Bausch Health Misses On Q2 Sales, Cuts FY21 Outlook, Plans IPO For Medical Aesthetics Business

Bausch Health Companies Inc BHC has reported Q2 revenues of $2.1 billion, +26% Y/Y, and missing the consensus of $2.12 billion. Revenue increased organically by $380 million, or 23% Y/Y.
Higher sales were primarily attributable to higher volumes resulting from the positive impacts of the recovery from the COVID-19 pandemic, the Company said.
It posted an operating loss of $270 million higher than $27 million a year ago, primarily driven by settlement of certain litigation matters, an increase in SG&A expenses.
Adjusted EBITDA increased to $826 million from $622 in Q2 2020.
FY21 Guidance: Bausch Health revised its revenue and adjusted EBITDA outlook for the year primarily due to the divestiture of Amoun, the impact of a recall of certain Consumer products.
It sees sales of $8.4 – $8.6 billion (consensus $8.64 billion ) compared to previous guidance of $8.6 billion – $8.8 billion.
It expects adjusted EBITDA of $3.35 billion – $3.50 billion, down from the earlier outlook of $3.4 billion – $3.55 billion.
BHC repaid the debt by $500 million in the first half of 2021 using the cash generated from operations; Bausch Health has no debt maturities until 2025.
Concurrently, Bausch Health said it planned to pursue an initial public offering of its Solta Medical business, which sells medical aesthetic drugs such as skin rejuvenation products. The move comes as BHC undertakes efforts to reduce debt.
The IPO is anticipated in Q4 of 2021 or 1H of 2022.
Solta, which had 2020 revenues of $253 million, is part of Bausch's ortho dermatologic business.
Price Action: BHC shares are down 5.70% at $27.96 during the premarket session on the last check Tuesday.
Photo by Gedesby1989 from Pixabay

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