On February 19, 2025, Bausch Health Companies Inc (BHC, Financial) released its 8-K filing detailing its financial results for the fourth quarter and full year of 2024. The company, a global leader in specialty pharmaceuticals, consumer health, and medical devices, focuses on branded products across various markets, including gastroenterology, hepatology, neurology, and dermatology. Bausch Health operates through five segments: Salix, International, Solta Medical, Diversified Products, and Bausch + Lomb, with the latter generating the most revenue.
Performance Overview
Bausch Health reported consolidated revenues of $2.56 billion for the fourth quarter of 2024, a 6% increase from the previous year, surpassing the analyst estimate of $2,512.40 million. On an organic basis, revenue grew by 9%. For the full year, revenues reached $9.63 billion, a 10% increase from 2023, exceeding the annual estimate of $9,578.20 million. This growth was driven by strategic investments and strong performance across all business segments.
Financial Achievements and Challenges
The company achieved its seventh consecutive quarter of year-over-year growth in both revenue and adjusted EBITDA. The adjusted EBITDA for the fourth quarter was $935 million, an 8% increase, while the full-year figure was $3.31 billion, up 10%. Despite these achievements, Bausch Health reported a GAAP net income of $93 million for the quarter but a net loss of $46 million for the year, highlighting ongoing challenges in managing costs and operational efficiencies.
Segment Performance
| Segment | Q4 2024 Revenue (in millions) | Q4 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Salix | $634 | $583 | 9% |
| International | $279 | $290 | -4% |
| Solta Medical | $138 | $103 | 34% |
| Diversified Products | $228 | $259 | -12% |
| Bausch + Lomb | $1,280 | $1,173 | 9% |
The Salix segment saw a 9% increase in revenue, driven by the strong performance of Xifaxan®. Solta Medical experienced significant growth of 34%, attributed to demand in South Korea and China. However, the International and Diversified Products segments faced declines, with the latter impacted by previous high Ativan sales due to competitor supply issues.
Financial Metrics and Analysis
Key financial metrics include a consolidated operating income of $558 million for the fourth quarter, up from $362 million in the previous year, and a full-year operating income of $1.55 billion. The company generated $601 million in cash from operating activities in the fourth quarter and $1.60 billion for the full year, reflecting improved business performance and favorable working capital changes.
“2024 was a year of delivering on our commitments, where we achieved the high-end of our revenue guidance range, and exceeded our adjusted EBITDA excluding Bausch + Lomb, and adjusted operating cash flow guidance expectations,” said Thomas J. Appio, Chief Executive Officer, Bausch Health.
Conclusion
Bausch Health's strong revenue growth and strategic investments have positioned the company well for future opportunities. However, challenges remain in managing costs and achieving consistent profitability. The company's focus on innovation and strategic initiatives will be crucial in maintaining its growth trajectory and addressing market challenges.
Explore the complete 8-K earnings release (here) from Bausch Health Companies Inc for further details.
