Company: BLCO
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001860742-25-000008
Chunk: 63

Company: Bausch & Lomb Corp
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 8
Chunk 63
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 %Distribution fees25 1.30 %17 1.00 %Total provisions733 39.30 %633 36.70 %Net product sales1,133 60.70 %1,094 63.30 %Other revenues4 5 Revenues$1,137 $1,099 Cash discounts and allowances, returns, rebates, chargebacks and distribution fees as a percentage of gross product sales were 39.3% and 36.7% for the three months ended March 31, 2025 and 2024, respectively, an increase of 2.6% percentage points, and is primarily attributable to the increase in rebates from our dry eye portfolio, including XIIDRA® and MIEBO®.Operating ExpensesCost of Goods Sold (exclusive of amortization and impairments of intangible assets)Cost of goods sold primarily includes: manufacturing and packaging; the cost of products we purchase from third parties; royalty payments we make to third parties; depreciation of manufacturing facilities and equipment; and lower of cost or market adjustments to inventories. Cost of goods sold typically vary between periods as a result of product mix, volume, royalties, changes in foreign currency and inflation. Cost of goods sold excludes the amortization and impairments of intangible assets. Cost of goods sold was $481 million and $423 million for the three months ended March 31, 2025 and 2024, respectively, an increase of $58 million, or 14%. The increase was primarily driven by: (i) an inventory reserve charge of $15 million related to the voluntary recall of certain enVista IOL products and (ii) higher volumes.Contribution (product sales revenue less cost of goods sold, exclusive of amortization and impairments of intangible assets) decreased by $19 million, primarily driven by: (i) the inventory reserve charge related to the voluntary recall, (ii) the decrease in net realized pricing and (iii) the unfavorable impact of foreign currencies.Cost of goods sold as a percentage of Product sales was 42.5% and 38.7% for the three months ended March 31, 2025 and 2024, respectively.Selling, General and Administrative ExpensesSelling, general and administrative ("SG&A") expenses primarily include: employee compensation associated with sales and marketing, finance, legal, information technology, human resources and other administrative functions; certain outside legal fees and consultancy costs; product promotion expenses