Danis's questions to Avanos Medical Inc (AVNS) leadership • Q4 2024
Question
Danis from Citizens CM asked for more detail on the 2025 guidance, seeking to understand the key drivers for the high and low ends of the range. He also inquired about the free cash flow outlook for 2025 and the primary focus for M&A transactions. Finally, he requested a reminder on the product innovations planned for the upcoming year, including their nature and timing.
Answer
Interim CEO Michael Greiner detailed that guidance upside could come from tariff certainty, favorable FX, extended competitor backorders, or strong product launches, while downside risk is mainly macroeconomic. He projected 2025 free cash flow to be similar to 2024's normalized results, excluding a one-time tax receivable. Greiner stated that M&A will focus on the 'Specialty Nutrition Systems' ecosystem. He also noted that near-term product innovations are concentrated in this segment, with several launches planned for late 2025 to defend their market-leading position.