Fri, May 2, 12:43 PM (20 days ago)
**Organon & Co. (OGN) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $1,513 million (down 7% YoY, -4% excluding FX) - **Gross Profit:** $841 million (down 12% YoY) - **Net Income:** $87 million (down 57% YoY) - **EPS:** $0.34 (down 56% YoY) - **Cash Flow from Operations:** $75 million (down 1% YoY) - **Cash and Cash Equivalents:** $547 million (down 19% YoY) **Key Metrics:** - **Gross Margin:** 55.6% (down from 58.9% YoY) - **Operating Margin:** 12.8% (down from 16.2% YoY) - **Net Margin:** 5.7% (down from 12.4% YoY) **Quarterly Performance Discussion:** - **Revenue Decline:** Driven by unfavorable FX rates (-3%), LOE impacts (-$63 million), and lower demand for certain products. - **Gross Profit Decline:** Due to unfavorable pricing, decreased sales volume, and FX translation. - **Operating Expenses:** Selling, general, and administrative expenses decreased by 3%, while R&D expenses decreased by 14%. - **Restructuring Costs:** $86 million incurred for headcount-related restructuring. - **Cash Flow:** Impacted by lower operating income and increased milestone payments. **Trends and Uncertainties:** - **Product Performance:** Positive trends for Nexplanon, Vtama, and Emgality/Rayvow. Negative trends for NuvaRing, Atozet, and Singulair. - **FX Impact:** Unfavorable FX rates negatively impacted revenue and gross profit. - **LOE Impact:** Continued LOE impacts on certain products, particularly Atozet. - **Geopolitical and Macroeconomic Factors:** Potential impacts from tariffs, trade issues, and regulatory developments. **Future Operations Impact:** - **Acquisitions:** Recent acquisitions (e.g., Dermavant, Biogen) expected to drive future growth. - **Cost Savings:** Ongoing cost savings initiatives expected to result in approximately $200 million of annual savings. - **Dividend Reduction:** Quarterly dividend reduced from $0.28 to $0.02 per share to redirect funds to debt repayment/repurchase. - **Cash Flow Management:** Continued focus on active cash cycle management and working capital optimization. **Ticker:** OGN