Good morning, and welcome to Bausch + Lomb’s Second Quarter 2024 Earnings Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to George Gadkowski, Vice President of Investor Relations and Business Insights. Please go ahead.

Thank you. Good morning, everyone, and welcome to our second quarter 2024 financial results conference call. Participating on today’s call are Chairman and Chief Executive Officer, Mr. Brent Saunders; and Chief Financial Officer, Mr. Sam Eldessouky. In addition to this live webcast, a copy of today’s slide presentation and a replay of this conference call will be available on our website under the Investor Relations section. Before we begin, I would like to remind you that our presentation today contains forward-looking information. We would ask that you take a moment to read the forward-looking legend at the beginning of our presentation as it contains important information. This presentation contains non-GAAP financial measures and ratios. For more information about these measures and ratios, please refer to Slide 1 of the presentation. Non-GAAP reconciliations can be found in the appendix to the presentation posted on our website. The financial guidance in this presentation is effective as of today only. It is our policy to generally not update guidance until the following quarter unless required by law and not to update or affirm guidance other than to broadly disseminated public disclosure. With that, it’s my pleasure to turn the call over to Brent.

Thank you, George, and thank you, everyone, for joining today’s call. I hope you’re enjoying the summer. I’m going to provide a high-level overview of another successful quarter of execution. Sam will do a deeper dive on our performance, and I’ll close with my favorite part, highlighting the innovations that will help separate us from the pack and keep us on a path to sustainable long-term profitable growth. There is no change to our three areas of focus, and there won’t be. This is our formula for success. Our constant currency revenue growth progression over the past year has been remarkable, 8% in Q3 2023, 19% in Q4 2023, 20% in Q1 2024 and 20% in the second quarter. What makes it more impressive is our growth continues to come from all businesses and geographies. We are not a one-trick pony to hold into a certain product or category, and we continue to refine what we’re selling and where. SKU rationalization is an ongoing process that will pay dividends slowly but surely. Something that’s undoubtedly helping fuel that consistent revenue growth is our relentless focus on selling and operational excellence. We’re talking about building those capabilities but we have now hit a point where it feels like a cultural norm within our walls. Colleagues around the world know that our success is inextricably linked to how we make or source our products and get them in the hands of eye care professionals, patients and consumers. They also know that selling and operational excellence is a longing and if you’re not continuously improving, you’re falling behind. Look no further than the second quarter milestones as proof of our ongoing commitment to innovation. In May, Health Canada approved the enVista NV intraocular lens, the first premium IOL on the enVista platform and…

Thank you, Brent, and good morning, everyone. Before we begin, please note that all my comments today will be focused on growth expressed on a constant currency basis, unless specifically indicated otherwise. Turning now to our financial results on Slide 7. We are pleased to report another quarter of solid revenue growth across all of our segments, geographies and key product franchises. We are seeing the broad-based growth momentum in our business continue. Total company revenue of $1.216 billion for the quarter reflects growth of 20%. As Brent mentioned, we’re executing on our strategy and our focus remains on driving selling and operational excellence and prioritizing innovation. The steady stream of product launches continues to drive growth, and we’re excited about the opportunity ahead of us in the second half of 2024. For the second quarter, currency was a headwind of $27 million to revenue. Now let’s discuss the results in each of our segments. Vision Care’s second quarter revenue of $697 million increased by 11%, driven by solid growth in both the consumer and contact lens businesses. The consumer business again demonstrated strong performance with growth of 9% in Q2. We continued to see growth across our key consumer franchises. In the quarter, Eye Vitamins were up 8%, Lumify grew by 12%, and the consumer dry eye delivered $94 million in revenue and organic growth of 10%. Contact lens revenue growth was 14% with strong performance across key brands and geographies. In the quarter, we saw solid growth in both the daily and FRP portfolios with our Daily SiHy the way. We are continuing to see strong momentum in the Daily SiHy with 72% growth in the quarter. The Daily SiHy launch is off to a strong start. And as Brent mentioned, we have recently announced the launch of…

Thanks, Sam. Now let’s focus on the future. We recently launched an unbranded dry eye education campaign in the U.S. to help drive awareness of massively underdiagnosed and undertreated condition, which continues to worsen based on environmental factors and an agent population. In fact, approximately 150 million U.S. adults experience occasional or frequent symptoms of dry eye, and around 38 million are living with dry eye disease. The goal of the campaign is to help facilitate discussions with eye care professionals who can recommend treatment options from OTC solutions to pharmaceutical interventions as appropriate. No company offers more of these options than Bausch + Lomb, and it’s not up for debate. We continue to expand those offerings, the most recent example being the June launch of Blink NutriTears. While it’s too early to report consumer uptake, the reaction from eye care professionals speaks volumes. They are excited to have a new clinically proven treatment option that could be particularly appealing for patients who may be adverse to eye drops. MIEBO and XIIDRA are the flagship products in our dry eye portfolio and understandably generate quite a bit of interest. Sam covered second quarter performance and updated expectations for both, but let me highlight a few building blocks for long-term growth. New direct-to-consumer campaigns for both medications will be underway soon which will drive awareness and action, especially when coupled with our unbranded efforts. We shared our willingness to invest in marketing these products, which you’ll see reflected in the quality and reach of each campaign. Perhaps more important than reaching consumers is continuing to show prescribers wide MIEBO and XIIDRA are the preferred treatment options for evaporative and inflammatory dry eye disease, respectively. With our sales force as the primary vehicle, we’ll talk new data in creative and engaging ways…

Thank you. [Operator Instructions] And the first question today is coming from Xuyang Li from Jefferies. Xyuang, your line is live.

Alright. Great. Good morning, everyone and thanks for taking my questions. I guess I’ll start a bit high level, maybe for Brent. The quarter was strong all around, beat on the top line, the EBITDA, you also called out really broad strength across segments, geographies, key products. You’ve been CEO for a little bit more than a year now. I just wanted to hear from your perspective how this – I hate to call it a turnaround, but maybe a rejuvenation has been versus expectations when you joined, what’s going better than expected? What can still use somewhat attention? Your thoughts on the sustainability of this broad-based growth? And can you maintain the double-digit growth profile in 2025?

Yes. So thank you for the question. So you’re right. I think there is a turnaround/rejuvenation happening inside our company. I’ve commented on this before, but I do think that where we are today, our strategy is absolutely working. We are focused on relentlessly, I think this is the word I’d like to use on execution, sales execution and sales excellence, launch excellence and operational excellence. And both of those are paying huge dividends. When you get 13,000 people around the world, all moving in the same direction with enthusiasm and motivation with clear direction, really good things happen, and I think that’s a testament. As you said, it’s holistic, right? So just some constant currency numbers, I’ll just rattle off as a proof point here, right? Overall, constant currency top line 20% growth; lens, up 14%; consumer, up 9%; surgical, up 9%; pharma, up 61%; organic 16%. In terms of regions, U.S., up 31%; Asia, up 7%; Europe, up 10%; Turkey, Middle East, Africa, up 29%; LATAM, up 31% and Canada, up 16%. And so I think it’s just a – it’s a proof point that you see the focus on execution around the globe and in every business unit we have. And from my point of view, where we stand today, it’s absolutely sustainable, right? Once you create a culture of executional excellence and you continue to work at it and reinforce it, I think it’s – in my career, it’s proven that, that can be a real driver for the future. As we move into this next phase of our strategy of building innovation and continuing to support the new product launches, so there is a long tail on these products. These are products that in some cases have a decade of patent protection in other cases are consumer brands that last forever or contact lens brands that have a great holding power for decades or more. And so there’s a lot of durability in the portfolio, and I’m excited for the future. So Again, I’ll end with – I think we have a great strategy and our team around the world is executing, and that’s a great combination to have.

All right. Great. Appreciate that. I guess for the follow-up, just on the MIEBO performance, 50% sequential growth, fairly above our expectations. I mean we started to see a noticeable uptick in weekly scripts in June. It’s impressive during the summer, while some of the other recently launched eye drugs were impacted by the summer seasonality. Our ECP checks have been really positive on MIEBO. Can you maybe talk a little bit about the performance in the second quarter? Is it outperforming your internal expectations, the guidance increase, maybe talk a little bit about trends in refills and how the integrated sales team is doing?

Sure. Yes. So as I mentioned in the first quarter, we integrated the field force. And then just a few weeks ago, we launched Glimpse, our new AI-based tool for the U.S. pharma’s field force. And honestly, a lot of credit to the team, I think really strong execution in our pharmaceutical team in the United States. Very proud of what they’re doing. But MIEBO, I think, has a great potential for the long-term for us. We caught up, obviously, significantly our revenue forecast for the year. I would say we can call up peak sales as well. I see this now 3 quarters into the launch, it’s hard to call the exact peak sales, but I would see it well over $500 million at this point, peak sales. So very excited about that. And look, we’re just starting three quarters in, right? We stop to gain more managed care access. The team is making great progress in 3 quarters to have roughly 50% commercial coverage in about, what, 32% Medicare coverage is pretty impressive for 3 quarters. I suspect those numbers to decline next year and we’ll continue to focus on execution. And so I think a long runway here and a great product and great ECP support behind it.

Alright. Thank you very much.

Thank you. The next question is coming from Patrick Wood from Morgan Stanley. Patrick, your line is live.

Amazing. Thank you so much for taking it. It’s a busy morning. So I’ll keep it kind of one holistically, which is, obviously, launch is going very well. The pipeline for H2 and ‘25 sounds pretty stocked. The guide implies slightly very good but slightly slower growth in the second half. A, is that just a function of prudence? There’s a lot of unknowns in the world, et cetera, et cetera, given the build of the innovation and then, B, just maybe slightly more strategically on the launches, what have been some of your key learning’s you’ve had from the first wave, the stuff that’s stuck out that’s going to make you approach? What are you going to change in the market approach for the sort of the next wave in the second half and ‘25 or just more of the same?

Yes. So let me ask – answer the second part of the question, I’ll turn it over to Sam for the first part, Patrick. Look, I think we’re in a constant learning mode and adjusting techniques and the different levers to pull. I think with some of these launches were so early that there’s a lot yet to do. Let’s take a big one like MIEBO. The team has been working on some really, I think, impressive creative ads. We plan to launch that somewhere closer to the fourth quarter and turning on DTC for MIEBO will be a big lever. When I look at BLINK NutriTears, right, we’re just in the phase of stocking at retailers, a lot of excitement among the retail community, the ECP community as we get the data out and here’s a great learning. We’re using our medical affairs team and also our pharma dry eye sales force to make sure that ECPs are aware of the clinically proven formula that we have in BLINK NutriTears. Now we’ve got to turn it over to the consumer teams to drive consumption. And so that technique of working across businesses is something that hasn’t happened at Bausch + Lomb in a long time and people here are really embracing it. And so there’s a lot of cross learning’s between consumer and pharma, pharma and surgical, pharma and Vision Care. So there’s just a lot of great work being done. I’m very proud of the team. So constantly learning and improving as we go. But Sam, do you want to take the first part?

Sure. And good morning, Patrick. When you think about Q2 for us, constant currency was about 20%. If you think about it organically for Q2, that was about 10% and then you think about our sort of guidance that we updated this morning and sort of what does that imply for the second half, if you take midpoint of the guidance to the high-end of the range of the guidance that suggests anywhere between 9% to 10% for the second half in terms of implied. So again, we’re seeing the momentum that we’ve seen in Q2 that continues with us on balance. As you know, the guidance have multiple outcomes, and we’re balanced with our view in terms of the guidance between first half and second half.

Love it. Thanks for question guys.

Thank you. The next question is coming from Craig Bijou from Bank of America. Craig, your line is live.

Good morning, guys. Thanks for taking the question. I guess I want to start with maybe just some of the strong performance in the contact lens business and the equipment business, specifically on the surgical side and maybe some of the drivers there and specifically on contact lenses, can you just talk about the market growth? What you’re seeing with some of the new launches, Daily SiHy and how are you taking new fit share there?

Yes. So I’m very impressed with the team’s execution on the contact lens, really, really strong growth on a constant currency basis, 18% in the U.S. and 12% internationally. So we see it across all regions. When you look at lens growth, you see SiHy up 72%, the FRP portfolio up 13%. And so great execution in a balanced way across the portfolio. And look, so the way I see it is as we focus on execution, we start taking share. You’re talking about a market that’s still growing in the mid-single digits. We’re growing faster than the market. And so we are taking share. It’s hard to pinpoint exactly where that share is coming from. But you see it happening. I think the good news is when you have a product like INFUSE, right, and you continue to launch the modalities around the world, right? We’re just launching, for example, in the U.S., the toric and the reception is truly outstanding, right? An easy fit. It fits on the eye really quick. It saves time for the ECP and the Chair and then great vision outcomes. So exactly what you want to hear and that’s exciting. And even more exciting for me in contact lens is R&D continues to – it’s an area where we have great strength in internal R&D and we’re working on multiple projects on multiple new platforms for the future. So I see a very bright future for us in contact lenses and it’s a combination of great products, great execution and continued innovation, and that’s the formula for success for us.

Great. And if I can also ask on you updated or you raised your EBITDA guidance slightly along with the revenue guidance. But I think the implied margin may be a little bit lower than what you saw or what you guided to previously. So can you just help us understand the EBITDA margin opportunity that you have for the rest of the year potential upside and then maybe even any comments on ‘25 would be great? Thank you.

Yes. So let me start and then I’ll turn it over to Sam. But I think one thing I would just remind you of, we have consistently said that ‘24 and ‘25 are years of launches, and we’re going to invest behind the launches, particularly with so many of these products having long durable lives ahead of them to make sure that they get off on the right trajectory. So when you look at the big launches like MIEBO, you see great execution. And when you see fire, you want to put gasoline on it to continue to bend the curve upward. We’re seeing great uptake of INFUSE around the world. We continue to invest behind new modality launches and continued execution. We’re investing in a huge new DTC platform that we’re going to launch in September in the U.S. called Opel, really best-in-class consumer ECP portal. It will really be, I think, a great addition to our team there. Glimpse, our new tool for the pharma team that potentially could be rolled out to other businesses as we execute around it. And so a lot of investment behind products, even Blink NutriTears wasn’t in plan. We went from concept to launch in about 6 months, and we see a huge potential in Blink NutriTears as well. So lot of investment in launches and the payoff comes in the out years. And I think that’s the right thing to do for this business. But Sam...

And Craig, it’s the one – maybe I’ll start just repeating a bit of what Brent said because it’s very important to reflect on it, which is from the beginning of ‘24, we outlined what’s our strategy and the theme of ‘24 for us, which is really building up on sustainable growth because we’re playing the long game here. So we’re thinking about how you can take the launches of the products that we have. They have a long runway ahead of them and how we invest in them to be able to drive the top line growth and drive margin as we go forward and that margin to be a sustainable margin. So when you now reflect on what we have done with our guidance, when you think about our guidance range now midpoint and I’ll focus on midpoint just roughly about 18.4% EBITDA margin. That’s relatively compared to what we had before restructure about 18.5%, 18.6%. So it’s – I call it still within the range of about the sort of same range of how we’re still thinking. So we’re in the grand scheme of things on a larger view, we’re still holding what our strategy and what’s our view is from top line and EBITDA and margin for ‘24.

Thank you. The next question will come from Joanne Wuensch from Citibank. Joanne, your line is live.

Excuse me. Hi, good morning. This is Anthony on for Joanne. I want to start with just the XIIDRA launch and guidance. Can you just maybe talk about how the XIIDRA launch is rolling out? And then I saw you lowered XIIDRA guidance. Can you maybe just go into a little bit more detail into what your expectations are in the second half? And is any of the lower guidance potentially cannibalization from the launch of MIEBO?

Yes. So great question. Look, XIIDRA is a very important part of our leadership in dry eye. I think having both – strategically having both MIEBO and XIIDRA is incredibly important and drives a lot of the early success of MIEBO having the established player like XIIDRA across the board. That being said, we did have a kind of a stop-start situation in the first quarter with the Change Healthcare and that’s an environmental, outside of our control situation. I think the team did a great job in getting new co-pay and vendors on board very quickly within about 2 weeks or so and getting back to focus. And we’re recovering from that reset that happened in the first quarter. But if you look at what happened in the second quarter, I saw great stabilization of scripts TRx, you see growth starting if you followed IQVIA data. July was a good year-over-year growth month and we expect that to continue in the third quarter. So XIIDRA, our goal is TRx growth. I think when we did the deal, we talked about mid-single-digit growth. I think that’s right on a TRx basis. And as you look forward, we have to continue to think about some unknowns, like the Inflation Reduction Act in ‘25 and continued pressure from managed care. But that being said, I see a long runway for TRx growth. In terms of cannibalization, I don’t think that’s an issue. What you see happening since MIEBO launched is the market is expanding, about 10% expansion of the market and that’s exactly what we wanted to see. And so we think that market has a lot of opportunity to continue to grow. We already gave you the numbers. It’s a massive market of very undertreated penetration. And as a leader across prescription options and OTC options, we are uniquely positioned to really kind of push and drive market expansion. And I talked DTC, that’s one great tool to do it, but you’re going to see new and improved DTC from XIIDRA starting in about a month. And then you’re going to see DTC for MIEBO started in the early fourth quarter. And then, of course, we’re considering continuing pushing OTC. We have Blink on air and then maybe potentially even Blink NutriTears. So I think we have a lot of opportunity to hit a lot of different consumers and patients where they consume and pay attention to media across the spectrum. And so strategically, I don’t think we could be positioned any better to really drive market growth here.

Very helpful. And second, can you just talk about your expectations for margin cadence in the back half of the year growth in operating?

Yes. I think what we’re going to be – as you think about – again, we look at what we performed in the first half, first half roughly our margins were just shy of 17%. As you think about the second half with the guidance and the midpoint that suggests we have an acceleration on margin. Just a factor I would talk about is private seasonality and just a good reminder of everyone for seasonality because we talk through that before in previous calls. We start low in the beginning of the year. Q1 is our lowest, Q4 is our highest. And as you think about it for this year, specifically, with this how we’re actually lining up our launches and the investments behind launches, we’re probably going to see a much more emphasized Q4 as you think about Q3 and Q4 for the second half for us. But you always have to – how you start with the 2023 as the starting point of the cadence.

Got it. Thanks.

Thank you. The next question is coming from Robbie Marcus from JPMorgan. Robbie, your line is live.

Great. Nice quarter. Thanks for taking the questions. Brent, I wanted to circle back to your comments you just made about margin and the heavy investment ahead. Should our expectation after that, be that any of much of the top line upside you’ll be delivering in ‘24 and ‘25 is going to be reinvested into this heavy investment period? Or is there a commitment to be able to absorb the investment and let the top line upside drop through the bottom line? And I have a follow-up. Thanks.

Yes. No, a great question. And no, it’s not – the plan is not to put all the upside into reinvestment. It’s to have a steady cadence of improved margins as we continue to appropriately invest behind each of these launches. And so every investment that we make, Sam and I do a very careful ROI analysis. We look at each one in great detail and spend a considerable amount of time thinking through the return. And so, my view is we run this company for our stakeholders, particularly our shareholders. And so we want to make sure every investment is done appropriately with the right point of view and the right metrics and KPIs around each one. And so absolutely, we’re committed to margin improvement over time. Very important part of our strategy is both revenue growth and margin expansion on a sustainable basis for the long-term. And so absolutely, we want to make sure that we do that the right way.

And Robbie, if I may add to what just Brent said also is if you think about our margin, again, it’s back to how we set up ‘24. We set up ‘24 with a focus on ensuring that we have a sustainable top line growth and steady margin improvement as we go forward. And if you reflect back in ‘23 to ‘24, we have a steady improvement in terms of margin year-over-year. I think that’s going to be the same philosophy as we start thinking through this in terms of making sure given – especially given the fact that many of the assets that we’re investing in have a long runway ahead of them. So maximizing the value of those assets is a key driver for us. So making sure that we continue to drive the value of those assets and maintain that steady growth and margin.

Great. And maybe as a follow-up to that, free cash flow was minus $48 million in the quarter. How do we think about cash flow for the full year here? And any color on what we should expect in terms of free cash flow conversion into next year? Thanks.

Yes. So as I mentioned before, when you think about our results for the quarter and especially the first half, we’re in growth mode than usually, when you’re in growth mode, you tend to be more of a use of working capital, either as a source of working capital. These are about benefits of our cash flow. So just to give you a reference, since December to June, our working capital is a consumption of roughly about $250 million. That contemplates all the accounts of working capital. And that’s really feeding that growth. So that’s one element that we have to keep in mind. The other part is the inventory. Our inventory is also an area where we use as a lever to be able to manage through supply challenges that we talked about through ‘23. And the inventory right now, we’re seeing roughly about $1 billion of inventory. That’s a little bit higher than what we would like it to be. But I think that, again, is the lever that we’re using to be able to make sure that we have a steady supply of our products. So when you think about overall from that, you’re right, when you think about cash flow, year-to-date, it was roughly about $72 million. We’re running from a free cash flow perspective, we’re running at this point are negative. When I think about for the full year, we’re probably going to be a breakeven to a slight negative. One of the key things that we’re also doing is accelerating our thinking around CapEx. You’ve seen the growth that we’re talking about in the Daily SiHy and in our lens business, and we’re accelerating that growth to continue to think about our capacity and what we will need for ‘28 and beyond. So we’re doing those investments as we speak here today. So I think that’s going to have a level of impact on the cash flow for this year.

Yes. If I could just add, Robbie, I think on strategy, we talked about earlier in the call, whether this is a turnaround or rejuvenation. But one of the most important tenets we put in place was to make sure we could service our customers, right? Eye care professionals around the world rely on us. And particularly, and I will point out surgical, where we had the most work to do, right. If you are a cataract surgeon and you are expecting to do surgery in the morning, and we can’t deliver you the product or we can’t make the tools that you need to do that surgery, you can lose that customer forever and break that trust. And so we intentionally chose to pick in the short-term, servicing our customer first and build inventory to make sure we can get products in our customers’ hands. And as we work through that, that was a use of cash, right. As we work through that, we expect that to abate over time. But it was absolutely the right thing to do because you can see the growth in that – in the surgical business, finally pulling through, and I am really proud of what the team has been able to do now that we are not dealing with daily out of stocks or unavailable products. And so unlocking that was important. It was detrimental to cash, but it’s short-term, and we should come out of that in a year or 2 years.

Very helpful. Thanks a lot.

Thank you. The next question is coming from Douglas Miehm from RBC Capital Markets. Douglas, your line is live.

Thanks very much. Just wanted to circle back to MIEBO and a couple of things there, I believe it was mentioned that you are keeping an eye on IQVIA. And I just want to know, given some of the strength that we have seen in early July, where there has been a significant pickup. When you talked about potential readjustment, are you suggesting that those numbers may be a little ahead of themselves? And maybe you could expand on that. And the second thing with respect to MIEBO was just – is there any update on potential sampling that you are contemplating for the drug as part of that DTC contribution or introduction in Q4?

Yes, so thank you. Let me answer the second part of the question. The sample was finally approved by the FDA, a little delay there. They asked for a little extension and – well, they didn’t ask. They told us they needed an extension, but we did finally get it approved, and we expect that to roll out this fall, so good news on the sample. With respect to IQVIA, I think there are some adjustments to be made on MIEBO, I think XIIDRA, they are pretty good. But on MIEBO, they are still working out how to best track it. And I expect there will be some adjustments there. But Sam, do you want to cover that in a little more detail?

Good morning Doug. And let me add a little bit more color here. In general, you always get a little bit of variability. But when you – overall, what we have been seeing in MIEBO and now you are also tracking this, you are seeing a positive trend for the MIEBO, so TRx since launch. And if you go back to the beginning of this year, even going back to Q4 of last year, we are about six – averaging about 6,000 TRx per week. You have seen that in Q1 go up to about 10.8, and Q2 is about 15,000. When you think about – what we have seen recently in my comments, in my prepared remarks was focused mainly on the last couple of weeks. What we have seen is a sharp increase on the TRxs for IQVIA. And we know that there is a little bit of sort of variability there. I think the team is still working through the IQVIA to be able to just reconcile and work out the differences. But as we have seen that trending, we always tend to trend serve without a pull and a steady positive growth. What we have seen in the last couple of weeks which you knows as well as a very sharp increase in IQVIA that we are still trying to work through.

Okay. Excellent. And maybe as a follow-up, this is more a philosophical question for Brent. When you think about the company having an 11% float right now and trading at a fairly material discount, especially given the quality of the execution this year, especially with MIEBO and a few other things, what can you talk to us about the opportunity for the ultimately being 100% float in this company at some point?

Yes. Great question. I would say this to our team on a regular basis, here is let’s focus on what we can control and what we can control is our own execution. And so I think I am not going to read numbers to you. I think it’s – this quarter, first quarter, second quarter, I think clearly demonstrate that the team is heating that advice and focusing on execution. Clearly, when you look at the float and the separation, it is frustrating, but I would try not to spend much time thinking about something out of my control. And my expectation is that we will see that happen, but I can’t pinpoint a timeline for when it will happen, but I am confident it will.

Thank you.

Thank you. The next question is coming from Matt Miksic from Barclays. Matt, your line is live.

Great. Thanks so much. Can you hear me, okay?

Yes.

Terrific. Thank you. So, a couple of follow-ups, first on contact lenses. I guess just maybe to try to get an update on just where you are in terms of dailies, in terms of mix or market penetration or how long this can run? And then I have one follow-up. Thanks.

Yes. So, I have mentioned before that Daily. Well, I think it was in the data. The Daily portfolio was up about 16% in the quarter. The key driver of growth for us in Dailies is the SiHy, INFUSE or ULTRA One Day outside the U.S. And I think to be fair, we are still in very early innings. If we were a baseball game, maybe we are in the second inning of driving growth there, right. We are still launching the modalities around the world. The U.S. is the lead market for that product, and we are just launching the toric, literally in the last few days. And we still have another modality to go, which is the multifocal toric. But what we see is just tremendous enthusiasm for that lens from both consumers and ECPs. We still have a huge long runway to launch these modalities around the world. We continue to invest behind our execution. We did a tremendous investment in China around a new direct-to-consumer portal and an ability to sell in that country. And it’s – the team there has done an amazing job, but very proud of our China team. We are about to launch our DTC ECP portal Opel [ph] in the U.S. in just a few weeks. And I previewed it, it is an absolute slick, beautiful consumer interface, super simple. And we have tested it with ECPs. We designed by purpose with customers and sales reps working together and it’s going to be a really exciting launch. So, a long way of saying, super early innings and a long runway to go and a lot of growth to come.

That’s super helpful. And then just maybe on surgical. You had a pretty steady product flow there and plan for getting deeper into advanced technology lenses, maybe if you could talk about what other types of strategies you can employ whether it’s on the enabling technology side or in terms of the portfolio to just sort of amp up the ramp to higher growth and sort of greater share position in some of those key parts of the surgical market. Thanks so much.

Yes. Absolutely. Surgical is a real priority. I think when you look at execution in the quarter, a constant currency basis, equipment up 15%, implantables up 9% and consumables up 7%. But the real basic strategy is to build relationships around placing equipment and then drive through implantables and consumables. And what has hindered us in the past has been perhaps not being able to place equipment because of part shortages and others, and we have solved that. And so now we can get equipment out the door. We are continuing to innovate, particularly around Stellaris and we have a lot of really important work and innovation happening there and more features and functionality for surgeons, which is really important. And so seeing that equipment growth gives me great hope that the second part of the strategy is going to work well, which is moving from monofocal lenses to premium IOLs. And we saw great growth of the premium IOLs in the quarter. Sam, the number was in premium like 30%...

36%.

36% growth. When you look at Aspire, which is our monofocal plus when it’s a monofocal, great reception, early adoption just launched. The toric, which is premium is being incredibly well received. Our Lux platform outside the U.S. is off to a really strong early start. Our trifocal was just approved in Canada, and we are waiting for approval very soon here in the U.S. in this half of the year. And the EDOF lenses, the study is just beginning, and we expect that launch in ‘26. So, we are lining up all the right aspects to service our surgical customers around the world with great innovation on the come. And so I see that business as really important. We continue to look at other areas of innovation across the surgical platform to drive future growth, and I remain pretty excited about the business.

Great. Thank you for taking the questions.

Thank you. So, operator, I believe that was the last one.

Yes. Sorry, correct. Over to you, Brent, for closing remarks.

Great. Well, thank you all for participating in the call. Another quick call out to our team around the world for a great delivery of great execution, great focus and great service to our customers around the world. And we look forward to continuing to drive momentum in this business and keep you all updated as we proceed. Thank you.

Thank you. This conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.