On June 20, 2023, Avanos hosted an Investor Day to share the company’s 2023 – 2025 transformation priorities and strategy, including plans for commercial optimization, innovation, supply chain effectiveness, and financial transformation. The goal was to provide investors with a clear understanding of the company’s path forward. The presentation slides and webcast recording are available here. This blog post is the first in a series by Avanos senior leaders discussing the company’s transformation.

Last month, I had the pleasure of joining several members of the Avanos senior leadership team in giving our Investor Day presentation in New York. This was an important opportunity for us to share our 2023 – 2025 priorities and strategy with the investor community and I believe our transformation story was well-received. Today, I’m thrilled to share with you our company’s ambitious three-year transformation plan – it’s a bold roadmap that holds immense potential for our future, and for the patients and healthcare providers we support.

Over the next three years, as we navigate a rapidly changing business landscape, my Avanos colleagues and I will channel our collective energy, creativity, and determination into four Transformation Priorities:

1. Strategic & Commercial Optimization

Placing our customers at the heart of everything we do is the foundation of our transformation, and we are committed to addressing some of today’s most important healthcare needs, including providing a vital lifeline for nutrition to patients from hospital to home, and reducing the use of opioids while helping patients move from surgery to recovery. Our focus will be on consistent growth and portfolio expansion of our Digestive Health and Pain Management & Recovery franchises, and we are continuing to explore M&A opportunities that align directly with these focus areas.

Optimizing our commercial organization to position ourselves as trusted partners for patients and healthcare providers is essential to delivering unparalleled value. To achieve this, we have introduced new commercial leadership and are fine-tuning our sales and marketing operations with the aim of building deeper relationships with our customers, anticipating their needs, and exceeding their expectations.

2. Transform the Product Portfolio

Through continued pursuit of strategic M&A activities that bolster our focus product categories – coupled with investing in innovation, exiting low-margin and low-growth categories, and divesting non-strategic assets – we plan to continue evolving in order to leverage market trends and customer insights to offer clinically superior medical device solutions that help patients get back to what matters. 

3. Additional Cost Management Initiatives to Enhance Operating Profitability

In an increasingly competitive landscape, achieving operational excellence is paramount. So, to truly transform our company, we are committed to cost management through optimizing our operations, eliminating redundancies, and streamlining processes. By embracing data-driven decision-making, we expect to unlock new efficiencies, enhance our cost structure, and improve our overall profitability. We believe this disciplined approach will position us for sustainable growth and enable us to navigate market fluctuations.

4. Continued Efficient Capital Allocation Strategies to Expand Return on Invested Capital

Our commitment to delivering value to all our stakeholders is unwavering. Our three-year plan includes a focused and disciplined approach to capital allocation, with the goals of aligning every investment decision with our strategic objectives, enhancing our financial performance, and creating sustainable value for our stakeholders.

This transformation requires the active participation and support of every Avanos team member. As we embrace our transformational path forward, we will surely encounter challenges along the way, but we will embrace these challenges as opportunities for growth. We will learn from our experiences, adapt our strategies, and persevere with an unwavering commitment to our vision of getting patients back to what matters.

Together, we will embrace the challenge of transformation and #TheAvanosDifference!

Cheers,

Certain matters in this blog post, including expectations, any comments about our expected performance and any estimates, projections or statements relating to the Company’s business plans, objectives, acquisitions and transformation initiatives, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are based upon current plans and management’s expectations and beliefs concerning future events impacting the Company. These statements are subject to risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in such statements, including risks related to market demand, financial performance, cost savings and reductions and our ability to successfully execute on or achieve the expected benefits of our transformation initiative, There can be no assurance that these future events will occur as anticipated or that the Company’s results will be as estimated. Forward-looking statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update them. For a more complete listing and description of these and other factors that could cause the Company’s future results to differ materially from those expressed in any forward-looking statements, see the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.