Skip to content
AnalystLens

Viatris 8-K Report, Financial Results (Aug 8, 2024)

Reports
Earnings & Results·Other Events·Exhibits & Filings
Filing Date
Filed August 8, 2024
Period End
August 8, 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. Restructuring8-K · Feb ’21Feb ’21
  2. Deal closed8-K · Nov ’22Nov ’22
  3. Material agreement8-K · Jan ’24Jan ’24
  4. Material agreement8-K · Oct ’26Oct ’26

01—Abstract

Summary

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

Viatris Inc. (NASDAQ: VTRS) reported second-quarter 2024 results for the period ended June 30, 2024, with total revenues of $3.8 billiona ($3,796.6 million) and new product revenues of about $210 million.

Net sales grew approximately 2% on a divestiture-adjusted operational basis, and the company stated this was its fifth consecutive quarter of divestiture-adjusted operational revenue growth. Growth was reported across all segments, including Greater China. On a U.S. GAAP basis, total revenues declined about 3% and the company posted a net loss of $326.4 millionb, or $(0.27) per diluted share, compared with net earnings of $264.0 million, or $0.22 per share, a year earlier.

Adjusted EBITDA was $1,207.9 millionc, up approximately 2% on a divestiture-adjusted operational basis, and adjusted EPS was $0.69, up approximately 3% on the same basis. The U.S. GAAP loss included a $321.0 million goodwill impairment related to the JANZ reporting unit and $258.8 million of losses on divestitures. Free cash flow was $320.3 million, or $426 million excluding transaction costs primarily related to the divestitures, and the company paid down approximately $800 million of debt.

Management stated that the substantial completion of its divestitures, including the OTC business sale to Cooper Consumer Health that closed in July, marks an inflection point. For 2024, the company raised its new product revenue outlook to $500 million to $600 milliond and updated its guidance as of August 8, 2024. Total revenues are now estimated at $14.60 billion to $15.10 billion, versus $14.98 billion to $15.48 billion previously.

Adjusted EBITDA is now estimated at $4.600 billion to $4.870 billion, and adjusted EPS at $2.58 to $2.73, both lower than the May 9, 2024 ranges, reflecting the removal of the OTC business's expected performance for the rest of the year. The company expects to finish at the midpoint of the new ranges.

02—Key points

Key Highlights

  1. Total revenues of $3,796.6 million for Q2 2024, with net sales of $3,785.9 million; divestiture-adjusted operational growth of approximately 2%, the fifth consecutive quarter of such growth
  2. New product revenues of approximately $210 million in the quarter, driven primarily by Breyna, lisdexamfetamine and other new products
  3. U.S. GAAP net loss of $326.4 million, or $(0.27) per diluted share, including a $321.0 million goodwill impairment for JANZ and $258.8 million in losses on divestitures
  4. Adjusted EBITDA of $1,207.9 million, up approximately 2% on a divestiture-adjusted operational basis; adjusted EPS of $0.69, up approximately 3% on the same basis
  5. Free cash flow of $320.3 million on a reported basis, or $426 million excluding transaction costs primarily related to the divestitures; operating cash flow of $379.1 million
  6. Full-year 2024 new product revenue outlook raised to $500 million to $600 million
  7. Full-year 2024 guidance lowered: total revenues $14.60-$15.10 billion, adjusted EBITDA $4.600-$4.870 billion, adjusted EPS $2.58-$2.73, free cash flow $2.170-$2.570 billion

03—Questions

Frequently Asked Questions

  1. Why did Viatris post a net loss in the second quarter when adjusted EPS grew?

    The U.S. GAAP net loss of $326.4 million reflected several items excluded from adjusted measures, including a $321.0 million goodwill impairment related to the JANZ reporting unit, $258.8 million in losses on divestitures, $709.9 million of purchase accounting amortization, and $105.1 million of acquisition and divestiture-related costs. Adjusted net earnings were $826.5 million, or $0.69 per share.

  2. Why was 2024 guidance lowered even though the company reported growth?

    The updated guidance excludes the expected performance of the OTC business for the remainder of 2024, since that business closed on July 3, 2024. The May 9, 2024 guidance had included it. For example, the filing attributes about $105 million of adjusted EBITDA to the OTC business's remaining 2024 performance and about $20 million to estimated net dis-synergies.

  3. What is the company's cash flow and debt position after the quarter?

    Net cash provided by operating activities was $379.1 million in the quarter, and reported free cash flow was $320.3 million. Excluding transaction costs primarily related to the divestitures of $106 million, free cash flow was $426 million. The company paid down approximately $800 million of debt. Long-term debt stood at $14,731.2 million at June 30, 2024, down from $16,188.1 million at December 31, 2023.

  4. What drove revenue performance across segments?

    Brands net sales reflected strong growth in Greater China and portfolio expansion in Emerging Markets and JANZ, partly offset by unfavorable channel dynamics in North America and government price regulations in Japan and Australia. Generics benefited from new product launches in Developed Markets, continued growth in complex products, and solid performance across the European portfolio. Divestiture-adjusted operational net sales grew across all segments.

04—Continue

← View all 8-K filings