GENEVA—Alcon (SIX/NYSE:ALC) has reported its financial results for the 3- and 9-month periods ending September 30, 2024, demonstrating a 6 percent increase in sales to $2.4 billion on a reported and constant currency basis for the third quarter, as compared with the same quarter of the previous year. Sales for the first nine months of 2024 were a reported $7.4 billion, an increase of 5 percent on a reported basis and 6 percent on a constant currency basis, compared with the first nine months of 2023.

The company posited that slower market conditions in the U.S. impacted the surgical division in the third quarter, which posted a slower than expected 5 percent rise in sales. Alcon also saw slight headwinds in its vision care division due to declines in contact lens sales in its international markets. Overall in the third quarter, however, contact lenses net sales were a reported $664 million, an increase of 8 percent.

As a result, Alcon said it lowered its 2024 sales forecast from a range of $9.9 billion to $10.1 billion to a range of $9.8 billion to $9.9 billion following weaker-than-expected U.S. sales in the third quarter. The company also indicated it will be launching several new products in 2025. Additionally, Alcon recently released Precision7, its first one-week replacement contact lens, in the U.S. during the fourth quarter.

"Our third-quarter results reflect our broad geographic footprint and excellent execution by our team. These elements contributed to another quarter of compounding sales, 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."

For the third quarter of 2024, Vision Care net sales, which include contact lenses and ocular health, were reported at $1.1 billion, an increase of 7 percent on a reported and constant currency basis, compared with the third quarter of 2023. Contact lenses net sales were $664 million, an increase of 8 percent on a reported and constant currency basis, driven by product innovation, including the company’s toric and multifocal modalities, and price increases.

“Contact lenses were pretty solid overall,” Endicott said on an earnings call. “We’re excited about the launch of Precision7. For those who can’t afford dailies, this is going to be the best lens for them.”

Ocular health net sales were reported as $431 million, an increase of 4 percent on a reported and constant currency basis. Growth was primarily driven by the portfolio of eye drops, the company said, 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 reported as $3.3 billion, an increase of 6 percent on a reported basis and 7 percent on a constant currency basis compared with the first nine months of 2023. For the third quarter of 2024, Surgical net sales, which include implantables, consumables and equipment/other, were reported at $1.3 billion, an increase of 5 percent on a reported and constant currency basis, compared with the third quarter of 2023.

Implantables net sales were reported as $422 million, an increase of 5 percent on a reported and constant currency basis. Growth was led by advanced technology intraocular lenses in international markets, the company said, including a benefit from volume-based procurement in China, partially offset by slower market conditions in the U.S. Consumables net sales were $701 million, an increase of 6 percent on a reported and constant currency basis, driven by vitreoretinal consumables in international markets, cataract consumables and price increases.

Equipment/other net sales were reported at $215 million, in line with the prior-year period. Excluding unfavorable currency impacts of 1 percent, equipment/other net sales increased 1 percent constant currency as the prior-year period benefited from strong demand for cataract equipment in international markets, the company noted. For the first nine months of 2024, Surgical net sales were reported at $4.1 billion, an increase of 3 percent on a reported basis and 5 percent on a constant currency basis, compared with the first nine months of 2023.
 
Third-quarter 2024 operating income was $332 million, the company stated, compared with $293 million in the prior-year period. Third-quarter 2024 core operating margin was 20.6 percent. Operating income for the first nine months of 2024 was reported as $1.0 billion and operating margin was 13.8 percent. Core operating margin for the first nine months of 2024 was 20.8 percent, an increase of 0.8 percentage points on a reported basis and 1.5 percentage points on a constant currency basis, compared with the prior-year period, the company said.

The company ended the first nine months of 2024 with a cash position of $1.6 billion. Free cash flow was a record inflow of $1.3 billion in the first nine months of 2024, the company noted, compared with $592 million in the prior-year period, primarily due to increased cash flows from operating activities.