Alcon Ag · SIX:ALC
Alcon — Q1 2025 Earnings Presentation
25 slides from Alcon's earnings presentation, May 14, 2025
Slide 1: First-Quarter 2025 Earnings Presentation
First-Quarter 2025 Earnings Presentation May 14, 2025 1
Slide 2: Safe harbor
Safe harbor Forward-looking statements This press release 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 state
Slide 3: Agenda
Agenda 01 Key topics 02 Sales 03 IFRS results 04 Core results 05 Outlook 3
Slide 4: Agenda: Key topics
Agenda 01 Key topics 02 Sales 03 IFRS results 04 Core results 05 Outlook 4
Slide 5: Select financial highlights
Select financial highlights 1 1Q25 Sales of $2.5B, in line year-over-year Net sales Core operating margin 1 on a reported basis; up 3% cc 1Q25 Operating margin of 19.1%, up 400 1Q25 $2.5B 1Q25 20.8% basis points (bps) y/y; up 470 bps cc 1Q25 Core operating margin of 20.8%, 1Q24 $2.4B 1Q24 22.0% down
Slide 6: Agenda: Sales
Agenda 01 Key topics 02 Sales 03 IFRS results 04 Core results 05 Outlook 6
Slide 7: Q1 2025 Product mix
1 Q1 2025 Product mix Vision Care $1.1B (46%) Surgical $1.3B (54%) Ocular health (39%) Implantables (32%) Dry eye products Monofocal IOLs Allergy eye drops Advanced technology IOLs Steroid eye drops Glaucoma implants Glaucoma eye drops Contact lens care Consumables (53%) $2.5 billion Dedicated consu
Slide 8: Q1 2025 Surgical Net Sales
Q1 2025 Surgical Net Sales 1 (USD) (CC) Surgical reflects strength in international (USD $M) markets and consumables (1%) 2% $1,338 $1,331 $433 $420 (3%) 0% + • Growth in advanced technology intraocular lenses in international markets $686 $712 4% 6% + • Consumables growth driven by vitreoretinal an
Slide 9: Q1 2025 Vision Care Net Sales
Q1 2025 Vision Care Net Sales Vision Care reflects strength from Systane (USD $M) (USD) (CC)1 and pricing 1% 3% $1,106 $1,120 • Product innovation drove sales of contact lenses, + including toric and multifocal modalities • Price increases in contact lenses $671 $688 3% 4% + • Strong performance of
Slide 10: Agenda: IFRS results
Agenda 01 Key topics 02 Sales 03 IFRS Results 04 Core results 05 Outlook 10
Slide 11: Q1 2025 IFRS results
Q1 2025 IFRS results Worldwide net sales Operating margin Diluted EPS $0.70 $2.4B $2.5B 19.1% 15.1% $0.50 1Q24 1Q25 1Q24 1Q25 1Q24 1Q25 1 Y/Y change (USD): 0% +400 bps +40% 11 1. 1Q25 benefited from gains of $142 million on fair value remeasurements of investments in associated companies
Slide 12: Q1 2025 IFRS operating margin bridge
Q1 2025 IFRS operating margin bridge 1Q25 vs. 1Q24, % of net sales 5.4 19.8 19.1 0.4 (0.7) 15.1 (0.2) (0.9) 1Q24 Gross SG&A R&D Other income/ Foreign 1Q25 1 Margin expense Exchange 12 1. 1Q25 benefited from gains of $142 million on fair value remeasurements of investments in associated companies
Slide 13: Agenda: Core results
Agenda 01 Key topics 02 Sales 03 IFRS results 04 Core results 05 Outlook 13
Slide 14: Q1 2025 Core results
1 Q1 2025 Core results Worldwide net sales Core operating margin Core diluted EPS 22.0% $2.4B $2.5B 20.8% $0.78 $0.73 1Q24 1Q25 1Q24 1Q25 1Q24 1Q25 Y/Y change (cc): +3% -40 bps 0% 1. Core operating margin, core diluted EPS, and constant currency growth, including FX impacts, are non-IFRS measures. A
Slide 15: Q1 2025 Core operating margin bridge
1 Q1 2025 Core operating margin bridge 1Q25 vs. 1Q24, % of net sales 22.0 0.2 0.3 21.6 (0.2) 20.8 (0.7) (0.8) 1Q24 Gross Margin SG&A R&D Other income/ Foreign 1Q25 expense Exchange Key drivers • Core operating margin decrease primarily due to increased investment in R&D • Negative 80 bps impact from
Slide 16: Q1 2025 Cash flow and balance sheet highlights
Q1 2025 Cash flow and balance sheet highlights Cash and cash equivalents $1.4 billion 1Q25 cash flows from operations $384 million 1 1Q25 free cash flow $278 million Capex $106 million Investments in new contact lens manufacturing capacity Debt $4.7 billion No financial covenants 16 1. Free cash flo
Slide 17: Agenda: Outlook
Agenda 01 Key topics 02 Sales 03 IFRS results 04 Core results 05 Outlook 17
Slide 18: FY 2025 Outlook reflects the impact of dilution from recent BD&L activity
FY 2025 Outlook reflects the impact of dilution from recent BD&L activity This outlook incorporates a gross tariff impact of approximately $80 million, which is expected to pressure cost of net sales. The Company anticipates fully offsetting this impact through operational actions and foreign exchan
Slide 19: Appendix
Appendix 19
Slide 20: Appendix: Non-IFRS measures as defined by the Company
Appendix: Non-IFRS measures as defined by the Company Alcon uses certain non-IFRS metrics when measuring performance, including when measuring current period results against prior periods, including core results, percentage changes measured in constant currencies and free cash flow. Because of their
Slide 21: Reconciliation of IFRS results to core results (non-IFRS measure)
Reconciliation of IFRS results to core results (non-IFRS measure) Three months ended March 31, 2025 Gains on Amortization of investments in Acquisition and Core results IFRS certain intangible associated integration Other (non-IFRS (1) (2) (3) (4) ($ millions except earnings per share) results asset
Slide 22: Reconciliation of IFRS results to core results (non-IFRS measure)
Reconciliation of IFRS results to core results (non-IFRS measure) Three months ended March 31, 2024 Amortization of Acquisition and Core results IFRS certain intangible integration related Other (non-IFRS (1) (3) (4) ($ millions except earnings per share) results assets items items measure) Gross pr
Slide 23: Reconciliation of IFRS results to core results (non-IFRS measure)
Reconciliation of IFRS results to core results (non-IFRS measure) Explanatory footnotes to IFRS to core reconciliation tables (1) Includes amortization for all intangible assets other than software. (2) For the three months ended March 31, 2025, includes gains on fair value remeasurements of investm
Slide 24: Reconciliation of free cash flow (non-IFRS measure)
Reconciliation of free cash flow (non-IFRS measure) The following is a summary of free cash flow for the three months ended March 31, 2025 and 2024, together with a reconciliation to net cash flows from operating activities, the most directly comparable IFRS measure: ($ millions) 2025 2024 Net cash
Slide 25: Alcon
Alcon SEE BRILLIANTLY