Bausch + Lomb (BLCO) 22 Feb 232022 Q4 Earnings call transcript

Good morning, and welcome to Bausch + Lomb's Fourth Quarter 2022 Earnings Call. All participants will be in a listen-only mode. [Operator instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Mr. Shannon. Art ahead. go Please

Mr. much. and everyone, results full today's Executive Participating very Officer, Chief our Sam Mr. conference welcome fourth on Eldessouky. Officer, Chief are quarter year call Papa; Good you and and Financial morning, to call. Joe Thank XXXX financial

of today. but Chief address will Executive Board Q&A Chair Saunders, Brent during of and incoming Mr. will call not Additionally, the the Officer Directors, provide remarks,

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

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

With to to that, it's turn my over Joe. pleasure the call

Thank you, for everyone, and you, thank Art, joining us today.

Bausch for Chief Bausch track that words. Bausch is the of few to company's have skills say few experience today the Before he am Executive results, and as record become like next with a last lead history. Lomb's like healthcare this I about I words us + years, industry a invite and XXXX. long announcement Lomb in many on to we and week's to has here to time the leader, Brent March say as a is esteemed into Brent will + personally get I'd him at right and known Lomb to Xth. pivotal + from Officer Brent XXXX confident CEO that Saunders I'd including a Brent

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you, those kind I words. Thank Brent. appreciate

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Now detail the in quarter let's and financial will today's year our for outlook. begin update on fourth full an review agenda Eldessouky, a come highlights. review results of XXXX process to and call. separation brief then with our CFO, the will the the and discuss I Sam

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potential XXXX the investment May have Stock separation the to XXXX. registration the IPO as to in was expansion sheet see and After business. over made on X, on completed we We balance filing York and launching began Exchanges process. expect long-term, flexibility company expand trading a we progress our New and margin the roadshow, statement towards continue of and completion to Substantial the the in public the Toronto

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seventh organic highlights growth. making organically full to the by On A quarter for Slide XXXX the this and consecutive cover. grew of few our our year in X% X, fourth revenue quarter,

grew to momentum that Ocuvite share portfolios. And year. grew Ocuvite market grew to by by franchise basis revenue prior year. to Biotrue the PreserVision U.S. also XXXX market points, and continued respectively, and XX% share compared and the Reported in key First, of XX% in by XXX XXXX. prior are Reported XXX XXX XXXX revenue solutions pleased by versus we grew of and the basis points in report PreserVision compared

redness U.S. category Next, reached weekly investment in categories. has fast-growing XX%. market reliever share in LUMIFY's the

daily and grew countries launches toric signs recently and acquired for launch seeing a XXXX have SiHy lenses we XX% in in XX in are XXXX. and by XXXX, for we our We additional in rights LUMIFY. an early towards are Reported multifocal and revenue Canada, strong of working

treatment in licensing albeit May adding glaucoma category distribution transaction, and IPO and our for product acquisitions XXXX, we expansion, new AcuFocus have upcoming surgical completed including discuss we six transactions, small agreement more since minimally our catalysts. or invasive cover the intraocular These transactions lens, a portfolio, I'll our the when Apthera Finally, premium expanded in Sanoculis which IC-X detail acquisition. surgical

new with To geo XXXX. great of summarize, in mid-single-digit including rate B&L thanks to and effort. grew a VYZULTA. organic XXXX, LUMIFY In and revenue addition, we REVIVE, launched growth six along in team We expansion products at our our XIPERE a

challenging Our we have conditions, and durability in R&D to key acquisitions demonstrated brands expedite through growth. future strategic investments their and making our bolt-on are economic

Slide X. Turning to

we're latest our XXXX. delivered guidance them along to targets XXXX say in have assumptions that with for guidance underlying key have We our against provided we and pleased

that, the to financial to And more the detail. call Sam I will results in with turn over cover

Joe. Thank you,

talk details, to revenue the a when divestitures organic get into remove and listeners the we Before remind we we currency discontinuations. constant adjusted acquisitions, on of the basis I mean impact that growth, will about

Turning now to our financial results on X. Slide

care quarter business and Our in continued fourth our momentum of fourth Throughout organically eye and platform. of quarter company driven seventh of million durability grew quarter, diversified of consecutive Total the our growth. organic X% strength revenue marked the consistent XXXX, of our predictable diverse organic portfolio. the growth, deliver by demonstrate results the by continue our to consolidated $XXX revenue we

demonstrated organically last following growth solid downturn of $X.XXX of full the in The company For each revenue business COVID now billion by two grew X%. year, has in the also the years XXXX. total organic

in organic across three second portfolio broad-based quarter was our up us fourth The growth X%; have This up perform growth on Care each saw which market volatility. consecutive of established headwinds segments, despite where the we strong enabled our OpthoRx reflects to segments: durable Surgical quarter and up X%; X%. Vision a we macroeconomic

in We have volatility continued see foreign to exchange.

was by negatively revenue Adjusted million million. fourth approximately in headwinds EBITDA the quarter. FX the quarter, impacted $XX approximately by During impacted $XX

a in consumer by changes are towards reopening. encouraged the We the full and sentiment policy COVID China

stop the rising parts in the quarter of mobility cases the QX highlighted in the we However, the later throughout seen and go have nature the of restriction have and early part number the of year.

conditions COVID top points XXX to full the economic evolved. points country's and in for fourth policies in year impacted were quarter basis results Our as China the the line basis by negatively due XXX

continue to that the of We market the monitor to stable path a return will time. and has over to we China now growth the pace believe recovery a

by year position key reliever the up full quarter, strong Total X% market the redness in consumer brands. Care segment portfolio a $X.XXX was grew revenue leadership let's growth discuss continued the XXXX in was organically, in results QX LUMIFY year-over-year. franchises. strategic in in $XXX billion, XX% The its X% market of brand the reported our revenue fourth with each approximately Vision million revenue the QX, for category. Now segments. of up achieved in driven and organically our momentum and share XX% our in by

on We track. in to off line and extensions execute brand. strong grow The and to continue Canada expansion are geo is LUMIFY strategy launch for plans our to a the start, our

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We expect of the our continue our and momentum. launch to PreserVision, recent PreserVision, OCUSorb, CoQXX, of upcoming launch

advance pressure and to continue faced the to pricing we brand innovation, and to in inflation and prioritize strategy, changes fundamental strong able reward have higher uncertainty, quarters. leverage we segment. brands broad from the have in been potential seen volume consumers to we our While not dynamic consumer pricing Consumers economic our coming have on execute and continue the to expect equity trusted

expected our the expectations, and expedite we recently We're our saw to XX% reaccelerated production, QX, strong also backend output contact to to continued Reported basis. forward prior ramp-up a from experienced. in continue demand. grew the growth in We see year in franchises. XX% increased have key in we of that Daily than by portfolio market expect the to SiHy lower fourth towards with lens and quarter our sequential which activities to versus output is the the following increase production going meet a on continuing Revenue revenue line

multifocal We our to to are U.S. launch the XXXX. in accelerate also potentially in forward momentum looking

and the Lomb + reported the basis. ONEday Ultra And in by on from in more to have indexed lens sales X% Biotrue of X%. on up the we was was fourth revenue Bausch U.S. growth the market. continues from In quarter are lenses flat where grew contact a and grew organically. recovery by basis more impact international X% organically portfolio, on nature quarter China a the by X% to reported The pronounced organic quarter, X% China dynamic grew organically in Revenue a our and heavily

global about for year. both the the quarter Excluding X%, China, and for full lens portfolio by organically grew the

XX% X% organically. Moving IOLs. segment. $XXX now of premium grew was by an the organically driven and quarter quarter, Implantables by Surgical in million, the fourth revenue to Fourth increase standard

lens. We expect to The franchise, and continue in as us our Envista expands. an a offering IOL and to premium we're increasing priority see contribution category for seeing we momentum is product from continue LuxSmart premium growth our premium strategic IOL our

in demand for the quarter, procedures. organically, in the consumables saw cataract driven also continue X% an We increase up mainly retina our and by

organically Our revenue in equipment X% approximately was the quarter. down

system. We especially our see market continue to strong demand, for Stellaris

However, components. growth of was availability impacted of by supply certain

in substantial in continued the organically in secondary recover from constraints by we growth by driven certain the markets The an strong expect components by the We work Overall, procedures through quarters. grew are by of Surgical and coming backlog mitigating consumables and have spot XXXX throughout the segment vendors buying COVID. XXXX, supply implantables. X% improvement and created to the

the capacity. be for tailwind to expect continue as volume and to some the We procedure manages staffing market a backlog time constraints

the this of million earlier announced with in IOL IOL portfolio. was acquisition we year, of $XX quarter portfolio category. in Finally, in which cash was AcuFocus technology in to and surgical our funded hand. Approximately premium allows to build paid breakthrough acquisition IOL on This beginning brings of was XXXX. The AcuFocus the us the first our year launched the this cash

in not anticipate XXXX. have to expect it do material will on results the our impact we While revenue contribution financial over a we time, grow do

VYZULTA growth of driven grew XX% and by we by in portfolio. expansion the in in organic Turkey the strategy and in U.S. were Middle continued geo X% Last, launching East. segment by revenues the fourth $XXX our quarter, million, Brazil, TRxs representing OpthoRx

approaching XIPERE's commercial the continuing Canada. we anniversary first have generics our are portfolio, We're date in and of We are launch within NOVXX. for U.S. towards actively we June supply the capitalizing PDUFA the progress comparator issues XIPERE and on of to XX in filed U.S.,

to COVID creates We seen expect the parts NOVXX business, China in XXXX XXXX. of the our portfolio. late growth investments the LOEs mostly expect fourth earlier third in headwind level to during a in we do and in of in our LOE impacted incremental other related which international full growth. impact also headwinds launch have was for Similar the activities significant portfolio, by XXXX, have to the revenue in future ophthalmology throughout to the position of We optimal increasing support B&L we the quarters a recovery impact parts optho the Prolensa for segment but year the Growth will XXXX. LOE expect not to with

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

of required the not gross reminder, meet to given the change The secondary the including approximately by the supply IPO, a quarter fully limited XXXX associated shipping As XXXX. with buying margin availability results gross from the headwinds, decrease separation. QX XX%, was the costs of to with standalone compared in Adjusted all and margin a energy, was cost of XXX points timing burdened for by higher that driven were of macro spot labor demand. along vendors pockets market basis

to growth target led in track which quarter. us The margin output SiHy Fourth substantially cost accelerating quarter XXXX. approximately gross was incremental to to output also Daily previously improved latter SiHy of the related is enabled $X of and to Daily production third we the $XX XX% million the levels Daily in of for QX, lenses. amount SiHy revenue estimated part our reach be impacted by sequential to on addition the ramp-up an This million in production

the expect accelerate in and Daily output, of an beyond. launch the important for geographic the XXXX we planned the to multifocal to continue catalyst expansion production be planned lens, and we growth As SiHy execute our

the was Daily The year-over-year. impact adjusted the margin in SG&A quarter by EBITDA the was SiHy an incremental million strategy headwinds accelerate quarter, In approximately pipeline related accelerating fourth EBITDA investment impacted adjusted Fourth in was $XX mainly including to gross million R&D million. adjusted and of our $XXX to $X $X headwinds, currency flat production. QX million,

our also disciplined While a reduce value-enhancing by operating we steps approach investment we cost activities, continue prioritize to in taking have costs. to maintained

our build global portfolio maintain we our and term, infrastructure. premium scale, by strategy expansion product margin continuing in launches longer investing drive to the leveraging our to our of Over products, expanding

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

balance to supply on flow Moving chain million. was bringing throughout million the inventory cash of and Adjusted flow full XX. impact quarter, flow cash disruptions. fourth sheet the from cash operations mitigate potential summary Slide to to on $XXX includes build the This in $XXX strategic XXXX adjusted year

was the year CapEx quarter CapEx $XXX Fourth full million. million, to $XX bringing

outstanding equates $X.XXX which of ratio billion, to net Our is X.XX times. a debt leverage

means of the November under BHC, this unrestricted subject We view is B&L As as debt debt. Joe announced to the an no BHC's step became expected operation. full which that mentioned, XX, subsidiary positive outstanding towards B&L on covenants Health Bausch a longer

million. Total $XXX was interest for expense XXXX

the was Our quarter for $XX interest expense fourth million. approximately

million XXXX. expense be reflects year full rate interest expect We The environment. to approximately in the for interest expense $XXX rising interest increase a

variable separation capital X.XX%. As to BHC, plus debt a and reminder, Upon interim transition rate have in an of we longer-term expense at plan with a full structure. a refinance to interest structure from we SOFR capital place our

and more As potentially we of lower a favorable profile debt. to a have credit standalone company, expect cost

Year-end restricted million. $XXX was cash cash and cash equivalents, and

revolver we undrawn today. year-end, the have had no of and of revolver $XXX million We as under at borrowings

We are the strong to flexibility confident in opportunities. sheet flow, and pursue which us value-enhancing investment gives cash our balance

our Finally, rate tax X% to tax XXXX we XXXX. for and rate adjusted adjusted be X.XX%, in was roughly expect our

now Slide Turning to XX.

week's last CEO provide that Brent transitions planning This when report to opportunity his give outlook to earnings. we on role. year input March our announcement quarter are we once become XXXX financial go-forward into and new Brent strategy full the first our X, provide will Saunders Given he will new guidance on our

share will XXXX. our for first some the color quarter Today, I of on expectations

revenue to expect the in eye organic with be line QX care XXXX overall growth market We growth.

an expect providing full year guidance we at not consideration. While quarterly would time, phasing note we're this to be that important we

macro gross first driven by recovery expect lower headwinds, to than China pressure. quarter mainly of in We pace XXXX, factors to and margin be currency the the QX leading

headwinds exchange first anticipate revenue million. $XX approximately FX current we on quarter rates, by Based to

We in $XX EBITDA headwinds adjusted to expect approximately also million QX. of

margin built first the half through in on the of P&L, flows XXXX will XXXX. as we gross inventory in it cost The higher mainly pressure increase

standalone to XXXX, be higher QX the rate full XXXX the first be timing interest in basis also million are in Keep reported basis IPO XXXX entity. gross not not the comparability XXX does points due May and by mind B&L the QX XXXX than prepared operations Along quarter in The in taxes We expect lower a of mainly $XX to inventory. margin B&L run the standalone of XXXX the the prior lines, the first B&L and were the will our same between quarter. the in cost statements of reflect incremental and do approximately first reflect financial costs as quarter financial adjusted impacted statements expense XXXX to that These IPO. costs. fully approximately

In with pleased summary, in overall of the continue than more in to which revenue performance we was to at we're excited end of XXXX products our X% the market eye organic high guidance The growth, and XX range. be strong, our care XXXX. launch are fundamentals

expect it focus a on to throughout future support NOVXX activities investment with accelerating incremental the position and for our third We the XXXX key growth. quarters in to optimal fourth during launch

We XXXX look forward guidance for report when year providing our to first we our full results. quarter

you, to back Joe. Now

Thank the care share, planning brand phenomenal B&L reported of with redness geographically with Lumify this recommended to our expand catalysts approximately extensions. market $XXX power will are prior you, in product. the success million through upcoming physician In established the of is And Sam. Slide growth brand fully line anticipating. platform, weekly are the some XX, XX% Lumify the reliever one we integrated year. XX% revenue eye and we the now plus a using strong, the category building number is on the a compared of U.S., in XXXX on On I to comment of

XX the and launched recently six Lumify countries. in for countries, is acquired additional now rights we

products beauty the expanding and natural In addition to eye help care eyes’ sensitive we line of to planned, the the eye markets, beauty, scientifically number XXXX. into for in a expansion have new developed a quarter including area of expect a we're specialty to geographic to Lumify's new which enhance first positioning launch

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line. fourth reported at by from due revenue XX% reported the in of XXXX, quarter to work to to Looking a increase quarter great XX% XXXX, to including pleased compared growth revenue we fourth output back XXXX, our compared supply are report manufacturing to chain growth the our

the growth U.S. lens significant not is of competitive resulting sourced as the cannibalization Importantly, are are XX% from spherical starts the seeing lenses. in in we

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this acquisition B&L. is From perspective, synergistic fit a for our

U.S. our first First, with a in the gap us EDOF lens providing in by it our fills portfolio

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IOL premium expansion portfolio On geographic Slide launches. of XX, the and of timing upcoming we expected show the the ongoing IOL our

by these Pacific EU, the is Our premium near-term North the launching on followed IOLs Asia focus in and region. America

preparing in launch IC-X®Apthera to EU Aspire, expected monofocal range we XXXX. launch for Lomb in XXXX enVista the are In IOL, by Bausch anticipated IOL of is which ongoing, the and extended the launch the the the the + addition U.S. followed Canada of U.S.

Bausch We further anticipated launch are strategy the our EU and + Trifocal XXXX States, Envy, enVista grow the in the to Lomb also the United planning as IOL we of for higher-margin in categories. the Canada

now Turning to Slide XX.

XXXX NOVXX, now by date first-in-class earlier, a launch treatment with we FDA, dysfunction. for As XXXX. associated a in potential If have for eye we June the NOVXX we half to the second PDUFA dry gland disease of mentioned approved expect meibomian

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the eye market and that our has a to studies, dry two Given the driver growth of X we for believe business. NOVXX Phase major disease be treatment the the future for potential results current

outlined opportunities we high On have the Slide margin XX, in growth, categories. we have high

opportunity a for care, vision and in lines our key expansion we to franchises. First, are product geo pursuing our product adding well-known

and VYZULTA premium in poised In we in our to Opto premium IOLs our launching and and are Rx investments categories are and expanding XIPERE, we NOVXX. of Surgical, the grow like And products, technological portfolio to portfolio. that the high-margin shifting are advancements business, launches pharmaceutical

work the this we've strategically supported our strategy, our to deployed M&A gaps. which of All and enhance is fill by portfolio

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Slide strong wrap continuing is To and on demonstrate up results to year our fourth that XXXX business full our XX, quarter performance. deliver Number

remains to in categories team Our into focused continuing categories. expanding new fast-growing on products, investing and generate in momentum our key product

positioned believe I success Bausch well ahead, + Looking continue standalone, as health is Lomb that to for a pure-play, eye company.

the XX,XXX-plus Lomb senior the in best hands Bausch future. of leader, all and the Brett, And the and employees leadership + I finally, I'm in team an grateful that I'm company wish the incredible leaving the of

up With questions. line that, operator, let's the for open

Thank you very much.

will Thank Instructions] [Operator We question-answer-session. you. begin the

Craig, your Bijou from coming Craig is line America. question of is first live. Your Bank of

Thanks taking morning guys. the Good questions. for

margin XXXX. relative that headwinds XXXX? to get in walk have EBITDA But then year. And where looking ability of QX. takes and you through in some to I going ended macro to not headwinds margin EBITDA the about an you're in the seeing, to And – I do And obviously, had you maybe providing me want some for ask Sam, Let full you guess, of that can guidance the XXXX better. you're at headwinds, if margin the you still going they're expand affect the kind are to puts

good Very morning.

the what we've have QX quarter seven that steps which XXXX our especially parts stepping here back way. businesses, remarks that Also, growth our factor around And through organic we to and immediate the the I the line just growth our and Opto have to done are seeing and highlighted how them business. three the we've focus consecutive one pivoted of And that NOVXX have top from now NOVXX. and was So because that that's launch IPO our of all and in growth. to drive seen outlined here. seen morning of in positioning let from got road important business in a we durable is consistent second maybe question map P&L quarters the what the different seen this looking we my and PDUFA we is was after next was as about consecutive segments And highlight that you on you've think continue of an And growing. XXXX, that, take LOE communicated standalone me or to we more moved for coming in discussions what at of we

there is margin we margin progresses about a our about when number you as of go us Now for forward. think we how think levers where and

in, behind we our our really to in one more bring able give to First also really IOL, category. of the very acquisition with portfolio we're about, Europe. which And was that taken Lens very come in will premium we completed of be We've shift a us be R&D in the to forward pronounced in that which steps U.S. introduce able the a seen IOL And we've more is business. our in of expect to to expedite our XXXX. premium in another spent pipeline opportunity be IOL. premium the able and XXXX to XXXX surgical excited We've go own to also, AcuFocus, It's to Smart the

we've talked seen SiHy. quite we up taken was building we've And the about scale lens our in November, a daily we behind that bit in output to business through XXXX with put actually other and where to and although And also lever scale. And that be. spend the the our that the we it earnings to the the did that in focus challenges get did have want last steps call able our to it be to output spoke we I

demand. we market QX, So growth nice very encouraging. that And between seeing and seen we've end a QX output that are our that's meeting XX% something that's improvement really sequential and

the for us well scale So about we're we and stuff that multifocal of seeing for launch position and moving up think building as the in forward Infuse subsequently, U.S. the very XXXX

which we piece, NOVXX our about very already a And for growth. pivoting of Opto critical part story pharmaceutical last excited the position to able the of talk second we did NOVXX the have successful is in XXXX. be the launch position a We to then we're invest is behind sort forward. I And that of sort go and think it half to But business. is as for the will we'll part on for a launch,

want way cost of a of go a is on we and the on secure cost will a factor gross seen throughout different pressure utility seen chain against we've but QX forward. inventory just XXXX. And work call margin let the will the XXXX, think to how in of the as of and for maybe about terms costs. gross to in on we that a pressure shipping to In just you between have work which fair through constraints, both highlighted short-term spill the XXXX, supply play have QX that through QX, give will of And all things we've margin. it over pieces that part its we've I'll able QX and we labor, and be be us three. to couple of We've seen, built amount a of its way we margin. of that That's inflation inventory into expect I short-term I

our positive Sam agree example, the output supply operational has our that add equipment on improve. I SiHy over In SiHy the By all better piece teams it. about that other said thing and new chain it to I any will they know time, maybe time. absolutely we get XX%, some at year capital validated, yield one But everything yields installed of point are two in with a the of get that it team ramping A like and Maybe said. of XX% dailies, I'd is on of last of point. XX%. just may year will is believe over three, they simple out like efficiency XX%, you Yes. we equipment, up. that, above only The

has your the XXXX also time, to – efficiency not that that question operational time, right and help in but beyond. to us the over will that terms comments add over of So will also suggest Sam to now, not trying of I'm

offset those for half offset second I that, positives first the positives or we on guys. half expansion does can negatives that of that so up some the following in – some some Just of negatives the the pressures – see mean, and of year? the the maybe so full the

levers And way think it's I we'll would in about terms first mind the for I more not will year to, in spoke out. play those full But have give of they they Craig, guidance keep all to XXXX. Yes. important quarter, the actually are when linear to this say on how that the of in that we

they we think So I in the over time, will said past. plant as

NOVXX to I to an we'll launch. I forward comments we going are did see on terms be it in just into think back accelerate behind this we NOVXX launch. in go is make you would part NOVXX. sure that my XXXX. that is remarks of I that other point the And as we spend making important the to the again, morning that

our… have we operator Okay

for the Thanks all color.

Thank you.

Joe. Sorry,

question next Operator please.

Your is question Morgan of Cecilia line Cecilia next coming Furlong your is live. Stanley. from

Great. for the stated wanted grow for you and taking QX ask line And thank questions. Good your market. in underlying I to just with the assumptions morning. expectations to

in How we thinking from the you're cata. China XXXX. talk just as about about versus about you're of could the any daily SiHy the If thinking in overall XXXX and first recovery your growth SiHy there, backlogs the also market impact growth then you how And surgical, relative saw in just some that about quarter? thinking you're

growth. our think digits. So let me growth mid-single about We about is – question, think the market the part your take as market roughly first about always of we the

our it perspective. So from we about that's how think

well. I that everyone there's as different points and look the data at points same looks at think probably we that data

So think think probably we the about to mid-single digits good is way a it.

we're a step in forward. of of pleased thus terms you with think China what move far we in very reopening. we've very positive as seen terms it's In And China,

look how sort opening. complete and full you at lock process of the step back However, you restrictions when in a to China a down from shifted

reopening look to place. other to a have U.S. after probably of COVID see as or in the the took Europe, you actually parts proxy like You how where places

of in educate well that labor time. rise potential care that in would indicators impacts us as in health Also, special – why the and quantity understanding as result it shortages in the result of And more does on terms in China. system within

short-term we a we will So start to XXXX. be to we probably, that pressure QX some of expect see that in that will

gradual China early That we be forward. we also that at in expect as will in into XXXX, go part. a expect the spillover least We improvement a

long-term overall, momentum China where So we terms very think of positive it's heading. in is

the take backlog portion I'll cataracts. So for

You're It's correct. COVID. absolutely there. goes to It It exists. back

some doing catch of many probably are lost the have up. the United had of to to centers just We million XX% But attempted that shortages. I cataracts try of world think procedures. about the States, cataract order magnitude, in the staffing around They've procedures. X

and We what are we're that saying, external are we for that's there. opportunity up Sam opportunity the in clearly range, was cataract growing for sources IOL of And double-digit the seeing that saying, seeing we're looking in somewhere making are what as surgery, almost the, least that. at a terms at certainly implantable

a kind the So I backlog. on view gives of you guess that

a it's in we or real things the recession, at and we times. of recessionary happens impact have look historically of any that One times what related question the on input potential not is seen –

will think for I So going cataract But what continue exactly know that. that the don't need we certainly, will forward. surgeries happen with

of first the the I the versus was of market SiHy second about the think there's quarter question in part XXXX. the – growth

that – the was with revenue last growth quarter, his we of the up saw infuse; as fourth In we versus talked absolutely during that about kind growth quarter Sam year, our we only not fourth about XX% of had XXXX. XXXX. see the of we what continuing said versus SiHy comments, in we As we terms growth our saw XX%

we we've So and demand the what giving all-day electrolyte infused on continue osmoprotectants do and dailies for especially tremendous SiHy with our to infuse by see able patients based formulation into new to comfort. been putting

strong and see continued daily for to market. expect the our for We entire demand SiHy infused

Thank taking you the for question.

Operator, question next please.

Thank you.

Matt from your Barclays. live. question of line Matt is next Your Miksic coming is

thinking maybe year, how that's much on about about consideration? on a question then what the year, us costs inflationary outlook. a you're outlook on outlook of part the that longer-term question. understanding of line then give componentry full or takes so sense new QX, bigger and And just Thanks Hi. see variables and for a bit on do the of you're the terms in Or year a could you're a you and of the Wondering if construction had providing follow-up. thinking talking a a I top cadence only some sort of guide headwinds in you top line of question this I as just the bottom of assume have I some for line? the of and of the but X top are puts color

Brent, as and going our as of of into the Let terms to are it we take chance Obviously, and want everyone really joining me all March get X. hit give, understands – numbers process. same company about to that obviously, the until May on started we're then wait and really why can hope the CEO We the forth we a week in just that first the putting I'll just you I the last some part announced variables. things to Brent Saunders the

do this take So importantly, were he companies, of beneficial right that has both and to more with with it clearly in the is have to person comes that, past we'll gives but chance also talk to but of and history we B&L. working knowledge a him much a the chance other with May, believe very role on

So, the we think it's person. clearly right

outlook, and some little a talk you about don't more the bit why takes of puts Sam, on that. the But

Care morning we've with extensions consumer the within business. business. seen in and really do in do our And well of will a growth consumer you I'll segment, seen expansion Care as line as when think good rates segment think And top both the and we've here. Vision Sure. of brands consumer terms Vision think progress what a expectation just different in that three we from from the is big Maybe segments And all start and our our Matt. the I of good it the about about part line

We've you with go forward to expect nice as very seen So that very who nicely is us growth we've in And LUMIFY see you into also continue demonstrate got momentum you to carry Ocuvite, that XXXX. PreserVision going XXXX. XXXX. throughout

From a but daily think nice both and Biotrue. talk lot ULTRA a is the in they also I we highlight seeing length base perspective, – all growth well. we're are brands SiHy, about they're the as probably And

that three you both that sequential XX% or on all So And about our I different we've think it, when seen in that of business. the rehighlighted growth, growth families have lens side the brands start we second market because you're the SiHy it's and output because meeting the was end with we in have XXXX thinking demand about half. factor, seeing did challenge how – we're the you an important the

with chain So we're able nice supply be fantastic back a job to us need we able really where to to have a team job to the do get to be. done

well very actually as And up for we're now, and position we're XXXX go ramping – us demand right that forward. we

expect surgical Joe call procedures the earlier in that backlog the And will made nicely with about XX% have and portfolio surgical think growing you when is staying the really of it, been front, And XXXX. surgical the comments continue. that implantables I'll regarding very parts the On IOLs. those two and between about, we

the supply the are of in constraints number front, remarks. I On working my in down we've XXXX. highlighted equipment that seen the But think I we through

gradually as improve we think to that will I forward. continue go

the between on them, well. to perform business balance, you'll overall expect that surgical we you'll the see two continue just of So see to pretty

one, very And year to really, We're then last we from again, in a for the last it's – ophthalmology going terms is ophthalmology. And an launched XIPERE pivoting really story of year. it's investment be the the good LOE.

between the expanding forward second with and expansion, geo that half of focused We beyond the launch in more on a to push VYZULTA XIPERE NOVXX expanding we're on and XXXX. are now

particular. you've about take we large the towards how a IOLs premium that things, relative on as That's of a follow-up U.S. surgical market is launches those talked that growth, to impact in two sort And see in then the little margins, super importantly, in also do positioning a you helpful. One of your guess. I to about the end year. some competitors of yourselves but been just as share think the behind of cadence I you the guess, and and the in on in bit

achieve what's then start do where through – that through the the things what's benefit in strategy lift that product mix? margin Or some a your to we these differentiation to And of the is So you to mid-XXXX, XXXX, of coming or of hope these particular? of margin the that products? see the late edge the what's Thanks. cadence

at I But Yes. premium that with KOLs very acquiring seen And comes I'll marketplace. to we we and down to I bring have we've far, one, launch start and will caveat with think that early, we're these AcuFocus, think new where very just IOLs, did we've that believe that be we the that example a add but great a seen out. left Sam the The I it as we implanted to technology what the the able physicians response from the will in lenses. will so that least have specific can Number as we forward couple coming you clearly of things. is innovation. easy

that or it our over add terms to there things Central Europe, think certainly of but to thereabout. Europe, put the we're Israel example. I the Western that around thing we've XX platform. America same our done of we I portfolio, But doing I Iran. simple remind continue in X think we're then that's forth A that's outside and the Predominantly, with Lux LuxSmart like world, you or LuxSmart lot U.S. Russia, in and into Latin countries

of in clearly, margin. terms I as part the Also, think of this

lens, we'll a lens, the $XXX you $XXX somewhere not to is it, $XXX in goods cost and let's lenses that premium $X,XXX call realized the, in think to I per whereas IOLs fill are Monofocal of dramatically per somewhere different. were the the

that that help the opportunity long-term. to for going is probably that's margin So

XXXX there in delivery platform. on I starting the and assets on the the really the I but focus terms page the to AcuFocus. doing will some deck, of in thinking be on about there what additional like then we're these And have here, things give slide continued a that exact in is the But XXXX, bolting XXXX

Our + has quality Lomb. us for help have what we we Bausch with that The patients. will quality Bausch doctors view the with long strategy And are I we is Lomb + this reputation will at that relationships IOLs term. forward the led believe as help integrated over think those go us really

Sam, anything to add? want you

translates on you comments launches is when launch Matt, how And remind Yes. you, launch to on between – want of about maybe margin. previously products to I time top think what just well, And it's average, from you launch launching as meaningful you about anywhere line seeing you're months translate I where to on important that margin the behind think the depending to made to the start that where that you're start as with you're the before and it's and launching product, go XX a launch investing between because sort that to of forward impact XX for of impact you that prepare it.

Thank Great, super you. helpful.

question Operator, next please.

Certainly.

coming Your ISI. next your Evercore is question Vijay, is live. line of Kumar from Vijay

them for guys. ask upfront. taking and question. Hey Thanks my had I two-parter, I'll

First, on margins here.

something below QX. sustain the items. line or QX pretty that's pricing And expected you. Thank What Your below look here gross you When from expense, FX that's QX? are to is line? the changes assuming my at and for sequential any that big step-up second, What inflation? interest drives losses, the I a margins,

Yes.

thing When way XXXX. the QX of half about seeing and take built on I the me the a margin of let is through couple did part first in think Vijay, highlight XXXX, was that things second think is So I you're first. working seeing inventory about question the your of one margins the we're its I

You're but way just out, the XXXX, seeing higher rate. to of up at you're seeing start towards ramp the the through monitor inflation see end, that a P&L. because its And way throughout inflation played working we

So that give you're QX higher P&L, you're it and you the that in perspective. an with that margin on inventory the through and will thinking building up through start costs from inventory working as impact you

growth see There's We QX. other market line. in talked elements. top about Obviously, the you'll the

flip on forward we're that that, also ramping up in. expect giving and the data up and benefits side of the opportunity and side scale that's the we the go the margin you pressure going the with fact expect an we as ramp So of

impacts of the of half relatively USD also currencies saw all the the same we to XXXX. and direction see with unique magnitude start see the below question headwinds. part line we $XX second moving the in the the your million notable That the really we've in currency second the QX items below And what the seen was most currency direction. XXXX really the the in throughout movement in weakening the towards same happening in the all it year, not us of and currencies all regarding And USD, that in the volatility saw peak that of hitting but the not was we to QX. end in One the of of part currency that factor then start of something of line, was later same we were sort with and is

seen we've currencies moving. So different

As in you certain naturally I in P&L. our past, reminded the currencies we hedged are within

on on the across That's that the an the you will than more you start be when us see line. top impact EBITDA movements seeing in pronounced So currencies, why that does have several the to in bottom line. P&L

price markets looked go that on increases specifically is I pricing. pricing. decisions increase. were I'd our The just price impacted did inflation to selected to what contact Opto only those markets thing as our by lens business add, Vijay, take we business, XXXX, business. through take want comment that and that the made to refer most as in I Rx similar Mostly, our asked for you mid-single-digit did at consumer about did we and But we we mid-single-digit And

Now price take mid-single-digit a drops not that in our example, the of increase, business, if realize to that, line. all for we Opto please bottom

usually that, I I something line. of the Usually, Opto to half that, side, take of of does in increase Some that price whatever the about think course, bottom get goes not about I

part to question some on just the sense give that of on pricing. you So

question. one Operator, we for have time more maybe

problem. No Okay.

is Wuensch Joanne, of question is from Citi. your next coming line Joanne live. Your

good end the PDUFA and much early a it rate and very ramping and attention the that And you contributing of to of I gets appreciate needed? year not that well June at and that lot idea of may morning. how think launch? just market and NOVXX it and the launch about penetration I'm go? it in as or large looking do how as you the date in But opportunity. days be salespeople a and a is sales And will switch Thank an for may flips

the So me part first I question. with think your let of start

the opportunity here are We shows to that of eye Americans for NOVXX. especially the have dysfunction that excited. the about some data now NOVXX who millions disease, very have impact very excited dry meibomian that We disease. help dry gland We for it's think eye think we on

So will approved by excited really we're what if us. be about we for that get opportunity FDA the

managed no disease. at dry dysfunction believe of application we this think to evaporator have the have where specific of to of of an some with always disease, market evaporative there's started is the pharmaceutical dry you and think, that type already products simply part call As process XX% access We've the patients through. about working new We launches, that ramping, of time we meibomian I teams that do other somewhere in that important it know, the would relate through because today, question product the this process believe eye eye that formulary gland with about of opportunity. as the of will there's go care question

opportunity. we big So there's a think do

We says think the will that's that also clinical think Phase X position. working start data to we as gain need the on managed though We will important patients. works XX. it access, product care and formulary that work to through could is day data The But state as to that we two trials, based market early compelling.

good the about of question sales number So about of part we're We asked was Relative have you we to the actual the number the excited reps. that. actually today. feel

building working have of also do gland in capabilities. capabilities, terms from up, products. about reallocate with our KOL. key them, leaders, on But but of been We other a concept good with just meibomian not teams working very the we And will dysfunction rep course, feel the sales this opinion

we activity. see important to So it ramp We're take a about long-term, product while for lot being a very excited It it. of But a us. as up. will

Thank you very much.

everyone. Thank and for + Bausch ahead. weeks look our concludes in very a your to Lomb. several the great days call that Everyone, We forward you you Have next much day, today. talking over interest to

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

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