GENEVA—Alcon (SIX/NYSE:ALC), a global leader in eyecare, reported its financial results for the three months ended March 31, 2024. Sales were $2.4 billion, for the first quarter of 2024, an increase of 5 percent on a reported basis and 7 percent on a constant currency basis, compared with Q1 of 2023. "Our first-quarter results reflect the outstanding work done by our more than 25,000 associates across both our surgical and vision care franchises," said David J. Endicott, Alcon's chief executive officer.

Alcon reported several key areas of growth, particularly in the contact lens market where the company made strong gains overall. Endicott noted that the toric contact lens segment continues to see increased penetration. He added, "We're encouraged with the positive momentum we're seeing across our broad range of products, particularly in our innovative contact lenses, where we saw record sales again this quarter."

Vision care net sales for Q1, which include contact lenses and ocular health products, were $1.1 billion, an increase of 7 percent on a reported basis, compared with Q1 of 2023, which Alcon said reflects strength in contact lenses and eye drops. Vision care, on a constant currency basis, grew 10 percent in Q1 of 2024, compared with Q1 of 2023, which saw double-digit growth of 13 percent, the company reported.

Contact lenses net sales were $671 million, an increase of 9 percent, compared with Q1 of 2023, driven by product innovation, including the company’s toric and multifocal modalities, and price increases, according to Alcon. Growth was partially offset by unfavorable currency impacts of 2 percent, while net sales of contact lenses increased by 11 percent on constant currency basis.

Endicott noted that Alcon is outperforming in the contact lens market overall, adding that the company is pleased with the toric lens uptake.

He said there remains a lot of opportunity in the implantable lens market, with recent strong gains in Europe. In Q1, implantable lenses net sales were $433 million, an increase of 1 percent, compared with Q1 of 2023, which Alcon said was led by advanced technology of intraocular lenses in international markets, partially offset by unfavorable currency impacts of 5 percent. Implantable lenses net sales increased 6 percent on a constant currency basis, the company said.

Alcon said, consumables net sales were $686 million, an increase of 5 percent, compared with Q1 of 2023, reflecting demand for vitreoretinal and cataract consumables, particularly in international markets, and price increases. Growth was partially offset by unfavorable currency impacts of 2 percent. Consumables net sales increased 7 percent on a constant currency basis.

Equipment and other net sales were $219 million, a decrease of 1 percent, compared with Q1 of 2023. Alcon said Q1 2023 benefited from strong demand in international markets for cataract and vitreoretinal equipment which was not reflected in the Q1 2024 earnings. Excluding unfavorable currency impacts of 3 percent, equipment and other net sales increased by 2 percent on a constant currency basis.

A diverse portfolio of eye drops, strengthened by the Systane family of artificial tears, drove ocular health net sales upward by 5 percent to $435 million, compared with Q1 of 2023. Additionally, growth was partially offset by unfavorable currency impacts of 3 percent. Ocular health net sales increased by 8 percent on a constant currency basis, the company reported.

Endicott noted that Alcon continues to expand R&D into 2024, particularly in the areas of digital innovation leveraging artificial intelligence. In other areas of innovation, Endicott said the planned acquisition of Israel-based Belkin Vision shows Alcon’s “further commitment to glaucoma,” with the acquisition slated to close sometime in Q3.

First-quarter 2024 operating income was $368 million, compared to $268 million in the prior year period. Operating margin increased 3.6 percentage points, which the company said reflects improved underlying operating leverage from higher sales and the timing of discretionary spending. The prior-year period included $26 million for the transformation program, which was completed in the fourth quarter of 2023, Alcon said. 

Endicott said Alcon’s Q1 success is a reflection of the “hard work and commercial expertise” of the Alcon team.