BUSINESS: Financial In First Report as a New Public Company, Bausch + Lomb Reports Increased Sales and Decline in Net Income for its First Quarter By Staff Thursday, June 9, 2022 12:24 AM VAUGHAN, Ontario—Bausch + Lomb Corp. (NYSE/TSX: BLCO), in its first financial report since returning to the ranks of independent public companies in May, reported Wednesday that its sales increased 1 percent (5 percent on an organic basis) to $889 million in its first quarter, which ended March 31. The eyecare company also reported net income of $20 million and adjusted EBITDA of $170 million for the first quarter. In the year-ago quarter B+L reported revenue of $881 million. The company noted that in the current quarter foreign exchange had an unfavorable impact on revenue of $29 million. Net income in the first quarter fell by $7 million from the 2021 total of $27 million, which the company attributed to its investment in selling, general and administrative (SG&A) expenses and R&D spending, as well as an increase in cost of goods sold. The higher expenses also resulted in a decline in operating income, which fell by $31 million in the first quarter to $54 million (compared with $85 million in the year-ago quarter). “In the first quarter, Bausch + Lomb delivered organic revenue growth, driven by our two largest segments, vision care and surgical,” said Joseph C. Papa, chairman and CEO. "Bausch + Lomb has always stood at the forefront of cutting-edge scientific and technological optical advancements, and today we are more focused than ever on developing and offering new treatments to meet unmet eye health needs.” In the vision care segment, revenue totaled $560 million for the first quarter, compared with $556 million for the first quarter of 2021, an increase of $4 million, or 1 percent. Excluding the unfavorable impact of foreign exchange of $19 million, the segment increased organically by approximately 4 percent, primarily due to higher sales of Lumify (brimonidine tartrate ophthalmic solution 0.025%), Biotrue solutions franchise and Ocuvite + PreserVision, partially offset by decreased sales in the contact lens business driven by COVID-19 lockdowns in China that began in the first quarter of 2022. Surgical segment revenues totaled $174 million, compared with $162 million for the first quarter of 2021, an increase of $12 million, or 7 percent. Sales in the segment increased organically by approximately 13 percent, primarily due to increased sales of implantables, consumables and intraocular lenses. In the ophthalmic pharmaceuticals segment revenue totaled $155 million, compared with $163 million for the first quarter of 2021, a decrease of $8 million, or 5 percent. The segment decreased organically by approximately 3 percent, primarily due to generic erosion and a decrease in net realized pricing in the United States, partially offset by higher sales of key promoted brands and an increase in international sales, the B+L announcement noted. Papa added, "As we look to the future as a publicly traded company, we believe we are well positioned for growth in large, durable markets, driven by new products and megatrends, and we see many attractive opportunities for a pure-play eye health company.” Bausch + Lomb began trading on the New York Stock Exchange and Toronto Stock Exchange under the ticker “BLCO” on May 6, and closed its initial public offering on May 10. Bausch Health Companies Inc., B+L’s parent company, “expects to complete the spinoff of Bausch + Lomb following the expiry of customary lock-ups related to the IPO, achievement of target net leverage ratios and subject to market conditions and receipt of applicable shareholder and other necessary approvals,” the announcement Wednesday noted.