- Third-quarter 2024 sales of $2.4 billion, up 6% on a
reported and constant currency1 (cc) basis
- Third-quarter 2024 diluted EPS of $0.53, up 29%, or 32% cc;
core diluted EPS2 of $0.81, up 23%, or 25% cc
- Generated $1.6 billion of cash from operations in the first
nine months of 2024; record free cash flow3 of $1.3 billion, up
$704 million, or 119%
Ad Hoc Announcement Pursuant to Art. 53 LR
Alcon (SIX/NYSE:ALC), the global leader in eye care, reported
its financial results for the three and nine month periods ending
September 30, 2024. For the third quarter of 2024, sales were $2.4
billion, an increase of 6% on a reported and constant currency
basis1, as compared to the same quarter of the previous year. Alcon
reported diluted earnings per share of $0.53 and core diluted
earnings per share2 of $0.81 in the third quarter of 2024.
"Our third quarter results reflect our broad geographic
footprint and excellent execution by our team. These elements
contributed to another quarter of compounding sales and earnings
growth and record cash generation," said David J. Endicott, Alcon's
Chief Executive Officer. "As we look to 2025 and beyond, our focus
continues to be on launching a wave of innovative products that
will be a platform for growth in the years ahead."
Third quarter and first nine months of 2024 key
figures
Three months ended September
30
Nine months ended September
30
2024
2023
2024
2023
Net sales ($ millions)
2,433
2,303
7,359
7,038
Operating margin (%)
13.6%
12.7%
13.8%
11.8%
Diluted earnings per share ($)
0.53
0.41
1.48
1.10
Core results (non-IFRS
measure)2
Core operating margin (%)
20.6%
19.5%
20.8%
20.0%
Core diluted earnings per share ($)
0.81
0.66
2.33
2.05
Cash flows ($ millions)
Net cash flows from operating
activities
1,618
937
Free cash flow (non-IFRS measure)3
1,296
592
1.
Constant currency is a non-IFRS measure. Refer to the 'Footnotes'
section for additional information.
2.
Core results, such as core operating income, core operating margin
and core diluted EPS, are non-IFRS measures. Refer to the
'Footnotes' section for additional information.
3.
Free cash flow is a non-IFRS measure. Refer to the 'Footnotes'
section for additional information.
Third quarter and first nine months of 2024 results
Sales for the third quarter of 2024 were $2.4 billion, an
increase of 6% on a reported and constant currency basis, compared
to the third quarter of 2023. Sales for the first nine months of
2024 were $7.4 billion, an increase of 5% on a reported basis and
6% on a constant currency basis, compared to the first nine months
of 2023.
The following table highlights net sales by segment for the
third quarter and first nine months of 2024:
Three months ended September
30
Change %
Nine months ended September
30
Change %
($ 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 $1.3 billion,
an increase of 5% on a reported and constant currency basis versus
the third quarter of 2023.
- Implantables net sales were $422 million, an increase of 5% on
a reported and constant currency basis. Growth was led by advanced
technology intraocular lenses in international markets, including a
benefit from volume-based procurement in China, partially offset by
slower market conditions in the United States.
- Consumables net sales were $701 million, an increase of 6% on a
reported and constant currency basis, driven by vitreoretinal
consumables in international markets, cataract consumables and
price increases.
- Equipment/other net sales were $215 million, in line with the
prior year period. Excluding unfavorable currency impacts of 1%,
equipment/other net sales increased 1% constant currency as the
prior year period benefited from strong demand for cataract
equipment in international markets.
For the first nine months of 2024, Surgical net sales were $4.1
billion, an increase of 3% on a reported basis and 5% on a constant
currency basis versus the first nine months of 2023.
Vision Care growth reflects strength in contact lenses
For the third quarter of 2024, Vision Care net sales, which
include contact lenses and ocular health, were $1.1 billion, an
increase of 7% on a reported and constant currency basis, versus
the third quarter of 2023.
- Contact lenses net sales were $664 million, an increase of 8%
on a reported and constant currency basis, driven by product
innovation, including our toric and multifocal modalities, and
price increases.
- Ocular health net sales were $431 million, an increase of 4% on
a reported and constant currency basis. Growth was primarily driven
by the portfolio of eye drops, including continued strength from
the Systane family of artificial tears. This growth was partially
offset by declines in contact lens care in international
markets.
For the first nine months of 2024, Vision Care net sales were
$3.3 billion, an increase of 6% on a reported basis and 7% on a
constant currency basis versus the first nine months of 2023.
Operating income
Third-quarter 2024 operating income was $332 million, compared
to $293 million in the prior year period. Operating margin
increased 0.9 percentage points, reflecting improved operating
leverage in selling, general and administration ("SG&A")
expenses from higher sales, partially offset by investment in
research and development ("R&D") in Surgical and a negative 0.2
percentage point impact from currency. The prior year period
included a $58 million benefit from the release of a contingent
liability related to an acquisition, partially offset by $30
million for the transformation program which was completed in the
fourth quarter of 2023. Operating margin increased 1.1 percentage
points on a constant currency basis.
Adjustments to arrive at core operating income2 in the current
year period were $169 million, mainly due to $167 million of
amortization. Excluding these and other adjustments, third-quarter
2024 core operating income was $501 million.
Third-quarter 2024 core operating margin was 20.6%. Core
operating margin increased 1.1 percentage points, reflecting
improved operating leverage in SG&A expenses from higher sales,
partially offset by investment in R&D in Surgical and a
negative 0.1 percentage point impact from currency. Core operating
margin increased 1.2 percentage points on a constant currency
basis.
Operating income for the first nine months of 2024 was $1.0
billion and operating margin was 13.8%, which increased 2.0
percentage points on a reported basis and 2.9 percentage points on
a constant currency basis versus the prior year period. Adjustments
to arrive at core operating income in the current year period were
$511 million, mainly due to $498 million of amortization. Excluding
these and other adjustments, core operating income was $1.5
billion.
Core operating margin for the first nine months of 2024 was
20.8%, an increase of 0.8 percentage points on a reported basis and
1.5 percentage points on a constant currency basis versus the prior
year period.
Diluted earnings per share (EPS)
Third-quarter 2024 diluted earnings per share of $0.53 increased
29%, or 32% on a constant currency basis. Core diluted earnings per
share of $0.81 increased 23%, or 25% on a constant currency basis
versus the prior year period.
Diluted earnings per share for the first nine months of 2024 of
$1.48 increased 35%, or 46% on a constant currency basis. Core
diluted earnings per share for the first nine months of 2024 of
$2.33 increased 14%, or 20% on a constant currency basis versus the
prior year period.
Cash flow highlights
The Company ended the first nine months of 2024 with a cash
position of $1.6 billion. Net cash flows from operating activities
amounted to $1.6 billion in the first nine months of 2024, compared
to $937 million in the prior year period. The current year period
includes increased collections associated with higher sales, lower
transformation payments following completion of the transformation
program in the fourth quarter of 2023 and lower taxes paid due to
the timing of payments, 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 a record inflow of $1.3 billion in the first
nine months of 2024, compared to $592 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
as of November
Comments
Net sales (USD)
$9.9 to $10.1 billion
$9.9 to $10.1 billion
$9.9 to $10.1 billion
$9.8 to $9.9 billion
Updated
Change vs. prior year (cc)1
(non-IFRS measure)
+6% to +8%
+7% to +9%
+7% to +9%
+6% to +7%
Updated
Core operating margin2
(non-IFRS measure)
20.5% to 21.5%
20.5% to 21.5%
20.5% to 21.5%
20.5% to 21%
Tightened range
Interest expense and
Other financial income & expense
$190 to $210 million
$180 to $200 million
$160 to $180 million
$155 to $165 million
Updated
Core effective tax rate5
(non-IFRS measure)
~20%
~20%
~20%
~19%
Updated
Core diluted EPS2
(non-IFRS measure)
$3.00 to $3.10
$3.00 to $3.10
$3.00 to $3.10
$3.00 to $3.05
Tightened range
Change vs. prior year (cc)1
(non-IFRS measure)
+13% to +16%
+15% to +18%
+15% to +18%
+15% to +17%
Tightened range
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:
https://investor.alcon.com/news-and-events/events-and-presentations/event-details/2024/Alcons-Third-Quarter-2024-Earnings-Conference-Call-2024-Upq8pXuz3s/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 September
30
Nine months ended September
30
($ millions unless indicated
otherwise)
2024
2023
2024
2023
United States
1,112
46%
1,062
46%
3,402
46%
3,245
46%
International
1,321
54%
1,241
54%
3,957
54%
3,793
54%
Net sales to third parties
2,433
100%
2,303
100%
7,359
100%
7,038
100%
Consolidated Income Statement (unaudited)
Three months ended September
30
Nine months ended September
30
($ 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 results
Amortization of certain
intangible assets(1)
Other items(4)
Core results (non-IFRS
measure)
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 results
Amortization of certain
intangible assets(1)
Transformation
costs(3)
Other items(4)
Core results (non-IFRS
measure)
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 results
Amortization of certain
intangible assets(1)
Impairments(2)
Other items(4)
Core results (non-IFRS
measure)
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 results
Amortization of certain
intangible assets(1)
Transformation
costs(3)
Other items(4)
Core results (non-IFRS
measure)
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 $169
million totaled $30 million with an average tax rate of 17.8%.
For the three months ended September 30,
2023, tax associated with operating income core adjustments of $157
million totaled $34 million with an average tax rate of 21.7%.
For the nine months ended September 30,
2024, tax associated with operating income core adjustments of $511
million totaled $89 million with an average tax rate of 17.4%.
For the nine months ended September 30,
2023, tax associated with operating income core adjustments of $578
million totaled $110 million with an average tax rate of 19.0%.
(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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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
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