Wed, Feb 26, 9:57 PM (59 days ago)
Avanos Medical, Inc. (AVNS) reported a challenging fiscal year ending December 31, 2024, with net sales of $687.8 million, a 2.2% increase from 2023. However, the company faced significant operating losses of $396.2 million, primarily driven by a $336.5 million impairment of goodwill and intangibles, alongside restructuring costs related to its Transformation Process initiated in January 2023. The company’s gross profit margin declined to 55.4%, impacted by rising costs and unfavorable pricing. The acquisition of Diros Technology in July 2023 for $53 million and the divestiture of its Respiratory Health business for $110 million in October 2023 reflect Avanos's strategic shift to focus on core markets. The company anticipates a continued focus on its Digestive Health and Pain Management segments, despite competition and pricing pressures. Risk factors include reliance on a single manufacturing facility in Mexico, potential supply chain disruptions, and ongoing regulatory challenges. Avanos's financial condition remains constrained, with total liabilities of $325.7 million against a cash position of $107.7 million as of December 31, 2024. The company’s stock has seen significant volatility, and no dividends are expected in the near future.