Avanos Medical, Inc. First Quarter 2025 Results [Executive Summary and Financial Highlights](index=1&type=section&id=Executive%20Summary%20and%20Financial%20Highlights) Avanos Medical Q1 2025 net sales $167.5 million (+0.8%), net income $6.6 million, adjusted diluted EPS $0.26, showing improved profitability - The new CEO, David Pacitti, noted that transformation efforts in portfolio, structure, and cost management have positioned Avanos for **accelerated growth, improved execution, and enhanced margin profiles**[3](index=3&type=chunk) Q1 2025 Financial Highlights vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $167.5M | $166.1M | +0.8% | | Net Income (from continuing ops) | $6.6M | $0.5M | +1220% | | Adjusted Net Income | $12.0M | $10.1M | +18.8% | | Diluted EPS | $0.14 | $0.01 | +1300% | | Adjusted Diluted EPS | $0.26 | $0.22 | +18.2% | | Adjusted EBITDA | $21.6M | $21.6M | 0.0% | [Consolidated Operating Results](index=1&type=section&id=Consolidated%20Operating%20Results) Q1 2025 net sales rose 0.8% to $167.5 million, organic sales up 2.8%; gross margin fell to 53.6%, but operating income doubled to $10.3 million from reduced expenses - Organic net sales grew **2.8%** year-over-year, adjusted for foreign currency effects and the decision to exit certain low-return revenue streams[5](index=5&type=chunk) - Adjusted gross margin fell to **56.7%** from **59.8%** in the prior year, impacted by unfavorable pricing for hyaluronic acid ("HA") products[6](index=6&type=chunk) - Selling and general expenses as a percentage of net sales decreased to **45.2%** from **50.3%** a year ago, mainly due to lower costs from restructuring and divestiture activities[6](index=6&type=chunk) - Operating income increased to **$10.3 million** compared to **$4.0 million** in the prior year period. On an adjusted basis, operating income was **$17.1 million**, up from **$16.3 million**[8](index=8&type=chunk) [Business Segment Performance](index=2&type=section&id=Business%20Segment%20Performance) SNS sales grew 6.9% to $101.1 million with 37% operating income rise; PM&R sales flat at $56.2 million, swinging to $0.2 million operating profit Q1 2025 Net Sales by Segment (in millions) | Segment | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Specialty Nutrition Systems | $101.1 | $94.6 | +6.9% | | Pain Management and Recovery | $56.2 | $56.3 | -0.2% | | Corporate and Other | $10.2 | $15.2 | -32.9% | | **Total Net Sales** | **$167.5** | **$166.1** | **+0.8%** | Q1 2025 Operating Income (Loss) by Segment (in millions) | Segment | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Specialty Nutrition Systems | $21.1 | $15.4 | +37.0% | | Pain Management and Recovery | $0.2 | $(2.1) | N/A | | Corporate and Other | $(11.0) | $(9.3) | +18.3% | | **Total Operating Income** | **$10.3** | **$4.0** | **+157.5%** | [Specialty Nutrition Systems (SNS)](index=2&type=section&id=Specialty%20Nutrition%20Systems%20%28SNS%29) SNS net sales reached $101.1 million (+6.9%), driven by 8.7% volume growth, with operating income rising to $21.1 million (20.9% margin) from higher volume and lower SG&A - SNS net sales reached **$101.1 million**, with strong **8.7% volume growth** driven by continued demand in both enteral feeding and neonate solutions categories[10](index=10&type=chunk) - Operating income for the SNS segment was **$21.1 million**, or **20.9%** of its net sales, due to higher volume and reduced selling, general and administrative expenses[10](index=10&type=chunk) [Pain Management and Recovery (PM&R)](index=2&type=section&id=Pain%20Management%20and%20Recovery%20%28PM%26R%29) PM&R net sales were $56.2 million; 8.2% RFA growth offset by 9.3% surgical pain decline and currency, resulting in $0.2 million operating profit from reduced SG&A - Net sales of radiofrequency ablation (RFA) products grew **8.2%**, driven by momentum in generator sales (ESENTEC and TRIDENT lines)[11](index=11&type=chunk) - Surgical pain and recovery net sales declined **9.3%**, which was in line with company expectations[11](index=11&type=chunk) - The segment achieved an operating profit of **$0.2 million**, compared to a loss of **$2.1 million** last year, due to lower SG&A expenses[11](index=11&type=chunk) [Cash Flow and Balance Sheet](index=2&type=section&id=Cash%20Flow%20and%20Balance%20Sheet) As of March 31, 2025, cash was $97.0 million; operating cash flow was a $25.7 million inflow, reversing an $8.0 million outflow, leading to $19.0 million free cash flow, with total debt reduced to $107.4 million - Cash on hand was **$97.0 million** as of March 31, 2025, down from **$107.7 million** at year-end 2024[12](index=12&type=chunk) - Total debt outstanding was reduced by **$27.3 million** during the quarter, from **$134.7 million** to **$107.4 million**[12](index=12&type=chunk) Cash Flow Summary (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash flow from operations | $25.7 | $(8.0) | | Free cash flow | $19.0 | $(12.1) | [2025 Outlook](index=2&type=section&id=2025%20Outlook) Avanos maintains 2025 revenue guidance of $665 million-$685 million but lowered adjusted diluted EPS forecast to $0.75-$0.95 due to anticipated negative tariff impacts - The company is maintaining its 2025 estimated revenue of between **$665 million** and **$685 million**[13](index=13&type=chunk) - The estimated adjusted diluted earnings per share range for 2025 has been lowered to between **$0.75** and **$0.95**, primarily due to the impact of recently announced tariffs[13](index=13&type=chunk) - The ultimate impact from tariffs remains uncertain and depends on factors like final tariff rates on China-origin goods, mitigation efforts, and the level of imports from China and Mexico[14](index=14&type=chunk) 2025 Adjusted Diluted EPS Outlook Reconciliation | Metric | Estimated Range | | :--- | :--- | | Diluted earnings per share (GAAP) | $0.33 to $0.56 | | Intangibles amortization | $0.25 to $0.24 | | Post RH-Divestiture transition charges | $0.12 to $0.10 | | Other | $0.05 to $0.05 | | **Adjusted diluted earnings per share (non-GAAP)** | **$0.75 to $0.95** | [Financial Statements and Supplemental Data](index=5&type=section&id=Financial%20Statements%20and%20Supplemental%20Data) [Condensed Consolidated Income Statements](index=5&type=section&id=Condensed%20Consolidated%20Income%20Statements) Details revenues, costs, expenses, net income, and EPS for Q1 2025 compared to Q1 2024 Condensed Consolidated Income Statement (in millions, except per share) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales | $167.5 | $166.1 | | Gross Profit | $89.8 | $94.8 | | Operating Income | $10.3 | $4.0 | | Income from Continuing Operations | $6.6 | $0.5 | | Net Income (Loss) | $6.6 | $(0.9) | | Diluted EPS (Continuing ops) | $0.14 | $0.01 | [Condensed Consolidated Balance Sheets](index=15&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Presents the company's financial position, detailing assets, liabilities, and equity as of March 31, 2025, compared to December 31, 2024 Condensed Consolidated Balance Sheet (in millions) | Metric | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $97.0 | $107.7 | | Total Current Assets | $352.4 | $393.4 | | TOTAL ASSETS | $1,107.8 | $1,154.2 | | **LIABILITIES & EQUITY** | | | | Total Current Liabilities | $137.2 | $165.9 | | Long-Term Debt | $98.0 | $125.3 | | TOTAL LIABILITIES | $268.4 | $325.7 | | Stockholders' Equity | $839.4 | $828.5 | | TOTAL LIABILITIES AND EQUITY | $1,107.8 | $1,154.2 | [Condensed Consolidated Cash Flow Statements](index=16&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statements) Details cash inflows and outflows from operating, investing, and financing activities for Q1 2025 and Q1 2024 Condensed Consolidated Cash Flow Statement (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash Provided by (Used in) Operating Activities | $25.7 | $(8.0) | | Cash Used in Investing Activities | $(9.1) | $(2.0) | | Cash Used in Financing Activities | $(29.1) | $(0.7) | | Decrease in Cash and Cash Equivalents | $(10.7) | $(11.9) | | Cash and Cash Equivalents - End of Period | $97.0 | $75.8 | [Non-GAAP Reconciliations](index=3&type=section&id=Non-GAAP%20Reconciliations) Provides detailed reconciliations of GAAP to non-GAAP financial measures, including adjusted gross profit, operating income, net income, EPS, EBITDA, and free cash flow, for a clearer view of ongoing operational performance - The company uses non-GAAP measures to **evaluate historical and prospective financial performance, allocate resources, and measure operational performance of business units**. These measures are also used for **setting incentive compensation goals**[16](index=16&type=chunk)[17](index=17&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (in millions) | Metric | Q1 2025 | Q1 2024 (Continuing Ops) | | :--- | :--- | :--- | | Net income (loss) | $6.6 | $0.5 | | Interest expense, net | $0.6 | $2.5 | | Income tax provision | $3.1 | $1.0 | | Depreciation & Amortization | $9.6 | $11.4 | | **EBITDA** | **$19.9** | **$15.4** | | Restructuring & Divestiture Charges | $3.1 | $4.6 | | Other Adjustments (EU MDR, Legal, etc.) | $(1.4) | $1.6 | | **Adjusted EBITDA** | **$21.6** | **$21.6** | Reconciliation of GAAP to Non-GAAP Diluted EPS | Metric | Q1 2025 | Q1 2024 (Continuing Ops) | | :--- | :--- | :--- | | Diluted EPS, as reported (GAAP) | $0.14 | $0.01 | | Adjustments (Restructuring, Amortization, etc.) | $0.12 | $0.21 | | **Diluted EPS, as adjusted (Non-GAAP)** | **$0.26** | **$0.22** |

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].

Avanos Medical, Inc. (AVNS) is set to assume direct control of sales and distribution for its MIC-KEY enteral feeding products in the United Kingdom, effective July 2025. This marks a strategic departure from its longstanding reliance on Vygon UK, which has served as the product distributor for nearly three decades.The decision underscores Avanos' intention to strengthen its market presence by establishing direct relationships with healthcare providers and refining its service delivery. By internalizing sal ...

Company Overview - Avanos Medical, Inc. is a global medical technology company focused on delivering clinically superior medical device solutions, headquartered in Alpharetta, Georgia [4] - The company is committed to addressing important healthcare needs, including providing nutrition to patients and reducing opioid use [4] Strategic Move - Avanos will take direct responsibility for the sales and distribution of its MIC-KEY enteral feeding products in the UK, effective July 25, 2025 [1] - This transition aims to enhance product availability and provide a seamless experience for healthcare providers and patients [1][2] Relationship with Distributors - Vygon UK has been a distributor of MIC-KEY products for 29 years, supporting hospitals and patients across the UK [2] - Avanos' decision to manage sales directly is intended to strengthen relationships with healthcare professionals and ensure continuity of care [3] Product Information - MIC-KEY products deliver enteral nutrition through a low-profile feeding tube and have been trusted by clinicians and patients for over 25 years [3] - The products are sold in over 60 countries across six continents, highlighting their global reach and acceptance [3] Transition Support - Avanos is committed to ensuring a smooth transition and will provide ongoing communication and support to customers during this period [4] - Healthcare providers currently purchasing MIC-KEY products through Vygon will receive guidance on how to order from Avanos with minimal disruption [4]

合作伙伴征集：2025全球手术机器人大会 报名：首届全球眼科大会 | 暂定议程 报名：首届全球心血管大会 | 奖项报名倒计时 报名：首届全球骨科大会 | 奖项报名倒计时 近日， 西门子医疗宣布瓦里安美洲区总裁John Kowal将接替David Pacitti ，担任西门子医疗解决方案（美国）公 司总裁兼美洲区负责人。与此同时， David Pacitti正式转任Avanos Medical首席执行官（CEO） 。 # 高管变动详情 John Kowal将接替David Pacitti，担任西门子医疗解决方案（美国）公司总裁兼美洲区负责人，任命将于2025年4月14 日生效。 John Kowal于2005年加入瓦里安，从地区销售经理逐步晋升至美洲区总裁。 他在瓦里安任职期间，成功推动了客户 满意度和忠诚度的提升，制定了有效的业务战略，并带领团队实现了收入和订单预算的突破。此外，他还致力于推 动癌症治疗的普及，特别是在健康不平等地区。 在加入西门子医疗之前，Pacitti曾在 雅培血管公司 担任领导职务，包括担任美国商业运营、销售和市场营销的部门 副总裁。他负责监督雅培公司多个关键产品的推出，包括其首个药物洗 ...

Core Viewpoint - Avanos Medical, Inc. has appointed David Pacitti as the new CEO, effective April 14, 2025, to lead the company in its next phase of growth and success [1][3]. Company Overview - Avanos Medical is a medical technology company headquartered in Alpharetta, Georgia, focused on delivering clinically superior medical device solutions to improve patient quality of life [6]. - The company addresses critical healthcare needs, including providing nutrition support and reducing opioid use during patient recovery [6]. Leadership Background - David Pacitti has a distinguished career in the healthcare sector, previously serving as president of Siemens Medical Solutions USA and Head of the Americas for Siemens Healthineers, where he drove strategic growth and operational excellence [2][3]. - Prior to Siemens, Pacitti held leadership roles at Abbott Vascular, overseeing significant product launches and commercial operations [3]. Strategic Vision - Pacitti expressed his commitment to building on Avanos' success and driving long-term value for stakeholders, emphasizing the company's strong portfolio of market-leading products [5].

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:Avanos Medical, Inc. (AVNS) is a medical technology company focusing on delivering medical device solutions. The Zacks Consensus Estimate for its current year earnings has been revised 18.5% downward over the last 60 days.CSX Corporation (CSX) is a rail-based freight transportation services company. The Zacks Consensus Estimate for its current year earnings has been revised 9.4% downward over the last 60 days.Constellation Brands, Inc ...

Avanos Medical, Inc. (AVNS) reported fourth-quarter 2024 adjusted earnings per share (EPS) from continuing operations of 43 cents, up 19.4% year over year. The bottom line surpassed the Zacks Consensus Estimate by 7.5%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.GAAP loss per share from continuing operations in the quarter under review was $8.63 against the year-ago period’s EPS of 24 cents.Full-year 2024 adjusted EPS was $1.35, up 31.1% from a year ago. The metric topped the Zack ...

Acquisitions and Divestitures - Avanos Medical, Inc. reported a purchase price of approximately $53.0 million for the acquisition of Diros Technology Inc., with an additional contingent cash consideration of up to $7.0 million based on performance objectives[14]. - The company completed the acquisition of OrthogenRx, Inc. for a purchase price of $130.0 million, aimed at expanding its portfolio in knee pain treatments[15]. - Avanos divested its Respiratory Health business for $110.0 million in cash, part of a three-year transformation process initiated in January 2023 to focus on core markets[16][17]. - The company acquired $33.4 million of goodwill in conjunction with the acquisition of Diros Technology Inc.[279]. - The total purchase price for the OrthogenRx Acquisition was $130.0 million in cash, with an additional $30.0 million contingent on net sales growth during 2022 and 2023[309]. Financial Performance - Net sales for the year ended December 31, 2024, were $687.8 million, a slight increase from $673.3 million in 2023[229]. - Gross profit for 2024 was $381.3 million, compared to $379.7 million in 2023, indicating a stable gross margin[229]. - The company reported a net loss of $392.1 million in 2024, significantly higher than the net loss of $61.8 million in 2023[231]. - Operating loss for 2024 was $396.2 million, a decline from an operating income of $4.2 million in 2023[229]. - The company’s accumulated deficit grew to $707.0 million in 2024 from $314.9 million in 2023, highlighting ongoing financial challenges[234]. - Total stockholders' equity decreased to $828.5 million in 2024 from $1,236.3 million in 2023, reflecting the impact of net losses[234]. - The company incurred a goodwill and intangibles impairment of $436.7 million in 2024, which significantly impacted overall financial performance[229]. - Cash provided by operating activities increased to $100.7 million in 2024 from $32.4 million in 2023[237]. - The total income (loss) before income taxes was $(403.3) million, a significant decline from $(7.9) million in 2023[327]. - The effective tax rate for 2024 was 4.2%, compared to (25.3)% in 2023, indicating a substantial change in tax liabilities[330]. Research and Development - Research and development costs were $26.2 million in 2024, down from $27.2 million in 2023 and $29.2 million in 2022, indicating a trend in cost management[25]. - The company launched two new products in the global market in 2024, reflecting ongoing innovation efforts[24]. - Research and development expenses decreased to $26.2 million in 2024 from $27.2 million in 2023[229]. - Research and development expenses are expensed as incurred, primarily consisting of salaries, product trial costs, and laboratory fees[262]. Market and Sales Strategy - Approximately 50% of net sales in North America were made through distributors in 2024, with sales to McKesson Corporation and Medline Industries accounting for 18% and 17% of consolidated net sales, respectively[20]. - In 2024, approximately 28% of global net sales were contracted through Group Purchasing Organizations (GPOs), highlighting the importance of these agreements in sales strategy[22]. - The company faced significant competition in both U.S. and international markets, particularly from major players like Boston Scientific Corporation and Medtronic plc in its key segments[23]. - Digestive Health product sales increased to $396.4 million in 2024 from $371.6 million in 2023, while Pain Management and Recovery sales decreased to $291.4 million from $301.7 million[365]. - The company had net sales to external customers in the United States of $529.1 million in 2024, up from $467.0 million in 2023[371]. Compliance and Regulatory Environment - Compliance with healthcare regulations significantly increases the time, difficulty, and costs associated with obtaining and maintaining product approvals, particularly in the U.S. where 510(k) clearance is required[31]. - The EU Medical Device Regulation (EU MDR) adopted in 2021 mandates re-certification of many products to enhanced standards, with a transition period ending December 31, 2027, or December 31, 2028, depending on device classification[33]. - The company is committed to compliance with environmental, health, and safety regulations, although future changes in laws may incur additional costs[41]. Employee and Demographics - Employee demographics as of December 31, 2024, show a total of 2,227 global employees, with 55.6% located in Mexico and 35.3% in the United States[43]. - Women represent 49.6% of global salaried employees, while 30.8% of U.S. salaried employees are ethnically diverse[52]. - The company has implemented a multi-tiered employee retention strategy, including enhanced compensation and flexible work arrangements[47]. Financial Risks and Currency Management - A one percentage point increase in SOFR could result in an incremental interest expense of $3.8 million if the senior secured revolving credit facility of $375 million is fully drawn for the entire year[220]. - A 10% change in foreign currency exchange rates could impact the consolidated financial position by approximately $0.9 million based on balance sheet transactional exposures as of December 31, 2024[223]. - A 10% change in exchange rates could affect stockholders' equity by approximately $15.3 million due to translation adjustments of non-U.S. operations[225]. - The company employs derivative instruments for risk management purposes to mitigate foreign currency and commodity price risks[218]. - The company began entering into derivative instruments to hedge forecasted cash flows in Mexican pesos, with a derivative liability of $0.6 million as of December 31, 2024[358]. - The aggregate notional values of outstanding foreign currency swap contracts designated as cash flow hedges were $3.6 million as of December 31, 2024[359]. Assets and Liabilities - Total assets decreased to $1,154.2 million in 2024 from $1,692.4 million in 2023, reflecting a significant reduction in goodwill and intangible assets[233]. - Cash and cash equivalents increased to $107.7 million in 2024 from $87.7 million in 2023, indicating improved liquidity[233]. - The liability for estimated distributor rebates rose to $13.3 million in 2024 from $10.4 million in 2023, reflecting approximately 54% of consolidated net sales[256]. - The liability for estimated incentives increased to $10.9 million in 2024 from $7.3 million in 2023, with approximately 28% of consolidated net sales contracted through group purchasing organizations[257]. - Total estimated liabilities for accrued rebates and incentives were $24.3 million, up from $17.8 million in 2023[366]. Impairments and Restructuring - In the fourth quarter of 2024, the company recorded an impairment loss of $100.2 million on the HA asset group due to lower net sales and margin expectations[276]. - During the fourth quarter of 2024, the company recorded a goodwill impairment of $336.5 million, reflecting a decrease in market capitalization[277]. - The total restructuring costs for the year ended December 31, 2024, amounted to $8.1 million, with $8.9 million incurred for the post-RH Divestiture Restructuring Plan[281]. - The company expects to incur between $10.0 million and $11.0 million in cash expenses related to the post-RH Divestiture restructuring plan, expected to be completed by the end of 2025[282]. - The restructuring liability balance at the end of 2024 was $3.8 million, compared to $2.3 million at the end of 2023[288].

Financial Data and Key Metrics Changes - Sales from continuing operations in Q4 2024 were approximately $180 million, with organic sales up 5% year-over-year after adjusting for foreign exchange and discontinued revenue streams [10][12] - Adjusted diluted earnings per share for Q4 were $0.43, with adjusted EBITDA from continuing operations at nearly $29 million [11] - For the full year, sales from continuing operations were approximately $688 million, with adjusted diluted earnings per share of $1.35, a 31% increase compared to the prior year [12][11] - The company generated $83 million of free cash flow in 2024, an increase of almost $70 million compared to the previous year [14] Business Line Data and Key Metrics Changes - The enteral feeding portfolio grew almost 12% organically in Q4, reaffirming the company's leading position in short-term, long-term, and neonatal feeding [15] - The pain management and recovery portfolio saw normalized organic sales down approximately 3% in Q4, but a sequential growth of 13% compared to Q3 [17][18] - The interventional pain business posted high single-digit growth in Q4, supported by increased procedural volumes [19] Market Data and Key Metrics Changes - The company served over two million patients in 2024 through its enteral feeding and pain management solutions [9] - The NeoMed product line benefited from strong demand for ENFit conversions in North America, while the Ambit product grew more than 30% in each quarter of 2024 [16][21] Company Strategy and Development Direction - The company is focused on a three-year transformation process, having completed the divestiture of its respiratory health business [8][26] - Key transformation priorities include optimizing the organization, transforming the product portfolio, enhancing operating profitability, and efficient capital allocation [25] - Starting in Q1 2025, the company will report under three operating segments to improve transparency and guide internal capital allocation decisions [29][32] Management's Comments on Operating Environment and Future Outlook - Management anticipates a challenging market environment for some product categories in 2025, with expected net sales in the range of $665 million to $685 million [33][34] - The guidance reflects currency headwinds and pricing pressures, with expectations for flat to low single-digit organic growth in the Pain Management and Recovery segment [34][35] - Management expressed confidence in reigniting margin expansion in 2026 as macroeconomic uncertainties are resolved [44] Other Important Information - The company exited its deferred prosecution agreement with the DOJ in January 2025, marking a significant milestone in its transformation journey [27] - The company has a strong balance sheet with $108 million in cash and $135 million in debt as of December 31, 2024 [14] Q&A Session Summary Question: Insights on 2025 margin improvement pause - Management indicated that the 2025 guidance is conservative due to macroeconomic uncertainties, with expectations to finish 2025 at similar revenue levels as previously stated [42][44] Question: Progress on business evaluation and urgency - Management acknowledged the connection between the impairment charge and the evaluation process, noting that volume growth was achieved but offset by pricing dynamics [48] Question: Guidance details and potential upside/downside - Upside potential includes tariff certainty and demand growth from competitor back orders, while downside risks are primarily macroeconomic [54][57] Question: Cash flow expectations for 2025 - Management expects free cash flow in 2025 to be similar to 2024, with ongoing opportunities for improvement in working capital [62] Question: Product innovations for 2025 - Management anticipates launching one to three product innovations in the Specialty Nutrition Systems segment within the next 12 months [66][68]