Bausch Health (BHC) Q3 2024 earnings summary

Executive summary

• Achieved sixth consecutive quarter of year-over-year growth in both revenue and Adjusted EBITDA, with all segments delivering organic revenue growth and segment profit increases.

• Third quarter consolidated revenues reached $2.51 billion, up 12% year-over-year, with growth in all segments.

• Consolidated GAAP net loss attributable to shareholders improved to $85 million from $378 million in Q3 2023, mainly due to better operating results and lower impairment charges.

• Raised full-year 2024 guidance for revenue, Adjusted EBITDA, and adjusted operating cash flow, reflecting strong performance and execution of strategic priorities.

• Continued focus on innovation, operational efficiency, and value creation, including leveraging AI in sales, advancing the RED-C program, and progress on the separation of Bausch + Lomb.

Financial highlights

• Q3 2024 consolidated revenue was $2.51 billion, up 12% year-over-year; organic revenue up 9%.

• Adjusted EBITDA was $909 million, up 10% year-over-year; adjusted net income was $415 million, up 10%.

• Adjusted operating cash flow increased 93% to $503 million; cash from operating activities for the nine months was $996 million.

• Adjusted gross margin (excluding Bausch + Lomb) was 82.5%, up 130 basis points year-over-year; GAAP gross margin was 61.4%.

• Net debt (excluding Bausch + Lomb) reduced by $110 million in Q3; $555 million reduction year-to-date.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $9.5–$9.675 billion (organic growth 4–6%).

• Adjusted EBITDA guidance increased to $3.275–$3.375 billion; adjusted operating cash flow to $975–$1,025 million.

• Adjusted gross margin expected at ~81%; R&D expense ~$300 million; interest expense ~$1.3 billion; adjusted tax rate 15–18%.

• Bausch + Lomb segment revenue guidance: $4.725–$4.825 billion.

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