Bausch + Lomb Corporation ((BLCO)) has held its Q1 earnings call. Read on for the main highlights of the call.
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Bausch + Lomb Corporation’s recent earnings call painted a picture of both robust growth and significant challenges. The company reported strong performance in its Vision Care and Surgical segments, with the MIEBO product line showing impressive results. However, issues in the Pharmaceuticals segment, a recall of enVista IOLs, and potential tariff impacts were notable concerns. Despite these hurdles, the company’s diverse portfolio and proactive strategies suggest resilience.
Vision Care Revenue Growth
The Vision Care segment saw a 5% increase in first-quarter revenue, driven by consumer and contact lenses. Notably, the Daily SiHy contact lenses achieved a remarkable 42% constant currency revenue growth, underscoring the segment’s vitality.
Surgical Segment Growth
The Surgical segment experienced an 11% revenue increase, with growth across all three surgical product categories. Premium IOLs led the charge with a 77% growth, primarily driven by the enVista line.
Strong Performance of MIEBO
MIEBO delivered $57 million in revenue for Q1, marking an 8% sequential growth and over 100% year-over-year growth, highlighting its strong market performance.
Consumer Brand Growth
The Blink family of products, including eye drops and supplements, reported an 84% revenue growth year-over-year, while LUMIFY grew by 9% in the quarter, showcasing the strength of Bausch + Lomb’s consumer brands.
Mid-Single-Digit Revenue Growth
Bausch + Lomb demonstrated resilience with mid-single-digit constant currency revenue growth in the first quarter, reflecting stability across all reporting segments.
Pharmaceuticals Setback
The Pharmaceuticals segment faced challenges due to underperformance in the high-margin U.S. Generics business and XIIDRA revenue headwinds, impacting overall performance.
Voluntary Recall of enVista IOLs
The recall of enVista intraocular lenses due to a toxic anterior segment syndrome (TASS) signal posed challenges, though the issue was resolved swiftly, minimizing long-term impact.
Tariff Challenges
The evolving tariff landscape, especially with China, presents challenges, with potential tariffs impacting adjusted EBITDA margin by approximately 120 basis points in 2025.
U.S. Generics Revenue Decline
The U.S. Generics business saw a 23% decline in the quarter, attributed to increased competition and lower inventory levels within the channel.
Forward-Looking Guidance
In its forward-looking guidance, Bausch + Lomb updated its full-year revenue expectations for 2025 to a range of $5 billion to $5.1 billion, reflecting a constant currency growth of 4.5% to 6.5%. Adjusted EBITDA guidance was set between $850 million and $900 million. The company also addressed the impact of the enVista recall, estimating a one-time revenue headwind of $55 million and $65 million to adjusted EBITDA. Despite challenges, the company remains optimistic about its growth trajectory.
In conclusion, Bausch + Lomb’s earnings call revealed a company navigating both growth and challenges. While the Vision Care and Surgical segments, along with MIEBO, showcased strong performance, setbacks in the Pharmaceuticals segment and external challenges like tariffs and recalls posed hurdles. Nevertheless, the company’s forward-looking guidance and strategic measures indicate a resilient path forward.
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