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Viatris 8-K Report, Financial Results (Feb 28, 2024)

Reports
Earnings & Results·Other Events·Exhibits & Filings
Filing Date
Filed February 28, 2024
Period End
February 28, 2024
Security
VTRS
In the record · 2020–202610-K1210-Q208-K72

VTRS filed 12 annual reports (10-K), 20 quarterly reports (10-Q) and 72 current reports (8-K) between 2020 and 2026.

  1. Material agreement8-K · Jul ’21Jul ’21
  2. Leadership change8-K · May ’23May ’23
  3. Material agreement8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed February 28, 2024. Cited figures are marked; the original filing is the authoritative source.

Viatris Inc. (NASDAQ: VTRS) reported fourth-quarter and full-year 2023 results on February 28, 2024, with the results detailed in an attached press release (Exhibit 99.1).

For full-year 2023, the company reported total revenues of $15.43 billiona, U.S. GAAP net earnings of $54.7 million, adjusted EBITDA of $5.12 billion, U.S. GAAP net cash provided by operating activities of $2.80 billion, and free cash flow of $2.42 billion. The company stated it met its 2023 guidance for total revenues, adjusted EBITDA and free cash flow. Fourth-quarter total net sales were $3.83 billion, up 1% on a divestiture-adjusted operational basis, and the company described this as its third consecutive quarter of operational revenue growth on that basis.

The company provided 2024 guidance of total revenues of $15.25 billion to $15.75 billionb, adjusted EBITDA of $4.8 billion to $5.1 billion, free cash flow of $2.3 billion to $2.7 billion, and adjusted EPS of $2.70 to $2.85. The guidance includes full-year expected performance for pending announced divestitures, which are estimated to contribute about $1.1 billion in 2024 total revenues and about $320 million in adjusted EBITDA. Viatris also announced a global research and development collaboration with Idorsia that adds two Phase 3 assets, selatogrel and cenerimod, and scheduled an R&D event for March 27, 2024.

Capital return actions were also announced. The Board maintained a 2024 dividend policy of $0.48c per share, declared a first-quarter dividend of $0.12 per share payable March 18, 2024, and increased its share repurchase authorization by $1.0 billion to $2.0 billion total. The company had repurchased about $500 million of shares under the program through February 28, 2024, and reported debt paydown of approximately $1.25 billion for the year 2023.

02—Key points

Key Highlights

  1. 2023 total revenues of $15.43 billion; U.S. GAAP net earnings of $54.7 million, with the company stating it met 2023 guidance for total revenues, adjusted EBITDA and free cash flow.
  2. 2023 adjusted EBITDA of $5.12 billion and free cash flow of $2.42 billion; U.S. GAAP net cash provided by operating activities was $2.80 billion.
  3. Fourth-quarter 2023 U.S. GAAP net loss of $765.6 million, which includes a goodwill impairment of $580.1 million related to assets held for sale.
  4. 2024 guidance: total revenues of $15.25–$15.75 billion, adjusted EBITDA of $4.8–$5.1 billion, free cash flow of $2.3–$2.7 billion, and adjusted EPS of $2.70–$2.85.
  5. Immediate addition of two Phase 3 assets, selatogrel and cenerimod, through a global R&D collaboration with Idorsia; R&D event scheduled for March 27, 2024.
  6. Share repurchase authorization increased by $1.0 billion to a total of $2.0 billion; $500 million repurchased under the program through February 28, 2024.
  7. 2024 dividend policy maintained at $0.48 per share, with a first-quarter dividend of $0.12 per share payable March 18, 2024.

03—Questions

Frequently Asked Questions

  1. Did Viatris meet its 2023 financial guidance?

    Yes. The company stated it met its 2023 guidance ranges for total revenues, adjusted EBITDA and free cash flow. Total revenues were $15.43 billion, adjusted EBITDA was $5.12 billion and free cash flow was $2.42 billion. The filing notes that guidance excluded divestiture-related costs and acquired IPR&D, which were adjusted for in the comparison.

  2. What is Viatris's 2024 outlook?

    The company guided to 2024 total revenues of $15.25–$15.75 billion, adjusted EBITDA of $4.8–$5.1 billion, free cash flow of $2.3–$2.7 billion and adjusted EPS of $2.70–$2.85. Guidance includes full-year expected performance for pending divestitures, estimated at about $1.1 billion of total revenues and about $320 million of adjusted EBITDA. The company did not provide guidance for U.S. GAAP net earnings or EPS.

  3. What did Viatris say about its Idorsia collaboration?

    Viatris announced a global research and development collaboration with Idorsia that immediately adds two Phase 3 assets, selatogrel and cenerimod, which the company described as having blockbuster revenue potential. The company will hold an R&D event on March 27, 2024, in New York City to discuss the collaboration and its pipeline.

  4. How is Viatris returning capital to shareholders?

    The Board maintained a 2024 dividend policy of $0.48 per share and declared a first-quarter dividend of $0.12 per share, payable March 18, 2024, to holders of record on March 11, 2024. The Board also increased the share repurchase authorization by $1.0 billion to $2.0 billion. The company repurchased about 19.2 million shares for approximately $250 million in February 2024 and about $500 million under the program through February 28, 2024.

  5. Why was the fourth-quarter 2023 U.S. GAAP net result a loss?

    Fourth-quarter 2023 U.S. GAAP net loss was $765.6 million. The reconciliation shows major items including a goodwill impairment of $580.1 million related to assets held for sale (the planned divestiture of the OTC business), a $239.9 million loss on divestitures, and $148.1 million of litigation settlements and other contingencies, net, partly offset by a tax benefit of $89.4 million.

04—Continue

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