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

Good morning, and welcome to the Bausch + Lomb's First Quarter 2023 Earnings Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Allison Ryan. Please go ahead.

Thank you. Good morning, everyone, and welcome to our first quarter 2023 financial results conference call. are Chief call Officer, today's on Chairman Executive and Mr. Participating Mr. and Chief Saunders; Financial Brent Officer, Sam Eldessouky.

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

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

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

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

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

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Thank morning, Brent, and you, good everyone.

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

now our X. on financial Slide results Turning to

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

pace return recovery. over our We stop-and-go we spanned to across business year. In saw million saw foreign of about while expectations and $XX be positioned last EBITDA. in broad-based three and of gradual We'll currency time. recovery remain to in the the revenue optimistic to million the $XX to cautiously segments: Surgical quarter, was all last is growth with to given the the adjusted that approximately confident growth Opto Vision revenue well we China earnings call, Rx. Consistent continue our the noted and quarter, Care, stable monitor China reporting in continue the in mentioned, were we improvement Brent our headwinds economic approximately activity to As

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

lens year of the by where driven hold X% by LUMIFY, the our a demand. The by globally the mainly Canada U.S. Care stages and and successful. solution, increased the prior Eye eye franchise, Illuminations reliever million grew Biotrue Artelac, revenue currency And the share launching also revenue constant the quarter. in multipurpose a currency of the constant franchise PreserVision momentum launch beauty let's to by basis $XX category. and we driven and continued segments. on to growth in strategic has business revenue are constant contact in dry market-leading basis, $XXX on of XX% currency Vision a in platform in redness continue X% by to our the a portfolios. early The The the brand line. Revenue in the has the achieved from was in results reached Europe, leverage key expand LUMIFY now in The record brand compared grew market XX% been on consumer continue quarter. and XX% it of brand increased to by our grew Now in brands, positions. LUMIFY each basis, million consumer both discuss a a very

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

and continue our We through OCUSorb launches the by inflation will from a in reward and PreserVision our of consumers Daily a by year. launches volume key trusted growth. From franchises. encouraged continue XX% and progress currency in to and to to perspective, price constant broader believe drive by strong levels consumption support recent portfolio, performance XX% strong our lens to investments lower are the with SiHy revenue + grew appropriate dynamics we quarter, We're with expect trending Reported to the making saw the committed the brands and we quarter, as continue first will driven CoQXX in PreserVision balance we the demand. we innovation. In our macroeconomic growth market as drive to the

in of would Daily delivered daily, and which currency quarter, basis, continue grew quarter grew product U.S. We launch provide second XX%; and lens On major anticipate constant the product SiHy SofLens was the the growth to multifocal growth. catalyst The family expand by to the lens Biotrue continued our brand, legacy by the a XX%. a broad-based in families. across growth; the X% ULTRA

Moving to segment. Surgical now the

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

in includes positive We enVista IOLs. very monofocal in investor see premium launch which also franchise, of and early of the franchise toric On in our the has a currency continue basis, by the to XX% grew IOL, IC-X received has strong U.S. momentum and feedback. stages generated constant Apthera which both quarter. We're the the interest

by to onboard surgeons. The further as compared with basis, continue equipment to Stellaris the up was for X% train investments portfolio XXXX, our of demand constant driven phased system. the in Revenue quarter currency higher and by grew associates first custom to for versus demand expect QX currency constant XX% our consumables packs. make and to 'XX process mainly launch support from We a Stellaris on we

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

Europe, products pleased QX, the the the to many implement spot platform appropriate impacted B&L parts Europe. will In support U.S. of for to year. At remain China, the various pursuing progress believe XXXX, components continues a of to prices. revenue in at continue markets. including is from the remain saw make for and Surgical plan demand volatile Our strong decline the in broader various to procedures execution. anticipate by and team which mitigating to vendors We supply that we our a as SeeLuma also need we to visualization measures, will across strong, through demand secondary announce U.S. launch level, product and cataract we the by investments the recover. We're adds in This to launches in we continuing the in platform early commercial driven

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

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

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

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

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

have supply change our was challenges, margin cost XXXX. business. margin to points gross higher of by of XXXX we basis mix XX%, mainly and As gross previously product this XXXX quarter and mainly between The the results. Adjusted was in a compared of comparability for mentioned, the XX impacts inventory, in decrease driven QX pockets Surgical

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

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

investment EBITDA to approximately and adjusted approximately of rate $XX the was the Interest by inflation, million, was Additionally, for launches. In quarter impacted cost revenue. higher quarter, X% product environment. supporting shipping distribution, R&D was and rising the reflecting interest related of the in expense investment

not purposes, interest line full did comparability rate quarter our first the capital XXXX expectations the lower fully tax is For B&L for the year X%, reflect in in was in expense QX structure. XXXX. which approximately Adjusted stand-alone with

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

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

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

Turning now guidance to XX. Slide our on XXXX

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

the interim capital we to terms pipeline R&D investment our key X.XX%. rate We assumptions X% to on at variable and In R&D the interest revenue. based the our is our be approximately million The our expect underlying prioritize we'll be continue which reflects approximately with guidance, previous full enhance debt XXXX, investment R&D interest to communications, of other we of in to structure, plus anticipate spend expense of for opportunities. Consistent expense SOFR level year. accelerated in $XXX current

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

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

results the by timing will B&L between first continued and performance that with pleased in growth the for our I segments. be mentioned, IPO. Overall, keep the full As XXXX our of comparability we're year XXXX already across and mind quarter impacted

product increase Our to strategy expect I'll become turn in drivers of reflects investment launches our that XXXX important the the to support back Brent. we guidance to to now call business growth. And profitable

Sam. you, Thank

the and franchises Let's prevalence of platform believe the to dry we market, platform on be access Biotrue future key and expect unmet an our long-standing channels results. On spend a and good key eye we points, generate of with multiple Soothe, few minutes and combined benefits a as that Artelac, on integrated XX, professionals is dry broad upcoming can platform, this of on driver need. e-commerce through as will market the size large a eye leveraging sales well disease addressing relationships of approximately a drive some annual a We of catalysts patients the a of consumers eye reach with the few disease key basis. retailers and and health million reach example our primarily consumer Slide The base. a business $XXX growth given franchises and in

In potential and work first for has we this is long approximately of product. on estimated be products, an forward have addition treatments United a billion in line States. advance that defined $X growing large with treatment potential to pharmaceutical catalyst currently is eye pathway, evaporative dry to been launch to the addition looking inflammatory a we the by next in a extensions to our consumer and market, a to further which that a June along NOVXX's More as of are number specifically, this XX the for the date platform PDUFA category opportunity

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

eye into recently will launch market allergenic geographies strategy this expanding additional new scientifically LUMIFY care Eye to a hyper Our We to year, categories. rights on success by acquired This and area. the in XX countries. for developed build Illuminations, adjacent is LUMIFY the line sensitive of eye we

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

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

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

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

of demonstrating team this of address we the and offerings creative building extended variety this eye for a to show with evolution to premium lenses the surgeons can to trusted be higher-margin that IOL needs, broader of addition eye wide excellence portfolio In depth a including slide, resourceful problem and is solving, lenses. and trifocal model surgeons organization. On health their agile, our give focus relationships selling towards patient's marketing

operate with also interconnectivity issues global of the a our innovation same We the powerful, and attractive and stand infrastructure, colleagues, an products, chain categories what we like we in and today of At with and our entering clearly fast-growing and globally dedicated markets recognized digital digital a our challenges a XD gaps glaucoma part talented procedures are: health time, market. microscope SeeLuma the durable in underutilization team focusing we care closing, are our platform. In supply foundation, established to of here in the cycle. brand, EyeTELLIGENCE on new understand

with plan in the place from career I colleagues and plan growth. that led to experiences around can obstacles, overcome situations have know road turn our have I our have we we in of I efforts. to While my accelerate have faced front this into world, the reality. us, now similar we similar map support work those these a the in of

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

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

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

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

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

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

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

Vijay, of course normal the no, of didn't outside anything really business. have we

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

and see in of of timing Care tailwind offset pronounced that. impact year, of more again consumer I you'll just pricing in there's last the the specifically just this really one getting As that's benefit year, of take the Vision did the probably segment, that, pricing our And areas a of side, take in the we just -- inflation. would pricing the that. we so the But more highlight, did an reminder,

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

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

at June. date PDUFA a have of We end the

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

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

think great we have I opportunity. a

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

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

question coming Your JPMorgan. next is at Marcus from Robbie

I just here. questions. have I'll ask them upfront two both

in that's wanted growth implied EBITDA part guidance? And pieces remaining EPS? XQ P&L, imply in And do out down lot two, the are and a trying the The talk moving to there's to to on of the then you you people organic quarter. looked want about comps guidance. sales First, of through But appreciate fall to the pretty first where last kind what similar I XQ. year

new product why first with So quarter? improving, versus launches, deceleration the China

Yes.

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

And improvement. so we think to medium term, term leverage. In I create the short to tremendous the to need in that see opportunity long

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

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

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

we we're two say clarity organic again. sure and And so in, the those forward. On things with. more guidance XX growth, not would I'm move same thing. days balancing see as the probably this I have deceleration is we'll I'm comfortable just

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

of Some them hangovers are from COVID.

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

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

Brent. Thanks,

here. Let me parts take in two

first EPS. The on one

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

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

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

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

at time talk through the an provide on of for out transition element we us is interim XXXX. Keep as capital that about we incremental on of headwind will in EPS that does mind we go we the structure, the separation. did structure also, that this So

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

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

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

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

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

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

chain supply where on. And an Brent touched area is

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

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

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

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

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

Two Nice year. start to the questions.

on where is you throw What coming can mix? And land taking + the ASCRS there? a thinking contact up difference The from could then you first just I'll volume between in price, of expect I weekend. lens lay this question Lomb about out and give there. we one second sort is, Bausch the the and market, the mean us if of share are

Great.

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

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

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

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

sell to And -- and where more. need make, a we at exactly We is we Rochester can team doing basically there, we Sam be everything and both manufacture so it, what hinted manufactured we we that focus on we to higher trading is of need a lower-margin the to Waterford have to in that. need to able out, of improving what And those Biotrue, a so And great for We today. for comes right? trading those job product in work because lines, on profitability you're you're margin that out yield. with solve need continue to

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

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

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

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

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

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

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

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

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

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

to QX, infrastructure on that in more. talking year. welcome I footprint talk you could drivers I'm level adding I'll you, question you bit Look, I more the One Brent. hear you're you not with But about the to SG&A a looks just bag. think margin, Brent, be could the QX the looking was in I question a back. Maybe EBITDA One a right. your underutilization if few XX.X% the like could you for or the that of implied assume reduce times. dollar love mean Sam for flesh for that helpful. Brent, would talked about Sam. products. at actually Can the decline little you I'd and I products set the XX.X%? us about guess drivers, start about and The cadence question. cadence needs to add out bit about you over QX from little It terms. from to which improvement QX is

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

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

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

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

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

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

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

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

between elements. two flips that So the

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

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

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

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

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

Great.

have Larry, related. But all regarding opportunities, -- in kind you in clear, that be somewhat underutilization mentioned but with infrastructure, and we I to our kind what address and they're our think gaps tremendous innovation, challenges have challenges of I supply chain We're right? of operations our mentioned, X I'll utilization. have here, of we a But a Lomb touching favorable on focused X environment, meaningful opportunity the country. of virtually It's in integrated and every think underutilization, itself in about and very right, comprehensive + competitive the all Bausch think But most areas probably industry, you this we is way. portfolio. as So

and a chain have distribution massive supply center. We

big, lots workhorse, easiest eye of sales lot being said, for We with world, can sales XXX relationships been We through lots do products. almost without blockbuster that do leveraging we here it every is have a put SKUs, don't distribution that kind it care to do a right? the portfolio, don't to high-margin -- of with we're relationships. any professional brands. complexity considering and big cost we we've more that channel, right? additional have thing the But We We doing big right? have the We and of in it solve our products, that. But of by a of well a adding and whole lot do years,

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

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

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

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

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

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

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

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

It does.

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

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

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

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

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

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

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

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

you think I well, covered Brent. it No,

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

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

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

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

Yes.

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

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

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

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

now our successful launch. So a right focus main is

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

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

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

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

Yes.

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

there, the to have area platform, is as a the + that and technology. important offering Lomb expand lenses. manufacture this to customers set bring the is So look supply just it's ramp great you to we some strong And success we our you at Also, offerings an Surgical a look of to we line. in did positive. continue really at more Bausch to offerings, across and need and our that when particularly specifically of we ability deal reception business. When to those is early a our side, But new premium incredibly the from

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

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

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

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

your On Got it. profitable Got appreciate the on EBITDA, growth, infrastructure. I Brent, so it. comments leveraging

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

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

a not me has it just presence about have Give yet. to being little time the to in give the I really at infrastructure ready out everywhere. my ground. That look said, to more a and for next I'm get way this think sure been made, on massive We bit way I'm is, right? investment building the year all the easiest you So feet

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

very product + the get to world this right, got The the around that, should imaginable, more relationships Lomb to you key. significant And the so you right? made. if channel, investments ECP were that flow We've how more do do right? through this. naturally. expand very So with get every we and put Bausch have through margins question expansion, that's And quickly is, call We

I so just opportunities. and an can't just be to I to we'll me, exact I I joining But it's smartly. Well, so to a for the last that's That's us. excited opportunity point everyone massive to this or believe, Q&A. a on thanking it to grow may frankly, on. I do a see. how date about year here. seize I We choices our multiple profitably, guess on or super this the operator, is days us such it's remarks business what end in, take question, opportunity have to can't want with that excited me the add right, a makes so, It see industry, put is to being you have this concludes And -- comment the opportunity. And maybe here. dynamic those don't I of so it. -- massive good would all there, I'm -- things longer. XX the closing

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

again time morning. your this thank for So you

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

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