Bausch Health Says ‘Sustained Strength’ in Global Vision Care Is a Highlight of Second-Quarter Performance

LAVAL, Quebec—Citing a strong performance in its vision care business, Bausch Health Companies (NYSE/TSX: BHC) reported Tuesday that its sales in the second quarter rose by 3 percent on an “organic” basis and $24 million overall to $2.15 billion. This total compares with $2.12 billion in sales in the year-ago period. It was the sixth consecutive quarter of total company organic revenue growth and the 11th consecutive quarter that the Bausch+Lomb / International segment delivered organic revenue growth, according to Tuesday’s announcement.

The company (formerly Valeant Pharmaceuticals) reported a net loss of $171 million on a GAAP basis for the second quarter.

The Q2 results demonstrate that Bausch Health is “clearly pivoting to growth," chairman and chief executive officer Joseph C. Papa said in the announcement. “Bausch + Lomb/International delivered its 11th consecutive quarter of organic revenue growth, driven by sustained strength in global consumer and global vision care,” he noted.

Papa added, “Looking to the second half of 2019, we expect a number of catalysts to drive growth across our core business segments as we continue to reduce debt, increase R&D and further grow our newly launched products. In addition, we have raised our full-year revenue and adjusted EBITDA guidance based on our first half performance and our outlook for the second half of the year."

The company noted that its Bausch + Lomb/International segment comprised approximately 56 percent of total revenue in the second quarter. Revenue in this segment grew organically by 4 percent compared to the second quarter of 2018, due to an increase in volume across most of the business units, particularly in global consumer and global vision care, according to the announcement.

Bausch raised its revenue guidance range for 2019 to a range of $8.4 billion to $8.6 billion, and raised its full-year adjusted EBITDA (non-GAAP) range from $3.4 billion to $3.55 billion to the range of $3.425 billion to $3.575 billion.

Among the other highlights of the quarter, Bausch said its new Ultra Multifocal for Astigmatism contact lenses (the first and only multifocal toric lens available as a standard offering in the eyecare professional's fit set) launched in the U.S. market in June.

On the bottom line, Bausch reported a net loss for the three months ended June 30, 2019, of $171 million, which compared with a net loss of $873 million in the year-ago period, or a decrease of $702 million. The decrease in net loss was primarily due to the increase in operating results, lower interest expense and a lower loss on extinguishment of debt, the announcement noted.

In terms of strategic capital allocation and debt management, Bausch said that it increased research and development by $23 million, compared with the second quarter of 2018; refinanced $1.5 billion of 2023 Senior Unsecured Notes, and reduced debt by approximately $100 million in the second quarter.