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Dec 31, 2023

Organon Q4 2023 Earnings Report

Organon's Q4 2023 performance showcased revenue growth driven by Women's Health and Biosimilars, alongside improved profitability.

Key Takeaways

Organon reported an 8% increase in total revenue to $1,598 million for Q4 2023. The company's growth was primarily fueled by strong performances in Women's Health and Biosimilars segments. Net income increased significantly to $546 million, and adjusted EBITDA margin improved to 28.1%.

Total revenue increased by 8% to $1,598 million compared to Q4 2022.

Women's Health revenue grew by 7%, driven by fertility products and oral contraceptives.

Biosimilars revenue increased by 49%, led by Ontruzant and Renflexis.

Net income rose to $546 million, or $2.13 per diluted share, compared to $108 million, or $0.42 per diluted share, in Q4 2022.

Total Revenue
$1.6B
Previous year: $1.49B
+7.6%
EPS
$0.88
Previous year: $0.81
+8.6%
Gross Margin
57.3%
Previous year: 60%
-4.5%
Adjusted Gross Margin
60.3%
Previous year: 63.1%
-4.4%
Adjusted EBITDA Margin
28.1%
Previous year: 25.6%
+9.8%
Gross Profit
$917M
Previous year: $891M
+2.9%
Cash and Equivalents
$693M
Previous year: $706M
-1.8%
Total Assets
$12.1B
Previous year: $11B
+10.1%

Organon

Organon

Organon Revenue by Segment

Forward Guidance

Organon expects low-single-digit constant currency revenue growth and stable to improving Adjusted EBITDA margin for full year 2024.

Positive Outlook

  • Expects constant currency revenue growth in the low-single-digit range.
  • Expects stable to improving Adjusted EBITDA margin.
  • Achieve stable to improving Adjusted EBITDA margin through operating expense management.
  • Priorities are to deliver their third year of constant currency revenue growth
  • Well positioned at the forefront of women's health effort.

Challenges Ahead

  • Unable to reasonably predict certain items contained in the GAAP measures.
  • Such items include acquisition related expenses.
  • Such items include restructuring and related expenses
  • Such items include stock-based compensation
  • Such items include the ultimate outcome of legal proceedings

Revenue & Expenses

Visualization of income flow from segment revenue to net income