Bausch Health (BHC) Q2 2024 earnings summary

Executive summary

• Q2 2024 consolidated revenues reached $2.40 billion, up 11% year-over-year, marking the fifth consecutive quarter of revenue and adjusted EBITDA growth, driven by strong product and geographic performance.

• Adjusted EBITDA rose 10% to $798 million, while GAAP net income was $10 million and GAAP EPS was $0.03, down from $0.07 in Q2 2023.

• Liquidity at quarter-end was $1.5 billion, with cash and cash equivalents at $595 million and significant revolver availability.

• Debt was reduced by $360 million in Q2 and $555 million year-to-date, with net debt at $19.8 billion and total long-term debt at $21.7 billion as of June 30, 2024.

• Added new executive talent, including a new EVP US Pharma and CFO, and maintained focus on patient-centered outcomes and global integration.

Financial highlights

• Q2 2024 revenue was $2.40 billion, up 11% year-over-year; adjusted EBITDA was $798 million, up 10%; adjusted net income was $328 million, up 9%.

• GAAP gross margin improved to 58.6%, and adjusted gross margin rose to 70.9%, up 80 basis points year-over-year.

• Cash flow from operations was $380 million in Q2, up 84% year-over-year; adjusted cash flow from operations was $287 million.

• Q2 2024 GAAP operating income was $389 million, down from $412 million in Q2 2023, mainly due to higher SG&A and other expenses.

• Year-to-date revenue was $4.56 billion, up 11% year-over-year; net loss for H1 2024 narrowed to $54 million from $175 million.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $9.40–$9.65 billion, with adjusted EBITDA guidance of $3.21–$3.36 billion and adjusted operating cash flow of $2.36–$2.46 billion.

• Bausch + Lomb segment revenue guidance is $4.70–$4.80 billion; BHC excluding B+L: $4.70–$4.85 billion.

• R&D expense expected at ~$325 million; interest expense at ~$1.3 billion; adjusted tax rate 15–18%; capital expenditures ~$60 million.

• Management expects to remain in compliance with financial covenants and meet debt service obligations over the next 12 months.

• Continued focus on delivering revenue, EBITDA, and cash flow commitments, progressing R&D, and business development.