Alcon Reports Full-Year 2024 Results, with Strong Top-line and Earnings Growth and Record Cash Generation
Alcon (ALC) reported strong financial results for full-year 2024, with sales reaching $9.8 billion, up 5% (6% constant currency). The company achieved diluted EPS of $2.05 (up 5%) and core diluted EPS of $3.05 (up 11%).
Fourth-quarter 2024 performance showed sales of $2.5 billion, increasing 6% both on reported and constant currency basis. The Surgical segment generated $1.4 billion in Q4 sales, while Vision Care contributed $1.1 billion.
Key highlights include:
- Record $2.1 billion cash from operations
- Record free cash flow of $1.6 billion, up 120%
- Proposed dividend of CHF 0.28 per share
- New $750 million share repurchase authorization to offset equity incentive dilution
Alcon (ALC) ha riportato risultati finanziari solidi per l'intero anno 2024, con vendite che hanno raggiunto 9,8 miliardi di dollari, in aumento del 5% (6% a valuta costante). L'azienda ha registrato un utile per azione diluito di $2,05 (in aumento del 5%) e un utile per azione core diluito di $3,05 (in aumento dell'11%).
Le performance del quarto trimestre 2024 hanno mostrato vendite di 2,5 miliardi di dollari, con un incremento del 6% sia in base ai dati riportati che a valuta costante. Il segmento Chirurgico ha generato vendite di $1,4 miliardi nel Q4, mentre la divisione Vision Care ha contribuito con $1,1 miliardi.
I punti salienti includono:
- Record di $2,1 miliardi di liquidità dalle operazioni
- Record di flusso di cassa libero di $1,6 miliardi, in aumento del 120%
- Dividendo proposto di CHF 0,28 per azione
- Nuova autorizzazione per il riacquisto di azioni da $750 milioni per compensare la diluizione degli incentivi azionari
Alcon (ALC) reportó resultados financieros sólidos para el año completo 2024, con ventas alcanzando 9.8 mil millones de dólares, un aumento del 5% (6% a moneda constante). La compañía logró un EPS diluido de $2.05 (aumento del 5%) y un EPS diluido core de $3.05 (aumento del 11%).
El rendimiento del cuarto trimestre de 2024 mostró ventas de 2.5 mil millones de dólares, aumentando un 6% tanto en base reportada como a moneda constante. El segmento Quirúrgico generó $1.4 mil millones en ventas en el Q4, mientras que Cuidado de la Visión contribuyó con $1.1 mil millones.
Los puntos destacados incluyen:
- Un récord de $2.1 mil millones en efectivo de operaciones
- Un récord de flujo de caja libre de $1.6 mil millones, un aumento del 120%
- Dividendo propuesto de CHF 0.28 por acción
- Nueva autorización de recompra de acciones de $750 millones para compensar la dilución de incentivos en acciones
Alcon (ALC)은 2024년 전체 연도에 대한 강력한 재무 결과를 보고했으며, 판매액은 98억 달러에 달하며 5% 증가했습니다 (상수 통화 기준 6%). 회사는 희석 주당 순이익(EPS)이 $2.05(5% 증가)이고, 핵심 희석 EPS가 $3.05(11% 증가)를 달성했습니다.
2024년 4분기 실적은 25억 달러의 판매를 보여주었으며, 보고된 기준과 상수 통화 기준 모두 6% 증가했습니다. 외과 부문은 4분기 판매에서 $14억을 생성했으며, 비전 케어 부문은 $11억을 기여했습니다.
주요 하이라이트는 다음과 같습니다:
- 운영에서 발생한 현금 기록 $21억
- 자유 현금 흐름 기록 $16억, 120% 증가
- 주당 CHF 0.28의 배당금 제안
- 주식 인센티브 희석을 상쇄하기 위한 7억 5천만 달러의 주식 재매입 승인
Alcon (ALC) a annoncé de solides résultats financiers pour l'année complète 2024, avec des ventes atteignant 9,8 milliards de dollars, en hausse de 5% (6% à taux de change constant). L'entreprise a enregistré un bénéfice par action dilué de $2,05 (en hausse de 5%) et un bénéfice par action dilué de base de $3,05 (en hausse de 11%).
Les performances du quatrième trimestre 2024 ont montré des ventes de 2,5 milliards de dollars, augmentant de 6% tant sur une base rapportée qu'à taux de change constant. Le segment Chirurgical a généré $1,4 milliard de ventes au Q4, tandis que le secteur Soins de la Vision a contribué avec $1,1 milliard.
Les points clés incluent:
- Un record de $2,1 milliards de liquidités provenant des opérations
- Un flux de trésorerie disponible record de $1,6 milliard, en hausse de 120%
- Dividende proposé de CHF 0,28 par action
- Nouvelle autorisation de rachat d'actions de $750 millions pour compenser la dilution des incitations en actions
Alcon (ALC) hat für das Gesamtjahr 2024 starke Finanzergebnisse gemeldet, mit einem Umsatz von 9,8 Milliarden Dollar, was einem Anstieg von 5% (6% bei konstanter Währung) entspricht. Das Unternehmen erzielte einen verwässerten Gewinn pro Aktie (EPS) von $2,05 (plus 5%) und einen Kern-Gewinn pro Aktie von $3,05 (plus 11%).
Die Leistung im vierten Quartal 2024 zeigte einen Umsatz von 2,5 Milliarden Dollar, was sowohl auf Berichtsbasis als auch bei konstanter Währung einem Anstieg von 6% entspricht. Der chirurgische Bereich erzielte im Q4 einen Umsatz von $1,4 Milliarden, während die Vision Care-Abteilung $1,1 Milliarden beitrug.
Wichtige Highlights sind:
- Rekord von $2,1 Milliarden Cashflow aus der Betriebstätigkeit
- Rekordfreier Cashflow von $1,6 Milliarden, ein Anstieg von 120%
- Vorgeschlagene Dividende von CHF 0,28 pro Aktie
- Neue Genehmigung zum Aktienrückkauf über $750 Millionen zur Kompensation der Verwässerung durch Aktienanreize
- Record cash flow performance: $2.1B from operations, $1.6B free cash flow (+120%)
- Strong sales growth: $9.8B (+5%) with both segments showing positive momentum
- Improved profitability: Core operating margin increased to 20.6%
- Core diluted EPS growth of 11% to $3.05
- Slower market conditions and competitive pressures in US implantables
- Decline in contact lens care products
- Higher inventory provisions in Surgical segment
- Higher tax expense impact on earnings compared to prior year
Insights
Alcon's full-year 2024 results demonstrate robust operational execution with $9.8 billion in sales (up 6% constant currency) and core diluted EPS of $3.05 (up 16% constant currency), significantly outpacing top-line growth. The standout metric is the record $1.6 billion in free cash flow, representing a remarkable 120% year-over-year increase, which signals fundamental improvements in operational efficiency and working capital management.
The Vision Care segment shows particular strength with 8% Q4 growth driven by the contact lens portfolio (up 10%), where Alcon's specialty products in toric and multifocal categories are outperforming. This indicates successful innovation and differentiation in a competitive market. Meanwhile, the Surgical segment's more modest 5% growth reflects a tale of two geographies - robust performance internationally versus challenges in the US implantables business, where market slowdown and competitive pressures are evident.
Core operating margin expansion to 20.6% (up 0.9 percentage points) demonstrates effective cost leverage despite increased R&D investment, particularly in the Surgical segment. This balanced approach of margin improvement while funding future innovation positions Alcon well for sustainable growth.
The newly announced $750 million share repurchase program signals management's confidence in continued strong cash generation. When combined with the proposed CHF 0.28 dividend, Alcon is returning significant capital to shareholders while maintaining flexibility for strategic investments.
The 2025 outlook ($10.2-10.4 billion in sales and $3.25-3.35 core EPS) suggests continued momentum, though at a slightly moderated pace compared to 2024. This outlook assumes 4-5% market growth, indicating Alcon expects to maintain or slightly expand market share across its portfolio, despite facing competitive headwinds in US implantables.
Alcon's 2024 performance demonstrates exceptional cash flow generation capabilities, with free cash flow surging 120% to $1.6 billion. This dramatic improvement stems from three key factors: increased collections from higher sales, significantly reduced inventory build compared to 2023, and the completion of their transformation program that eliminated related cash outflows. This cash flow inflection point transforms Alcon's financial flexibility and supports their balanced capital allocation approach.
The company's segmental performance reveals important strategic dynamics. Vision Care's 8% Q4 growth (7% constant currency) outpaces the Surgical segment's 5% growth, with contact lenses showing particular strength at 10% growth. This reflects successful execution in higher-margin specialty products like toric and multifocal lenses, where Alcon maintains technological advantages. Meanwhile, the geographic divergence in Surgical performance – robust international growth versus US challenges in implantables – highlights competitive vulnerabilities in their largest market that warrant monitoring.
The core operating margin expansion to 20.6% is commendable given increased R&D investment, but remains below some medical device peers operating in the mid-20s, suggesting further efficiency opportunities. Management's deliberate strategy of reinvesting in innovation while expanding margins strikes an appropriate balance between short-term profitability and long-term competitiveness.
The $750 million share repurchase program, designed specifically to offset dilution rather than reduce share count, indicates management's prioritization of maintaining financial flexibility for potential tuck-in acquisitions while still addressing shareholder dilution concerns.
Looking ahead, Alcon's 2025 guidance of 4-6% sales growth assumes continued market share gains, as their 4-5% market growth assumption aligns with historical eye care market expansion rates. The projected 7-10% EPS growth reflects continued operational leverage and efficiency improvements, though at a somewhat moderated pace compared to 2024's exceptional performance.
-
Full-year 2024 sales of
$9.8 billion 5% , or up6% constant currency1 (cc) -
Full-year 2024 diluted EPS of
$2.05 5% on a reported basis, or up11% cc; core diluted EPS2 of$3.05 11% on a reported basis, or up16% cc -
Generated record
$2.1 billion $1.6 billion 120% - Announced share repurchase authorization to offset dilution from associate equity incentive plans
Ad Hoc Announcement Pursuant to Art. 53 LR
"In 2024, our unwavering focus on innovation and operational excellence delivered another set of strong results," said David J. Endicott, Alcon's Chief Executive Officer. "This focus will continue into 2025 as we launch a wave of innovation that we expect to deliver long-term value to our customers, shareholders and associates."
Fourth-quarter and full-year 2024 key figures
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Three months ended
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Twelve months ended
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||||
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2024 |
|
2023 |
|
2024 |
|
2023 |
Net sales ($ millions) |
|
2,477 |
|
2,332 |
|
9,836 |
|
9,370 |
Operating margin (%) |
|
|
|
|
|
|
|
|
Diluted earnings per share ($) |
|
0.57 |
|
0.86 |
|
2.05 |
|
1.96 |
Core results (non-IFRS measure)2 |
|
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|
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|
|
Core operating margin (%) |
|
|
|
|
|
|
|
|
Core diluted earnings per share ($) |
|
0.72 |
|
0.70 |
|
3.05 |
|
2.74 |
Cash flows ($ millions) |
|
|
|
|
|
|
|
|
Net cash flows from operating activities |
|
|
|
|
|
2,077 |
|
1,388 |
Free cash flow (non-IFRS measure)3 |
|
|
|
|
|
1,604 |
|
730 |
| 1. | Constant currency (cc) is a non-IFRS measure. An explanation of non-IFRS measures can be found in the 'Non-IFRS measures as defined by the Company' section. |
|
| 2. | Core results, such as core gross margin, core operating income, core operating margin and core diluted EPS, are non-IFRS measures. An explanation of non-IFRS measures can be found in the 'Non-IFRS measures as defined by the Company' section. | |
| 3. | Free cash flow is a non-IFRS measure. An explanation of non-IFRS measures can be found in the 'Non-IFRS measures as defined by the Company' section. |
Fourth-quarter and full-year 2024 results
Sales for the fourth quarter of 2024 were
The following table highlights net sales by segment for the fourth quarter and full year of 2024:
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Change % |
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Twelve months
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Change % |
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($ millions unless indicated otherwise) |
|
2024 |
|
2023 |
|
$ |
|
cc1
|
|
2024 |
|
2023 |
|
$ |
|
cc1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Surgical |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Implantables |
|
456 |
|
438 |
|
4 |
|
2 |
|
1,775 |
|
1,703 |
|
4 |
|
|
6 |
Consumables |
|
738 |
|
688 |
|
7 |
|
7 |
|
2,861 |
|
2,719 |
|
5 |
|
|
6 |
Equipment/other |
|
229 |
|
226 |
|
1 |
|
2 |
|
886 |
|
892 |
|
(1 |
) |
|
1 |
Total Surgical |
|
1,423 |
|
1,352 |
|
5 |
|
5 |
|
5,522 |
|
5,314 |
|
4 |
|
|
5 |
Vision Care |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact lenses |
|
638 |
|
579 |
|
10 |
|
11 |
|
2,609 |
|
2,400 |
|
9 |
|
|
10 |
Ocular health |
|
416 |
|
401 |
|
4 |
|
2 |
|
1,705 |
|
1,656 |
|
3 |
|
|
4 |
Total Vision Care |
|
1,054 |
|
980 |
|
8 |
|
7 |
|
4,314 |
|
4,056 |
|
6 |
|
|
7 |
Net sales |
|
2,477 |
|
2,332 |
|
6 |
|
6 |
|
9,836 |
|
9,370 |
|
5 |
|
|
6 |
Surgical growth reflects strength in international markets
For the fourth quarter of 2024, Surgical net sales, which include implantables, consumables and equipment/other, were
-
Implantables net sales were
$456 million 4% . Excluding favorable currency impacts of2% , Implantables net sales increased2% in constant currency. Growth was led by advanced technology intraocular lenses in international markets, partially offset by slower market conditions and competitive pressures inthe United States . -
Consumables net sales were
$738 million 7% on a reported and constant currency basis, driven by vitreoretinal and cataract consumables, including price increases. -
Equipment/other net sales were
$229 million 1% . Excluding unfavorable currency impacts of1% , Equipment/other net sales increased2% in constant currency as the prior year period benefited from strong demand for equipment in international markets.
For the full-year 2024, Surgical net sales were
Vision Care growth reflects strength in contact lenses
For the fourth quarter of 2024, Vision Care net sales, which include contact lenses and ocular health, were
-
Contact lenses net sales were
$638 million 10% , driven by product innovation, including our toric and multifocal modalities, and price increases. Excluding unfavorable currency impacts of1% , Contact lenses net sales increased11% in constant currency. -
Ocular health net sales were
$416 million 4% . Excluding favorable currency impacts of2% , Ocular health net sales increased2% in constant currency, 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 and an impact of approximately1% following the divestiture and out-licensing of rights to certain eye drops inChina .
For the full-year 2024, Vision Care net sales were
Operating income reflects margin expansion from operating leverage
Fourth-quarter 2024 operating income was
Adjustments to arrive at core operating income in the current year period were
Fourth-quarter 2024 core operating margin was
Operating income for full-year 2024 was
Core operating margin for full-year 2024 was
Diluted earnings per share
Fourth-quarter 2024 diluted earnings per share of
Full-year 2024 diluted earnings per share of
Proposed dividend
The Company's Board of Directors proposed a dividend of
Cash flow highlights
The Company ended full-year 2024 with a cash position of
Free cash flow was a record inflow of
Share repurchase authorization
On February 25, 2025, the Alcon Board of Directors authorized the repurchase of up to
2025 outlook
The Company provided its 2025 outlook as per the table below.
2025 outlook4,5 |
as of February |
|
Net sales (USD) |
|
|
Change vs. prior year (cc)1 (non-IFRS measure) |
+ |
|
Core operating margin2 (non-IFRS measure) |
|
|
Non-operating income & expense6 |
|
|
Core effective tax rate7 (non-IFRS measure) |
~ |
|
Core diluted EPS2 (non-IFRS measure) |
|
|
Change vs. prior year (cc)1 (non-IFRS measure) |
+ |
This outlook assumes the following:
-
Aggregated markets grow
4% to5% ; - Exchange rates as of the end of January 2025 prevail through year-end;
- Approximately 499.5 million weighted-averaged diluted shares.5
4. |
The forward-looking guidance included in this press release cannot be reconciled to the comparable IFRS measures without unreasonable effort, because we are not able to predict with reasonable certainty the ultimate amount or nature of exceptional items in the fiscal year. Refer to the section 'Non-IFRS measures as defined by the Company' for more information. |
|
| 5. | Does not reflect the impact of the share repurchase program. | |
| 6. | Non-operating income & expense includes interest expense, other financial income & expense and share of loss from associated companies. | |
| 7. | Core effective tax rate, a non-IFRS measure, is the applicable annual tax rate on core taxable income. For additional information, see the explanation regarding reconciliation of forward-looking guidance in the 'Non-IFRS measures as defined by the Company' section. |
Webcast and Conference Call Instructions
The Company will host a conference call on February 26, 2025 at 8:00 a.m. Eastern Time / 2:00 p.m. Central European Time to discuss its full-year 2024 earnings results. The webcast can be accessed online through Alcon's Investor Relations website, i.e. investor.alcon.com. Listeners should log on approximately 10 minutes in advance. A replay will be available online within 24 hours after the event. To listen the Company's conference call, click on the link:
The Company's fourth-quarter 2024 press release, interim financial report and supplemental presentation materials, as well as its 2024 Annual Report can be found online through Alcon's Investor Relations website, or by clicking on the link:
Additionally, Alcon's 2024 Annual Report is available on https://investor.alcon.com/financials/annual-reports/default.aspx and its 2024 Annual Report on Form 20-F filed today with the US Securities and Exchange Commission on https://investor.alcon.com/financials/sec-filings/default.aspx. Alcon shareholders may receive a hard copy of either of these documents, each of which contains our complete audited financial statements, free of charge, upon request.
Cautionary Note Regarding Forward-Looking Statements
This document contains, and our officers and representatives may from time to time make, certain “forward-looking statements” within the meaning of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “commitment,” “look forward,” “maintain,” “plan,” “goal,” “seek,” “target,” “assume,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding our liquidity, revenue, gross margin, operating margin, effective tax rate, foreign currency exchange movements, earnings per share, our plans and decisions relating to various capital expenditures, capital allocation priorities and other discretionary items such as our market growth assumptions, our social impact and sustainability plans, targets, goals and expectations, and generally, our expectations concerning our future performance.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties and risks that are difficult to predict such as: cybersecurity breaches or other disruptions of our information technology systems; our ability to effectively manage the risks associated with the ethical use of disruptive technologies; compliance with data privacy, identity protection and information security laws, particularly with the increased use of artificial intelligence; the impact of a disruption in our global supply chain, including the effect of tariffs, or important facilities, particularly when we single-source or rely on limited sources of supply; our ability to manage social impact and sustainability matters; our reliance on outsourcing key business functions; global and regional economic, financial, monetary, legal, tax, political and social change; the increasingly challenging economic, political and legal environment in
Additional factors are discussed in our filings with the United States Securities and Exchange Commission, including our Form 20-F. Should one or more of these uncertainties or risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated. Therefore, you should not rely on any of these forward-looking statements. Forward-looking statements in this document speak only as of the date of its filing, and we assume no obligation to update forward-looking statements as a result of new information, future events or otherwise.
Intellectual Property
This report may contain references to our proprietary intellectual property. All product names appearing in italics or ALL CAPS are trademarks owned by or licensed to Alcon Inc. Product names identified by a "®" or a "™" are trademarks that are not owned by or licensed to Alcon or its subsidiaries and are the property of their respective owners.
Non-IFRS measures as defined by the Company
Alcon uses certain non-IFRS metrics when measuring performance, including when measuring current period results against prior periods, including core results, percentage changes measured in constant currency and free cash flow.
Because of their non-standardized definitions, the non-IFRS measures (unlike IFRS measures) may not be comparable to the calculation of similar measures of other companies. These supplemental non-IFRS measures are presented solely to permit investors to more fully understand how Alcon management assesses underlying performance. These supplemental non-IFRS measures are not, and should not be viewed as, a substitute for IFRS measures.
Core results
Alcon core results, including core operating income and core net income, exclude all amortization and impairment charges of intangible assets, excluding software, net gains and losses on fund investments and equity securities valued at fair value through profit and loss ("FVPL"), fair value adjustments of financial assets in the form of options to acquire a company carried at FVPL and certain acquisition related items. The following items that exceed a threshold of
Taxes on the adjustments between IFRS and core results take into account, for each individual item included in the adjustment, the tax rate that will finally be applicable to the item based on the jurisdiction where the adjustment will finally have a tax impact. Generally, this results in amortization and impairment of intangible assets and acquisition-related restructuring and integration items having a full tax impact. There is usually a tax impact on other items, although this is not always the case for items arising from legal settlements in certain jurisdictions.
Alcon believes that investor understanding of its performance is enhanced by disclosing core measures of performance because, since they exclude items that can vary significantly from period to period, the core measures enable a helpful comparison of business performance across periods. For this same reason, Alcon uses these core measures in addition to IFRS and other measures as important factors in assessing its performance.
A limitation of the core measures is that they provide a view of Alcon operations without including all events during a period, such as the effects of an acquisition, divestment, or amortization/impairments of purchased intangible assets and restructurings.
Constant currency
Changes in the relative values of non-US currencies to the US dollar can affect Alcon's financial results and financial position. To provide additional information that may be useful to investors, including changes in sales volume, we present information about changes in our net sales and various values relating to operating and net income that are adjusted for such foreign currency effects.
Constant currency calculations have the goal of eliminating two exchange rate effects so that an estimate can be made of underlying changes in the Consolidated Income Statement excluding:
- the impact of translating the income statements of consolidated entities from their non-US dollar functional currencies to the US dollar; and
- the impact of exchange rate movements on the major transactions of consolidated entities performed in currencies other than their functional currency.
Alcon calculates constant currency measures by translating the current year's foreign currency values for sales and other income statement items into US dollars, using the average exchange rates from the historical comparative period and comparing them to the values from the historical comparative period in US dollars.
Free cash flow
Alcon defines free cash flow as net cash flows from operating activities less cash flow associated with the purchase or sale of property, plant and equipment. Free cash flow is presented as additional information because Alcon management believes it is a useful supplemental indicator of Alcon's ability to operate without reliance on additional borrowing or use of existing cash. Free cash flow is not intended to be a substitute measure for net cash flows from operating activities as determined under IFRS.
Growth rate and margin calculations
For ease of understanding, Alcon uses a sign convention for its growth rates such that a reduction in operating expenses or losses compared to the prior year is shown as a positive growth.
Gross margins, core gross margins, operating income margins and core operating income margins are calculated based upon net sales unless otherwise noted.
Reconciliation of guidance for forward-looking non-IFRS measures
The forward-looking guidance included in this press release cannot be reconciled to the comparable IFRS measures without unreasonable efforts, because we are not able to predict with reasonable certainty the ultimate amount or nature of exceptional items in the fiscal year. These items are uncertain, depend on many factors and could have a material impact on our IFRS results for the guidance period.
Financial tables
Net sales by region
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||||||||||||
($ millions unless indicated otherwise) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
1,109 |
|
|
1,067 |
|
|
4,511 |
|
|
4,312 |
|
||||
International |
|
1,368 |
|
|
1,265 |
|
|
5,325 |
|
|
5,058 |
|
||||
Net sales |
|
2,477 |
|
|
2,332 |
|
|
9,836 |
|
|
9,370 |
|
||||
Consolidated Income Statement (unaudited)
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|
Three months ended
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Twelve months ended
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||||||||
($ millions except earnings per share) |
|
2024 |
2023 |
|
|
2024 |
|
2023 |
||||
Net sales |
|
2,477 |
|
2,332 |
|
|
9,836 |
|
9,370 |
|
||
Other revenues |
|
25 |
|
20 |
|
|
75 |
|
85 |
|
||
Net sales and other revenues |
|
2,502 |
|
2,352 |
|
|
9,911 |
|
9,455 |
|
||
Cost of net sales |
|
(1,093 |
) |
(1,049 |
) |
|
(4,328 |
) |
(4,141 |
) |
||
Cost of other revenues |
|
(24 |
) |
(13 |
) |
|
(71 |
) |
(67 |
) |
||
Gross profit |
|
1,385 |
|
1,290 |
|
|
5,512 |
|
5,247 |
|
||
Selling, general & administration |
|
(802 |
) |
(794 |
) |
|
(3,250 |
) |
(3,209 |
) |
||
Research & development |
|
(232 |
) |
(208 |
) |
|
(876 |
) |
(828 |
) |
||
Other income |
|
61 |
|
6 |
|
|
77 |
|
80 |
|
||
Other expense |
|
(17 |
) |
(86 |
) |
|
(50 |
) |
(251 |
) |
||
Operating income |
|
395 |
|
208 |
|
|
1,413 |
|
1,039 |
|
||
Interest expense |
|
(48 |
) |
(47 |
) |
|
(192 |
) |
(189 |
) |
||
Other financial income & expense |
|
9 |
|
7 |
|
|
43 |
|
(18 |
) |
||
Share of (loss) from associated companies |
|
(7 |
) |
— |
|
|
(8 |
) |
— |
|
||
Income before taxes |
|
349 |
|
168 |
|
|
1,256 |
|
832 |
|
||
Taxes |
|
(65 |
) |
259 |
|
|
(238 |
) |
142 |
|
||
Net income |
|
284 |
|
427 |
|
|
1,018 |
|
974 |
|
||
|
|
|
|
|
|
|
||||||
Earnings per share ($) |
||||||||||||
Basic |
|
0.57 |
|
0.87 |
|
|
2.06 |
|
1.98 |
|
||
Diluted |
|
0.57 |
|
0.86 |
|
|
2.05 |
|
1.96 |
|
||
|
|
|
|
|
|
|
||||||
Weighted average number of shares outstanding (millions) |
||||||||||||
Basic |
|
494.7 |
|
493.3 |
|
|
494.4 |
|
493.0 |
|
||
Diluted |
|
498.1 |
|
496.4 |
|
|
497.5 |
|
496.5 |
|
||
Balance sheet highlights
($ millions) |
|
December 31, 2024 |
|
December 31, 2023 |
Cash and cash equivalents |
|
1,676 |
|
1,094 |
Time deposits |
|
153 |
|
— |
Current financial debts |
|
105 |
|
63 |
Non-current financial debts |
|
4,538 |
|
4,676 |
Free cash flow (non-IFRS measure)
The following is a summary of free cash flow for the twelve months ended December 31, 2024 and 2023, together with a reconciliation to net cash flows from operating activities, the most directly comparable IFRS measure:
|
Twelve months ended December 31 |
|||||
($ millions) |
2024 |
|
2023 |
|||
Net cash flows from operating activities |
2,077 |
|
|
1,388 |
|
|
Purchase of property, plant & equipment |
(473 |
) |
|
(658 |
) |
|
Free cash flow |
1,604 |
|
|
730 |
|
|
Reconciliation of IFRS results to core results (non-IFRS measure)
Three months ended December 31, 2024
($ millions except earnings per share) |
IFRS
|
Amortization of
|
Divestment
|
Other
|
Core results
|
|||||
Gross profit |
1,385 |
|
167 |
|
— |
|
— |
|
1,552 |
|
Operating income |
395 |
|
169 |
|
(57) |
|
(9) |
|
498 |
|
Income before taxes |
349 |
|
169 |
|
(57) |
|
(9) |
|
452 |
|
Taxes(6) |
(65) |
|
(30) |
|
2 |
|
— |
|
(93) |
|
Net income |
284 |
|
139 |
|
(55) |
|
(9) |
|
359 |
|
Basic earnings per share ($) |
0.57 |
|
|
|
|
|
|
|
0.73 |
|
Diluted earnings per share ($) |
0.57 |
|
|
|
|
|
|
|
0.72 |
|
Basic - weighted average shares outstanding (millions)(7) |
494.7 |
|
|
|
|
|
|
|
494.7 |
|
Diluted - weighted average shares outstanding (millions)(7) |
498.1 |
|
|
|
|
|
|
|
498.1 |
|
Refer to the associated explanatory footnotes at the end of the 'Reconciliation of IFRS results to core results (non-IFRS measure)' tables. |
||||||||||
Three months ended December 31, 2023
($ millions except earnings per share) |
IFRS
|
Amortization of
|
Transformation
|
Other
|
Core results
|
|||||
Gross profit |
1,290 |
164 |
— |
(6) |
1,448 |
|||||
Operating income |
208 |
167 |
57 |
8 |
440 |
|||||
Income before taxes |
168 |
167 |
57 |
8 |
400 |
|||||
Taxes(6) |
259 |
(30) |
(12) |
(272) |
(55) |
|||||
Net income |
427 |
137 |
45 |
(264) |
345 |
|||||
Basic earnings per share ($) |
0.87 |
|
|
|
0.70 |
|||||
Diluted earnings per share ($) |
0.86 |
|
|
|
0.70 |
|||||
Basic - weighted average shares outstanding (millions)(7) |
493.3 |
|
|
|
493.3 |
|||||
Diluted - weighted average shares outstanding (millions)(7) |
496.4 |
|
|
|
496.4 |
|||||
Refer to the associated explanatory footnotes at the end of the 'Reconciliation of IFRS results to core results (non-IFRS measure)' tables. |
||||||||||
Twelve months ended December 31, 2024
($ millions except earnings per share) |
IFRS
|
Amortization of
|
Impairments(2) |
Divestment of
|
Other
|
Core results
|
||||||
Gross profit |
5,512 |
662 |
— |
— |
3 |
6,177 |
||||||
Operating income |
1,413 |
667 |
9 |
(57) |
(5) |
2,027 |
||||||
Income before taxes |
1,256 |
667 |
9 |
(57) |
(5) |
1,870 |
||||||
Taxes(6) |
(238) |
(119) |
— |
2 |
— |
(355) |
||||||
Net income |
1,018 |
548 |
9 |
(55) |
(5) |
1,515 |
||||||
Basic earnings per share ($) |
2.06 |
|
|
|
|
3.06 |
||||||
Diluted earnings per share ($) |
2.05 |
|
|
|
|
3.05 |
||||||
Basic - weighted average shares outstanding (millions)(7) |
494.4 |
|
|
|
|
494.4 |
||||||
Diluted - weighted average shares outstanding (millions)(7) |
497.5 |
|
|
|
|
497.5 |
||||||
Refer to the associated explanatory footnotes at the end of the 'Reconciliation of IFRS results to core results (non-IFRS measure)' tables. |
||||||||||||
Twelve months ended December 31, 2023
($ millions except earnings per share) |
IFRS
|
Amortization of
|
Transformation
|
Other
|
Core results
|
|||||
Gross profit |
5,247 |
663 |
— |
7 |
5,917 |
|||||
Operating income |
1,039 |
675 |
139 |
(4) |
1,849 |
|||||
Income before taxes |
832 |
675 |
139 |
(4) |
1,642 |
|||||
Taxes(6) |
142 |
(121) |
(26) |
(277) |
(282) |
|||||
Net income |
974 |
554 |
113 |
(281) |
1,360 |
|||||
Basic earnings per share ($) |
1.98 |
|
|
|
2.76 |
|||||
Diluted earnings per share ($) |
1.96 |
|
|
|
2.74 |
|||||
Basic - weighted average shares outstanding (millions)(7) |
493.0 |
|
|
|
493.0 |
|||||
Diluted - weighted average shares outstanding (millions)(7) |
496.5 |
|
|
|
496.5 |
|||||
Refer to the associated explanatory footnotes at the end of the 'Reconciliation of IFRS results to core results (non-IFRS measure)' tables. |
||||||||||
Explanatory footnotes to IFRS to core reconciliation tables
(1) |
Includes recurring amortization for all intangible assets other than software. |
|
(2) |
Includes impairment charges related to intangible assets. |
|
(3) |
For the three and twelve months ended December 31, 2024, includes a net gain related to the divestment of certain product rights in |
|
(4) |
Transformation costs, primarily related to restructuring and third party consulting fees, for the multi-year transformation program. The transformation program was completed in the fourth quarter of 2023. |
|
(5) |
For the three months ended December 31, 2024, Operating income primarily includes fair value adjustments to contingent consideration liabilities, partially offset by the amortization of option rights. |
|
|
For the three months ended December 31, 2023, Gross profit includes fair value adjustments to contingent consideration liabilities, partially offset by the amortization of inventory fair value adjustments related to an acquisition. Operating income also includes integration related expenses for an acquisition and the amortization of option rights, partially offset by fair value adjustments of financial assets. |
|
|
For the twelve months ended December 31, 2024, Gross profit includes the amortization of inventory fair value adjustments related to an acquisition. Operating income also includes fair value adjustments to contingent consideration liabilities and fair value adjustments of financial assets, partially offset by the amortization of option rights. |
|
|
For the twelve months ended December 31, 2023, Gross profit includes the amortization of inventory fair value adjustments related to an acquisition, partially offset by fair value adjustments to contingent consideration liabilities. Operating income also includes the release of a contingent liability related to an acquisition and fair value adjustments to contingent consideration liabilities, partially offset by integration related expenses for an acquisition, the amortization of option rights and fair value adjustments of financial assets. |
|
(6) |
For the three months ended December 31, 2024, tax associated with operating income core adjustments of |
|
|
For the three months ended December 31, 2023, total tax adjustments of |
|
|
For the twelve months ended December 31, 2024, tax associated with operating income core adjustments of |
|
|
For the twelve months ended December 31, 2023, total tax adjustments of |
|
(7) |
Core basic earnings per share is calculated using the weighted-average shares of common stock outstanding during the period. Core diluted earnings per share also contemplate dilutive shares associated with unvested equity-based awards as described in Note 4 to the Condensed Consolidated Interim Financial Statements. |
About Alcon
Alcon helps people see brilliantly. As the global leader in eye care with a heritage spanning over 75 years, we offer the broadest portfolio of products to enhance sight and improve people’s lives. Our Surgical and Vision Care products touch the lives of people in over 140 countries each year living with conditions like cataracts, glaucoma, retinal diseases and refractive errors. Our more than 25,000 associates are enhancing the quality of life through innovative products, partnerships with Eye Care Professionals and programs that advance access to quality eye care. Learn more at www.alcon.com.
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Investor Relations
Daniel Cravens
Allen Trang
+ 41 589 112 110 (
+ 1 817 615 2789 (
investor.relations@alcon.com
Media Relations
Steven Smith
+ 41 589 112 111 (
+ 1 817 551 8057 (
globalmedia.relations@alcon.com
Source: Alcon Inc. Investors
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