Bausch + Lomb (BLCO)2023-08-02 18:04Financial Data and Key Metrics Changes - Total company revenue for Q2 2023 was 179 million, impacted by currency headwinds of approximately 646 million, increasing by 12% on a constant currency basis, driven by growth in both consumer and lens portfolios [24] - Surgical segment revenue was 194 million, representing constant currency growth of 16%, with strong performance across all portfolios [28] Market Data and Key Metrics Changes - The China business grew 24% on a constant currency basis, contributing approximately 200 basis points to the overall second quarter growth [29] - The U.S. lens portfolio was negatively impacted by disruptions related to a new warehouse management system, particularly affecting the Ultra lens family [60] Company Strategy and Development Direction - The company is focused on improving supply chain efficiency and product delivery, with a roadmap to accelerate growth and enhance capabilities [15][80] - Investments in R&D are expected to be approximately 8% of revenue, with a commitment to support product launches and innovation [71] - The company aims to be a comprehensive eye care provider, not solely focused on pharmaceuticals, with a balanced approach across all business segments [44][135] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing supply challenges but expressed confidence in resolving these issues over time [40][141] - The company raised its revenue guidance for 2023 to a range of 4 billion, reflecting a constant currency growth rate of approximately 6.5% to 7.5% [67][68] - Management is optimistic about the upcoming product launches, particularly MIEBO, which is expected to be a significant contributor to growth [45][151] Other Important Information - The company announced the strategic acquisition of Blink to expand its OTC eye drop portfolio, although it is not expected to have a meaningful impact on 2023 financial results [59][122] - The XIIDRA transaction is expected to close by the end of 2023, subject to regulatory approvals [41] Q&A Session Summary Question: What is the quantifiable impact of supply challenges and the timing for resolution? - Management indicated that the supply chain issues have led to a quantifiable impact of approximately 600 basis points on the lens business growth, which would have been around 10% without these challenges [55][141] Question: How is the company addressing the supply chain issues? - The company is working to validate second vendors and has been engaging in spot buying to secure necessary components, although this has led to higher costs and margin pressure [54][141] Question: What are the expectations for the MIEBO launch? - The MIEBO launch is anticipated to be significant, with management expressing optimism about its market potential and the differentiated treatment it offers for dry eye disease [45][119] Question: How should investors think about growth in volumes versus pricing? - Management noted that the majority of growth in Q2 was driven by volume rather than price, indicating a focus on sustainable growth through volume increases [137]