(BHC) – Bausch Health misses second quarter sales, cuts outlook for fiscal 21, plans IPO for medical aesthetics sector

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  • Bausch Healthcare Companies Inc (NYSE: BHC) reported second-quarter revenue of $ 2.1 billion, + 26% year-on-year, and missing the consensus of $ 2.12 billion. Revenue grew organically by $ 380 million, or 23% year-over-year.
  • The increase in sales is mainly attributable to increased volumes resulting from the positive impacts of the recovery from the COVID-19 pandemic, the company said.
  • It recorded an operating loss of $ 270 million higher than that of $ 27 million a year ago, mainly due to the settlement of certain litigation and an increase in selling and administrative expenses.
  • Adjusted EBITDA increased to $ 826 million from $ 622 in the second quarter of 2020.
  • Tips for Exercise 21: Bausch Health has revised its revenue and adjusted EBITDA outlook for the year mainly due to the disposal of Amoun, the impact of a recall of certain consumer products.
  • It registers sales of $ 8.4 billion to $ 8.6 billion (consensus $ 8.64 billion) compared to previous forecast of $ 8.6 billion to $ 8.8 billion.
  • It forecasts adjusted EBITDA of $ 3.35 billion to $ 3.50 billion, down from previous forecast of $ 3.4 billion to $ 3.55 billion.
  • BHC repaid the debt of $ 500 million in the first half of 2021 using cash generated from operations; Bausch Health has no debt maturities until 2025.
  • At the same time, Bausch Health announced its intention to pursue a first public offering of its Solta Medical company, which sells medico-aesthetic drugs such as skin rejuvenation products. The move comes as BHC begins efforts to reduce debt.
  • The IPO is scheduled for the fourth quarter of 2021 or the first half of 2022.
  • Solta, which achieved sales of $ 253 million in 2020, is part of Bausch’s orthopedic dermatology business.
  • Price action: BHC shares are down 5.70% to $ 27.96 in the last check pre-market session on Tuesday.
  • photo by Gedesby1989 of Pixabay

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