Earnings call transcript Q1 2023

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Operator

Good morning, and welcome to the Bausch + Lomb's First Quarter 2023 Earnings Call. All participants will be listen-only mode. [Operator Instructions]. Please note this event is being recorded.

I would now like to turn the conference over to Allison Ryan. ahead. go Please

Allison Ryan

and morning, XXXX Good call welcome our Brent to Chairman Eldessouky. Mr. Thank results everyone, conference quarter Saunders; Mr. Officer, financial Chief today's Financial call. first Officer, and Sam you. Executive and Chief Participating are on

replay this on a our the Relations this addition website presentation to of slide will section. webcast, under live In conference copy call a today's and of available be Investor

information. our begin, would I to presentation This beginning the would you as today information. a ask We financial that contains contains presentation it take the forward-looking we that measures Before forward-looking read remind contains of like to and non-GAAP our presentation important you ratios. at moment legend

to found of can our more Non-GAAP reconciliations the presentation. in website. Slide one presentation For these please about information posted be the to measures appendix the and on refer ratios,

financial Finally, broadly unless not our affirm this disclosure. of is effective is It other update until the following only. guidance generally public guidance today through and than to in update guidance by law the to as policy disseminated or presentation not required quarter

that, With my turn to call to is Brent. pleasure over the it

Brent Saunders

here. review our joining and sharing to quarter guidance. first Thank thank and I detail you, then will XXXX CFO, call to first everyone, results as highlights. to the Chairman off some days financial XX + Lomb briefly Bausch start Sam, first our discuss and turn the quarter discuss today. you, It's of over great in for the financial be high-level comments Allison, my I'll by us about CEO and

before for franchises key cover catalysts I'll our a line and questions. few the Finally, opening upcoming

part to. and and decision in significant for career. been area eye and health stay and of innovation have industry for with a was always talented + I of industry evolving, factor to Bausch work unmet in about three. this involved dynamic collaboration rejoin deeply ophthalmologists, needs Slide great an surgeons, care close optometrists continued my the I've Having with is that my millions many of practitioners, to an Beginning full people. It's in to again that important Lomb. It opportunity an is better

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days first XX all of reaffirm My this. here

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driving a our company, I'll to profitable future focus to best sustainable for moment. forward to in a on do, discuss Given although but this, plan the doing easy to growth. hard say for path just is our that

with This three take executive calling Bausch level. designed to it road growth. to plan to all a input the measurable a team thought, with map We're phases, the multiyear the with accelerate careful After developed clear Lomb objectives. I plan + have from next is

Let me of some give details. you the

things into would Execute. a do start X roadmap. the of phase, following all Innovate the If we Let's & Phase advance deeper to we correctly, with dive our next

which Clearly, plan. or We're the First, consistently. this achieved first above to grow we do quarter our XXXX. foundational we market, is growing, to in need revenue at this but

toward Next focus a teams our with a on frontline sales is our building with customers. selling enduring excellence by view achieving bonds

teams customers face customers. that needs dedicated to Our the group. a sales be come infrastructure But sales They I cannot we it's around an them reps that are by we for best immediately them to creating best are our sales company, of our making environment that industry tools, entire Bausch to to and our throughout viewed understate training teams our to talented for crucial think the our to the and our And the Lomb, + mind. them as place it, improved can. are the is giving when support work. representatives sales are pivoting success. And priority

development platform. business build industry-leading Third, an

countless earlier, dynamic out right and be for as industry-wide the growth innovation. with to mentioned build partners. with seek the I to to collaborate is thoughtful opportunities smart want known need capabilities I a Lomb tremendously evaluate + best-in-industry this industry best As We opportunities partner. and and Bausch

a become will market our company run company. to marketing and investment that to support enable reach. for we and more by This off need and it efficiency, business of Next, to efficiently effectively leading it pay eventually build competitive technology our expanding digital customer our improving use to the for capabilities increasing our the and from enhance experience advantage and across manufacturing our

accountability. bureaucracy The final part easier, is map's to and the first phase increase of road eliminate work make

clear pride also responsibility and will culture a fosters not of complexity sense increases their in colleagues their accountability, and of We our promote ownership and improvement. trust, only accountability. with work, but continuous reduce Empowering

Bausch look and establish world. As we best + company health into ourselves build in eye these fold capabilities our on legacy as to we the Lomb, the

investment good year Sam with to and quarter X% first basis. on will launches, $XXX of explain will EBITDA a million, higher now numbers as I'm levels we $XXX in up going currency, on growth our constant a to about headwind constant the of quarterly The the million product Turning impacted of more year-over-year Adjusted revenue commercial drivers. to which results by seven. was support believe to be off million detail. start key currency-related Slide currency talk in future $XX is

Importantly, we geographies. saw continued high-quality growth most significant three across all segments in and reporting

execution Revenue Care SiHy, supply segment the demand, growth. segment constant Vision expansion U.S. constant a from basis, Increased portfolio surgical international IOL Pharmaceuticals X% premium constant by by a currency drove Daily currency and X% and including portfolio growth. ULTRA. LUMIFY, grew on driven the in X% key by ONEday improving in generic was Ophthalmic up the And franchises, and currency on growth basis, Biotrue driven

headwinds the so Achieving platform be to build move will to execute next growth on underscores in strength many of and Bausch company our + face Lomb accelerate its of the stage the business growth and foundation across continued of forward growth. brand into this team. My road the areas to that focus will of the going map enable

turn quarter will detail. I the to over to call first now Sam cover more results in the

Sam Eldessouky

Thank you, good Brent, morning, and everyone.

group a and align and our reporting we be out to focused would my on of expressed constant This believe I broader business, how comparable on to that it currency today operate a with comments like of begin, consistent companies. the will basis. is in more the most closely we point future we growth Before helps

Slide financial now results Turning on our to X.

constant the demonstrated continuing quarter a and a durable of $XXX results on performance. record quarter growth X% build first and on revenue reported million of Total prior compared the to solid to the Our growth, of X% reflects strong a quarter. currency business revenue basis track company is year for basis

Brent segments: revenue Care, span across As broad-based our Surgical of growth Vision Opto three and mentioned, Rx. and was all reporting

we growth well gradual is continue quarter, China in improvement time. we year. the to We'll cautiously in in economic positioned the we call, the earnings pace to over of recovery stable business optimistic while the with go our last that about Consistent continue China stop given the saw return last monitor We noted activity and to saw recovery. the to be expectations confident our in remain

and $XX foreign In to million approximately revenue $XX the million headwinds approximately adjusted to quarter, currency EBITDA. were

the of the mentioned improving on expect call, our persist currency year. that before last half half XXXX in headwinds in first to As second the we these of

to in the million of each solution and hold basis on of X% lens portfolios. contact currency discuss consumer constant positions. and increased by basis, on currency a our segments. PreserVision results $XXX by driven Vision The continue the brands, grew our LUMIFY, market-leading consumer multipurpose Care revenue Biotrue and business X% let's Now both constant strategic a by

the market revenue franchise, XX% XX% by globally in a achieved has the to LUMIFY grew Illuminations been the of brand also The U.S. has platform record in where of momentum reliever to we $XX the in revenue it in compared the and continue stages in the And Canada Eye share early prior line. a category. the leverage year quarter. are and the LUMIFY launching brand million launch The continued reached now to successful. redness very beauty expand

from by quarter. XX% eye growth by on in a in in basis grew a Revenue The constant Artelac, driven brand our Europe mainly key franchise dry the currency increased was demand.

on basis. low from basis Ocuvite constant was and single eye a currency First quarter and reported our on vitamins, up flat PreserVision digits revenue a

PreserVision the continue recent PreserVision and growth. our drive of to launches expect CoQXX to OCUSorb We with +

and through trending will and lower price to are dynamics and inflation launches support continue trusted macroeconomic believe From we drive we levels progress as committed to our we volume the reward the making brands the consumption continue year. to to We're appropriate broader a as perspective, encouraged by and balance will investments innovation. consumers

demand. currency In key SiHy in the the XX% revenue market quarter constant driven with franchises. strong quarter, Reported saw we by the Daily performance our from XX% first in by lens growth in grew portfolio, a strong our

continue in continued U.S. quarter, to the product catalyst multifocal second SiHy We provide lens would of the family launch the expand to the which growth. and anticipate a Daily

delivered a in growth grew lens major broad-based constant Ultra X% families. across brand, SofLens by currency The grew by product legacy the Biotrue basis, and On XX%. daily, was XX%; our the growth, quarter

basis. first increase was X% constant the currency constant constant on driven $XXX million, premium strong to high-margin the X% now a Surgical grew was by performance IOL XX% quarter currency. by Moving portfolio, revenue of basis in a on in up an segment, which currency Implantables

by our enVista in both includes to mono which grew franchise, quarter. a XX% basis, the see IOLs. currency On constant the and franchise momentum continue in toric investor the We focal

early Apthera has interest stages in received also feedback. the generated has to positive IC-X U.S. very launch which the premium We're IOL, strong and of

phased to We the further launch investments and associates onboard make to process support expect we continue as to our surgeons. train

constant XXXX QX by on 'XX grew consumables a from with to system. compared higher XX% first equipment driven mainly packs. The for X% currency custom in constant Stellaris demand the versus for currency Revenue by and quarter up portfolio of our was demand Stellaris basis,

be to supply has the continues business Surgical our in strong, availability demand fully recovered. market While not yet of

various through as secondary continues year. components measures, team spot pursuing that anticipate to we Our mitigating prices. remain the implement supply progressed including We from volatile vendors will at

believe At level, for parts we a U.S. markets. by Surgical strong saw we driven remain In to China, of for the decline broader in need Europe, strong, demand a which across products cataract demand QX, procedures continue the is in impacted continuing by various recover. B&L and revenue will the to

the launch announce U.S. visualization commercial to to in many plan to product execution. XXXX, platform to the we the pleased early support and also adds investments the in appropriate platform the launches make Europe. SeeLuma in our of and This We're

generics growth across currency all the driven portfolio Minims were performance our faced currency in continue as in revenue with constant we to capitalize franchise. by Opto XX% by major the grew challenges mainly by constant X% actively international was million, $XXX competitors. X% on representing Rx growth the currency Lastly, U.S. strong in segment markets. constant of growth XX%

VYZULTA U.S., reported the year. quarter. by the revenue grew In to first XX% the by compared XX% prior TRx

anticipating As XXXX, the of June PDUFA in year. the are for have date reminder, NOVXX we second a half a launch and XX, a

prelaunch Our we continue increase we ongoing, the to are of to level progress activities as and through investment expect year. the

Now some segments, key on of Slide of line me walk have the let through the covered non-GAAP we each revenues X. for that items

operations taxes financial quarter reflect a reflect fully rate not QX the statements report in same and a financial the in B&L prepared do B&L prior interest of reminder, to May lines, basis does XXXX As the XXXX fully not costs. Along were statements first XXXX and stand-alone entity. the IPO expense also as the stand-alone run

impacts the previously XXXX XXXX this As we and mentioned, comparability have results. between

our points of basis Adjusted XXXX. gross a XX%, and quarter margin compared mainly XX for the Surgical margin mix of was pockets The was in in gross QX inventory, by supply product mainly to business. decrease of higher driven challenges change cost

we expect it to XXXX. call, margin P&L, in as on first half flows QX higher of built As pressure the our the through the we XXXX cost we in noted mainly earnings in gross of inventory increase

First we headwinds QX prior by approximately costs $XXX in the earnings to $XX call. million was quarter impacted approximately previously of EBITDA $XX EBITDA QX to adjusted adjusted currency Adjusted impacted of communicated estimated be outlook million. in the EBITDA was relative by The incremental $XX million in an million, which stand-alone was also our year.

adjusted of shipping to higher Additionally, inflation, related supporting and cost and by was product impacted EBITDA launches. distribution investment

the quarter, In quarter rate approximately the was investment rising reflecting in was X% expense million, interest Interest the environment. revenue. approximately R&D the $XX of for

For reflect capital expense B&L stand-alone fully comparability did interest not purposes, in lower the XXXX QX structure.

which with in is rate in expectations line the XXXX. full for approximately tax was quarter year our Adjusted the X%, first

$X.XX. was quarter the for EPS adjusted Lastly,

Cash $XX by potential future built to levels was to ensure by operations supply and product inventory flow sufficient of from quarter. disruptions $XX launches. cash mitigate Adjusted approximately operations strategic million first million inventory in impacted the mainly to used related was

First $XX mainly the driven quarter by investments CapEx million, in Vision segment. was Care

Turning guidance now to our Slide on XX. XXXX

is exchange in rates, half a in currency constant Our growth $X.X revenue back rate anticipate Based year. by currency revenue billion for current a guidance of to the to tailwinds X% we which range X%. headwinds billion, on the $X.XX of reflects of to QX, followed XXXX

to be million the impact net full the year. expect headwind We for $XX

QX remain performance, remainder of year. While we XXXX for cautiously revenue with are optimistic the the pleased growth the strong we

to believe number remains the supply stability a improve in of have it of in work and We taken business steps Surgical progress. a mitigating the

We also recovery impact the of the broader pace and macroeconomic potential the of China monitored uncertainties. in

assess on over an and year. the data part consumer determine China saw we months will full the the additional in the recovery of coming the impact of improvement in While of activity in pace quarter, latter to points sustainability the the we

Overall, believe capture guidance the we we year. revenue expectation of opportunity, over are in line the continue that stable grow market our reflects will for meantime, with optimistic we're the our to to that growth positioned market the time. return In the well balance and will business the the XXXX to market

guidance million Our a XXXX $XXX of adjusted is million. to EBITDA range $XXX for

adjusted of approximately full headwinds million. expect year EBITDA currency We to $XX

to our committed Excluding the we a is drive upcoming impact growth. to prioritizing guidance of EBITDA of currency, the revenue With $XXX and launches midpoint of number remain adjusted recent million. XXXX, in investments

important phasing on consideration. quarterly As our we the mentioned last call, will be an

We our year. factors, our This increase the as the timing businesses driven and by EBITDA to number mainly throughout expect we to adjusted a is progress of support launches. including of investments of natural phasing the

cost We leverage drive optimize prioritize are our accelerate to and growth. fully will committed our spend we structure operating cost disciplined and to management, and

XXXX. to gross a adjusted to This represents moderate XXXX our expect margin We improvement year full approximately be relative margin XX%.

portfolio our and well higher as While by availability gross XXXX, efficiencies we the product have expect production impacted lenses, increased output Daily related variability Surgical driven supply mix. we our the by in in to potential built to cost SiHy be we inventory margin as

R&D XXXX, continue assumptions accelerated other of guidance, the be investment we underlying pipeline terms opportunities. to of investment level we'll our revenue. in to of anticipate approximately and X% enhance We to our the prioritize spend R&D In in R&D key

variable rate our Consistent the previous SOFR we reflects debt is full communications, to interest year. $XXX expense with based structure, plus interest approximately our capital The which X.XX%. interim expect on for current million be at expense

transition from a to we longer-term reminder, the upon full to structure As BHC. plan submission capital

We be $XXX expect year X%, approximately CapEx tax full million. to and be we adjusted to expect our roughly rate

by mentioned, keep be between the year and already full impacted B&L XXXX mind of IPO. that timing the for comparability the will As in results I XXXX

growth performance and segments. continued pleased across our with we're our quarter Overall, first

product to guidance in strategy to reflects the we that support growth. business investment important profitable increase XXXX our Our launches of to expect become drivers

I'll turn the call now And back Brent. to

Brent Saunders

Thank you, Sam.

a on minutes key to business of upcoming few we a franchises spend catalysts expect and Let's few drive our results. some

integrated market, the be good of size of a market retailers can relationships we key growth consumer points, of platform XX, Slide given eye a unmet patients need. eye benefits consumers a multiple future base. dry with a long-standing and disease the professionals platform well and of health as On and of an will the with dry driver our believe and the disease is e-commerce prevalence channels and large access the We leveraging key reach broad that through eye addressing as example reach

on franchises Soothe The this sales million generate combined basis. on in platform, Artelac, and Biotrue a approximately primarily $XXX annual

forward this advance extensions are of of a PDUFA on product. line catalyst addition a we date In further the looking to products, NOVXX's consumer June addition next pharmaceutical platform as number to our XX the with to potential for

been this treatment in work and first inflammatory an evaporative specifically, along the estimated large long is States. opportunity approximately is a market, have growing and United potential that More in the billion a we be has dry treatments pathway, launch by category eye a which that defined currently to for to $X

on Our Today, drive launch, Slide eye another products. XX of a the brand. power X XX% platform of in franchise the the LUMIFY reliever care example LUMIFY approximately and doctor category number the market million with and share $XXX integrated performance recommended franchise fully promote to a of is is redness our

into on new is categories. strategy by to build geographies and success Our this expanding adjacent

LUMIFY allergenic launch This Illuminations, eye We countries. the year, will area. eye to developed XX in for of recently LUMIFY the acquired we rights hyper additional care, a Eye sensitive market scientifically line

allergy single-dose Finally, a with for symptom eye control. we product are combination drops a on working and preservative-free ketotifen

global Ocuvite address a PreserVision million and of of countries of more Lomb's available with footprint revenue Slide reported AREDS more to XX% vitamin XX. than wide Bausch is $XXX in + a formulations This to annual variety and the share franchise, Moving patient needs. franchise with and than eye unique XX The brand has category. products largest

the new expansions. consumer innovative is franchise with and and focus demand product strategic on growing driving Our category

We easily households new in to on room good is expand. are with Approximately with have support help products news of advanced treated more that and position AREDSX working market, healthy support function. cell health, absorbed are of and moderate eye this not lot XX% that The product. a launching AMD leading to helped our heart despite we to are

to impressed dealing ability XX. results supply Surgical to significant have with constraints. with I on the Surgical been while deliver segment Moving Slide team's

eye addition relationships is In surgeons a resourceful be broader team and organization. building can creative our selling solving, this and agile with that marketing to excellence problem demonstrating model for trusted

On the wide towards evolution lenses surgeons higher-margin premium of give trifocal slide, of IOL their offerings depth we address the needs, this eye extended to to portfolio lenses. including and showed of focus a variety health patient's

and We procedures digital new microscope fast-growing and SeeLuma categories in entering are interconnectivity with Eyetelligence like glaucoma focusing digital also markets platform. on XD the

the here underutilization In we our brand, and globally today our part an powerful, in in recognized we of the stand care to and products, of established operate talented clearly what understand dedicated market. issues chain cycle. attractive a durable supply of challenges team infrastructure, and closing, health global foundation, gaps with our we innovation our time, same At colleagues, a a are,

we have us, work accelerate have front overcome a in road While our now growth. we these place obstacles, of map plan to in to the

the faced in career, those colleagues turn know I have led I reality. efforts. from world, that around I have we can the this with my and similar similar situations of plan into our support experiences

XX,XXX and cannot who motivated. collective focused aligned, colleagues underestimate power of the are You

be the around to all focus, accelerate will map that my world. colleagues with of road our along Our growth of

of to excellence. our can be commitment to people helping live and I our we to days that has years daunting, company excited am of confident as great with the potential ahead, apprised change map. together things we'll we dedication, a will better mission Although progress our I'm continue you in the work, against come our to to keep execute see come. road better, And hard and accomplish the and to succeed thrive about

line Thank open you. And with the that, operator, let's for questions.

Operator

first Your Instructions] coming Vijay at Evercore Kumar from is question [Operator ISI.

Vijay Kumar

half number? organic catch-up Were seen And of one We've big the perhaps curious items? guidance. there to digits, in X% wouldn't implies think comps any across sustain number. guess my the clean on the why come seem hard. that first I the I is back group. don't mid-single X% a a strong performance congrats. I'm and one-off was given utilization guide be the Was X% Guys, pretty too

Brent Saunders

question. I and good Yes, Great. thank you the a the it Yes. a Well, off quarter, think for was start good year. for we're to

your think one-offs. it turn any answer question, Sam but over specifically to I'll there I were, to ahead. on don't go I think

Sam Eldessouky

Good morning, Vijay.

normal Now course we really of didn't have anything outside the business. of

think pricing. of benefiting full I This one remind the timing thing pricing. is first year the is our QX a we're you as will of from lapping Just the one quarter, things you, of now about

take pricing As year, a pricing and we reminder, last this year. did again we did take

that. the the So in segment, our just Vision better just that. that Thanks, inflation. impact And the more tailwind Care offset more there's of an of Vijay. the would of probably highlight, really pricing that's consumer the of see in getting you'll specifically But just the side, areas -- pronounced one I in timing

Vijay Kumar

half, a you What product And a from one at suboptimal? -- on in the be should in catalyst. mind? contribution And second good Brent, be like of looking focus? think -- years a three key would what how we outcome I over this And follow-up would think mentioned your you positive maybe

Brent Saunders

about excited end hopefully, June. of No, the the, Look, we're question. approval at upcoming Yes. great

have the a June. We PDUFA of date end at

with was outcome always -- in an being the start my I So positive FDA approval. I career,

I've never to of XX segment. been it, pretty You We're hired primary business NOVXX for in And those granted. it. take a excited with is here new our confident -- we want launching for head focus just days. But our excellence. and just for that We we're pharmaceutical

I think they a great have opportunity.

market, by approved billion the This United in approximately the side in large potentially prepared a $X next mentioned in all dry evaporative. inflammatory-related to few or for eye the States the I and As first-in-class product the have for or disease, the years XXXX. in pharmaceutical the of we most first-in-class fact, -- billion, treatments is of in $X remarks, growing

in real We're probably a share. next launch our think and to as great and we plans opportunity it. speak have working sense big we on detail great us. have on better But opportunity take updating for And focus about of a the so you significant I call

Operator

Your next is at from question Marcus JPMorgan. coming Robbie

Robbie Marcus

Thanks just I'll both Good morning. I taking upfront for ask Great. questions. the have here. them questions. two

the lot guidance. do want down a moving there's of to are out people where First, And of to But P&L, you kind EBITDA appreciate in the trying pieces I on and the imply you EPS? fall what guidance?

in then wanted about comps The part similar two, And through that's implied growth talk organic XQ to sales first remaining to quarter. XQ. the last year looked pretty

So deceleration with first new product lot. launches, a China improving, Thanks versus quarter? why the

Brent Saunders

Yes.

at as EPS, I to competitive if, have is P&L. So then which expansion to improvement. let the it years a look And at at me truly more both, stab Look, line, Sam term, of to absolutely if, as the Lomb, we to massive see take or + in you utilization think margin a I we mentioned, see want bottom Bausch and advantage high-level some this give obviously, want I see, long leverage well. built detail. EBITDA and We stress or real want infrastructure we utilized over for

that to the in term to opportunity tremendous so create And long medium leverage.

think In the to see short I need improvement. term, we

some to throughout made be have some that year. need challenges and investments We the

to some side, I days. happening would unknowns here still challenge get and need comfortable what's chain really and being We understand there. put I have supply more time the On some XX there,

to LUMIFY a growth of a time. support period continue I we driver as NOVXX important have like top and think investments long to make for in launches

and have two more forward. just clarity as balancing things probably those we're we so And move

would same This I'm I On sure organic XX is again, see comfortable we'll say thing. growth, not I'm in. the days with. the guidance deceleration,

throughout supply I businesses. the think we have still all issues

them from of hangovers COVID. Some are

working quite complex. tough new But it's or just we're third-party that technologies are or grab. Some suppliers technologies to

I will think as on Sam what I but firmly realistic me based so for here. get with it to my give we're today, to let trying color. more the know feel I feet put ground evolve comfortable But some today out on or that's that guidance And what we

Sam Eldessouky

Robbie. Good Thanks, morning, Brent.

here. take me two parts Let in

EPS. on first one The

spoke As estimating we've we currency of currency, the about the we just for that guide you seen a think the through when about saw EPS factor about But million is big $XX year know, about We're $XX it, million, EPS. don't full come year-over-year. and bit dynamics you one we which of QX. quite headwind in XXXX, that's and

expense. factor The interest to other mind seen you keep a the interest in have expense. quite We've in big is rise

today, as reminder, plus structure capital debt with structure Just variable sitting X.XX%. our SOFR a we're and a capital

So we're all last what's That's the year. and that expense happened Feds that of roughly the impact million. roughly seeing seeing with of versus for $XXX million we're $XXX interest guiding that sort we're about on

headwind for So we that on incremental element does EPS provide as through us go XXXX.

of Keep in the about we out the talk will this the did we at also, interim mind that that time on capital transition we an structure, is structure of separation.

of So about EPS. thinking different just putting how sense a you all these pieces together will we're give

maybe and growth, well, take terms Brent of the it and step organic I'll pretty back. a covered just In

of takes items have thinking are. of And to of pleased year. the rest rest start when we we're about what puts year, points start for the and the you in what very one the the with balanced level about, to and quarter. and data that the QX. all factor QX, For we that as in through be There's for and the performed your evaluating the all QX pleased a think be you we're have for guidance, we're bake to And you able start lot you those That's year. of excited prudent into good uncertainties

To China of saw China, China. see we point that be data really didn't I on recovery touched clear, very You recover. until March.

strong China. So in was not the part first QX our that of

level given it to we we the that the can before the year need and see stop call steadiness last go recovery the of So nature saw of recovered what market. nature repeat the we of China of just with fully

where touched area And chain on. Brent is supply an

good past think about highlighted and it's you QX quarter, I'll deeper. surrounding our chain I of business, remarks, bit a an supply in -- area think our I a that's probably our couple we think Surgical When here, Surgical. in little we had a for areas go

We are availability business. be have chain we supply product, of want with in our for we in demand to and where our a supply the Surgical steady also not but us

about in that's in Same So improvement, an we progress us. thinking area were SiHy, mind guidance. we've that's still our output very as we kept done nice work for as a for but

all the as played that's our in make the macro a guidance was those market inflation, as coming we just items, conditions for to guidance year. uncertainties it plus with the think it thinking all factoring balanced we thought and the that's So rest into of

Operator

today Joanne for from at Citigroup. Your Wuensch next coming is question

Joanne Wuensch

morning. to Two questions. the Good And start year. nice

The first a and land if volume you thinking you the give lay and the one between I the price, is, of sort are where about contact just mix? in difference taking could mean, market, share on lens of us

then second And there. throw question out I'll the

is up can we weekend. What Ask this + Bausch Lomb expect there? from coming

Brent Saunders

Great.

we're I'll the lens contact competitive two So kind business. Sam on some more context. and lens very our cents market, can Look, give in think world a provide in you then I my around of the good position

high-quality launching most a INFUSE up, ramping Our have have right? we importantly, SPHERE, globally. SiHy we so very competitive, or lens, we're but is SPHERE very Daily And and

States. this or get half United first on still a to half first year right, hopefully, in have the year later working -- launching And the the out, of we're in We the toric, of multifocal next that so. in

as up remaining and XX% source from good in that's our And Biotrue. some and And of I about XXs, And users new so product. from about But quarter. it, when you position. the great it's think XX% it comes probably biggest of that is the at look a that a the was that,

Sam focus And more. hinted to out able to on manufacture we so what to have we what need be exactly is there,

everything basically can we great we -- is and in the doing that a of job we those yield. of need both with Rochester make team sell Waterford manufactured and, where comes We lines. improving profitability And

And work so we Biotrue. on those need trading continue to in that because out to you're

You're solve for We product margin trading higher lower-margin for out that. need a to today. a

through. massive work So need we some but challenges opportunity, to that

there to terms We're of the meeting, the In San out heading I'll for meeting. excited for that. be tomorrow Diego

our out, excited win bunch of our we them to interact us. of be really a meeting. biggest else But that is releases up a press in get issue we'll as and Anything in the they the what Newswire important. see to? There'll and meetings up add come we see is, and at future how important think and about It's frankly, you'll that with And other products hope from I portfolio field. to want really customers the you how year critically the coming of release. us show you to a one team It's our out. and I shows

Sam Eldessouky

the Joanne, mix quarter was of growth mainly of side lens price this mainly terms add, just lens, the volume. in was to volume the in contact contact here

volume the volume. seen being seeing of of little majority So but price, the majority of We've a growth. bit

growth SiHy on well And Brent pretty the from. it where covered and Daily just coming is

daily, at which And of nicely at ULTRA. One when parts X%. portfolio growing rest I outside the is lenses, at also the other also highlight the you called growth XX%. thing of just of is and brands the we've legacy SofLens it's seen such brand it I growing look would as is a the out at of the XX% in U.S., the nice Biotrue morning, this

brands is team well. the as sort a job in as the other good SiHy the managing on as doing Daily So the tail of along well

Brent Saunders

Yes. leaky I success of And was by exactly important think, because example reiterate, good a not really having quarter, And I the way to that's is bucket. that. should a this

to so And for managing kudos our different across all these real team platforms.

Operator

Biegelsen next Your is Fargo. question Larry at coming Wells from

Larry Biegelsen

actually drivers at the you, which question. was cadence the improvement the that for think, looks QX, XX.X%? could One just It to year. the on about But about I if us like a question. welcome drivers, Sam. about from cadence from needs over in in Sam Brent. that you implied you decline QX dollar talk helpful. Look, the not level Good margin, QX EBITDA looking set SG&A for I'll for the for little Can is bit question morning. with question Thanks terms. XX.X% Maybe I'm Brent, One and the the be to right. start taking and would QX back. The

of could times. I products. adding assume underutilization infrastructure bag. about add I mean talked guess footprint you love I hear the little that you you you a or reduce bit Brent, I'd more a you're could your out about to products talking more. few flesh to

your that Is that? licensing? do focus. more of love do about Thanks and you the for do you areas how through that I'd how So M&A, hear questions. taking to

Brent Saunders

So since go you ahead, Sam. asked Sam first,

Sam Eldessouky

lowest our phasing rest Larry. QX as And between phasing reflect you we we and When Good and that important the highest morning, the you of have my last end this natural question. when and with and phasing on maybe it's it, in very a And I made important the tend at being good year, is feature at you back to look Because especially in XXXX is pretty of first just our our picked phasing. morning. the you phasing, start of think on a the quarter sort the step factor an year's point point in the I'll about a about -- think remarks year. back of business,

stronger the the So second much you tend have than to half first half.

same As is the actually big but and currency first of that factor. you to factors, that our think couple this of for things have more phasing, a half, it's there's factor pronounced you When is about phasing couple natural a year, about a think in you adjusted in. caused

roughly We structure QX, in headwinds the about $XX EBITDA. for $XX currency see guided we year by So full million. million

that most So of we into the half. see first coming

to the We as be expect into an or currency we not a second more tailwind issue half. of go

elements. two between the flips that So

the its gross P&L, this called the through we inventory gross I works inventory XXXX. at margin part, and we're most impact headwind in that from don't the the second the QX will and half. of level way some which with of And that the the usually Second of in out, through end margin was came higher as capitalized of play And come a to that QX. gross in coming seeing that will it of in expect out you -- also margin be

higher put third the And in factor have launches. then to you the investment in is

there's for major quarter. So into we also coming taken that it that launches, we're but investment bulk second is our other half And of NOVXX that's the majority and of the of up launches as first investment one gearing have the business. into throughout coming the

items the P&L, QX see revenue second leverage in you'll and impacts and QX. increase those that the and the this in the the really to and second the is half in factoring heavy the revenue towards all of weighted be end the factoring how year, the able phasing So the that of half

at it So you look was the lowest when QX, point.

And X, second year. the after we'll maybe the that, see expect into of X.X-point ramp-up QX. in half we We go the as improvement then

Brent Saunders

Great.

of of our So in you But address challenges related. mentioned have but of they're what with have I innovation, tremendous only and all utilization. kind I'll mentioned, our we we kind challenges infrastructure, three chain supply think clear, underutilization be gaps in Larry, to opportunities, I and our somewhat that

as of areas competitive Bausch think + this meaningful most the opportunity or think here. touching about But right, underutilization, on industry, you a probably all in environment, favorable and It's comprehensive focused Lomb and itself portfolio integrated the very is way. a four

we every operations virtually in country. have But

a have chain supply center. massive We and distribution

doing well eye we world, big a with portfolio, of don't in we kind every the We SKUs, that don't with of and and brands. lots considering we've it been professional it blockbuster complexity We're workhorse. We have that. it. any do the a high-margin XXX years. do We big, products, But almost lots of have care do big relationships have We for products. of

a cost our more without channel. here easiest But sales We additional that and solve by whole that to is leveraging to thing adding sales a relationships. distribution put being said, the lot can lot through do of

clearly, do more, want to want And we to sell we so more.

things right? so to sure had making performance launch we great the LUMIFY the along, like And products market, things segment. in great in that first making our chugging a and the keep PreserVision quarter SiHy, of the that already are like, enVista with in like continue the great most things the with moving have, you IOL IOLs So starts the forward, INFUSE, right, Daily doing keep

we The excellence. thing well, second launch is right, do we launch

And in like the discussed second hopefully important so half of launches this have NOVXX. will we've year that some we place take

we or to more the and We less. the thing pretty And people modest of powerful, we third then a outside, there lot source need are innovation need a the And them. right? team, very around people a innovation care, have but We today, more seeking from in eye show is one-person and searching. BD world centers connected more

so that more need at product really to best-in-class bring flow be And doing into we to business. our

built at that is countries lines is there or competitive fair, of well. profitability? that was second that huge But to take are part as the going over a period it have to long and of don't look trimming product unprofitable And right, to Are hard a a that infrastructure. advantage. path You're markets we and time, a it or are be

cuts win. but Yes, likely way to the corners, going so, be that's around not to the small necessarily

that's solving And underutilization all so I gives things. But that They're the do by to those we all mean you Larry. have some equally clarity, important. what problem. Hopefully,

Larry Biegelsen

you. It does. Thank

Operator

Furlong Stanley. for Morgan coming question at next from is today Your Cecilia

Cecilia Furlong

the I guidance some you seeing and to the how about balance being equipment through you're just you're comments your demand what really it to about, thinking supply wanted side in year. your versus chain able of just the Surgical in today turn capacity range from meet the of to that of capacity side or to talked on meet that the terms

Brent Saunders

it's a our lines. can a Yes. true And of is lot this No, great almost in We sell everything make. question. product we

about have sell. think you And of issue we can will. you a of there a demand, backorder if machine Stellaris, if third-party we is supplier so we our microchips. And Every make,

And that incredibly generation qualify rely next and as innovate supplies to on chips doesn't working those the chips. from but as alternative build to a look so source we're hard those also specific for vendor, well

but being bit lot work suppliers of that, done it's a a -- there's at third-party so And around of the mercy we're of processors.

that with those challenge supply the types that's just when of challenges types a issues -- example dealing we're supply with around -- are so the great say And we're the of a world. I

ability And I confidence and of else time, up in stronger those in solved, well. a we'd will, you'd we most we have more put lot Anything guidance perhaps add, Sam? as a to so think had our we if

Sam Eldessouky

it well, I covered think No, Brent. you

one why chain, through. they out the inventory are supply trying refer increase say where we're how buys I a add why yes, of things QX, trying that working we when And we're an the as the through team working so to volatility that you I had see do still the saw secure really X% like to but -- -- that would working that about demand while we -- we're is growth I you about because and element the through, in think our of is where And that backlog will can. that of to equipment, we or and that's buying, spot sort the called to there's of just the you of our

Brent Saunders

I It have is there's strong issues, and product. to our But the positive the goes beyond Yes. Surgical. solve news also we for demand these mean, for opportunity. that's

I'm on So it's it, focused through complex, we're but it. and very working

Cecilia Furlong

you through the and NOVXX, assuming question. Great. the I investment of you taking of how decision cadence, as in terms of positive the XQ in up product June? about thinking supporting getting balance comments formularies, And really if on well, the reimbursement, just it's some for what launch you're we around you the just think around talked year a whether to side how Thank launches. was could in reflected should about follow about speak that Can

Brent Saunders

Yes.

look, first think clearly So quarter. there I some was expense in the

the it's this continue any and probably of in PDUFA I think dates second launch It's any -- the product at of it year. product will space fall. starts real be The early end not launch the into the in in hard dead to June, ramp the really of to summer.

and around. want You be to doctors ophthalmologists

of you the this want talk else for the the Sam? don't a about anything given it, of us. think know, to as So opportunity huge date. launch But it's I September, full PDUFA do more October product for

Sam Eldessouky

June, it the you to will be launch. for also think seeing we're team launch that's will year, said, it there It ramp in -- -- team Once half of spend the like in to I true. I getting support up continue -- ready but first up to the commercial go afterwards. the No, will launch ramps the

right a is launch. focus our now So main successful

successful. I need make an that we it's think launch whatever behind sure doing from investment we're So to

Operator

for question, time have at America. of Bijou last and one We it Bank from Craig comes

Craig Bijou

guys. morning, Thanks Good taking the for question.

management Daily as of SiHy, IOLs highlighted wanted a a or opportunity. I start growth So for prior with to along area kind potential premium

that in, love then on as + and hear the couple you positioned specifically And market to over follow-up see that the Brent, you you have of is in Lomb a years. So EBITDA. how Bausch opportunities next do step would then think there I

Brent Saunders

Yes.

the market demographics cataract more. or a many. for And of right? are great the is favorable continue disease It's aging a next market, decade So or It will to several It's a grow. inevitable. over quite years the

that to area it's more success is specifically So an Surgical the and to our of business. important Bausch + Lomb

at to look you And that is this you strong offering When just Also, need a offerings across ramp the offerings, from ability we to incredibly look some technology. line. positive. there, to in the really expand early and deal platform, we manufacture our set a customers at have our is to reception we lenses. new supply of when bring those But as side, continue premium great the particularly did and we a

and direction. lenses the in we're the think moving in of I creating innovation need depth focus But the extended to on trifocals, So like. process. continue right focus to We is

a externally lot there's here think I of innovation as well.

on IOL just so to our premium constant And portfolio keep down got in up quarter. heads it. was we've The keep currencies focused the and in XX% about

it. We you'd we Sam, that product harder point proof anything just that? and a it to more need that's with think to add drive I look. So can do

Craig Bijou

it. EBITDA. it. Got Got On

Brent, leveraging the your infrastructure. comments profitable I So appreciate on growth,

you're I about we 'XX drive years? years, how to over for last year, to those I but not changed margin should guidance how that in at out So or think should going ability And message the your relative about the think what to been out provide know the has has all? is, question the guess expansion we --

Brent Saunders

year. a I you as said, That good guys much XX had massive margin opportunity we stuff. have for this guidance being business, me I'm straight days in, reacquainted to at this sure Look, this with Yes. make for you, Look, pretty a we I about tell expansion. shooter out-year get think can I wanted

sure feet ground. not you bit on Give get next I'm to more give the for me a my yet. I'm So year just ready little to time

has think That right? in We investment the and out the about the this being easiest everywhere. made, infrastructure a said, been really to way it massive I is look have presence all at building way

a four We force unique across have different field global businesses.

ECP world We have relationships made. around were with the right? the investments So imaginable, every significant

get and Bausch we expansion, this more to + We've should question Lomb right? do expand more naturally. channel, if how get margins do that's put And product the The call through And very through you is key. flow to very so got that, that this. quickly you right,

me, And that's massive to so the opportunity.

about to It it a such it's or massive point put I is a end so dynamic there, a us year I don't to -- can't this with see we makes on in, being all last have it. grow days to things can't opportunity is an profitably, this on. to good exact industry. so, seize do smartly. But And opportunities, the maybe We'll just choices those on frankly, see. guess I may it's this the longer. right, I question, how business XX That's excited here. date have what take me -- and to so I opportunity you our multiple want

Craig Bijou

Thanks.

Brent Saunders

here. to us. a I just thanking everyone Q&A. remarks believe, joining super comment excited of be the I the closing or Well, operator that concludes would for add I'm

I feet are interacted look I ground, keeping some exciting. and to over forward updated just get and be, on touch haven't we to that And hopefully, go. to Craig, I think know I getting will time opportunities you better as and time. mentioned real give in just my as the the we to with me But staying those

for this again time you thank your So morning.

Operator

conference concluded. Thank presentation. The now for has attending today's you

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Bausch + Lomb (BLCO) 3 May 232023 Q1 Earnings call transcript