Bausch Health Reports Wider Q1 Loss, Hit By Impairment Charges On Ortho Dermatologics

Bausch Health Companies Inc BHC reported a deeper first-quarter loss of $610 million compared with a loss of US$152 million a year earlier, impacted by a $469 million goodwill impairment charge in its Ortho Dermatologics business and a $71-million impairment charge related to a product line in Ortho Dermatologics.
On an adjusted basis, Bausch Health earned $370 million for the quarter, up from an adjusted profit of $316 million a year ago.
Q1 revenue of $2.03 billion slightly missed the consensus of $2.06 billion and remained unchanged from sales in Q1 2020. Revenue was negatively impacted by approximately $100 million in the first quarter of 2021 due to the COVID-19 pandemic.
Excluding the $33 million favorable impact of foreign exchange and the $10 million impact of divestitures and discontinuations, revenue fell $8 million compared with a year ago.
BHC generated $443 million of cash from operations compared to $261 million a year ago.
Adjusted EBITDA increased around 5% to $852 million primarily due to profit protection measures taken to manage and reduce operating expenses and preserve cash during the COVID-19 pandemic.
Guidance: Bausch Health reiterated guidance for FY21 with a revenue range of $8.60 – $8.80 billion and adjusted EBITDA of $3.40 – $3.55 billion.
Based on an earlier report, Bausch is exploring potential divestiture of Eyecare units.
Price Action: BHC shares are down 2.9% at $30.51 in the premarket trading on the last check Tuesday.

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