Bausch + Lomb Announces Fourth-Quarter and Full-Year 2024 Results, Provides 2025 Guidance

Fourth-Quarter 2024 Financial Results

• Revenue of $1.280 Billion
• GAAP Net Loss Attributable to Bausch + Lomb Corporation of $3 Million
• Adjusted EBITDA excluding Acquired IPR&D (non-GAAP)¹ of $259 Million
• Revenue Grew 9% as Reported and 11% on a Constant Currency¹ Basis Compared to the Fourth Quarter of 2023, with Growth Across All Segments

Full-Year 2024 Financial Results

• Revenue of $4.791 Billion
• GAAP Net Loss Attributable to Bausch + Lomb Corporation of $317 Million
• Adjusted EBITDA excluding Acquired IPR&D (non-GAAP)¹ of $878 Million
• Revenue Grew 16% as Reported and 17% on a Constant Currency¹ Basis Compared to the Full Year of 2023, with Growth Across All Segments

VAUGHAN, Ontario--(BUSINESS WIRE)--Bausch + Lomb Corporation (NYSE/TSX: BLCO), a leading global eye health company dedicated to helping people see better to live better, today announced its fourth-quarter and full-year 2024 financial results.

“Underpinning our recent success is a commitment to long-term, profitable growth,” said Brent Saunders, chairman and CEO, Bausch + Lomb. “Our refocused pipeline is now filled with promise and potential to significantly enhance the standard of care for patients across the spectrum of eye health needs.”

Select Company Highlights

• Delivered broad-based growth across all segments, geographies and key franchises
• Drove strong execution in dry eye, with annual dry eye portfolio revenue approaching $1 billion
• Realized double-digit revenue growth in contact lens business in the fourth quarter
• Expanded surgical portfolio with growth across all product categories in the fourth quarter
• Achieved solid growth across key consumer franchises, including LUMIFY^® and eye vitamins
• Continued to transform the R&D pipeline and make strategic investments, including the acquisition of Elios Vision

Fourth-Quarter and Full-Year 2024 Revenue Performance

Total reported revenue was $1.280 billion for the fourth quarter of 2024, as compared to $1.173 billion in the fourth quarter of 2023, an increase of $107 million, or 9%. Excluding the unfavorable impact of foreign exchange of $17 million, revenue increased by approximately 11% on a constant currency¹ basis compared to the fourth quarter of 2023.

Total reported revenue was $4.791 billion for the full year of 2024, as compared to $4.146 billion in the full year of 2023, an increase of $645 million, or 16%. Excluding the unfavorable impact of foreign exchange of $69 million, revenue increased by approximately 17% on a constant currency¹ basis compared to the full year of 2023.

Revenue by segment was as follows:

Fourth-Quarter 2024

Full-Year 2024

Vision Care Segment

Vision Care segment revenue was $723 million for the fourth quarter of 2024, as compared to $662 million for the fourth quarter of 2023, an increase of $61 million, or 9%. Excluding the unfavorable impact of foreign exchange of $12 million, segment revenue increased on a constant currency¹ basis by approximately 11% compared to the fourth quarter of 2023.

Vision Care segment revenue was $2.739 billion for the full year of 2024, as compared to $2.543 billion for the full year of 2023, an increase of $196 million, or 8%. Excluding the unfavorable impact of foreign exchange of $54 million, segment revenue increased on a constant currency¹ basis by approximately 10% compared to the full year of 2023.

Performance in fourth quarter of 2024 and full year 2024 was primarily driven by increased demand for LUMIFY, over-the-counter dry eye products and eye vitamins in our consumer business, and Daily SiHy lenses and Bausch + Lomb ULTRA^® in our contact lens business.

Surgical Segment

Surgical segment revenue was $231 million for the fourth quarter of 2024, as compared to $204 million for the fourth quarter of 2023, an increase of $27 million, or 13%. Excluding the unfavorable impact of foreign exchange of $3 million, segment revenue increased on a constant currency¹ basis by approximately 15% compared to the fourth quarter of 2023.

Surgical segment revenue was $843 million for the full year of 2024, as compared to $767 million for the full year of 2023, an increase of $76 million, or 10%. Excluding the unfavorable impact of foreign exchange of $9 million, segment revenue increased on a constant currency¹ basis by approximately 11% compared to the full year of 2023.

Performance in fourth quarter of 2024 and full year 2024 was driven by increased demand of consumables, equipment and implantables, including strong growth in our premium IOL portfolio.

Pharmaceuticals Segment

Pharmaceuticals segment revenue was $326 million for the fourth quarter of 2024, as compared to $307 million for the fourth quarter of 2023, an increase of $19 million, or 6%. Excluding the unfavorable impact of foreign exchange of $2 million, segment revenue increased on a constant currency¹ basis by approximately 7% compared to the fourth quarter of 2023, primarily driven by strong execution of the launch of MIEBO^®.

Pharmaceuticals segment revenue was $1.209 billion for the full year of 2024, as compared to $836 million for the full year of 2023, an increase of $373 million, or 45%. Excluding the unfavorable impact of foreign exchange of $6 million, segment revenue increased on a constant currency¹ basis by approximately 45% compared to the full year of 2023, primarily due to incremental sales from the acquisition of XIIDRA^®, launch of MIEBO and growth in U.S. Generics and International Pharmaceuticals.

Operating Results

Operating income was $87 million for the fourth quarter of 2024, as compared to an operating income of $49 million for the fourth quarter of 2023, an increase of $38 million. The change was largely driven by an increase in gross profit contribution, partially offset by higher selling, advertising and promotion costs primarily attributable to MIEBO.

Operating income was $162 million for the full year of 2024, as compared to $130 million for the full year of 2023, an increase of $32 million. The change was primarily due to the same factors as in the fourth quarter of 2024, as noted above, partially offset by higher selling, advertising and promotion costs attributable to XIIDRA and amortization expense.

Net Loss

Net loss attributable to Bausch + Lomb Corporation for the fourth quarter of 2024 was $3 million, as compared to $54 million for the fourth quarter of 2023, a favorable change of $51 million. The change was primarily driven by the increase in operating results noted above.

Net loss attributable to Bausch + Lomb Corporation for the full year of 2024 was $317 million, as compared to $260 million for the full year of 2023, an unfavorable change of $57 million. The change was primarily driven by the increase in interest expense, partially offset by the increase in operating results, as noted above.

Adjusted net income attributable to Bausch + Lomb Corporation (non-GAAP)¹ for the fourth quarter of 2024 was $89 million, as compared to $83 million for the fourth quarter of 2023, an increase of $6 million.

Adjusted net income attributable to Bausch + Lomb Corporation (non-GAAP)¹ for the full year of 2024 was $204 million, as compared to $258 million for the full year of 2023, a decrease of $54 million.

Cash Flow From Operations

Cash flow from operations for the full year of 2024 was $232 million, as compared to cash flow used in operations of $17 million for the full year of 2023, an increase of $249 million. Cash flow was positively impacted in the full year by the acquisition of XIIDRA, increased gross profit and improved working capital initiatives, partially offset by increased interest payments.

Earnings Per Share

GAAP Earnings Per Share (“EPS”) Basic and Diluted attributable to Bausch + Lomb Corporation for the fourth quarter of 2024 was ($0.01), as compared to ($0.15) for the fourth quarter of 2023. Adjusted EPS attributable to Bausch + Lomb Corporation (non-GAAP)¹ for the fourth quarter of 2024 was $0.25, as compared to $0.24 for the fourth quarter of 2023.

GAAP Earnings Per Share (“EPS”) Basic and Diluted attributable to Bausch + Lomb Corporation for the full year of 2024 was ($0.90), as compared to ($0.74) for the full year of 2023. Adjusted EPS attributable to Bausch + Lomb Corporation (non-GAAP)¹ for the full year of 2024 was $0.58 as compared to $0.73 for the full year of 2023.

Adjusted EBITDA Excluding Acquired IPR&D (non-GAAP)¹

Adjusted EBITDA excluding Acquired IPR&D (non-GAAP)¹ was $259 million for the fourth quarter of 2024, as compared to $231 million for the fourth quarter of 2023, an increase of $28 million, primarily due to the increase in sales, as noted above, partially offset by an investment in products, including MIEBO.

Adjusted EBITDA excluding Acquired IPR&D (non-GAAP)¹ was $878 million for the full year of 2024, as compared to $738 million for the full year of 2023, an increase of $140 million, primarily due to the increase in sales, as noted above, partially offset by investment in products, including MIEBO and XIIDRA.

2025 Financial Outlook²

Bausch + Lomb provided guidance for the full year of 2025, as follows.

Other than with respect to GAAP revenue, the company only provides guidance on a non-GAAP basis. The company does not provide a reconciliation of forward-looking Adjusted EBITDA excluding Acquired IPR&D (non-GAAP)¹ to GAAP net income (loss) attributable to Bausch + Lomb Corporation or of forward-looking constant currency growth¹ to reported revenue growth, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations. These amounts may be material and, therefore, could result in the projected GAAP measure or ratio being materially different or less than the projected non-GAAP measure or ratio. These statements represent forward-looking information and may represent a financial outlook, and actual results may vary. Please see the risks and assumptions referred to in the Forward-looking Statements section of this news release.

Balance Sheet Highlights

• Bausch + Lomb’s cash, cash equivalents and restricted cash were $316 million at December 31, 2024
• Basic weighted average shares outstanding for the fourth quarter of 2024 were 352.0 million, and diluted weighted average shares outstanding for the fourth quarter of 2024 were 355.8 million³
• Basic weighted average shares outstanding for the full year of 2024 were 351.8 million, and diluted weighted average shares outstanding for the full year of 2024 were 354.0 million³

Conference Call Details

About Bausch + Lomb

Bausch + Lomb is dedicated to protecting and enhancing the gift of sight for millions of people around the world – from birth through every phase of life. Its comprehensive portfolio of approximately 400 products includes contact lenses, lens care products, eye care products, ophthalmic pharmaceuticals, over-the-counter products and ophthalmic surgical devices and instruments. Founded in 1853, Bausch + Lomb has a significant global research and development, manufacturing and commercial footprint with approximately 13,500 employees and a presence in approximately 100 countries. Bausch + Lomb is headquartered in Vaughan, Ontario, with corporate offices in Bridgewater, New Jersey. For more information, visit www.bausch.com and connect with us on X, LinkedIn, Facebook and Instagram.

Forward-looking Statements

This news release contains forward-looking information and statements within the meaning of applicable securities laws (collectively, “forward-looking statements”), which may generally be identified by the use of the words “anticipates,” “hopes,” “expects,” “intends,” “plans,” “projects,” “predicts,” “forecasts,” “should,” “could,” “would,” “may,” “might,” “will,” “strive,” “believes,” “estimates,” “potential,” “target,” “guidance,” “outlook,” or “continue” and positive and negative variations or similar expressions and phrases or statements that certain actions, events or results may, could, should or will be achieved, received or taken, or will occur or result, and similar such expressions also identify forward-looking information. Forward-looking statements include statements regarding Bausch + Lomb’s future prospects and performance, including the company’s 2025 full-year guidance. These forward-looking statements, including the company’s full-year guidance, are based upon the current expectations and beliefs of management and are provided for the purpose of providing additional information about such expectations and beliefs, and readers are cautioned that these statements may not be appropriate for other purposes. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, the risks and uncertainties discussed in Bausch + Lomb’s filings with the U.S. Securities and Exchange Commission (“SEC”) and the Canadian Securities Administrators (the “CSA”) (including the company’s Annual Report on Form 10-K for the year ended Dec. 31, 2024 (which is anticipated to be filed with the SEC and CSA on Feb. 19, 2025) and its most recent quarterly filings), which factors are incorporated herein by reference. They also include, but are not limited to, risks and uncertainties respecting the proposed plan to separate Bausch + Lomb into an independent, publicly traded company, separate from the remainder of Bausch Health Companies Inc. (“BHC”) (the “separation”), which include, but are not limited to, the expected benefits and costs of the separation, the expected timing of completion of the separation and its manner and terms (including that it may include the transfer of all or a portion of BHC’s remaining direct or indirect equity interest in Bausch + Lomb to its shareholders (the “distribution”)), the expectation that, if the separation is to be effected through a distribution, then it will be completed following the achievement of targeted debt leverage ratios, subject to receipt of applicable shareholder and other necessary approvals and other factors, including those described in BHC’s public statements, the ability to complete the distribution considering the various conditions to the completion of the distribution (some of which are outside the company’s and BHC’s control, including conditions related to regulatory matters and receipt of applicable shareholder and other approvals), the impact of any potential sales of the company’s common shares by BHC, that market or other conditions are no longer favorable to completing the transaction, that applicable shareholder, stock exchange, regulatory or other approval is not obtained on the terms or timelines anticipated or at all, business disruption during the pendency of or following the separation, diversion of management time on separation-related issues, retention of existing management team members, the reaction of customers and other parties to the separation, the structure of the distribution, the qualification of the distribution as a tax-free transaction for Canadian and/or U.S. federal income tax purposes (including whether or not an advance ruling from the Canada Revenue Agency and/or the Internal Revenue Service will be sought or obtained), the ability of the company and BHC to satisfy the conditions required to maintain the tax-free status of such distribution (some of which are beyond their control), other potential tax or other liabilities that may arise as a result of the distribution, the potential dis-synergy costs resulting from the separation, the impact of the separation on relationships with customers, suppliers, employees and other business counterparties, general economic conditions, conditions in the markets the company is engaged in, behavior of customers, suppliers and competitors, technological developments and legal and regulatory rules affecting the company’s business. In particular, the company can offer no assurance that the separation will occur at all, or that any such transaction will occur on the terms and timelines or in the manner anticipated by the company and BHC. They also include risks and uncertainties relating to acquisitions and other business development transactions the company has completed or may, in the future, pursue and complete, such as the acquisition of XIIDRA^® and certain other ophthalmology assets, including risks that the company may not realize the expected benefits of those transactions on a timely basis or at all and, where applicable, risks relating to increased levels of debt as a result of debt incurred to finance such transactions, including in regards to compliance with our debt covenants. Finally, they also include, but are not limited to, risks and uncertainties caused by or relating to adverse economic conditions and other macroeconomic factors, including heightened inflation and interest rates, imposition of and adverse changes to tariff, duties and other trade protection measures, slower growth or a potential recession, which could adversely impact our revenue, expenses and resulting margins, and economic factors over which we have no control, including inflationary pressures as a result of heightened domestic and global inflation and otherwise, heightened interest rates, foreign currency rates, and the potential effect of such factors on revenue, expenses and resulting margins. In addition, certain material factors and assumptions have been applied in making these forward-looking statements, including, without limitation, the assumption that the risks and uncertainties outlined above will not cause actual results or events to differ materially from those described in these forward-looking statements. In addition, management has also made certain assumptions regarding our 2025 full-year guidance with respect to expectations regarding base performance growth, expectations regarding performance of certain key products (including XIIDRA^® and MIEBO^®), currency impact, the estimated impact of our recent acquisition of Elios Vision respecting US approval and launch costs, and inflation, expectations regarding adjusted gross margin (non-GAAP), adjusted SG&A expense (non-GAAP) and the company’s ability to continue to manage such expense in the manner anticipated, interest expense (which will vary based on, among other things, interest rates and our indebtedness), adjusted tax rate and full year capex and the anticipated timing and extent of the company’s R&D expense.

Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. Bausch + Lomb undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.

Links provided in this news release are solely for information purposes and do not constitute Bausch + Lomb affirming any forward-looking statements contained in the linked content.

Non-GAAP Information

To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the company uses certain non-GAAP financial measures and ratios. Management uses these non-GAAP measures and ratios as key metrics in the evaluation of the company’s performance and the consolidated financial results and, in part, in the determination of cash bonuses for its executive officers. The company believes these non-GAAP measures and ratios are useful to investors in their assessment of our operating performance and the valuation of the company. In addition, these non-GAAP measures and ratios address questions the company routinely receives from analysts and investors, and in order to assure that all investors have access to similar data, the company has determined that it is appropriate to make this data available to all investors.

These measures and ratios do not have any standardized meaning under GAAP and other companies may use similarly titled non-GAAP financial measures and ratios that are calculated differently from the way we calculate such measures and ratios. Accordingly, our non-GAAP financial measures and ratios may not be comparable to similar non-GAAP measures and ratios of other companies. We caution investors not to place undue reliance on such non-GAAP measures and ratios, but instead to consider them with the most directly comparable GAAP measures and ratios. Non-GAAP financial measures and ratios have limitations as analytical tools and should not be considered in isolation. They should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

The reconciliations of these historic non-GAAP financial measures and ratios to the most directly comparable financial measures and ratios calculated and presented in accordance with GAAP are shown in the tables below.

Specific Non-GAAP Measures

EBITDA, Adjusted EBITDA and Adjusted EBITDA excluding Acquired IPR&D

EBITDA (non-GAAP) is Net income (loss) attributable to Bausch + Lomb Corporation (its most directly comparable U.S. GAAP financial measure) adjusted for interest, income taxes, depreciation and amortization. Adjusted EBITDA (non-GAAP) is EBITDA (non-GAAP) further adjusted for the items described below. Management believes that Adjusted EBITDA (non-GAAP), along with the GAAP measures used by management, most appropriately reflect how the company measures the business internally and sets operational goals and incentives. In particular, the company believes that Adjusted EBITDA (non-GAAP) focuses management on the company’s underlying operational results and business performance. As a result, the company uses Adjusted EBITDA (non-GAAP) both to assess the actual financial performance of the company and to forecast future results as part of its guidance. Management believes Adjusted EBITDA (non-GAAP) is a useful measure to evaluate current performance.

Contacts

Media Contact:
T.J. Crawford
tj.crawford@bausch.com
(908) 705-2851

Investor Contact:
George Gadkowski
george.gadkowski@bausch.com
(877) 354-3705 (toll free)
(908) 927-0735

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