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Sep 30, 2022

Organon Q3 2022 Earnings Report

Organon's existing portfolio delivered sustainable growth, with newly-acquired assets gaining traction.

Key Takeaways

Organon reported a 4% decrease in total net revenues as-reported, but a 3% increase excluding the impact of foreign currency. Women's Health grew 19% as-reported and 23% ex-FX. Net income from continuing operations was $227 million, or $0.89 per diluted share. Non-GAAP Adjusted net income from continuing operations was $337 million, or $1.32 per diluted share.

Total net revenues were $1,537 million, a decrease of 4% as-reported, but an increase of 3% ex-FX.

Women’s Health grew 19% as-reported, and 23% ex-FX.

Gross margin was 64.2% as-reported, compared with 61.9% in the prior year period.

Adjusted EBITDA margin was 35.5% compared with 38.2% in the third quarter of 2021.

Total Revenue
$1.54B
Previous year: $1.6B
-3.9%
EPS
$1.32
Previous year: $1.67
-21.0%
Gross Margin
64.2%
Previous year: 61.9%
+3.7%
Adjusted Gross Margin
67.1%
Previous year: 64.9%
+3.4%
Adjusted EBITDA Margin
35.5%
Previous year: 38.2%
-7.1%
Gross Profit
$986M
Previous year: $991M
-0.5%
Cash and Equivalents
$499M
Previous year: $1.01B
-50.5%
Free Cash Flow
$262M
Total Assets
$10.4B
Previous year: $11.3B
-7.9%

Organon

Organon

Forward Guidance

Organon is updating its 2022 financial guidance ranges previously provided on August 4, 2022. The company's financial guidance does not assume an estimate for future IPR&D and milestone payments for business development transactions not yet executed.