Alcon Reports Solid Third-Quarter 2024 Results, including Double-Digit Earnings Growth and Record Cash Generation

   -- 
 Third-quarter 2024 sales of $2.4 billion, up 6% on a reported and 
      constant currency1 (cc) basis 
 
 
   -- 
 Third-quarter 2024 diluted EPS of $0.53, up 29%, or 32% cc; core 
      diluted EPS2 of $0.81, up 23%, or 25% cc 
 
 
   -- 
 Generated $1.6 billion of cash from operations in the first nine months 
      of 2024; record free cash flow3 of $1.3 billion, up $704 million, or 
      119% 
 

Ad Hoc Announcement Pursuant to Art. 53 LR

GENEVA--(BUSINESS WIRE)--November 12, 2024-- 

Alcon (SIX/NYSE:ALC), the global leader in eye care, reported its financial results for the three and nine month periods ending September 30, 2024. For the third quarter of 2024, sales were $2.4 billion, an increase of 6% on a reported and constant currency basis(1) , as compared to the same quarter of the previous year. Alcon reported diluted earnings per share of $0.53 and core diluted earnings per share(2) of $0.81 in the third quarter of 2024.

"Our third quarter results reflect our broad geographic footprint and excellent execution by our team. These elements contributed to another quarter of compounding sales and earnings growth and record cash generation," said David J. Endicott, Alcon's Chief Executive Officer. "As we look to 2025 and beyond, our focus continues to be on launching a wave of innovative products that will be a platform for growth in the years ahead."

Third quarter and first nine months of 2024 key figures

 
                              Three months ended    Nine months ended 
                                 September 30          September 30 
                             --------------------  ------------------- 
                               2024       2023       2024       2023 
--------------------------   ---------  ---------  ---------  -------- 
Net sales ($ millions)         2,433      2,303      7,359     7,038 
---------------------------  ---------  ---------  ---------  -------- 
Operating margin (%)           13.6%      12.7%      13.8%     11.8% 
---------------------------  ---------  ---------  ---------  -------- 
Diluted earnings per share 
 ($)                           0.53       0.41       1.48       1.10 
---------------------------  ---------  ---------  ---------  -------- 
Core results (non-IFRS 
measure)(2) 
--------------------------   ---------  ---------  ---------  -------- 
Core operating margin (%)      20.6%      19.5%      20.8%     20.0% 
---------------------------  ---------  ---------  ---------  -------- 
Core diluted earnings per 
 share ($)                     0.81       0.66       2.33       2.05 
---------------------------  ---------  ---------  ---------  -------- 
Cash flows ($ millions) 
--------------------------   ---------  ---------  ---------  -------- 
Net cash flows from 
 operating activities                                1,618      937 
---------------------------  ---------  ---------  ---------  -------- 
Free cash flow (non-IFRS 
 measure)(3)                                         1,296      592 
---------------------------  ---------  ---------  ---------  -------- 
 
 
1.    Constant currency is a non-IFRS measure. Refer to the 'Footnotes' 
      section for additional information. 
2.    Core results, such as core operating income, core operating margin and 
      core diluted EPS, are non-IFRS measures. Refer to the 'Footnotes' 
      section for additional information. 
3.    Free cash flow is a non-IFRS measure. Refer to the 'Footnotes' section 
      for additional information. 
 

Third quarter and first nine months of 2024 results

Sales for the third quarter of 2024 were $2.4 billion, an increase of 6% on a reported and constant currency basis, compared to the third quarter of 2023. Sales for the first nine months of 2024 were $7.4 billion, an increase of 5% on a reported basis and 6% on a constant currency basis, compared to the first nine months of 2023.

The following table highlights net sales by segment for the third quarter and first nine months of 2024:

 
                        Three months                              Nine months 
                      ended September                           ended September 
                             30                Change %               30                Change % 
                      ----------------  ----------------------  ---------------  ----------------------- 
($ millions unless 
indicated                                      cc(1) (non-IFRS                           cc(1) (non-IFRS 
otherwise)             2024       2023   $            measure)   2024      2023    $            measure) 
-------------------   -----  ---------      ------------------  -----  --------  ---  ------------------ 
 
Surgical 
-------------------   -----  ---------      ------------------  -----  --------  ---  ------------------ 
Implantables            422        401   5                   5  1,319     1,265   4                    7 
--------------------  -----  ---------      ------------------  -----  --------       ------------------ 
Consumables             701        661   6                   6  2,123     2,031   5                    6 
--------------------  -----  ---------      ------------------  -----  --------       ------------------ 
Equipment/other         215        214  --                   1    657       666  (1)                   1 
--------------------  -----  ---------      ------------------  -----  --------       ------------------ 
Total Surgical        1,338      1,276   5                   5  4,099     3,962   3                    5 
--------------------  -----  ---------      ------------------  -----  --------       ------------------ 
Vision Care 
-------------------   -----  ---------      ------------------  -----  --------  ---  ------------------ 
Contact lenses          664        612   8                   8  1,971     1,821   8                    9 
--------------------  -----  ---------      ------------------  -----  --------       ------------------ 
Ocular health           431        415   4                   4  1,289     1,255   3                    5 
--------------------  -----  ---------      ------------------  -----  --------       ------------------ 
Total Vision Care     1,095      1,027   7                   7  3,260     3,076   6                    7 
--------------------  -----  ---------      ------------------  -----  --------       ------------------ 
Net sales to third 
 parties              2,433      2,303   6                   6  7,359     7,038   5                    6 
--------------------  -----  ---------      ------------------  -----  --------       ------------------ 
 

Surgical growth reflects strength in international markets

For the third quarter of 2024, Surgical net sales, which include implantables, consumables and equipment/other, were $1.3 billion, an increase of 5% on a reported and constant currency basis versus the third quarter of 2023.

   -- 
 Implantables net sales were $422 million, an increase of 5% on a 
      reported and constant currency basis. Growth was led by advanced 
      technology intraocular lenses in international markets, including a 
      benefit from volume-based procurement in China, partially offset by 
      slower market conditions in the United States. 
 
 
   -- 
 Consumables net sales were $701 million, an increase of 6% on a 
      reported and constant currency basis, driven by vitreoretinal consumables 
      in international markets, cataract consumables and price increases. 
 
 
   -- 
 Equipment/other net sales were $215 million, in line with the prior 
      year period. Excluding unfavorable currency impacts of 1%, 
      equipment/other net sales increased 1% constant currency as the prior 
      year period benefited from strong demand for cataract equipment in 
      international markets. 
 

For the first nine months of 2024, Surgical net sales were $4.1 billion, an increase of 3% on a reported basis and 5% on a constant currency basis versus the first nine months of 2023.

Vision Care growth reflects strength in contact lenses

For the third quarter of 2024, Vision Care net sales, which include contact lenses and ocular health, were $1.1 billion, an increase of 7% on a reported and constant currency basis, versus the third quarter of 2023.

   -- 
 Contact lenses net sales were $664 million, an increase of 8% on a 
      reported and constant currency basis, driven by product innovation, 
      including our toric and multifocal modalities, and price increases. 
 
 
   -- 
 Ocular health net sales were $431 million, an increase of 4% on a 
      reported and constant currency basis. Growth was primarily driven by the 
      portfolio of eye drops, including continued strength from the Systane 
      family of artificial tears. This growth was partially offset by declines 
      in contact lens care in international markets. 
 

For the first nine months of 2024, Vision Care net sales were $3.3 billion, an increase of 6% on a reported basis and 7% on a constant currency basis versus the first nine months of 2023.

Operating income

Third-quarter 2024 operating income was $332 million, compared to $293 million in the prior year period. Operating margin increased 0.9 percentage points, reflecting improved operating leverage in selling, general and administration ("SG&A") expenses from higher sales, partially offset by investment in research and development ("R&D") in Surgical and a negative 0.2 percentage point impact from currency. The prior year period included a $58 million benefit from the release of a contingent liability related to an acquisition, partially offset by $30 million for the transformation program which was completed in the fourth quarter of 2023. Operating margin increased 1.1 percentage points on a constant currency basis.

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