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 year-over-year growth in both revenue and adjusted EBITDA, driven by strong performance in key segments and international markets.

• Net income attributable to shareholders was $10 million for Q2 2024, compared to $26 million in Q2 2023; adjusted EBITDA rose 10% to $798 million.

• Strategic priority remains the full separation of Bausch + Lomb, with ongoing evaluation of alternatives and capital structure.

• Strengthened executive team with new appointments in US Pharma and finance leadership.

• Continued progress on R&D pipeline, including advancing Amiselimod to Phase III for UC and ongoing global Phase III RED-C studies for rifaximin SSD.

Financial highlights

• Q2 2024 consolidated revenues were $2.40 billion, up 11% year-over-year; adjusted EBITDA was $798 million, up 10% year-over-year.

• GAAP net income was $10 million; GAAP EPS was $0.03, down from $0.07 in Q2 2023.

• Adjusted net income was $328 million, up 9% year-over-year.

• Cash flow from operations was $380 million, up 84% year-over-year.

• Adjusted gross margin was 70.9%, up from 70.1% year-over-year.

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; Bausch + Lomb segment revenue guidance set at $4.70–$4.80 billion.

• BHC excluding B+L: revenue guidance $4.70–$4.85 billion, adjusted EBITDA $2.36–$2.46 billion.

• Continued focus on cost management, operational excellence, and pipeline advancement to support growth.

• 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.