Industry News
Alcon Reports Record-Breaking 2024 Results with Strong Growth and Innovation Focus
Alcon has announced impressive financial results for the fourth quarter and full-year 2024, reporting record sales, earnings growth, and cash flow generation.
Financial Highlights
Alcon recorded full-year net sales of US$9.8 billion, marking a 5% increase on a reported basis and 6% in constant currency (cc). Diluted earnings per share (EPS) stood at US$2.05, up 5% on a reported basis, while core diluted EPS rose 11% to US$3.05. Notably, the company achieved record free cash flow of US$1.6 billion, a 120% surge compared to the previous year.
For the fourth quarter of 2024, the company posted net sales of US$2.5 billion, a 6% rise year-over-year in both reported and constant currency terms. The quarterly diluted EPS was US$0.57, while core diluted EPS reached US$0.72.
Alcon’s operating margin improved significantly, rising to 14.4% for the full year (up from 11.1% in 2023). Core operating margin increased to 20.6%, reflecting strong operational efficiency.
Business Segment Performance
Surgical Division
Alcon’s surgical segment, which includes implantables, consumables, and equipment, delivered US$5.5 billion in sales, up 4% on a reported basis and 5% in constant currency. Key highlights:
- Implantables: US$1.77 billion in sales, led by demand for advanced intraocular lenses in international markets.
- Consumables: US$2.86 billion in sales, up 5%.
- Equipment: US$886 million in sales, reflecting stable demand.
Vision Care Division
The Vision Care segment, comprising contact lenses and ocular health, recorded **$4.3 billion** in sales, growing **6%** on a reported basis and **7% in constant currency**.
- Contact lenses: US$2.61 billion in sales, up 10%, driven by innovations in toric and multifocal lenses.
- Ocular health: US$1.7 billion in sales, bolstered by strong demand for the Systane eye drop range.
David J. Endicott, Alcon’s Chief Executive Officer, credited the company’s innovation and operational excellence for the strong results. “In 2024, our unwavering focus on innovation and efficiency delivered another outstanding performance. This momentum will continue into 2025 as we launch new innovations to create long-term value for customers and shareholders,” he stated.
Strategic Moves & Outlook
- Share Buyback: Alcon announced a US$750 million share repurchase program to offset dilution from equity incentives.
- Proposed Dividend: The Board has recommended a CHF 0.28 per share dividend, subject to approval at the Annual General Meeting in May 2025.
- 2025 Outlook: Alcon expects 6-8% sales growth, targeting revenues of US$10.2 to US$10.4 billion and a core operating margin between 21-22%.
Market Response & Future Prospects
Alcon’s results highlight its resilient market position, especially in surgical and vision care segments. With its strong innovation pipeline and commitment to operational excellence, the company is poised for continued success in 2025 and beyond.
