Bausch + Lomb (BLCO) Q4 2023 earnings summary

Executive summary

• FY23 revenue reached $4.146B, up 12% at constant currency (cc), with growth across all segments; Q4 revenue rose 19% cc YoY.

• Growth priorities: accelerate product launches, improve selling and supply-chain execution, and expand R&D capabilities across the portfolio.

Financial highlights

• FY23 reported revenue was $4.146B, up 10% YoY; Q4 revenue was $1.173B, up 18% reported and 19% cc.

• FY23 Adjusted EBITDA was $738M versus $720M; Adjusted EBITDA margin was 17.8% versus 19.1%, with $51M of FX headwinds and $30M from Lynchburg disruptions.

• Q4 Adjusted EBITDA was $231M versus $181M, with a 19.7% margin versus 18.2%; Adjusted gross margin was 62.5%, up 470 bps YoY.

• FY23 GAAP net loss attributable was $260M versus net income of $6M; GAAP EPS was $(0.74) versus $0.02. Adjusted net income was $258M and Adjusted EPS $0.73.

• Q4 GAAP net loss was $54M versus $1M; GAAP EPS was $(0.15) versus $0.00.

Outlook and guidance

• FY24 guidance: revenue of $4.600B–$4.700B and Adjusted EBITDA of $840M–$890M; cc revenue growth of 12%–14%.

• Guidance assumes $40M of revenue FX headwinds, Adjusted gross margin expansion of 80 bps, and Adjusted EBITDA margin expansion of 100 bps at the midpoint.

• 2024 is expected to be one of the most active launch years, with launches and expansions spanning Miebo, Xiidra, daily SiHy lenses, premium IOLs and OTC dry-eye products.

• Lynchburg remediation was described as near completion; operational priorities include automation, productivity, footprint balance and reducing product complexity.