- Record Q2 2024 sales of $2.5 billion, up 3%, or 6% constant
currency1 (cc)
- Q2 2024 diluted EPS of $0.45, up 32%, or 47% cc; core
diluted EPS2 of $0.74, up 7%, or 15% cc
- H1 2024 cash from operations of $871 million; free cash
flow3 of $667 million, up $478 million, or 253%
- Received U.S. FDA clearance of Unity VCS/CS and PDUFA date
for AR-15512 of May 30th, 2025
Ad Hoc Announcement Pursuant to Art. 53 LR
Alcon (SIX/NYSE:ALC), the global leader in eye care, reported
its financial results for the three and six month periods ending
June 30, 2024. For the second quarter of 2024, sales were $2.5
billion, an increase of 3% on a reported basis and 6% on a constant
currency basis1, as compared to the same quarter of the previous
year. Alcon reported diluted earnings per share of $0.45 and core
diluted earnings per share2 of $0.74 in the second quarter of
2024.
"We are pleased with our solid second-quarter results, which
were driven by robust demand for our innovative products, our
balanced geographic footprint and strong execution by our team.
These factors contributed to another quarter of sales and earnings
growth and robust cash generation," said David J. Endicott, Alcon's
Chief Executive Officer. "As we look to the second half of the
year, our focus will be on preparing for product launches that will
position us well for our next phase of growth in 2025 and
beyond."
Second-quarter and first-half 2024 key
figures
Three months ended June
30
Six months ended June
30
2024
2023
2024
2023
Net sales ($ millions)
2,482
2,402
4,926
4,735
Operating margin (%)
12.8%
11.2%
13.9%
11.4%
Diluted earnings per share ($)
0.45
0.34
0.95
0.69
Core results (non-IFRS
measure)2
Core operating margin (%)
19.8%
19.9%
20.9%
20.3%
Core diluted earnings per share ($)
0.74
0.69
1.52
1.39
Cash flows ($ millions)
Net cash flows from operating
activities
871
410
Free cash flow (non-IFRS measure)3
667
189
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.
Second-quarter and first-half 2024 results
Sales for the second quarter of 2024 were $2.5 billion, an
increase of 3% on a reported basis and 6% on a constant currency
basis, compared to the second quarter of 2023. Sales for the first
half of 2024 were $4.9 billion, an increase of 4% on a reported
basis and 7% on a constant currency basis, compared to the first
half of 2023.
The following table highlights net sales by segment for the
second quarter and first half of 2024:
Three months ended June
30
Change %
Six months ended June
30
Change %
($ millions unless indicated
otherwise)
2024
2023
$
cc1
(non-IFRS measure)
2024
2023
$
cc1
(non-IFRS measure)
Surgical
Implantables
464
437
6
9
897
864
4
8
Consumables
736
714
3
5
1,422
1,370
4
6
Equipment/other
223
231
(3
)
(1
)
442
452
(2
)
—
Total Surgical
1,423
1,382
3
6
2,761
2,686
3
6
Vision Care
Contact lenses
636
594
7
9
1,307
1,209
8
10
Ocular health
423
426
(1
)
2
858
840
2
5
Total Vision Care
1,059
1,020
4
6
2,165
2,049
6
8
Net sales to third parties
2,482
2,402
3
6
4,926
4,735
4
7
Surgical growth reflects strength in international markets
For the second quarter of 2024, Surgical net sales, which
include implantables, consumables and equipment/other, were $1.4
billion, an increase of 3% on a reported basis and 6% on a constant
currency basis versus the second quarter of 2023.
- Implantables net sales were $464 million, an increase of 6%.
Excluding unfavorable currency impacts of 3%, implantables net
sales increased 9% in constant currency. Growth was led by advanced
technology intraocular lenses in international markets.
- Consumables net sales were $736 million, an increase of 3%,
driven by cataract and vitreoretinal consumables, particularly in
international markets, and price increases. Excluding unfavorable
currency impacts of 2%, consumables net sales increased 5% constant
currency.
- Equipment/other net sales were $223 million, a decrease of 3%.
Excluding unfavorable currency impacts of 2%, equipment/other net
sales decreased 1% constant currency as the prior year period
benefited from strong demand for cataract equipment in
international markets.
For the first half of 2024, Surgical net sales were $2.8
billion, an increase of 3% on a reported basis and 6% on a constant
currency basis versus the first half of 2023.
Vision Care growth reflects strength in contact lenses
For the second quarter of 2024, Vision Care net sales, which
include contact lenses and ocular health, were $1.1 billion, an
increase of 4% on a reported basis and 6% on a constant currency
basis, versus the second quarter of 2023.
- Contact lenses net sales were $636 million, an increase of 7%,
driven by product innovation, including our toric and multifocal
modalities, and price increases. Growth was partially offset by
unfavorable currency impacts of 2%. Contact lenses net sales
increased 9% constant currency.
- Ocular health net sales were $423 million, a decrease of 1%.
Excluding unfavorable currency impacts of 3%, ocular health net
sales increased 2% in constant currency. This constant currency
growth was primarily driven by the portfolio of eye drops,
including continued strength from the Systane family of artificial
tears. Growth was partially offset by a decline of 4% due to
contact lens care, primarily driven by the prior year period
benefit from the recovery from supply chain challenges.
For the first half of 2024, Vision Care net sales were $2.2
billion, an increase of 6% on a reported basis and 8% on a constant
currency basis versus the first half of 2023.
Operating income
Second-quarter 2024 operating income was $318 million, compared
to $270 million in the prior year period. Operating margin
increased 1.6 percentage points, reflecting improved underlying
operating leverage from higher sales. The prior year period
included $26 million for the transformation program which was
completed in the fourth quarter of 2023. The second quarter of 2024
included significantly higher inventory provisions in Vision Care
due to a supplier-related quality issue which resulted in a
negative impact of $30 million or 1.2 percentage points to
operating margin. Operating margin was also impacted by higher
costs of inventory in Surgical and a negative 1.0 percentage point
impact from currency. Operating margin increased 2.6 percentage
points on a constant currency basis.
Adjustments to arrive at core operating income2 in the current
year period were $173 million, mainly due to $165 million of
amortization. Excluding these and other adjustments, second-quarter
2024 core operating income was $491 million.
Second-quarter 2024 core operating margin was 19.8%. Core
operating margin decreased 0.1 percentage point, including a
negative 0.8 percentage point impact from currency. Core operating
margin increased 0.7 percentage points on a constant currency
basis, reflecting improved underlying operating leverage from
higher sales. The second quarter of 2024 included significantly
higher inventory provisions in Vision Care due to a
supplier-related quality issue which resulted in a negative impact
of $30 million or 1.2 percentage points to core operating margin.
There were also higher costs of inventory in Surgical.
First-half 2024 operating income was $686 million and operating
margin was 13.9%, which increased 2.5 percentage points on a
reported basis and 3.7 percentage points on a constant currency
basis. Adjustments to arrive at core operating income in the
current year period were $342 million, mainly due to $331 million
of amortization. Excluding these and other adjustments, core
operating income was $1.0 billion.
First-half 2024 core operating margin was 20.9%, an increase of
0.6 percentage points on a reported basis and 1.6 percentage points
on a constant currency basis.
Diluted earnings per share (EPS)
Second-quarter 2024 diluted earnings per share of $0.45
increased 32%, or 47% on a constant currency basis. Core diluted
earnings per share of $0.74 increased 7%, or 15% on a constant
currency basis.
First-half 2024 diluted earnings per share of $0.95 increased
38%, or 55% on a constant currency basis. Core diluted earnings per
share for the first six months of $1.52 increased 9%, or 18% on a
constant currency basis.
Cash flow highlights
The Company ended the first six months of 2024 with a cash
position of $1.4 billion. Net cash flows from operating activities
amounted to $871 million in the first six months of 2024, compared
to $410 million in the prior year period. The current year period
includes increased collections associated with higher sales, lower
taxes paid due to timing of payments and lower transformation
payments following completion of the transformation program in the
fourth quarter of 2023, partially offset by associate short-term
incentive payments, which generally occur in the first quarter and
were higher than in the prior year period, and increased payments
for operating expenses. The prior period included a cash outflow
for a legal settlement. Both periods were impacted by changes in
net working capital.
Free cash flow was an inflow of $667 million in the first six
months of 2024, compared to $189 million in the prior year period,
primarily due to increased cash flows from operating
activities.
2024 outlook
The Company updated its 2024 outlook as per the table below.
2024 outlook4
as of February
as of May
as of August
Comments
Net sales (USD)
$9.9 to $10.1 billion
$9.9 to $10.1 billion
$9.9 to $10.1 billion
Maintain
Change vs. prior year (cc)1
(non-IFRS measure)
+6% to +8%
+7% to +9%
+7% to +9%
Maintain
Core operating margin2 (non-IFRS
measure)
20.5% to 21.5%
20.5% to 21.5%
20.5% to 21.5%
Maintain
Interest expense and Other
financial income & expense
$190 to $210 million
$180 to $200 million
$160 to $180 million
Decrease
Core effective tax rate5
(non-IFRS measure)
~20%
~20%
~20%
Maintain
Core diluted EPS2 (non-IFRS
measure)
$3.00 to $3.10
$3.00 to $3.10
$3.00 to $3.10
Maintain
Change vs. prior year (cc)1
(non-IFRS measure)
+13% to +16%
+15% to +18%
+15% to +18%
Maintain
This outlook assumes the following:
- Aggregated markets grow in line with historical averages
(mid-single digits);
- Exchange rates as of the end of July 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.
Executive Committee Changes
The Company has made the following changes to its Executive
Committee (ECA), which will take effect September 1, 2024:
Ian Bell, currently President, Global Business & Innovation,
and a member of the ECA, is named Senior Vice President and Chief
Operating Officer (COO). Sue-Jean Lin, currently Senior Vice
President, Chief Information and Transformation Officer, will step
down from the ECA ahead of her retirement from the Company. Kim
Martin, currently Senior Vice President, Chief Human Resources
Officer and Corporate Communications, will join the ECA.
Webcast and Conference Call Instructions
The Company will host a conference call on August 21, 2024 at
8:00 a.m. Eastern Daylight Time / 2:00 p.m. Central European Summer
Time to discuss its second-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:
https://investor.alcon.com/news-and-events/events-and-presentations/event-details/2024/Alcons-Second-Quarter-2024-Earnings-Conference-Call-2024-gjVAL2EgFs/default.aspx
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 $10 million and are deemed exceptional are
also excluded from core results: integration and divestment related
income and expenses, divestment gains and losses, restructuring
charges/releases and related items, legal related items,
gains/losses on early extinguishment of debt or debt modifications,
past service costs for post-employment benefit plans, impairments
of property, plant and equipment and software, as well as income
and expense items that management deems exceptional and that are or
are expected to accumulate within the year to be over a $10 million
threshold.
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
Three months ended June
30
Six months ended June
30
($ millions unless indicated
otherwise)
2024
2023
2024
2023
United States
1,141
46%
1,105
46%
2,290
46%
2,183
46%
International
1,341
54%
1,297
54%
2,636
54%
2,552
54%
Net sales to third parties
2,482
100%
2,402
100%
4,926
100%
4,735
100%
Consolidated Income Statement (unaudited)
Three months ended June
30
Six months ended June
30
($ millions except earnings per share)
2024
2023
2024
2023
Net sales to third parties
2,482
2,402
4,926
4,735
Other revenues
14
20
29
39
Net sales and other revenues
2,496
2,422
4,955
4,774
Cost of net sales
(1,108
)
(1,040
)
(2,171
)
(2,070
)
Cost of other revenues
(14
)
(19
)
(28
)
(36
)
Gross profit
1,374
1,363
2,756
2,668
Selling, general & administration
(837
)
(832
)
(1,639
)
(1,617
)
Research & development
(220
)
(217
)
(419
)
(419
)
Other income
5
5
11
10
Other expense
(4
)
(49
)
(23
)
(104
)
Operating income
318
270
686
538
Interest expense
(50
)
(48
)
(95
)
(95
)
Other financial income & expense
12
(9
)
24
(17
)
Income before taxes
280
213
615
426
Taxes
(57
)
(44
)
(144
)
(83
)
Net income
223
169
471
343
Earnings per share ($)
Basic
0.45
0.34
0.95
0.70
Diluted
0.45
0.34
0.95
0.69
Weighted average number of shares
outstanding (millions)
Basic
494.5
493.2
494.1
492.8
Diluted
497.0
495.7
496.7
495.9
Balance sheet highlights
($ millions)
June 30, 2024
December 31, 2023
Cash and cash equivalents
1,372
1,094
Current financial debts
137
63
Non-current financial debts
4,550
4,676
Free cash flow (non-IFRS measure)
The following is a summary of free cash flow for the six months
ended June 30, 2024 and 2023, together with a reconciliation to net
cash flows from operating activities, the most directly comparable
IFRS measure:
Six months ended June
30
($ millions)
2024
2023
Net cash flows from operating
activities
871
410
Purchase of property, plant &
equipment
(204
)
(221
)
Free cash flow
667
189
Reconciliation of IFRS results to core results (non-IFRS
measure)
Three months ended June 30, 2024
($ millions except earnings per share)
IFRS results
Amortization of certain
intangible assets(1)
Impairments(2)
Other items(4)
Core results
(non-IFRS measure)
Gross profit
1,374
165
—
—
1,539
Operating income
318
165
9
(1
)
491
Income before taxes
280
165
9
(1
)
453
Taxes(5)
(57
)
(30
)
—
1
(86
)
Net income
223
135
9
—
367
Basic earnings per share ($)
0.45
0.74
Diluted earnings per share ($)
0.45
0.74
Basic - weighted average shares
outstanding (millions)(6)
494.5
494.5
Diluted - weighted average shares
outstanding (millions)(6)
497.0
497.0
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 June 30, 2023
($ millions except earnings per share)
IFRS
results
Amortization of certain
intangible assets(1)
Transformation
costs(3)
Other items(4)
Core results (non-IFRS
measure)
Gross profit
1,363
164
—
5
1,532
Operating income
270
168
26
15
479
Income before taxes
213
168
26
15
422
Taxes(5)
(44
)
(30
)
(4
)
(3
)
(81
)
Net income
169
138
22
12
341
Basic earnings per share ($)
0.34
0.69
Diluted earnings per share ($)
0.34
0.69
Basic - weighted average shares
outstanding (millions)(6)
493.2
493.2
Diluted - weighted average shares
outstanding (millions)(6)
495.7
495.7
Refer to the associated explanatory footnotes at the end of the
'Reconciliation of IFRS results to core results (non-IFRS measure)'
tables.
Six months ended June 30, 2024
($ millions except earnings per share)
IFRS
results
Amortization of certain
intangible assets(1)
Impairments(2)
Other
items(4)
Core results (non-IFRS
measure)
Gross profit
2,756
329
—
3
3,088
Operating income
686
331
9
2
1,028
Income before taxes
615
331
9
2
957
Taxes(5)
(144
)
(59
)
—
—
(203
)
Net income
471
272
9
2
754
Basic earnings per share ($)
0.95
1.53
Diluted earnings per share ($)
0.95
1.52
Basic - weighted average shares
outstanding (millions)(6)
494.1
494.1
Diluted - weighted average shares
outstanding (millions)(6)
496.7
496.7
Refer to the associated explanatory footnotes at the end of the
'Reconciliation of IFRS results to core results (non-IFRS measure)'
tables.
Six months ended June 30, 2023
($ millions except earnings per share)
IFRS
results
Amortization of certain
intangible assets(1)
Transformation
costs(3)
Other items(4)
Core results (non-IFRS
measure)
Gross profit
2,668
333
—
9
3,010
Operating income
538
341
52
28
959
Income before taxes
426
341
52
28
847
Taxes(5)
(83
)
(61
)
(9
)
(6
)
(159
)
Net income
343
280
43
22
688
Basic earnings per share ($)
0.70
1.40
Diluted earnings per share ($)
0.69
1.39
Basic - weighted average shares
outstanding (millions)(6)
492.8
492.8
Diluted - weighted average shares
outstanding (millions)(6)
495.9
495.9
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 June 30, 2024,
Operating income includes fair value adjustments of financial
assets, partially offset by the amortization of option rights.
For the three months ended June 30, 2023,
Gross profit includes the amortization of inventory fair value
adjustments related to a recent acquisition. Operating income also
includes integration related expenses for a recent acquisition and
the amortization of option rights.
For the six months ended June 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, offset by fair value
adjustments of financial assets.
For the six months ended June 30, 2023,
Gross profit includes the amortization of inventory fair value
adjustments related to a recent acquisition. Operating income also
includes 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 June 30, 2024,
tax associated with operating income core adjustments of $173
million totaled $29 million with an average tax rate of 16.8%.
For the three months ended June 30, 2023,
tax associated with operating income core adjustments of $209
million totaled $37 million with an average tax rate of 17.7%.
For the six months ended June 30, 2024,
tax associated with operating income core adjustments of $342
million totaled $59 million with an average tax rate of 17.3%.
For the six months ended June 30, 2023,
tax associated with operating income core adjustments of $421
million totaled $76 million with an average tax rate of 18.1%.
(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 3 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 (Geneva) + 1 817 615 2789
(Fort Worth) investor.relations@alcon.com
Media Relations Steven Smith
+ 41 589 112 111 (Geneva) + 1 817 551 8057 (Fort Worth)
globalmedia.relations@alcon.com
Alcon (NYSE:ALC)
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Alcon (NYSE:ALC)
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