GENEVA—Alcon (SIX/NYSE:ALC), a global leader in eyecare, reported its financial results for the fourth quarter and full year ended Dec. 31, 2021. For the fourth quarter of 2021, worldwide sales were $2.1 billion, an increase of 11 percent on a reported basis and 13 percent on a constant currency basis, as compared to the same quarter of the previous year. The company said eyecare markets in the fourth quarter reflected the recovery in the U.S. and the continuing recovery internationally from the COVID-19 pandemic.

Full year 2021 sales were $8.2 billion, up 22 percent or 20 percent on constant currency basis, with the company citing "above-market growth in both Alcon's Surgical and Vision Care segments, along with sales momentum from key products, new product launches and commercial execution." 
 
“I am extremely proud of all that we accomplished in 2021. We have secured our position as the global leader in eyecare, and our 2021 performance demonstrates the resilience of our business, the strength of our innovation engine and the expertise of our commercial organization,” said David J. Endicott, Alcon’s CEO. “Our strong product flow resulted in revenue growth above market, which drove core operating leverage and margin expansion.”
 
“Our success is underpinned by our strategy of investing behind markets with high growth or high share opportunities,” Endicott said. “We are entering 2022 with substantial momentum, driven by innovative products that address unmet customer and patient needs. All of these factors give us confidence in our long-term strategy and in delivering shareholder value.”
 
In the fourth quarter, Alcon noted, SiHy contact lenses and Systane drove above-market growth in Vision Care Vision Care net sales of $0.9 billion, which include contact lenses and ocular health, increased 10 percent, or 12 percent on a constant currency basis, compared to the fourth quarter of 2020. Contact lens sales benefited from growth in silicone hydrogel (SiHy) contact lenses, including Precision1, Precision1 for Astigmatism and Dailies Total1, and continuing recovery in international markets.
 
Growth in ocular health was led by strong demand for the brand family of Systane artificial tear products, as well as the addition of Simbrinza glaucoma eye drops. For the full year 2021, Vision Care net sales increased 15 percent, or 14 percent on a constant currency basis, compared to 2020.
 
Also in the fourth quarter Alcon reported Surgical net sales of $1.3 billion, which include implantables, consumables and equipment/other, which increased 12 percent, or 14 percent on a constant currency basis, compared to the fourth quarter of 2020. Implantables growth reflected market improvements and ongoing adoption of advanced technology intraocular lenses, led by the launch of Vivity.
 
Consumables growth primarily reflected market improvements. Growth in equipment/other was primarily driven by cataract equipment. For the full year 2021, Surgical net sales increased 27 percent, or 25 percent on a constant currency basis, compared to 2020.
 
Fourth quarter 2021 operating income was $182 million, which includes charges of $138 million for the amortization of certain intangible assets. Excluding this and other adjustments, fourth quarter 2021 core operating income was $348 million.
 
Fourth quarter 2021 core operating margin of 16.3 percent increased versus the fourth quarter of 2020. Higher sales were partially offset by increases in marketing and selling expenses and higher associate short-term incentive benefits. The prior year period was impacted by unabsorbed manufacturing overhead costs and higher inventory provisions. Foreign exchange had a negative 50 basis point impact on fourth quarter 2021 core operating margin.
 
Operating income for the 12 months ended Dec.31, 2021 was $580 million, which includes $529 million for the amortization of certain intangible assets and $225 million of intangible asset impairments. Excluding these and other adjustments, core operating income for the 12 months ended Dec.31, 2021 was $1.4 billion.
 
Core operating margin for the 12 months ended Dec.1, 2021 was 17.6 percent compared to 11.7 percent in 2020. Foreign exchange had a positive 30 basis point impact on core operating margin for the 12 months ended Dec. 31, 2021.
 
Alcon's statement said the company ended the fourth quarter with a cash position of $1.6 billion. Current year cash flows benefited from higher sales, lower separation and lower transformation payments, partially offset by increased discretionary spending, increased inventories and increased taxes due to timing of payments and increased profitability.