Revenue $326M $307M 6% 7% Total Revenue $1,280M $1,173M 9% 11% Constant Currency Adj. Gross
Slide 12: FY24 Bausch + Lomb P&L (Non-GAAP)
FY24 Bausch + Lomb P&L (Non-GAAP)1 Reported Constant Currency Bausch + Lomb FY24 FY23 Change Change1 Vision Care Revenue $2,739M $2,543M 8% 10% Surgical Revenue $843M $767M 10% 11% FY24 Highlights Pharmaceuticals Revenue $1,209M $836M 45% 45% Total Revenue $4,791M $4,146M 16% 17% Constant Currency A
Slide 13: 4Q24 Bausch + Lomb P&L (GAAP)
4Q24 Bausch + Lomb P&L (GAAP) Reported Constant Currency Bausch + Lomb 4Q24 4Q23 Change Change1 Vision Care Revenue $723M $662M 9% 11% Surgical Revenue $231M $204M 13% 15% Pharmaceuticals Revenue $326M $307M 6% 7% Total Revenue $1,280M $1,173M 9% 11% Gross Profit $711M $632M 13% 14% Gross Margin 55.
Slide 14: FY24 Bausch + Lomb P&L (GAAP)
FY24 Bausch + Lomb P&L (GAAP) Reported Constant Currency Bausch + Lomb FY24 FY23 Change Change1 Vision Care Revenue $2,739M $2,543M 8% 10% Surgical Revenue $843M $767M 10% 11% Pharmaceuticals Revenue $1,209M $836M 45% 45% Total Revenue $4,791M $4,146M 16% 17% Gross Profit $2,626M $2,264M 16% 18% Gro
Slide 15: Outlook
Outlook 14
Slide 16: FY25 Guidance
FY25 Guidance1 Guidance Total Revenue $4.950B – $5.050B 5.5-7.5% CC Revenue Growth2 Adj. EBITDA ex. Acquired IPR&D2 $900M – $950M Key Assumptions ~62.5% Adj. Gross Margin2 Interest Expense3 ~$375M R&D ~7.5% of revenue Estimated Revenue Adj. Tax Rate2 ~15 – 17% -$100M FX Headwinds Avg. Fully Diluted
Slide 17: FY25 Adj. EBITDA (non-GAAP) Bridge
1,2 FY25 Adj. EBITDA (non-GAAP) Bridge +60 bps +$87M $965M 18.9% -$20M $925M Margin -$20M 18.5% $878M Margin 18.3% Margin FY24 Adj. EBITDA Business FY25 Adj. EBITDA Elios FX Headwinds FY25 Adj. EBITDA Ex. Acquired IPR&D1 Performance Ex. Acquired IPR&D Regulatory Ex. Acquired IPR&D Base Business Midp
Slide 18: Growth Drivers
Growth Drivers BAUSCH +LOMB
Slide 19: Delivering Growth In Dry Eye Portfolio
1 Delivering Growth In Dry Eye Portfolio Avg. Weekly TRx4 14,678 DRY EYE PORTFOLIO 12,037 12,877 10,155 +47%FY24 Organic Revenue Growth2,3 $916M FY24 Revenue 6,704 4Q23 1Q24 2Q24 3Q24 4Q24 Avg. Weekly TRx & Growth (% Y/Y)4 23,124 22,931 22,781 21,542 21,151 20,788 +7% +1% +5% +15% +8% +12% Jul-24 Au
Slide 20: Driving Consumer Category Expansion
1 Driving Consumer Category Expansion DTC LAUNCHING NOW PF LAUNCHING NOW +24% 4Q24 Reported Revenue Growth “ I’m excited to offer Lumify PF to ALL my patients. – Dr. Cecilia Koetting, OD, FAAO ~4x Retail Sales Uplift In Early Launch of DTC2 “ Blink NutriTears is in a new category. – Dr. Selina McGee
Slide 21: Leveraging Digital Capabilities To Drive Growth
1 Leveraging Digital Capabilities To Drive Growth FY24 Lens Portfolio Full Family of DD SiHy Lenses +11% CC Revenue Growth2,3 Expanding Opal Adoption 14% 13% 12% 6% 1Q24 2Q24 3Q24 4Q24 CC Revenue Growth (Y/Y)2,3 1. For full product information, see www.bausch.com. 20 2. Constant currency. 3. This is
Slide 22: Expanding Premium IOL Portfolio
EXPANDING Gaining Growth PREMIUM IOL PORTFOLIO Momentum with Recent Launches1,2 Monofocal+ 4Q23 Continuous Full Range of Vision Trifocal 2H24 Pure Refractive Optics Technology Featuring a Trifocal Low Dysphotopsia Profile 1Q25 4 EDOF 3,4 2026 1. See slide 1 for further information on forward-looking
Slide 23: Leading With Cutting-Edge Technology
Leading With Cutting-Edge Technology ENHANCING SALES FORCE EFFICIENCY WITH AI-DRIVEN ENGINE OPTIMIZING PRODUCTION ELEVATING ECP EFFICIENCY & YIELD WITH AI SOLUTIONS PATIENT EXPERIENCE WITH DIGITAL MARKETPLACE ENABLING NOVEL DRUG DISCOVERY WITH AI-POWERED BRINGING AI TO ANALYTICS OCULAR DRUG DISCOVER
Slide 24: Q&A
Q&A Growing Revenue Building Selling Prioritizing At or Above & Operational Pipeline Market Excellence Innovation 23
Slide 25: Appendix
Appendix BAUSCH +LOMB
Slide 26: Early Stage Launches and Pipeline Products to Watch
Early Stage Launches and Pipeline Products to Watch1 PRODUCT STATUS / DESCRIPTION CATALYSTS TO WATCH PHARMA Dual-Action Lifitegrast First dual-action therapeutic to address both evaporative and inflammatory dry eye Initiation of clinical study in 2H25 Ocular Pain First-in-class therapy for chronic o
Slide 27: Cash Flow and Balance Sheet Summary (4Q24)
Cash Flow and Balance Sheet Summary (4Q24) 4Q24 Cash flow from operations $22M Adj. Cash flow from operations (non-GAAP)1,2 $32M Depreciation $38M Stock Based Comp $27M Net Interest $93M CapEx $92M 26 1. This is a non-GAAP measure or ratio. See Slide 1 and Appendix for further information on non-GAA
Slide 28: Cash Flow and Balance Sheet Summary (FY24)
Cash Flow and Balance Sheet Summary (FY24) FY24 Cash flow from operations $232M Adj. Cash flow from operations (non-GAAP)1,2 $263M Depreciation $148M Stock Based Comp $92M Net Interest $384M CapEx $291M 27 1. This is a non-GAAP measure or ratio. See Slide 1 and Appendix for further information on no
Slide 29: Top 10 Revenue (Includes FX Impact)
Top 10 Revenue (Includes FX Impact) Rank Product / Franchise FY24 4Q24 3Q24 2Q24 1Q24 FY23 4Q23 1 Surgical Consumables $431M $114M $106M $106M $105M $394M $104M 2 Ocuvite® + PreserVision® $420M $127M $95M $112M $86M $409M $120M 3 Xiidra® $364M $104M $92M $89M $79M $106M1 $106M 4 SofLens® $235M $59M
Slide 30: Segment Reported Revenue
Segment Reported Revenue Constant Currency Vision Care 4Q24 4Q23 Reported Change Change1 Contact Lens Revenue $247M $222M 11% 13% Consumer Revenue $476M $440M 8% 10% Total Revenue $723M $662M 9% 11% Constant Currency Surgical 4Q24 4Q23 Reported Change Change1 Implantables Revenue $56M $48M 17% 19% E
Slide 31: Reported Revenue Trailing Quarters by Segment
Reported Revenue Trailing Quarters by Segment Bausch + Lomb 4Q24 3Q24 2Q24 1Q24 4Q23 Vision Care Contact Lens $247M $253M $237M $230M $222M Consumer $476M $431M $460M $405M $440M Total Revenue $723M $684M $697M $635M $662M Surgical Implantables $56M $49M $51M $47M $48M Equipment $61M $51M $52M $45M
Slide 32: Non-GAAP Adjustments EPS Impact ($M)
Non-GAAP Adjustments EPS Impact ($M)2 Three Months Ended Twelve Months Ended December 31 December 31 2024 2023 2024 2023 Income Earnings per Income Earnings per Income Earnings per Income Earnings per (Expense) Share Impact (Expense) Share Impact (Expense) Share Impact (Expense) Share Impact Net los
Slide 33: Reconciliation of Reported Operating Income to Adjusted EBITA
Reconciliation of Reported Operating Income to Adjusted EBITA (non-GAAP)1 ($M) 4Q 2024 YTD 2024 Gross Gross R&D Operating Gross Gross R&D Operating Profit Margin SG&A Expense Income Profit Margin SG&A Expense income 2024 GAAP $ 711 55.5% $ 532 $ 93 $ 87 $ 2,626 54.8% $ 2,082 $ 343 $ 162 Amortization
Slide 34: Reconciliation of Reported Net Loss to EBITDA and Adjusted EBITDA
Reconciliation of Reported Net Loss to EBITDA (non-GAAP)1 and Adjusted EBITDA (non-GAAP)1 ($M) Three Months Ended Twelve Months Ended December 31 December 31 2024 2023 2024 2023 Net loss attributable to Bausch + Lomb Corporation $ (3) $ (54) $ (317) $ (260) Interest expense, net 93 96 384 268 (Benef
Slide 35: Reconciliation of Reported Revenue to Constant Currency Revenue
Reconciliation of Reported Revenue to Constant Currency Revenue1 and Constant Currency Revenue Growth1 ($M) Calculation of Constant Currency Revenue for the Three Months Ended Change in Change in December 31, 2024 December 31, 2023 Reported Revenue Constant Currency Revenue 1 Constant Currency Reven
Slide 36: Reconciliation of Reported Revenue to Constant Currency Revenue
Reconciliation of Reported Revenue to Constant Currency Revenue1 and Constant Currency Revenue Growth1 ($M) Calculation of Constant Currency Revenue for the Three Months Ended Change in Change in December 31, 2024 December 31, 2023 Reported Revenue Constant Currency Revenue 1 Constant Currency Reven
Slide 37: Reconciliation of Reported Revenue to Constant Currency Revenue
Reconciliation of Reported Revenue to Constant Currency Revenue1 and Constant Currency Revenue Growth1 ($M) Calculation of Constant Currency Contact Lens Revenue for the Three Months Ended Change in Change in 2024 2023 Reported Revenue Constant Currency Revenue 1 Constant Currency Revenue as Changes
Slide 38: Reconciliation of Reported Revenue to Organic Revenue and Growth
Reconciliation of Reported Revenue to Organic Revenue1 and Organic Revenue Growth1 ($M) Calculation of Organic Revenue for the Three Months Ended Change in Change in December 31, 2024 December 31, 2023 Reported Revenue Organic Revenue 1 Organic Organic Revenue as Changes in Revenue (Non- Revenue as
Slide 39: Reconciliation of Reported Revenue to Organic Revenue CAGR
Reconciliation of Reported Revenue to Organic Revenue1 and Organic Revenue Compound Annual Growth Rate (CAGR)1 ($M) Calculation of Compound Annual Growth Rate for the Twelve Months Ended Change in Change in December 31, 2024 December 31, 2022 Reported Revenue Organic Revenue 1 Organic Organic Revenu
Slide 40: Non-GAAP Appendix
Non-GAAP Appendix Description of Non-GAAP Financial Measures and divestitures. The Company believes that the adjustments of these items correlate with the sustainability of the Company’s To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles op
Slide 41: Non-GAAP Appendix
Non-GAAP Appendix Adjusted EBITDA (non-GAAP) Adjustments (continued) Adjusted Net Income (non-GAAP) Separation costs and separation-related costs: The Company has excluded certain costs incurred in connection with activities taken to: (i) Adjusted net income (non-GAAP) is net income (loss) attributa
Slide 42: Non-GAAP Appendix
Non-GAAP Appendix Adjusted EBITA/Adjusted EBITA Margin Adjusted SG&A Adjusted EBITA represents Operating income (loss) (its most directly comparable GAAP financial measure) adjusted to exclude Adjusted SG&A expenses (non-GAAP) represents selling, general and administrative expenses (“SG&A expenses”)
Slide 43: Non-GAAP Appendix
Non-GAAP Appendix Adjusted Cash Flows from Operations/Adjusted Cash used in Operations trends in the business. The impact of changes in foreign currency exchange rates is determined as the difference in the Adjusted cash flows from operations (non-GAAP)/Adjusted Cash used in Operations (non-GAAP) is