The shares of Bausch Health ( NYSE: BHC ) lost ~13% in the pre-market Tuesday after the Canadian pharma company fell short of Street forecast with its Q2 2022 financials and slashed the full year guidance as its quarterly revenue contracted amid divestitures and forex impact.
Despite a ~6% YoY decline to $2.0B on a reported basis, the revenue adjusted for unfavorable impact of foreign exchange, the impact of divestitures and discontinuations remained flat on an organic basis from a year ago. In July 2021, Bausch Health ( BHC ) divested Amoun Pharmaceutical Company S.A.E.
“The second quarter was a transitional quarter for Bausch Health as we intensified our focus on the Bausch Pharma and Solta businesses," Chief Executive Thomas J. Appio said ahead of the conference call at 8:00 a.m. ET.
Q2 contraction was driven by Salix segment where revenue fell ~3% YoY to $501M while international segment reported $233M with a ~26% YoY decline amid forex impact and divestiture of Amount.
Solta Medical segment added $57M revenue indicating a ~22% YoY decline while Bausch + Lomb segment generated $941M with an increase of ~1% YoY.
The company reported an operating income of $161M compared to $270M of operating loss in the prior year period which included higher adjustments related to certain legal settlements. Meanwhile, the net loss narrowed ~76% YoY to $145M partly due to a net gain related to extinguishment of debt in 2022.
“We have advanced debt paydown through open market repurchases this quarter,” CEO Appio added. During the period, Bausch Health ( BHC ) purchased $48M of unsecured bonds for $300M of cash through an open market repurchase program.
However, cash and equivalents improved ~13% to $659M while total long term debt fell ~4% to $22.1B from 2021 year-end.
The company lowers the guidance indicating full year revenue and adj. EBITDA $8.05B - $8.22B and $3.02B - $3.12B, down from the previous estimates of $8.25B - $8.40B and $3.225B - $3.375B, respectively.
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Bausch Health sheds 13% after Q2 revenue slump and guidance cut