Avanos Medical Reports $167.5 Million in Net Sales for Q1 2025, Achieves Net Income of $6.6 Million

Avanos Medical, Inc. reported a net sales increase to $167.5 million for the first quarter of 2025, up from $166.1 million in the same period last year. The company achieved a gross profit of $89.8 million, although this was a decrease from $94.8 million in the prior year. Operating income rose significantly to $10.3 million compared to $4.0 million in the first quarter of 2024, driven by improved operational efficiencies and cost management strategies. The net income for the quarter was $6.6 million, a notable recovery from a net loss of $0.9 million in the previous year, resulting in basic and diluted earnings per share of $0.14.

The financial performance reflects several strategic changes within the company. Notably, Avanos has undergone a restructuring initiative following the divestiture of its Respiratory Health business, which was completed in October 2023. The restructuring plan aims to optimize the company's operational footprint and align its resources with its remaining business segments. In the first quarter of 2025, Avanos incurred $3.1 million in costs related to this restructuring, compared to $0.7 million in the same quarter of 2024. The company anticipates total cash expenses related to the restructuring could reach up to $16 million by the end of 2025.

Operationally, Avanos has seen growth in its Specialty Nutrition Systems segment, which reported net sales of $101.1 million, a 6.9% increase year-over-year. This growth was primarily driven by strong demand for enteral feeding products. Conversely, the Pain Management and Recovery segment experienced a slight decline in sales to $56.2 million, attributed to lower volume in surgical pain and recovery products, despite an increase in radiofrequency ablation solutions. The company’s geographic sales distribution showed a decrease in North America, while regions such as Asia Pacific and Latin America reported significant growth.

As of March 31, 2025, Avanos had total assets of $1.1 billion, with cash and cash equivalents amounting to $97.0 million. The company’s long-term debt decreased to $98.0 million from $125.3 million at the end of 2024, reflecting ongoing efforts to manage its financial obligations. The company’s employee headcount remained stable, with 46,243,980 shares of common stock outstanding. Looking ahead, Avanos remains focused on executing its restructuring plan and enhancing operational efficiencies, while navigating potential market challenges, including tariff impacts and supply chain disruptions.