Avanos Medical Reports Strong Start to 2025 with Impressive Financial Performance

Avanos Medical Reports Strong Start to 2025

Avanos Medical, Inc. has announced its financial results for the first quarter of 2025, demonstrating noteworthy growth and a solid performance under the leadership of newly appointed CEO David Pacitti. The company reported total net sales of $167.5 million, reflecting an increase of 0.8% compared to the same period last year.

Key Financial Highlights

In the financial announcement, Avanos's net income surged to $6.6 million, a significant rise from only $0.5 million in net income from continuing operations a year earlier. Adjusted net income reached $12.0 million, surpassing last year's figure of $10.1 million. The diluted earnings per share stood at $0.14, compared to $0.01 from the previous year, while adjusted diluted earnings per share increased to $0.26, up from $0.22 a year ago.

An important figure, the adjusted EBITDA, was reported at $21.6 million, consistent with the adjusted EBITDA from the first quarter of 2024.

Operational Performance

In terms of sales performance, Avanos experienced modest organic growth, with an adjusted increase of 2.8% after accounting for foreign currency effects and decisions not to pursue certain revenue streams deemed unfit for return. The gross margin for the first quarter settled at 53.6%, slightly down from 57.1% the prior year, affected primarily by pricing pressures in their hyaluronic acid products.

Notably, operating income more than doubled to $10.3 million from $4.0 million last year, while adjusted operating income improved from $16.3 million to $17.1 million over the same timeframe.