Avanos Medical, Inc. (NYSE: AVNS) has reported its financial results for the fourth quarter and full-year 2023. The company's net sales from continuing operations for the fourth quarter totaled $173.3 million, reflecting a 4.6% decrease from the prior year. For the full year, net sales from continuing operations decreased 1.6% to $673.3 million.
Joe Woody, Avanos's Chief Executive Officer, expressed optimism about the company's performance, stating, “We were very pleased with the overall execution on our transformation initiative last year, which sets the foundation for more profitable growth in 2024 and for reaching our mid-term financial targets in 2025. We believe we are poised to maintain the positive momentum in our digestive health portfolio and we are also confident that our strategy for the pain management and recovery business will lead to sustainable growth as we enter 2024.”
The company highlighted several key financial metrics for the full-year 2023: Fourth quarter diluted earnings per share from continuing operations were $0.24 compared to $0.21 per share a year ago, and fourth quarter adjusted diluted earnings per share from continuing operations were $0.36 compared to $0.45 in the prior year. Full-year diluted loss per share from continuing operations were $0.21 compared to diluted earnings per share of $0.46 in the prior year, and adjusted diluted earnings per share from continuing operations were $1.03 compared to $1.00 in 2022. * The company reported an outflow of $3.4 million in free cash flow for the fourth quarter, compared to an inflow of $25.2 million in the third quarter, and $14.6 million for the full year, compared to $71.6 million in 2022.
The company also provided an outlook for 2024, expecting net sales to be between $685 and $705 million, assuming organic growth between 3% to 6%, excluding the impact of the product portfolio rationalization under the transformation process. Adjusted gross profit margins are expected to be between 59.5% and 60.5%, adjusted SG&A as a percentage of revenue is expected to be between 41% and 42%, and adjusted diluted earnings per share are expected to be between $1.30 to $1.45.
Woody further commented on the company's outlook, stating, "We believe we are poised to maintain the positive momentum in our digestive health portfolio and we are also confident that our strategy for the pain management and recovery business will lead to sustainable growth as we enter 2024."
The company's full 8-K submission is available here.
