Summary of Avanos Medical (AVNS) Conference Call - May 13, 2025 Company Overview - **Company**: Avanos Medical (AVNS) - **Industry**: Consumer Goods, specifically in health and hygiene products Key Points and Arguments Company Evolution and Strategy - The company has evolved from being perceived as a "pulp proxy" to focusing on volume mix-led growth, aided by a reorganization in the previous year [3][9] - The CEO highlighted the importance of innovation and the need to elevate and expand product categories, particularly in emerging markets [11][13] - Organic growth improved from 1-2% to approximately 4% over the past five years, indicating a successful shift in strategy [14] Financial Performance and Challenges - The company faced significant cost inflation of approximately $3.5 to $3.7 billion between 2021 and 2022, impacting gross margins which fell to 29.8%, 500 basis points lower than pre-pandemic levels [31][33] - Despite challenges, the company achieved a gross margin of 36.5% in 2024, up 200 basis points year-on-year, and aims for at least 40% by the end of the decade [77] Market Dynamics - The overall category growth has decelerated to about 1.5-2%, below the historical range of 2-3%, leading to a reduction in full-year guidance primarily due to tariff impacts [51][53] - Demand for essential products remains resilient, with consumers exhibiting value-seeking behavior in developed markets [55][62] Innovation and Product Development - The company has focused on launching premium products while also ensuring competitive offerings in the value tier, with a significant shift from 60% value tier to 85% premium in North American diapers [73][74] - Recent product launches include Huggies Skin Essentials and Snug and Dry, which leverage advanced technology for better performance [101][106] Supply Chain and Cost Management - A new global supply chain organization was established to drive efficiency and standardization across product platforms [41][46] - The company is adopting a proactive risk management approach, including programmatic hedging and strategic supplier relationships to manage costs effectively [35][36] Tariff Impacts and Guidance - The company anticipates a gross impact of $300 million from tariffs, with two-thirds of this impact stemming from China [84][96] - The management is exploring ways to mitigate these costs through network reflowing and other strategies [86][90] Marketing and Advertising Strategy - The company has doubled its advertising spend since 2018, focusing on storytelling to enhance brand perception rather than relying on promotions [126][128] - The CEO expressed a preference for advertising over promotions, viewing the latter as potentially dilutive to brand value [128][129] Additional Important Insights - The company is committed to maintaining investments in innovation and brand support despite the challenging market environment [77][100] - There is a strong bifurcation in consumer behavior, with higher-income households continuing to spend on premium products while budget-constrained consumers seek value [62][65] This summary encapsulates the key discussions and insights from the Avanos Medical conference call, highlighting the company's strategic direction, financial performance, market challenges, and innovation efforts.

Have you assessed how the international operations of Avanos Medical (AVNS) performed in the quarter ended March 2025? For this medical technology company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. ...

Avanos Medical, Inc. (AVNS) reported first-quarter 2025 adjusted earnings per share (EPS) from continuing operations of 26 cents, up 18.2% year over year. The bottom line surpassed the Zacks Consensus Estimate by 36.8%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)GAAP EPS from continuing operations in the quarter under review was 14 cents compared with the year-ago period’s EPS of a penny.Avanos’ RevenuesRevenues grossed $167.5 million in the reported quarter, up 0.8% year over ...

Financial Performance - Net income for the three months ended March 31, 2025, was $6.6 million, compared to a net loss of $0.9 million for the same period in 2024[14] - Total comprehensive income for the same period was $8.9 million, an increase from a comprehensive loss of $3.4 million in 2024[14] - Cash provided by operating activities was $25.7 million for the three months ended March 31, 2025, compared to cash used in operating activities of $8.0 million in 2024[19] - The company reported net sales of $157.4 million for the three months ended March 31, 2025, compared to $150.9 million for the same period in 2024, representing a year-over-year increase of approximately 4.0%[33] - The company’s total consolidated net sales for Q1 2025 were $167.5 million, compared to $166.1 million in Q1 2024, reflecting a slight increase of approximately 0.8%[33] - Specialty Nutrition Systems segment reported sales of $101.1 million for the three months ended March 31, 2025, an increase of 6.9% from $94.6 million in 2024[77] - Pain Management and Recovery segment sales remained stable at $56.2 million for the three months ended March 31, 2025, compared to $56.3 million in 2024[77] Assets and Liabilities - Cash and cash equivalents decreased to $97.0 million as of March 31, 2025, down from $107.7 million at the end of 2024[16] - Total assets decreased to $1,107.8 million as of March 31, 2025, from $1,154.2 million at the end of 2024[16] - Total liabilities decreased to $268.4 million as of March 31, 2025, from $325.7 million at the end of 2024[16] - Stockholders' equity increased to $839.4 million as of March 31, 2025, compared to $828.5 million at the end of 2024[16] - Total long-term debt, net, as of March 31, 2025, is $98.0 million, down from $125.3 million on December 31, 2024[55] - The current portion of long-term debt is $9.4 million as of March 31, 2025[59] Expenses and Costs - Capital expenditures for the same period were $6.7 million, up from $4.1 million in 2024[19] - The company incurred $3.1 million in restructuring costs related to the post-RH divestiture plan during Q1 2025, compared to $0.7 million in Q1 2024, reflecting an increase of approximately 342.9%[35] - Stock-based compensation expense increased to $3.8 million for the three months ended March 31, 2025, from $3.6 million in 2024[62] - The company expects to incur up to $16.0 million in cash expenses related to the restructuring plan, primarily for employee termination benefits and temporary labor costs[35] Receivables and Inventories - The company reported a decrease in accounts receivable of $25.1 million for the three months ended March 31, 2025[19] - Total accounts receivable decreased to $104.8 million as of March 31, 2025, down from $132.8 million at the end of 2024, a decline of approximately 21.1%[39] - The company reported total inventories of $138.1 million as of March 31, 2025, slightly down from $138.8 million at the end of 2024, a decrease of approximately 0.5%[40] Depreciation and Amortization - Depreciation expense for Q1 2025 was $4.5 million, a decrease from $5.3 million in Q1 2024, representing a reduction of approximately 15.0%[41] - Amortization expense for intangible assets was $5.1 million for the three months ended March 31, 2025, down from $6.1 million for the same period in 2024[43] - Estimated amortization expense for the remainder of 2025 is $20.5 million, with a total estimated amortization of $107.2 million over the next five years[43] Other Financial Information - The company closed the sale of its Respiratory Health business for $110 million in cash on October 2, 2023[46] - The company repaid $2.3 million of the Term Loan Facility and $25.0 million of the Revolving Credit Facility during the three months ended March 31, 2025[60] - The restructuring liability balance as of March 31, 2025, was $1.9 million, down from $3.8 million at the end of 2024[38] - The company had letters of credit outstanding of $4.0 million as of March 31, 2025[60] - As of March 31, 2025, the aggregate notional values of outstanding foreign currency swap contracts designated as cash flow hedges were $30.8 million[72] - The company recorded a change in Accumulated Other Comprehensive Loss of $2.3 million for the three months ended March 31, 2025, compared to a loss of $2.5 million in 2024[8] - The company incurred no costs related to indemnification matters for the three months ended March 31, 2025[63] - The company had no repurchases of common stock in the three months ended March 31, 2025, but repurchased 342,680 shares for $6.7 million in the first quarter of 2024[82] Strategic Focus - The company is focused on addressing healthcare needs, including providing nutrition solutions and reducing opioid use[21] - The company adopted ASU No. 2023-05 effective January 1, 2025, which did not have a material effect on its financial position or results of operations[29]

Avanos Medical (AVNS) Q1 2025 Earnings Call May 06, 2025 09:00 AM ET Company Participants Scott Galovan - SVP - Strategy & Corporate DevelopmentDave Pacitti - CEOJason Pickett - VP, Corporate Finance, Tax & TreasurerRick Wise - Managing Director - Medical Technology & SuppliesDaniel Stauder - Director - Equity Research Operator Good morning, ladies and gentlemen, and welcome to the Avanus Medical Avanus First Quarter twenty twenty five Earnings Call. At this time, all lines are in listen only mode. Followin ...

May 6, 2025 Getting patients back to the things that matter. Q1 2025 Earnings Presentation Dave Pacitti Chief Executive Officer Q1 Results & Business Environment Jason Pickett Interim Chief Financial Officer Q1 Results & 2025 Planning Assumptions Scott Galovan SVP, Strategy & Corporate Development Q&A DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS Certain matters in this presentation, including expectations and planning assumptions, any comments about our expected performance, and any estimates, projection ...

Avanos Medical (AVNS) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 36.84%. A quarter ago, it was expected that this medical technology company would post earnings of $0.40 per share when it actually produced earnings of $0.43, delivering a surprise of 7.50%.Over the last four quart ...

Avanos Medical (AVNS) Q1 2025 Earnings Call May 06, 2025 09:00 AM ET Speaker0 Good morning, ladies and gentlemen, and welcome to the Avanus Medical Avanus First Quarter twenty twenty five Earnings Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call, This call is being recorded on Tuesday, 05/06/2025. I would now like to turn the conference over to Scott Gullivan. Please go ahead. Speaker1 Good morni ...

Investor Contact: Scott Galovan Avanos Medical, Inc. 470-562-2692 Investor.Relations@Avanos.com Media Contact: Katrine Kubis Avanos Medical, Inc. CorporateCommunications@Avanos.com Avanos Medical, Inc. Announces First Quarter 2025 Results ALPHARETTA, Ga., May 6, 2025/PRNewswire/ -- Avanos Medical, Inc. (NYSE: AVNS) today reported first quarter 2025 financial results. "In my first couple of weeks at Avanos, I've noticed that the transformation efforts made around the portfolio, the organizational structure a ...

Core Viewpoint - Avanos Medical, Inc. will host a conference call to discuss its financial results and business highlights for Q1 2025 on May 6, 2025, at 9 a.m. ET, with a news release to be issued before market opening on the same day [1]. Group 1 - The conference call will be led by key executives including the CEO, interim CFO, senior VP of strategy and corporate development, and the board chairman [2]. - Participants can join the conference call via a registration link or by dialing specific phone numbers [3]. - A simultaneous webcast of the call will be available on the Avanos Medical website, with a replay accessible within two hours post-call for one week [4]. Group 2 - Avanos Medical is a medical technology company focused on providing clinically superior medical device solutions, addressing critical healthcare needs such as nutrition support and opioid reduction [5]. - The company is headquartered in Alpharetta, Georgia, and holds leading market positions in various product categories [5].