Bausch + Lomb (BLCO) Q4 2024 earnings summary

Executive summary

• Achieved 17% constant currency revenue growth and 10% organic growth in FY24, with all segments delivering double-digit constant currency growth, driven by innovation, new product launches, and execution.

• Leveraged AI and digital tools to enhance R&D, manufacturing, and sales force efficiency, supporting long-term innovation and operational excellence.

• Significant contributions from new launches, especially in pharmaceuticals (notably Xiidra and Miebo), and premium IOLs, with the dry eye portfolio nearing $1B in revenue.

• Strategic investments included the acquisition of Elios Vision and expansion of the surgical portfolio.

Financial highlights

• FY24 revenue was $4.791B, up 17% constant currency and 16% reported; Q4 revenue was $1.28B, up 11%.

• Adjusted gross margin for 2024 was 62.6%, up 160 basis points year-over-year.

• Adjusted EBITDA (excluding IPR&D) was $259M in Q4 (up 14%) and $878M for the year (up 20%), with an 18.3% margin.

• Adjusted EPS (excluding IPR&D) was $0.25 for Q4 and $0.63 for the year; adjusted net income was $204M.

• Adjusted cash flow from operations reached $263M for 2024, up from $56M in 2023.

Outlook and guidance

• 2025 revenue guidance: $4.95B–$5.05B, reflecting 5.5%–7.5% constant currency growth.

• Adjusted EBITDA guidance: $900M–$950M, absorbing $20M in currency headwinds and $20M from the Elios acquisition.

• Adjusted gross margin expected at ~62.5%, with R&D investment at ~7.5% of revenue.

• Interest expense projected at $375M; adjusted tax rate at 15%–17%; CapEx at $280M.

• Free cash flow expected to be positive in 2025.