Alcon Reports Solid Third-Quarter 2024 Results, including Double-Digit Earnings Growth and Record Cash Generation
Alcon (ALC) reported strong Q3 2024 results with sales of $2.4 billion, up 6% year-over-year. The company achieved diluted EPS of $0.53, a 29% increase, and core diluted EPS of $0.81, up 23%. Notable performance includes record free cash flow of $1.3 billion, up 119% in the first nine months. Surgical segment sales reached $1.3 billion (+5%), while Vision Care segment hit $1.1 billion (+7%). The company generated $1.6 billion in operating cash flows and updated its 2024 outlook, projecting net sales between $9.8-9.9 billion with core diluted EPS of $3.00-3.05.
Alcon (ALC) ha riportato risultati forti per il terzo trimestre del 2024 con vendite di 2,4 miliardi di dollari, in aumento del 6% rispetto all'anno precedente. L'azienda ha raggiunto un utile per azione diluito di 0,53 dollari, con un incremento del 29%, e un utile per azione diluito core di 0,81 dollari, in aumento del 23%. Performance notevoli includono un flusso di cassa libero record di 1,3 miliardi di dollari, in aumento del 119% nei primi nove mesi. Le vendite del segmento Chirurgico hanno raggiunto 1,3 miliardi di dollari (+5%), mentre il segmento Cura della Vista ha toccato 1,1 miliardi di dollari (+7%). L'azienda ha generato 1,6 miliardi di dollari nei flussi di cassa operativi e ha aggiornato le sue previsioni per il 2024, prevedendo vendite nette tra 9,8-9,9 miliardi di dollari con un utile per azione diluito core di 3,00-3,05 dollari.
Alcon (ALC) reportó sólidos resultados en el tercer trimestre de 2024 con ventas de 2.4 mil millones de dólares, un aumento del 6% interanual. La compañía logró un EPS diluido de 0.53 dólares, un incremento del 29%, y un EPS diluido central de 0.81 dólares, con un aumento del 23%. Destacan un flujo de caja libre récord de 1.3 mil millones de dólares, un aumento del 119% en los primeros nueve meses. Las ventas del segmento Quirúrgico alcanzaron 1.3 mil millones de dólares (+5%), mientras que el segmento Cuidado de la Visión llegaron a 1.1 mil millones de dólares (+7%). La compañía generó 1.6 mil millones de dólares en flujos de efectivo operativos y actualizó sus perspectivas para 2024, proyectando ventas netas entre 9.8-9.9 mil millones de dólares con un EPS diluido central de 3.00-3.05 dólares.
Alcon (ALC)은 2024년 3분기에 24억 달러의 매출로 강력한 실적을 보고했으며, 이는 전년 대비 6% 증가한 수치입니다. 이 회사는 희석 주당 순이익(EPS) 0.53달러를 기록하며 29% 증가했으며, 핵심 희석 주당 순이익(EPS) 0.81달러를 달성하여 23% 증가했습니다. 주목할 만한 성과로는 첫 아홉 달 동안 13억 달러의 기록적인 자유 현금 흐름이 있으며, 이는 119% 증가한 것입니다. 외과 부문 매출은 13억 달러(+5%)에 달했으며, 안과 치료 부문은 11억 달러(+7%)에 도달했습니다. 이 회사는 16억 달러의 운영 현금 흐름을 생성했으며, 2024년 전망을 업데이트하여 순매출이 98-99억 달러에 이를 것으로 예상하며 핵심 희석 EPS는 3.00-3.05달러로 전망했습니다.
Alcon (ALC) a rapporté de solides résultats pour le troisième trimestre 2024 avec des ventes de 2,4 milliards de dollars, en hausse de 6% par rapport à l'année précédente. L'entreprise a atteint un bénéfice par action dilué de 0,53 dollar, soit une augmentation de 29%, et un bénéfice par action dilué de base de 0,81 dollar, en hausse de 23%. Parmi les performances notables, on trouve un flux de trésorerie libre record de 1,3 milliard de dollars, en hausse de 119% au cours des neuf premiers mois. Les ventes du segment Chirurgical ont atteint 1,3 milliard de dollars (+5%), tandis que le segment Soin de la Vision a atteint 1,1 milliard de dollars (+7%). L'entreprise a généré 1,6 milliard de dollars de flux de trésorerie opérationnels et a mis à jour ses prévisions pour 2024, projetant des ventes nettes entre 9,8 et 9,9 milliards de dollars avec un bénéfice par action dilué de base de 3,00 à 3,05 dollars.
Alcon (ALC) berichtete starke Ergebnisse für das dritte Quartal 2024 mit einem Umsatz von 2,4 Milliarden Dollar, ein Anstieg um 6% im Jahresvergleich. Das Unternehmen erreichte ein verwässertes EPS von 0,53 Dollar, was einem Anstieg von 29% entspricht, und ein Kern-EPS von 0,81 Dollar, was einen Anstieg von 23% bedeutet. Hervorzuheben ist der Rekordfreifluss von 1,3 Milliarden Dollar, was einem Anstieg von 119% in den ersten neun Monaten entspricht. Der Umsatz im Chirurgie-Segment erreichte 1,3 Milliarden Dollar (+5%), während das Augenpflege-Segment 1,1 Milliarden Dollar (+7%) erzielte. Das Unternehmen generierte 1,6 Milliarden Dollar an operativen Geldflüssen und aktualisierte seinen Ausblick für 2024, wobei es einen Nettoumsatz zwischen 9,8-9,9 Milliarden Dollar und ein Kern-EPS von 3,00-3,05 Dollar prognostiziert.
- Sales increased 6% to $2.4 billion in Q3 2024
- Diluted EPS grew 29% to $0.53
- Core diluted EPS increased 23% to $0.81
- Record free cash flow of $1.3 billion, up 119%
- Operating margin improved to 13.6% from 12.7%
- Core operating margin increased to 20.6% from 19.5%
- Equipment/other sales remained flat at $215 million
- Slower market conditions in United States for implantables
- Declines in contact lens care in international markets
- Lowered upper end of 2024 net sales guidance to $9.9 billion from $10.1 billion
Insights
The Q3 2024 results showcase strong financial performance with several key highlights:
Both Surgical and Vision Care segments showed robust growth, with Vision Care particularly strong at
The substantial improvement in free cash flow generation provides significant financial flexibility for future investments and potential shareholder returns. The reduced core effective tax rate guidance to
Market dynamics reveal strong positioning in key segments. The contact lens business shows particular strength with
The Systane family of artificial tears continues to drive ocular health growth, while the advanced technology intraocular lenses are gaining traction internationally. The China volume-based procurement benefit indicates successful market adaptation to regional dynamics.
Looking ahead, the company's focus on innovative product launches positions it well for sustained growth. The slight reduction in full-year sales guidance suggests some market headwinds, but the maintained earnings outlook indicates effective cost management and pricing power.
-
Third-quarter 2024 sales of
$2.4 billion 6% on a reported and constant currency1 (cc) basis -
Third-quarter 2024 diluted EPS of
$0.53 29% , or32% cc; core diluted EPS2 of$0.81 23% , or25% cc -
Generated
$1.6 billion $1.3 billion $704 million 119%
Ad Hoc Announcement Pursuant to Art. 53 LR
"Our third quarter results reflect our broad geographic footprint and excellent execution by our team. These elements contributed to another quarter of compounding sales and earnings growth and record cash generation," said David J. Endicott, Alcon's Chief Executive Officer. "As we look to 2025 and beyond, our focus continues to be on launching a wave of innovative products that will be a platform for growth in the years ahead."
Third quarter and first nine months of 2024 key figures
|
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Three months ended
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Nine months ended
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||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Net sales ($ millions) |
|
2,433 |
|
2,303 |
|
7,359 |
|
7,038 |
Operating margin (%) |
|
|
|
|
|
|
|
|
Diluted earnings per share ($) |
|
0.53 |
|
0.41 |
|
1.48 |
|
1.10 |
Core results (non-IFRS measure)2 |
|
|
|
|
|
|
|
|
Core operating margin (%) |
|
|
|
|
|
|
|
|
Core diluted earnings per share ($) |
|
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
The following table highlights net sales by segment for the third quarter and first nine months of 2024:
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Three months ended
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Change % |
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Nine months ended
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Change % |
|||||||||
($ millions unless indicated otherwise) |
|
2024 |
|
2023 |
|
$ |
|
cc1 (non-IFRS measure) |
|
2024 |
|
2023 |
|
$ |
|
cc1 (non-IFRS 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
-
Implantables net sales were
$422 million 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 inChina , partially offset by slower market conditions inthe United States . -
Consumables net sales were
$701 million 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 1% , equipment/other net sales increased1% 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
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
-
Contact lenses net sales were
$664 million 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 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
Operating income
Third-quarter 2024 operating income was
Adjustments to arrive at core operating income2 in the current year period were
Third-quarter 2024 core operating margin was
Operating income for the first nine months of 2024 was
Core operating margin for the first nine months of 2024 was
Diluted earnings per share (EPS)
Third-quarter 2024 diluted earnings per share of
Diluted earnings per share for the first nine months of 2024 of
Cash flow highlights
The Company ended the first nine months of 2024 with a cash position of
Free cash flow was a record inflow of
2024 outlook
The Company updated its 2024 outlook as per the table below.
2024 outlook4 |
as of
|
as of
|
as of
|
as of
|
Comments |
Net sales (USD) |
|
|
|
|
Updated |
Change vs. prior year (cc)1 (non-IFRS measure) |
+ |
+ |
+ |
+ |
Updated |
Core operating margin2 (non-IFRS measure) |
|
|
|
|
Tightened
|
Interest expense and Other financial income & expense |
|
|
|
|
Updated |
Core effective tax rate5 (non-IFRS measure) |
~ |
~ |
~ |
~ |
Updated |
Core diluted EPS2 (non-IFRS measure) |
|
|
|
|
Tightened
|
Change vs. prior year (cc)1 (non-IFRS measure) |
+ |
+ |
+ |
+ |
Tightened
|
This outlook assumes the following:
- Aggregated markets grow in line with recent quarters;
- Exchange rates as of the end of October 2024 prevail through year-end;
- Approximately 498 million weighted-averaged diluted shares.
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 'Footnotes' section for additional information. |
5. |
Core effective tax rate, a non-IFRS measure, is the applicable annual tax rate on core taxable income. Refer to the 'Footnotes' section for additional information. |
Webcast and Conference Call Instructions
The Company will host a conference call on November 13, 2024 at 8:00 a.m. Eastern Time / 2:00 p.m. Central European Time to discuss its third-quarter 2024 earnings results. The webcast can be accessed online through Alcon's Investor Relations website, investor.alcon.com. Listeners should log on approximately 10 minutes in advance. A replay will be available online within 24 hours after the event.
The Company's interim financial report and supplemental presentation materials can be found online through Alcon's Investor Relations website, or by clicking on the link:
Footnotes (pages 1-4)
- Constant currency (cc) is a non-IFRS measure. Growth in constant currency (cc) is calculated by translating the current year’s foreign currency items into US dollars using average exchange rates from the historical comparative period and comparing them to the values from the historical comparative period in US dollars. An explanation of non-IFRS measures can be found in the 'Non-IFRS measures as defined by the Company' section.
- Core results, such as core operating income, core operating margin and core EPS, are non-IFRS measures. For additional information, including a reconciliation of such core results to the most directly comparable measures presented in accordance with IFRS, see the explanation of non-IFRS measures and reconciliation tables in the 'Non-IFRS measures as defined by the Company' and 'Financial tables' sections.
- Free cash flow is a non-IFRS measure. For additional information regarding free cash flow, see the explanation of non-IFRS measures and reconciliation tables in the 'Non-IFRS measures as defined by the Company' and 'Financial tables' sections.
- 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. Refer to the section 'Non-IFRS measures as defined by the Company' for more information.
- 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.
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; 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 or important facilities, particularly when we single-source or rely on limited sources of supply; our ability to forecast sales demand and manage our inventory levels and the changing buying patterns of our customers; 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; our success in completing and integrating strategic acquisitions; the success of our research and development efforts, including our ability to innovate to compete effectively; our ability to comply with the US Foreign Corrupt Practices Act of 1977 and other applicable anti-corruption laws; pricing pressure from changes in third party payor coverage and reimbursement methodologies; our ability to properly educate and train healthcare providers on our products; our ability to protect our intellectual property; our ability to comply with all laws to which we may be subject; the ability to obtain regulatory clearance and approval of our products as well as compliance with any post-approval obligations, including quality control of our manufacturing; the effect of product recalls or voluntary market withdrawals; the accuracy of our accounting estimates and assumptions, including pension and other post-employment benefit plan obligations and the carrying value of intangible assets; the impact of unauthorized importation of our products from countries with lower prices to countries with higher prices; our ability to service our debt obligations; the need for additional financing through the issuance of debt or equity; the effects of litigation, including product liability lawsuits and governmental investigations; supply constraints and increases in the cost of energy; our ability to attract and retain qualified personnel; legislative, tax and regulatory reform; the impact of being listed on two stock exchanges; the ability to declare and pay dividends; the different rights afforded to our shareholders as a Swiss corporation compared to a US corporation; the effect of maintaining or losing our foreign private issuer status under US securities laws; and the ability to enforce US judgments against Swiss corporations.
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, operating income margins and core operating income margins are calculated based upon net sales to third parties 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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Three months ended
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Nine months ended
|
||||||||
($ millions unless indicated otherwise) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,112 |
|
|
1,062 |
|
|
3,402 |
|
|
3,245 |
|
International |
|
1,321 |
|
|
1,241 |
|
|
3,957 |
|
|
3,793 |
|
Net sales to third parties |
|
2,433 |
|
|
2,303 |
|
|
7,359 |
|
|
7,038 |
|
Consolidated Income Statement (unaudited)
|
|
Three months ended
|
|
Nine months ended
|
||||||
($ millions except earnings per share) |
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
Net sales to third parties |
|
2,433 |
|
2,303 |
|
|
7,359 |
|
7,038 |
|
Other revenues |
|
21 |
|
26 |
|
|
50 |
|
65 |
|
Net sales and other revenues |
|
2,454 |
|
2,329 |
|
|
7,409 |
|
7,103 |
|
Cost of net sales |
|
(1,064 |
) |
(1,022 |
) |
|
(3,235 |
) |
(3,092 |
) |
Cost of other revenues |
|
(19 |
) |
(18 |
) |
|
(47 |
) |
(54 |
) |
Gross profit |
|
1,371 |
|
1,289 |
|
|
4,127 |
|
3,957 |
|
Selling, general & administration |
|
(809 |
) |
(798 |
) |
|
(2,448 |
) |
(2,415 |
) |
Research & development |
|
(225 |
) |
(201 |
) |
|
(644 |
) |
(620 |
) |
Other income |
|
5 |
|
64 |
|
|
16 |
|
74 |
|
Other expense |
|
(10 |
) |
(61 |
) |
|
(33 |
) |
(165 |
) |
Operating income |
|
332 |
|
293 |
|
|
1,018 |
|
831 |
|
Interest expense |
|
(49 |
) |
(47 |
) |
|
(144 |
) |
(142 |
) |
Other financial income & expense |
|
10 |
|
(8 |
) |
|
34 |
|
(25 |
) |
Share of (loss) from associated companies |
|
(1 |
) |
— |
|
|
(1 |
) |
— |
|
Income before taxes |
|
292 |
|
238 |
|
|
907 |
|
664 |
|
Taxes |
|
(29 |
) |
(34 |
) |
|
(173 |
) |
(117 |
) |
Net income |
|
263 |
|
204 |
|
|
734 |
|
547 |
|
|
|
|
|
|
|
|
||||
Earnings per share ($) |
||||||||||
Basic |
|
0.53 |
|
0.41 |
|
|
1.48 |
|
1.11 |
|
Diluted |
|
0.53 |
|
0.41 |
|
|
1.48 |
|
1.10 |
|
|
|
|
|
|
|
|
||||
Weighted average number of shares outstanding (millions) |
||||||||||
Basic |
|
494.6 |
|
493.2 |
|
|
494.3 |
|
492.9 |
|
Diluted |
|
497.7 |
|
496.3 |
|
|
497.2 |
|
496.3 |
|
Balance sheet highlights
($ millions) |
|
September 30, 2024 |
|
December 31, 2023 |
Cash and cash equivalents |
|
1,566 |
|
1,094 |
Time deposits |
|
151 |
|
— |
Current financial debts |
|
115 |
|
63 |
Non-current financial debts |
|
4,575 |
|
4,676 |
Free cash flow (non-IFRS measure)
The following is a summary of free cash flow for the nine months ended September 30, 2024 and 2023, together with a reconciliation to net cash flows from operating activities, the most directly comparable IFRS measure:
|
Nine months ended September 30 |
||||
($ millions) |
2024 |
|
|
2023 |
|
Net cash flows from operating activities |
1,618 |
|
|
937 |
|
Purchase of property, plant & equipment |
(322 |
) |
|
(345 |
) |
Free cash flow |
1,296 |
|
|
592 |
|
Reconciliation of IFRS results to core results (non-IFRS measure)
Three months ended September 30, 2024
($ millions except earnings per share) |
IFRS
|
Amortization of
|
Other
|
Core results
|
||||
Gross profit |
1,371 |
166 |
— |
1,537 |
||||
Operating income |
332 |
167 |
2 |
501 |
||||
Income before taxes |
292 |
167 |
2 |
461 |
||||
Taxes(5) |
(29) |
(30) |
— |
(59) |
||||
Net income |
263 |
137 |
2 |
402 |
||||
Basic earnings per share ($) |
0.53 |
|
|
0.81 |
||||
Diluted earnings per share ($) |
0.53 |
|
|
0.81 |
||||
Basic - weighted average shares outstanding (millions)(6) |
494.6 |
|
|
494.6 |
||||
Diluted - weighted average shares outstanding (millions)(6) |
497.7 |
|
|
497.7 |
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 September 30, 2023
($ millions except earnings per share) |
IFRS
|
Amortization of
|
Transformation
|
Other
|
Core results
|
|||||
Gross profit |
1,289 |
166 |
— |
4 |
1,459 |
|||||
Operating income |
293 |
167 |
30 |
(40) |
450 |
|||||
Income before taxes |
238 |
167 |
30 |
(40) |
395 |
|||||
Taxes(5) |
(34) |
(30) |
(5) |
1 |
(68) |
|||||
Net income |
204 |
137 |
25 |
(39) |
327 |
|||||
Basic earnings per share ($) |
0.41 |
|
|
|
0.66 |
|||||
Diluted earnings per share ($) |
0.41 |
|
|
|
0.66 |
|||||
Basic - weighted average shares outstanding (millions)(6) |
493.2 |
|
|
|
493.2 |
|||||
Diluted - weighted average shares outstanding (millions)(6) |
496.3 |
|
|
|
496.3 |
Refer to the associated explanatory footnotes at the end of the 'Reconciliation of IFRS results to core results (non-IFRS measure)' tables.
Nine months ended September 30, 2024
($ millions except earnings per share) |
IFRS
|
Amortization of
|
Impairments(2) |
Other
|
Core results
|
|||||
Gross profit |
4,127 |
495 |
— |
3 |
4,625 |
|||||
Operating income |
1,018 |
498 |
9 |
4 |
1,529 |
|||||
Income before taxes |
907 |
498 |
9 |
4 |
1,418 |
|||||
Taxes(5) |
(173) |
(89) |
— |
— |
(262) |
|||||
Net income |
734 |
409 |
9 |
4 |
1,156 |
|||||
Basic earnings per share ($) |
1.48 |
|
|
|
2.34 |
|||||
Diluted earnings per share ($) |
1.48 |
|
|
|
2.33 |
|||||
Basic - weighted average shares outstanding (millions)(6) |
494.3 |
|
|
|
494.3 |
|||||
Diluted - weighted average shares outstanding (millions)(6) |
497.2 |
|
|
|
497.2 |
Refer to the associated explanatory footnotes at the end of the 'Reconciliation of IFRS results to core results (non-IFRS measure)' tables.
Nine months ended September 30, 2023
($ millions except earnings per share) |
IFRS
|
Amortization of
|
Transformation
|
Other
|
Core results
|
|||||
Gross profit |
3,957 |
499 |
— |
13 |
4,469 |
|||||
Operating income |
831 |
508 |
82 |
(12) |
1,409 |
|||||
Income before taxes |
664 |
508 |
82 |
(12) |
1,242 |
|||||
Taxes(5) |
(117) |
(91) |
(14) |
(5) |
(227) |
|||||
Net income |
547 |
417 |
68 |
(17) |
1,015 |
|||||
Basic earnings per share ($) |
1.11 |
|
|
|
2.06 |
|||||
Diluted earnings per share ($) |
1.10 |
|
|
|
2.05 |
|||||
Basic - weighted average shares outstanding (millions)(6) |
492.9 |
|
|
|
492.9 |
|||||
Diluted - weighted average shares outstanding (millions)(6) |
496.3 |
|
|
|
496.3 |
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) |
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. |
(4) |
For the three months ended September 30, 2024, Operating income primarily includes the amortization of option rights, partially offset by fair value adjustments of financial assets. |
For the three months ended September 30, 2023, Gross profit includes the amortization of inventory fair value adjustments related to a recent acquisition. 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 a recent acquisition, fair value adjustments of financial assets and the amortization of option rights. |
|
For the nine months ended September 30, 2024, Gross profit includes the amortization of inventory fair value adjustments related to a recent acquisition. Operating income also includes the amortization of option rights and fair value adjustments of financial assets. |
|
For the nine months ended September 30, 2023, Gross profit includes the amortization of inventory fair value adjustments related to a recent acquisition. 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 a recent acquisition, fair value adjustments of financial assets and the amortization of option rights. |
|
(5) |
For the three months ended September 30, 2024, tax associated with operating income core adjustments of |
For the three months ended September 30, 2023, tax associated with operating income core adjustments of |
|
For the nine months ended September 30, 2024, tax associated with operating income core adjustments of |
|
For the nine months ended September 30, 2023, tax associated with operating income core adjustments of |
|
(6) |
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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+ 1 817 615 2789 (
investor.relations@alcon.com
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Source: Alcon Inc. Investors
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