- Full-year 2024 sales of $9.8 billion, up 5%, or up 6%
constant currency1 (cc)
- Full-year 2024 diluted EPS of $2.05, up 5% on a reported
basis, or up 11% cc; core diluted EPS2 of $3.05 up 11% on a
reported basis, or up 16% cc
- Generated record $2.1 billion of cash from operations in
full-year 2024; record free cash flow3 of $1.6 billion, up
120%
- Announced share repurchase authorization to offset dilution
from associate equity incentive plans
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 twelve month periods ending
December 31, 2024. For the fourth quarter of 2024, sales were $2.5
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 $0.57 and core diluted
earnings per share2 of $0.72 in the fourth quarter of 2024.
"In 2024, our unwavering focus on innovation and operational
excellence delivered another set of strong results," said David J.
Endicott, Alcon's Chief Executive Officer. "This focus will
continue into 2025 as we launch a wave of innovation that we expect
to deliver long-term value to our customers, shareholders and
associates."
Fourth-quarter and full-year 2024 key figures
Three months ended December
31
Twelve months ended December
31
2024
2023
2024
2023
Net sales ($ millions)
2,477
2,332
9,836
9,370
Operating margin (%)
15.9%
8.9%
14.4%
11.1%
Diluted earnings per share ($)
0.57
0.86
2.05
1.96
Core results (non-IFRS
measure)2
Core operating margin (%)
20.1%
18.9%
20.6%
19.7%
Core diluted earnings per share ($)
0.72
0.70
3.05
2.74
Cash flows ($ millions)
Net cash flows from operating
activities
2,077
1,388
Free cash flow (non-IFRS measure)3
1,604
730
1.
Constant currency (cc) is a non-IFRS measure. An explanation of
non-IFRS measures can be found in the 'Non-IFRS measures as defined
by the Company' section.
2. Core results, such as core gross margin, core operating income,
core operating margin and core diluted EPS, are non-IFRS measures.
An explanation of non-IFRS measures can be found in the 'Non-IFRS
measures as defined by the Company' section. 3. Free cash flow is a
non-IFRS measure. An explanation of non-IFRS measures can be found
in the 'Non-IFRS measures as defined by the Company' section.
Fourth-quarter and full-year 2024 results
Sales for the fourth quarter of 2024 were $2.5 billion, an
increase of 6% on a reported and constant currency basis, compared
to the fourth quarter of 2023. Sales for the full-year 2024 were
$9.8 billion, an increase of 5% on a reported basis and 6% on a
constant currency basis, compared to full-year 2023.
The following table highlights net sales by segment for the
fourth quarter and full year of 2024:
Three months ended December
31
Change %
Twelve months ended December
31
Change %
($ millions unless indicated
otherwise)
2024
2023
$
cc1 (non-IFRS
measure)
2024
2023
$
cc1 (non-IFRS
measure)
Surgical
Implantables
456
438
4
2
1,775
1,703
4
6
Consumables
738
688
7
7
2,861
2,719
5
6
Equipment/other
229
226
1
2
886
892
(1
)
1
Total Surgical
1,423
1,352
5
5
5,522
5,314
4
5
Vision Care
Contact lenses
638
579
10
11
2,609
2,400
9
10
Ocular health
416
401
4
2
1,705
1,656
3
4
Total Vision Care
1,054
980
8
7
4,314
4,056
6
7
Net sales
2,477
2,332
6
6
9,836
9,370
5
6
Surgical growth reflects strength in international markets
For the fourth quarter of 2024, Surgical net sales, which
include implantables, consumables and equipment/other, were $1.4
billion, an increase of 5% on a reported and constant currency
basis versus the fourth quarter of 2023.
- Implantables net sales were $456 million, an increase of 4%.
Excluding favorable currency impacts of 2%, Implantables net sales
increased 2% in constant currency. Growth was led by advanced
technology intraocular lenses in international markets, partially
offset by slower market conditions and competitive pressures in the
United States.
- Consumables net sales were $738 million, an increase of 7% on a
reported and constant currency basis, driven by vitreoretinal and
cataract consumables, including price increases.
- Equipment/other net sales were $229 million, an increase of 1%.
Excluding unfavorable currency impacts of 1%, Equipment/other net
sales increased 2% in constant currency as the prior year period
benefited from strong demand for equipment in international
markets.
For the full-year 2024, Surgical net sales were $5.5 billion, an
increase of 4% on a reported basis and 5% on a constant currency
basis versus full-year 2023.
Vision Care growth reflects strength in contact lenses
For the fourth quarter of 2024, Vision Care net sales, which
include contact lenses and ocular health, were $1.1 billion, an
increase of 8% on a reported basis and 7% on a constant currency
basis, versus the fourth quarter of 2023.
- Contact lenses net sales were $638 million, an increase of 10%,
driven by product innovation, including our toric and multifocal
modalities, and price increases. Excluding unfavorable currency
impacts of 1%, Contact lenses net sales increased 11% in constant
currency.
- Ocular health net sales were $416 million, an increase of 4%.
Excluding favorable currency impacts of 2%, Ocular health net sales
increased 2% in constant currency, primarily driven by the
portfolio of eye drops, including continued strength from the
Systane family of artificial tears. This growth was partially
offset by declines in contact lens care and an impact of
approximately 1% following the divestiture and out-licensing of
rights to certain eye drops in China.
For the full-year 2024, Vision Care net sales were $4.3 billion,
an increase of 6% on a reported basis and 7% on a constant currency
basis versus the full-year 2023.
Operating income reflects margin expansion from operating
leverage
Fourth-quarter 2024 operating income was $395 million, compared
to $208 million in the prior year period. Operating margin
increased 7.0 percentage points. Operating margin in the current
year period included a $57 million net gain related to the
divestment of certain product rights in China. The prior year
period included $57 million of costs for the transformation
program, which was completed in the fourth quarter of 2023, and $21
million of integration related expenses. Gross margin increased 0.6
percentage points reflecting favorable product mix and
manufacturing efficiencies in Vision Care, partially offset by an
increase in inventory provisions in Surgical. The current year
period had improved operating leverage in selling, general and
administration ("SG&A") expenses from higher sales, partially
offset by higher investment in research and development ("R&D")
in Surgical. Excluding a negative 0.1 percentage point impact from
currency, operating margin increased 7.1 percentage points on a
constant currency basis.
Adjustments to arrive at core operating income in the current
year period were $103 million, mainly due to $169 million of
amortization, partially offset by a $57 million net gain related to
the divestment of certain product rights in China. Excluding these
and other adjustments, fourth-quarter 2024 core operating income
was $498 million.
Fourth-quarter 2024 core operating margin was 20.1%. Core
operating margin increased 1.2 percentage points. Core gross margin
increased 0.6 percentage points reflecting favorable product mix
and manufacturing efficiencies in Vision Care, partially offset by
an increase in inventory provisions in Surgical. Core operating
margin included improved operating leverage in SG&A expenses
from higher sales, partially offset by higher investment in R&D
in Surgical. Excluding a negative 0.1 percentage point impact from
currency, core operating margin increased 1.3 percentage points on
a constant currency basis.
Operating income for full-year 2024 was $1.4 billion and
operating margin was 14.4%, which increased 3.3 percentage points
on a reported basis and 3.9 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 $614
million, mainly due to $667 million of amortization, partially
offset by a $57 million net gain related to the divestment of
certain product rights in China. Excluding these and other
adjustments, core operating income was $2.0 billion.
Core operating margin for full-year 2024 was 20.6%, an increase
of 0.9 percentage points on a reported basis and 1.4 percentage
points on a constant currency basis versus the prior year
period.
Diluted earnings per share
Fourth-quarter 2024 diluted earnings per share of $0.57
decreased 34% on a reported and constant currency basis, primarily
due to tax expense in the current year period compared to a tax
benefit in the prior year period, partially offset by higher
operating income. Core diluted earnings per share of $0.72
increased 3% on a reported and constant currency basis versus the
prior year period, primarily due to higher core operating income,
partially offset by higher core tax expense.
Full-year 2024 diluted earnings per share of $2.05 increased 5%,
or 11% on a constant currency basis, primarily due to higher
operating income and a net benefit in other financial income &
expense, partially offset by tax expense in the current year period
compared to a tax benefit in the prior year period. Core diluted
earnings per share for full-year 2024 of $3.05 increased 11%, or
16% on a constant currency basis versus the prior year period,
primarily due to higher core operating income and a net benefit in
other financial income & expense, partially offset by higher
core tax expense.
Proposed dividend
The Company's Board of Directors proposed a dividend of CHF 0.28
per share, based on 2024 financial results. The Company's
shareholders will vote on this proposal at the 2025 Annual General
Meeting on May 6, 2025.
Cash flow highlights
The Company ended full-year 2024 with a cash position of $1.7
billion. Net cash flows from operating activities amounted to $2.1
billion in 2024, compared to $1.4 billion in the prior year period.
The full-year 2024 includes increased collections associated with
higher sales and lower transformation payments following completion
of the transformation program in the fourth quarter of 2023,
partially offset by higher associate short-term incentive payments,
higher taxes paid due to the timing of payments and increased
profitability and increased payments for operating expenses,
including investment in R&D. The prior period included a cash
outflow for a legal settlement. Both periods were impacted by
changes in net working capital, with the prior year including a
significantly higher build of inventory.
Free cash flow was a record inflow of $1.6 billion for full-year
2024, compared to $730 million in the prior year period, due to
increased cash flows from operating activities and a decrease in
capital expenditures.
Share repurchase authorization
On February 25, 2025, the Alcon Board of Directors authorized
the repurchase of up to $750 million of the Company’s common
shares. The shares to be acquired will be held in treasury and are
intended to offset the dilutive effect of shares vesting under
Alcon's equity-based incentive plans. Alcon expects to fund the
repurchases through cash generated from operations. The program is
subject to customary safe harbor conditions and authorization of
the Swiss Takeover Board. The timing and total amount of share
repurchases will depend upon a variety of factors. The share
repurchase program is expected to be completed over a three year
period, but may be suspended or discontinued at any time.
2025 outlook
The Company provided its 2025 outlook as per the table
below.
2025 outlook4,5
as of February
Net sales (USD)
$10.2 to $10.4 billion
Change vs. prior year (cc)1
(non-IFRS measure)
+6% to +8%
Core operating margin2
(non-IFRS measure)
21% to 22%
Non-operating income & expense6
$200 to $220 million
Core effective tax rate7
(non-IFRS measure)
~20%
Core diluted EPS2
(non-IFRS measure)
$3.15 to $3.25
Change vs. prior year (cc)1
(non-IFRS measure)
+8% to +11%
This outlook assumes the following:
- Aggregated markets grow 4% to 5%;
- Exchange rates as of the end of January 2025 prevail through
year-end;
- Approximately 499.5 million weighted-averaged diluted
shares.5
4.
The forward-looking guidance included in
this press release cannot be reconciled to the comparable IFRS
measures without unreasonable effort, because we are not able to
predict with reasonable certainty the ultimate amount or nature of
exceptional items in the fiscal year. Refer to the section
'Non-IFRS measures as defined by the Company' for more
information.
5. Does not reflect the impact of the share repurchase program. 6.
Non-operating income & expense includes interest expense, other
financial income & expense and share of loss from associated
companies. 7. Core effective tax rate, a non-IFRS measure, is the
applicable annual tax rate on core taxable income. For additional
information, see the explanation regarding reconciliation of
forward-looking guidance in the 'Non-IFRS measures as defined by
the Company' section.
Webcast and Conference Call Instructions
The Company will host a conference call on February 26, 2025 at
8:00 a.m. Eastern Time / 2:00 p.m. Central European Time to discuss
its full-year 2024 earnings results. The webcast can be accessed
online through Alcon's Investor Relations website, i.e.
investor.alcon.com. Listeners should log on approximately 10
minutes in advance. A replay will be available online within 24
hours after the event. To listen the Company's conference call,
click on the link:
https://investor.alcon.com/news-and-events/events-and-presentations/event-details/2025/Alcons-Fourth-Quarter-2024-Earnings-Conference-Call-2025-Y8DYlWuzOd/default.aspx
The Company's fourth-quarter 2024 press release, interim
financial report and supplemental presentation materials, as well
as its 2024 Annual Report can be found online through Alcon's
Investor Relations website, or by clicking on the link:
https://investor.alcon.com/news-and-events/events-and-presentations/event-details/2025/Alcons-Fourth-Quarter-2024-Earnings-Conference-Call-2025-Y8DYlWuzOd/default.aspx
Additionally, Alcon's 2024 Annual Report is available on
https://investor.alcon.com/financials/annual-reports/default.aspx
and its 2024 Annual Report on Form 20-F filed today with the US
Securities and Exchange Commission on
https://investor.alcon.com/financials/sec-filings/default.aspx.
Alcon shareholders may receive a hard copy of either of these
documents, each of which contains our complete audited financial
statements, free of charge, upon request.
Cautionary Note Regarding Forward-Looking Statements
This document contains, and our officers and representatives may
from time to time make, certain “forward-looking statements” within
the meaning of the safe harbor provisions of the US Private
Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by words such as “anticipate,”
“intend,” “commitment,” “look forward,” “maintain,” “plan,” “goal,”
“seek,” “target,” “assume,” “believe,” “project,” “estimate,”
“expect,” “strategy,” “future,” “likely,” “may,” “should,” “will”
and similar references to future periods. Examples of
forward-looking statements include, among others, statements we
make regarding our liquidity, revenue, gross margin, operating
margin, effective tax rate, foreign currency exchange movements,
earnings per share, our plans and decisions relating to various
capital expenditures, capital allocation priorities and other
discretionary items such as our market growth assumptions, our
social impact and sustainability plans, targets, goals and
expectations, and generally, our expectations concerning our future
performance.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
our current beliefs, expectations and assumptions regarding the
future of our business, future plans and strategies, and other
future conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties and risks that
are difficult to predict such as: cybersecurity breaches or other
disruptions of our information technology systems; our ability to
effectively manage the risks associated with the ethical use of
disruptive technologies; compliance with data privacy, identity
protection and information security laws, particularly with the
increased use of artificial intelligence; the impact of a
disruption in our global supply chain, including the effect of
tariffs, or important facilities, particularly when we
single-source or rely on limited sources of supply; our ability to
manage social impact and sustainability matters; our reliance on
outsourcing key business functions; global and regional economic,
financial, monetary, legal, tax, political and social change; the
increasingly challenging economic, political and legal environment
in China; terrorism, war and other resulting events such as
economic sanctions and trade restrictions; our ability to manage
the risks associated with operating as a third party contract
manufacturer; our ability to forecast sales demand and manage our
inventory levels and the changing buying patterns of our customers;
our success in completing and integrating strategic acquisitions,
including equity investments in early-stage companies; 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, core gross margins, operating income margins and
core operating income margins are calculated based upon net sales
unless otherwise noted.
Reconciliation of guidance for
forward-looking non-IFRS measures
The forward-looking guidance included in this press release
cannot be reconciled to the comparable IFRS measures without
unreasonable efforts, because we are not able to predict with
reasonable certainty the ultimate amount or nature of exceptional
items in the fiscal year. These items are uncertain, depend on many
factors and could have a material impact on our IFRS results for
the guidance period.
Financial tables
Net sales by region
Three months ended December
31
Twelve months ended December
31
($ millions unless indicated
otherwise)
2024
2023
2024
2023
United States
1,109
45%
1,067
46%
4,511
46%
4,312
46%
International
1,368
55%
1,265
54%
5,325
54%
5,058
54%
Net sales
2,477
100%
2,332
100%
9,836
100%
9,370
100%
Consolidated Income Statement (unaudited)
Three months ended December
31
Twelve months ended December
31
($ millions except earnings per share)
2024
2023
2024
2023
Net sales
2,477
2,332
9,836
9,370
Other revenues
25
20
75
85
Net sales and other revenues
2,502
2,352
9,911
9,455
Cost of net sales
(1,093
)
(1,049
)
(4,328
)
(4,141
)
Cost of other revenues
(24
)
(13
)
(71
)
(67
)
Gross profit
1,385
1,290
5,512
5,247
Selling, general & administration
(802
)
(794
)
(3,250
)
(3,209
)
Research & development
(232
)
(208
)
(876
)
(828
)
Other income
61
6
77
80
Other expense
(17
)
(86
)
(50
)
(251
)
Operating income
395
208
1,413
1,039
Interest expense
(48
)
(47
)
(192
)
(189
)
Other financial income & expense
9
7
43
(18
)
Share of (loss) from associated
companies
(7
)
—
(8
)
—
Income before taxes
349
168
1,256
832
Taxes
(65
)
259
(238
)
142
Net income
284
427
1,018
974
Earnings per share ($)
Basic
0.57
0.87
2.06
1.98
Diluted
0.57
0.86
2.05
1.96
Weighted average number of shares
outstanding (millions)
Basic
494.7
493.3
494.4
493.0
Diluted
498.1
496.4
497.5
496.5
Balance sheet highlights
($ millions)
December 31, 2024
December 31, 2023
Cash and cash equivalents
1,676
1,094
Time deposits
153
—
Current financial debts
105
63
Non-current financial debts
4,538
4,676
Free cash flow (non-IFRS measure)
The following is a summary of free cash flow for the twelve
months ended December 31, 2024 and 2023, together with a
reconciliation to net cash flows from operating activities, the
most directly comparable IFRS measure:
Twelve months ended December
31
($ millions)
2024
2023
Net cash flows from operating
activities
2,077
1,388
Purchase of property, plant &
equipment
(473
)
(658
)
Free cash flow
1,604
730
Reconciliation of IFRS results to core results (non-IFRS
measure)
Three months ended December 31, 2024
($ millions except earnings per share)
IFRS results
Amortization of certain
intangible assets(1)
Divestment of product
rights(3)
Other items(5)
Core results (non-IFRS
measure)
Gross profit
1,385
167
—
—
1,552
Operating income
395
169
(57)
(9)
498
Income before taxes
349
169
(57)
(9)
452
Taxes(6)
(65)
(30)
2
—
(93)
Net income
284
139
(55)
(9)
359
Basic earnings per share ($)
0.57
0.73
Diluted earnings per share ($)
0.57
0.72
Basic - weighted average shares
outstanding (millions)(7)
494.7
494.7
Diluted - weighted average shares
outstanding (millions)(7)
498.1
498.1
Refer to the associated explanatory
footnotes at the end of the 'Reconciliation of IFRS results to core
results (non-IFRS measure)' tables.
Three months ended December 31, 2023
($ millions except earnings per share)
IFRS results
Amortization of certain
intangible assets(1)
Transformation
costs(4)
Other items(5)
Core results (non-IFRS
measure)
Gross profit
1,290
164
—
(6)
1,448
Operating income
208
167
57
8
440
Income before taxes
168
167
57
8
400
Taxes(6)
259
(30)
(12)
(272)
(55)
Net income
427
137
45
(264)
345
Basic earnings per share ($)
0.87
0.70
Diluted earnings per share ($)
0.86
0.70
Basic - weighted average shares
outstanding (millions)(7)
493.3
493.3
Diluted - weighted average shares
outstanding (millions)(7)
496.4
496.4
Refer to the associated explanatory
footnotes at the end of the 'Reconciliation of IFRS results to core
results (non-IFRS measure)' tables.
Twelve months ended December 31, 2024
($ millions except earnings per share)
IFRS results
Amortization of certain
intangible assets(1)
Impairments(2)
Divestment of product
rights(3)
Other items(5)
Core results (non-IFRS
measure)
Gross profit
5,512
662
—
—
3
6,177
Operating income
1,413
667
9
(57)
(5)
2,027
Income before taxes
1,256
667
9
(57)
(5)
1,870
Taxes(6)
(238)
(119)
—
2
—
(355)
Net income
1,018
548
9
(55)
(5)
1,515
Basic earnings per share ($)
2.06
3.06
Diluted earnings per share ($)
2.05
3.05
Basic - weighted average shares
outstanding (millions)(7)
494.4
494.4
Diluted - weighted average shares
outstanding (millions)(7)
497.5
497.5
Refer to the associated explanatory
footnotes at the end of the 'Reconciliation of IFRS results to core
results (non-IFRS measure)' tables.
Twelve months ended December 31, 2023
($ millions except earnings per share)
IFRS results
Amortization of certain
intangible assets(1)
Transformation
costs(4)
Other items(5)
Core results (non-IFRS
measure)
Gross profit
5,247
663
—
7
5,917
Operating income
1,039
675
139
(4)
1,849
Income before taxes
832
675
139
(4)
1,642
Taxes(6)
142
(121)
(26)
(277)
(282)
Net income
974
554
113
(281)
1,360
Basic earnings per share ($)
1.98
2.76
Diluted earnings per share ($)
1.96
2.74
Basic - weighted average shares
outstanding (millions)(7)
493.0
493.0
Diluted - weighted average shares
outstanding (millions)(7)
496.5
496.5
Refer to the associated explanatory
footnotes at the end of the 'Reconciliation of IFRS results to core
results (non-IFRS measure)' tables.
Explanatory footnotes to IFRS to core reconciliation
tables
(1)
Includes recurring amortization for all
intangible assets other than software.
(2)
Includes impairment charges related to
intangible assets.
(3)
For the three and twelve months ended
December 31, 2024, includes a net gain related to the divestment of
certain product rights in China.
(4)
Transformation costs, primarily related to
restructuring and third party consulting fees, for the multi-year
transformation program. The transformation program was completed in
the fourth quarter of 2023.
(5)
For the three months ended December 31,
2024, Operating income primarily includes fair value adjustments to
contingent consideration liabilities, partially offset by the
amortization of option rights.
For the three months ended December 31,
2023, Gross profit includes fair value adjustments to contingent
consideration liabilities, partially offset by the amortization of
inventory fair value adjustments related to an acquisition.
Operating income also includes integration related expenses for an
acquisition and the amortization of option rights, partially offset
by fair value adjustments of financial assets.
For the twelve months ended December 31,
2024, Gross profit includes the amortization of inventory fair
value adjustments related to an acquisition. Operating income also
includes fair value adjustments to contingent consideration
liabilities and fair value adjustments of financial assets,
partially offset by the amortization of option rights.
For the twelve months ended December 31,
2023, Gross profit includes the amortization of inventory fair
value adjustments related to an acquisition, partially offset by
fair value adjustments to contingent consideration liabilities.
Operating income also includes the release of a contingent
liability related to an acquisition and fair value adjustments to
contingent consideration liabilities, partially offset by
integration related expenses for an acquisition, the amortization
of option rights and fair value adjustments of financial
assets.
(6)
For the three months ended December 31,
2024, tax associated with operating income core adjustments of $103
million totaled $28 million with an average tax rate of 27.2%.
For the three months ended December 31,
2023, total tax adjustments of $314 million include tax associated
with operating income core adjustments and discrete tax items. Tax
associated with operating income core adjustments of $232 million
totaled $45 million with an average tax rate of 19.4%. Core tax
adjustments for discrete tax items totaled $269 million, primarily
due to a $263 million tax benefit associated with a long-term
agreement related to deductibility of a statutory expense in
Switzerland.
For the twelve months ended December 31,
2024, tax associated with operating income core adjustments of $614
million totaled $117 million with an average tax rate of 19.1%.
For the twelve months ended December 31,
2023, total tax adjustments of $424 million include tax associated
with operating income core adjustments and discrete tax items. Tax
associated with operating income core adjustments of $810 million
totaled $155 million with an average tax rate of 19.1%. Core tax
adjustments for discrete tax items totaled $269 million, primarily
due to a $263 million tax benefit associated with a long-term
agreement related to deductibility of a statutory expense in
Switzerland.
(7)
Core basic earnings per share is
calculated using the weighted-average shares of common stock
outstanding during the period. Core diluted earnings per share also
contemplate dilutive shares associated with unvested equity-based
awards as described in Note 4 to the Condensed Consolidated Interim
Financial Statements.
About Alcon
Alcon helps people see brilliantly. As the global leader in eye
care with a heritage spanning over 75 years, we offer the broadest
portfolio of products to enhance sight and improve people’s lives.
Our Surgical and Vision Care products touch the lives of people in
over 140 countries each year living with conditions like cataracts,
glaucoma, retinal diseases and refractive errors. Our more than
25,000 associates are enhancing the quality of life through
innovative products, partnerships with Eye Care Professionals and
programs that advance access to quality eye care. Learn more at
www.alcon.com.
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Investor Relations Daniel
Cravens Allen Trang + 41 589 112 110 (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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