Q3 2024 Avanos Medical Inc Earnings Call Transcript

Oct 30, 2024 / 01:00PM GMT

Release Date Price: €20.8

Transcript 10-Q8-K

Key Points

Positve

Avanos Medical Inc (AVNS) successfully completed the conveyance of two respiratory health plans to AirLife, marking a significant milestone in their transformation efforts.
The digestive health portfolio continues to deliver consistent results, growing almost 3% organically versus the prior year.
The company generated approximately $170 million of sales from continuing operations and $31 million of adjusted EBITDA, indicating strong financial performance.
Avanos Medical Inc (AVNS) maintained above-market growth in their enteral feeding business, benefiting from strong ENFit conversion tailwinds in North America.
The Game Ready portfolio posted its third consecutive quarter of double-digit growth compared to the prior year, showcasing strong product performance.

Negative

Avanos Medical Inc (AVNS) fell short of their stated objective of mid-single-digit organic growth in the third quarter, negatively impacting gross margin.
The surgical pain portfolio, particularly the ON-Q product line, underperformed due to supply issues and higher-than-expected customer turnover.
The company experienced softness in their North America COOLIEF offering, affecting overall pain portfolio performance.
Pricing pressure in the HA portfolio is offsetting volume share gains, impacting revenue growth.
The company anticipates transient challenges providing a slight headwind into the fourth quarter, affecting revenue and growth expectations.

Operator

Good morning, ladies and gentlemen, and welcome to the Avanos Medical, Avanos third quarter 2024 earnings call. (Operator Instructions) This call is being recorded on Wednesday, October 30, 2024.

I would now like to turn the conference over to Scott Galovan, SVP, Strategy and Corporate Development. Please go ahead.

Scott Galovan

Avanos Medical Inc - Senior Vice President, Strategy & M&A

Good morning, everyone, and thanks for joining us. It's my pleasure to welcome you to Avanos' 2024 third quarter earnings conference call.

Speaking first today will be Gary Blackford, Avanos Chair. He'll be followed by Interim CEO, Michael Greiner. Gary will give an update on our leadership changes before Michael reviews our third quarter results, the current business environment and update on our transformation efforts and our fourth quarter 2024 planning assumptions.

We will finish the call with Q&A. A presentation for today's call is available on the Investors section of our website, avanos.com.

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