- Second quarter sales of $2.1 billion, up 75% or 69% constant
currency
- Growth in all Surgical and Vision Care categories
- First half cash from operations of $542 million and free
cash flow of $320 million
- Raises full year guidance: sales of $8.0 - $8.2 billion,
core diluted EPS of $2.00 - $2.10
Ad Hoc Announcement Pursuant to Art. 53
LR
Alcon (SIX/NYSE:ALC), the global leader in eye care, reported
its financial results for the three and six months ended June 30,
2021. For the second quarter of 2021, worldwide sales were $2.1
billion, an increase of 75% on a reported basis and 69% on a
constant currency basis(2), as compared to the same quarter of the
previous year. Second quarter 2021 diluted earnings per share were
$0.31 and core diluted earnings per share were $0.56.
Second quarter and first half 2021 key figures
Three months ended June
30
Six months ended June
30
2021
2020
2021
2020
Net sales ($ millions)
2,094
1,198
4,004
3,020
Operating margin (%)
10.9%
(38.9)%
9.4%
(16.4)%
Core operating margin (%)(1)
18.2%
(6.6)%
18.1%
7.4%
Diluted earnings/(loss) per share ($)
0.31
(0.86)
0.48
(0.98)
Core diluted earnings/(loss) per share
($)(1)
0.56
(0.21)
1.05
0.24
"Our second quarter performance demonstrates the strength and
resilience of our businesses, with our highest quarterly sales and
earnings since our spin-off," said David Endicott, Alcon's Chief
Executive Officer. "Strong commercial execution behind our new
product launches resulted in all sales categories in Surgical and
Vision Care posting growth over 2019, notwithstanding the continued
impact of COVID-19."
Mr. Endicott continued, "The healthy recovery in the business
underlies our confidence in driving top line growth with continued
innovation and the growing demand for eye care. With the ongoing
expansion of our manufacturing capacity, we remain focused on
maintaining a steady stream of product flow as we expand our
portfolio and respond to market demand."
Second quarter and first half 2021 results
Worldwide sales for the second quarter were $2.1 billion, an
increase of 75% on a reported basis and 69% on a constant currency
basis, compared to the second quarter of 2020. All categories
benefited from the improvements in the eye care market, led by the
strong recovery in the US and varied paces of recovery in
international markets from the COVID-19 pandemic.
The following table highlights net sales by segment for the
second quarter and first half of 2021:
Three months ended June
30
Change %
Six months ended June
30
Change %
($ millions unless indicated
otherwise)
2021
2020
$
cc(2)
2021
2020
$
cc(2)
Surgical
Implantables
387
176
120
113
731
486
50
46
Consumables
620
320
94
87
1,155
839
38
33
Equipment/other
199
106
88
83
397
261
52
49
Total Surgical
1,206
602
100
94
2,283
1,586
44
40
Vision Care
Contact lenses
535
329
63
57
1,044
831
26
22
Ocular health
353
267
32
28
677
603
12
10
Total Vision Care
888
596
49
44
1,721
1,434
20
17
Net sales to third parties
2,094
1,198
75
69
4,004
3,020
33
29
Surgical momentum continues
Surgical net sales of $1.2 billion, which include implantables,
consumables and equipment/other, increased 100%, or 94% on a
constant currency basis, compared to the second quarter of 2020,
with strong increases across all three categories. Implantables
growth was driven by market improvements as well as the continued
adoption of advanced technology intraocular lenses, led by the
launch of Vivity and continued strength of PanOptix. Consumables
growth was driven primarily by the recovery in surgical procedures
over the prior year, while the equipment/other category benefited
from the healthy demand of refractive and cataract products. For
the first half of 2021, Surgical net sales increased 44%, or 40% on
a constant currency basis, compared to the first half of 2020.
Vision Care returns to growth; strong demand for Precision1,
Systane and Pataday
Vision Care net sales of $0.9 billion, which include contact
lenses and ocular health, increased 49%, or 44% on a constant
currency basis, compared to the second quarter of 2020, also with
double-digit increases across both categories. Contact lens growth
reflected improvements in all product categories and continued
momentum from the launch of Precision1 and Precision1 for
Astigmatism. Growth in ocular health was led by Systane and
Pataday, primarily due to the recent launch of Pataday Extra
Strength. For the first half of 2021, Vision Care net sales
increased 20%, or 17% on a constant currency basis, compared to the
first half of 2020.
Operating income
Second quarter 2021 operating income was $229 million, which
includes charges of $128 million from the amortization of certain
intangible assets. Excluding this and other adjustments, second
quarter 2021 core operating income was $382 million. The prior year
period saw a broad slowdown in non-urgent surgeries and lower
demand due to the COVID-19 pandemic. Second quarter core operating
margin of 18.2% increased versus the prior year, mainly driven by
higher sales, gross margin and operating leverage, as sales growth
outpaced increases in marketing and selling expenses and research
and development. The prior year was impacted by unabsorbed
manufacturing overhead costs and provisions for expected credit
losses related to COVID-19 as well as higher inventory provisions.
Foreign exchange had a positive 70 basis point impact on second
quarter 2021 core operating margin.
Operating income for the first half of 2021 was $378 million,
which includes charges of $253 million from the amortization of
certain intangible assets and a $45 million impairment of an
intangible asset. Excluding these and other adjustments, core
operating income for the first half of 2021 was $726 million and
first half core operating margin was 18.1% compared to 7.4% for the
same period last year. Foreign exchange had a positive 50 basis
point impact on first half 2021 core operating margin.
Diluted earnings per share (EPS)
Second quarter 2021 diluted earnings per share were $0.31 and
core diluted earnings per share were $0.56. First half 2021 diluted
earnings per share were $0.48 and core diluted earnings per share
were $1.05.
Balance sheet and cash flow highlights
The Company ended the second quarter with a cash position of
$1.4 billion. Current year cash flows benefited from higher sales,
lower separation and transformation payments, partially offset by
the payment of $355 million for the acquisition of US distribution
rights for Simbrinza, higher capital expenditures and a $54 million
dividend payment. Cash flows from operations for the first six
months of 2021 totaled $542 million and free cash flow(3) amounted
to $320 million, compared to cash flows from operations of $58
million and negative free cash flow of $110 million for the same
period in the previous year. The increase in free cash flow was
driven by higher cash flows from operations, partially offset by
higher capital expenditures. Financial debts totaled $4.1 billion,
in line with prior year-end. The Company ended the second quarter
with a net debt(4) position of $2.8 billion. The Company continues
to have $1 billion available in its existing revolving credit
facility as of August 17, 2021.
Financial outlook
The Company raised its full year outlook as follows. This
guidance assumes that global markets return to 2019 levels at the
end of the year. It further assumes that the US market will
continue to grow relative to 2019 in the second half of the year
and that international markets will return to 2019 levels early
next year.
May 2021
August 2021
Net sales
$7.8 to $8.0 billion
$8.0 to $8.2 billion
Core operating margin(1)
approximately 17%
approximately 17.5%
Core diluted EPS(1)
$1.85 to $1.95
$2.00 to $2.10
Webcast and Conference Call Instructions
The Company will host a conference call on August 18 at 2:00
p.m. Central European Summer Time / 8:00 a.m. Eastern Daylight Time
to discuss its second quarter 2021 earnings results. The webcast
can be accessed online through Alcon's Investor Relations website,
investor.alcon.com. Listeners should log on approximately 10
minutes in advance. A replay will be available online within 24
hours after the event.
The Company's interim financial report and supplemental
presentation materials can be found online through Alcon's Investor
Relations website at the beginning of the conference, or by
clicking on the link:
https://investor.alcon.com/news-and-events/events-and-presentations/event-details/2021/-Alcons-Second-Quarter-2021-Earnings-Conference-Call/default.aspx.
Footnotes (pages 1-3)
(1)
Core results, such as core operating
margin and core EPS, are non-IFRS measures. For additional
information, including a reconciliation of such core results to the
most directly comparable measures presented in accordance with
IFRS, see the explanation of non-IFRS measures and reconciliation
tables in the 'Non-IFRS measures as defined by the Company' and
'Financial tables' sections.
(2)
Constant currency (cc) is a non-IFRS
measure. Growth in constant currency (cc) is calculated by
translating the current year’s foreign currency items into US
dollars using average exchange rates from the historical
comparative period and comparing them to the values from the
historical comparative period in US dollars. An explanation of
non-IFRS measures can be found in the 'Non-IFRS measures as defined
by the Company' section.
(3)
Free cash flow is a non-IFRS measure. For
additional information regarding free cash flow, see the
explanation of non-IFRS measures and reconciliation tables in the
'Non-IFRS measures as defined by the Company' and 'Financial
Tables' sections.
(4)
Net (debt)/liquidity is a non-IFRS
measure. For additional information regarding net (debt)/liquidity,
see the explanation of non-IFRS measures and reconciliation tables
in the 'Non-IFRS measures as defined by the Company' and 'Financial
tables' sections.
Cautionary Note Regarding 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 statements can be identified by words such as
“anticipate,” “intend,” “commitment,” “look forward,” “maintain,”
“plan,” “goal,” “seek,” “target,” “assume,” “believe,” “project,”
“estimate,” “expect,” “strategy,” “future,” “likely,” “may,”
“should,” “will” and similar references to future periods. Examples
of forward-looking statements include, among others, statements
Alcon makes regarding its liquidity, revenue, gross margin,
effective tax rate, foreign currency exchange movements, earnings
per share, its plans and decisions relating to various capital
expenditures, capital allocation priorities and other discretionary
items, market growth assumptions, and generally, its expectations
concerning its future performance and the effects of the COVID-19
pandemic on its businesses.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
Alcon’s current beliefs, expectations and assumptions regarding the
future of its business, future plans and strategies, and other
future conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties and risks that
are difficult to predict such as: the effect of the COVID-19
pandemic as well as other viral or disease outbreaks and the
availability and the public’s acceptance of vaccines; the
commercial success of its products and its ability to maintain and
strengthen its position in its markets; the success of its research
and development efforts, including its ability to innovate to
compete effectively; its success in completing and integrating
strategic acquisitions; its ability to successfully transition the
manufacture, distribution and commercialization of Simbrinza from
Novartis; its ability to leverage existing relationships with
healthcare professionals to help drive patient adoption of
Simbrinza; pricing pressure from changes in third party payor
coverage and reimbursement methodologies; global and regional
economic, financial, legal, tax, political, and social change; data
breaches or other disruptions of its information technology
systems; ongoing industry consolidation; its ability to properly
educate and train healthcare providers on its products; changes in
inventory levels or buying patterns of its customers; the impact of
a disruption in its global supply chain or important facilities;
ability to service its debt obligations; its ability to comply with
the US Foreign Corrupt Practices Act of 1977 and other applicable
anti-corruption laws, particularly given that it has entered into a
three-year Deferred Prosecution Agreement with the US Department of
Justice; uncertainty and impact relating to the potential phasing
out of LIBOR and transition to alternative reference rates; the
need for additional financing through the issuance of debt or
equity; its reliance on outsourcing key business functions; its
ability to protect its intellectual property; the impact of
unauthorized importation of its products from countries with lower
prices to countries with higher prices; uncertainties regarding the
success of Alcon’s separation and spin-off from Novartis and the
subsequent transformation program, including the expected
separation and transformation costs, as well as any potential
savings, incurred or realized by Alcon; the effects of litigation,
including product liability lawsuits and government investigations;
its ability to comply with all laws to which it may be subject;
effect of product recalls or voluntary market withdrawals; the
implementation of its enterprise resource planning system; its
ability to attract and retain qualified personnel; the accuracy of
its accounting estimates and assumptions, including pension plan
obligations and the carrying value of intangible assets; the
ability to obtain regulatory clearance and approval of its products
as well as compliance with any post-approval obligations, including
quality control of its manufacturing; legislative and regulatory
reform; the ability of Alcon Pharmaceuticals Ltd. to comply with
its investment tax incentive agreement with the Swiss State
Secretariat for Economic Affairs in Switzerland and the Canton of
Fribourg, Switzerland; its ability to manage environmental, social
and governance matters to the satisfaction of its many
stakeholders, some of which may have competing interests; its
ability to operate as a stand-alone company; whether the
transitional services Novartis has agreed to provide Alcon are
sufficient; the impact of the spin-off from Novartis on Alcon’s
shareholder base; the impact of being listed on two stock
exchanges; the ability to declare and pay dividends; the different
rights afforded to its shareholders as a Swiss corporation compared
to a US corporation; and the effect of maintaining or losing its
foreign private issuer status under US securities laws. Additional
factors are discussed in Alcon’s filings with the United States
Securities and Exchange Commission, including its Form 20-F. Should
one or more of these uncertainties or risks materialize, or should
underlying assumptions prove incorrect, actual results may vary
materially from those anticipated. Therefore, you should not rely
on any of these forward-looking statements.
Forward-looking statements in this press release speak only as
of the date of its filing, and Alcon assumes no obligation to
update forward-looking statements as a result of new information,
future events or otherwise.
Intellectual Property
This report may contain references to our proprietary
intellectual property. All product names appearing in italics or
ALL CAPS are trademarks owned by or licensed to Alcon Inc. Product
names identified by a "®" or a "™" are trademarks that are not
owned by or licensed to Alcon or its subsidiaries and are the
property of their respective owners.
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, free cash flow, and net (debt)/liquidity.
Because of their non-standardized definitions, the non-IFRS
measures (unlike IFRS measures) may not be comparable to the
calculation of similar measures of other companies. These
supplemental non-IFRS measures are presented solely to permit
investors to more fully understand how Alcon management assesses
underlying performance. These supplemental non-IFRS measures are
not, and should not be viewed as, a substitute for IFRS
measures.
Core results
Alcon core results, including core operating income and core net
income, exclude all amortization and impairment charges of
intangible assets, excluding software, net gains and losses on fund
investments and equity securities valued at fair value through
profit and loss ("FVPL"), fair value adjustments of financial
assets in the form of options to acquire a company carried at FVPL,
obligations related to product recalls, and certain acquisition
related items. The following items that exceed a threshold of $10
million and are deemed exceptional are also excluded from core
results: integration and divestment related income and expenses,
divestment gains and losses, restructuring charges/releases and
related items, legal related items, gains/losses on early
extinguishment of debt or debt modifications, past service costs
for post-employment benefit plans, impairments of property, plant
and equipment and software, as well as income and expense items
that management deems exceptional and that are or are expected to
accumulate within the year to be over a $10 million threshold.
Taxes on the adjustments between IFRS and core results take into
account, for each individual item included in the adjustment, the
tax rate that will finally be applicable to the item based on the
jurisdiction where the adjustment will finally have a tax impact.
Generally, this results in amortization and impairment of
intangible assets and acquisition-related restructuring and
integration items having a full tax impact. There is usually a tax
impact on other items, although this is not always the case for
items arising from legal settlements in certain jurisdictions.
Alcon believes that investor understanding of its performance is
enhanced by disclosing core measures of performance because, since
they exclude items that can vary significantly from period to
period, the core measures enable a helpful comparison of business
performance across periods. For this same reason, Alcon uses these
core measures in addition to IFRS and other measures as important
factors in assessing its performance.
A limitation of the core measures is that they provide a view of
Alcon operations without including all events during a period, such
as the effects of an acquisition, divestment, or
amortization/impairments of purchased intangible assets and
restructurings.
Constant currencies
Changes in the relative values of non-US currencies to the US
dollar can affect Alcon's financial results and financial position.
To provide additional information that may be useful to investors,
including changes in sales volume, we present information about
changes in our net sales and various values relating to operating
and net income that are adjusted for such foreign currency
effects.
Constant currency calculations have the goal of eliminating two
exchange rate effects so that an estimate can be made of underlying
changes in the consolidated income statement excluding:
- the impact of translating the income statements of consolidated
entities from their non-US dollar functional currencies to the US
dollar; and
- the impact of exchange rate movements on the major transactions
of consolidated entities performed in currencies other than their
functional currency.
Alcon calculates constant currency measures by translating the
current year's foreign currency values for sales and other income
statement items into US dollars, using the average exchange rates
from the historical comparative period and comparing them to the
values from the historical comparative period in US dollars.
Free cash flow
Alcon defines free cash flow as net cash flows from operating
activities less cash flow associated with the purchase or sale of
property, plant and equipment. Free cash flow is presented as
additional information because Alcon management believes it is a
useful supplemental indicator of Alcon's ability to operate without
reliance on additional borrowing or use of existing cash. Free cash
flow is not intended to be a substitute measure for net cash flows
from operating activities as determined under IFRS.
Net (debt)/liquidity
Alcon defines net (debt)/liquidity as current and non-current
financial debt less cash and cash equivalents, current investments
and derivative financial instruments. Net (debt)/liquidity is
presented as additional information because management believes it
is a useful supplemental indicator of Alcon's ability to pay
dividends, to meet financial commitments and to invest in new
strategic opportunities, including strengthening its balance
sheet.
Growth rate and margin
calculations
For ease of understanding, Alcon uses a sign convention for its
growth rates such that a reduction in operating expenses or losses
compared to the prior year is shown as a positive growth.
Gross margins, operating income/(loss) margins and core
operating income margins are calculated based upon net sales to
third parties unless otherwise noted.
Reconciliation of guidance for
forward-looking non-IFRS measures
The forward-looking guidance included in this press release
cannot be reconciled to the comparable IFRS measures without
unreasonable efforts, because we are not able to predict with
reasonable certainty the ultimate amount or nature of exceptional
items in the fiscal year. These items are uncertain, depend on many
factors and could have a material impact on our IFRS results for
the guidance period.
Financial tables
Net sales by region
Three months ended June
30
Six months ended June
30
($ millions unless indicated
otherwise)
2021
2020
2021
2020
United States
958
46
%
493
41
%
1,793
45
%
1,285
43
%
International
1,136
54
%
705
59
%
2,211
55
%
1,735
57
%
Net sales to third parties
2,094
100
%
1,198
100
%
4,004
100
%
3,020
100
%
Consolidated income statement (unaudited)
Three months ended June
30
Six months ended June
30
($ millions except earnings/(loss) per
share)
2021
2020
2021
2020
Net sales to third parties
2,094
1,198
4,004
3,020
Other revenues
16
16
36
35
Net sales and other revenues
2,110
1,214
4,040
3,055
Cost of net sales
(875
)
(854
)
(1,755
)
(1,806
)
Cost of other revenues
(15
)
(15
)
(34
)
(32
)
Gross profit
1,220
345
2,251
1,217
Selling, general & administration
(785
)
(595
)
(1,484
)
(1,272
)
Research & development
(178
)
(163
)
(344
)
(302
)
Other income
5
9
14
18
Other expense
(33
)
(62
)
(59
)
(155
)
Operating income/(loss)
229
(466
)
378
(494
)
Interest expense
(30
)
(30
)
(61
)
(61
)
Other financial income & expense
(8
)
(6
)
(17
)
(16
)
Income/(loss) before taxes
191
(502
)
300
(571
)
Taxes
(40
)
80
(65
)
92
Net income/(loss)
151
(422
)
235
(479
)
Earnings/(loss) per share ($)
Basic
0.31
(0.86
)
0.48
(0.98
)
Diluted
0.31
(0.86
)
0.48
(0.98
)
Weighted average number of shares
outstanding (millions)
Basic
490.0
489.0
489.9
488.8
Diluted
493.2
489.0
492.8
488.8
Balance sheet highlights
($ millions)
June 30, 2021
December 31, 2020
Cash and cash equivalents
1,366
1,557
Current financial debts
136
169
Non-current financial debts
3,986
3,949
Free cash flow
The following is a summary of free cash flow for the six months
ended June 30, 2021 and 2020, together with a reconciliation to net
cash flows from operating activities, the most directly comparable
IFRS measure:
Six months ended June
30
($ millions)
2021
2020
Net cash flows from operating
activities
542
58
Purchase of property, plant &
equipment
(222
)
(168
)
Free cash flow
320
(110
)
Net (debt)/liquidity
($ millions)
At June 30, 2021
Current financial debt
(136
)
Non-current financial debt
(3,986
)
Total financial debt
(4,122
)
Less liquidity:
Cash and cash equivalents
1,366
Derivative financial instruments
3
Total liquidity
1,369
Net (debt)
(2,753
)
Reconciliation of IFRS Results to Core Results
Three months ended June 30, 2021
($ millions except earnings per share)
IFRS
results
Amortization
of certain
intangible
assets(1)
Impairments(2)
Separation
costs(3)
Transformation
costs(4)
Other
items(5)
Core
results
Gross profit
1,220
128
—
—
—
—
1,348
Selling, general & administration
(785
)
—
—
2
—
—
(783
)
Research & development
(178
)
—
—
—
—
3
(175
)
Other income
5
—
—
—
—
—
5
Other expense
(33
)
—
—
4
15
1
(13
)
Operating income
229
128
—
6
15
4
382
Income before taxes
191
128
—
6
15
4
344
Taxes(6)
(40
)
(23
)
—
(2
)
(3
)
2
(66
)
Net income
151
105
—
4
12
6
278
Basic earnings per share ($)
0.31
0.57
Diluted earnings per share ($)
0.31
0.56
Basic - weighted average shares
outstanding (millions)(7)
490.0
490.0
Diluted - weighted average shares
outstanding (millions)(7)
493.2
493.2
Refer to the associated explanatory footnotes at the end of the
'Reconciliation of IFRS Results to Core Results' tables.
Three months ended June 30, 2020
($ millions except (loss) per share)
IFRS
results
Amortization
of certain
intangible
assets(1)
Impairments(2)
Separation
costs(3)
Transformation
costs(4)
Other
items(5)
Core
results
Gross profit
345
250
41
4
—
14
654
Selling, general & administration
(595
)
—
—
6
—
—
(589
)
Research & development
(163
)
8
—
—
—
9
(146
)
Other income
9
—
—
—
—
(3
)
6
Other expense
(62
)
—
—
52
13
(7
)
(4
)
Operating (loss)
(466
)
258
41
62
13
13
(79
)
(Loss) before taxes
(502
)
258
41
62
13
13
(115
)
Taxes(6)
80
(43
)
(10
)
(11
)
(3
)
(1
)
12
Net (loss)
(422
)
215
31
51
10
12
(103
)
Basic (loss) per share ($)
(0.86
)
(0.21
)
Diluted (loss) per share ($)
(0.86
)
(0.21
)
Basic - weighted average shares
outstanding (millions)(7)
489.0
489.0
Diluted - weighted average shares
outstanding (millions)(7)
489.0
489.0
Refer to the associated explanatory footnotes at the end of the
'Reconciliation of IFRS Results to Core Results' tables.
Six months ended June 30, 2021
($ millions except earnings per share)
IFRS
results
Amortization
of certain
intangible
assets(1)
Impairments(2)
Separation
costs(3)
Transformation
costs(4)
Other
items(5)
Core
results
Gross profit
2,251
253
45
—
—
—
2,549
Selling, general & administration
(1,484
)
—
—
9
—
—
(1,475
)
Research & development
(344
)
—
—
—
—
8
(336
)
Other income
14
—
—
—
—
(1
)
13
Other expense
(59
)
—
—
7
26
1
(25
)
Operating income
378
253
45
16
26
8
726
Income before taxes
300
253
45
16
26
8
648
Taxes(6)
(65
)
(46
)
(10
)
(4
)
(5
)
1
(129
)
Net income
235
207
35
12
21
9
519
Basic earnings per share ($)
0.48
1.06
Diluted earnings per share ($)
0.48
1.05
Basic - weighted average shares
outstanding (millions)(7)
489.9
489.9
Diluted - weighted average shares
outstanding (millions)(7)
492.8
492.8
Refer to the associated explanatory footnotes at the end of the
'Reconciliation of IFRS Results to Core Results' tables.
Six months ended June 30, 2020
($ millions except (loss)/earnings per
share)
IFRS
results
Amortization
of certain
intangible
assets(1)
Impairments(2)
Separation
costs(3)
Transformation
costs(4)
Other
items(5)
Core
results
Gross profit
1,217
502
57
7
—
4
1,787
Selling, general & administration
(1,272
)
—
—
9
—
—
(1,263
)
Research & development
(302
)
15
—
—
—
(11
)
(298
)
Other income
18
—
—
—
—
(3
)
15
Other expense
(155
)
—
—
117
20
—
(18
)
Operating (loss)/income
(494
)
517
57
133
20
(10
)
223
(Loss)/income before taxes
(571
)
517
57
133
20
(10
)
146
Taxes(6)
92
(87
)
(14
)
(24
)
(4
)
7
(30
)
Net (loss)/income
(479
)
430
43
109
16
(3
)
116
Basic (loss)/earnings per share ($)
(0.98
)
0.24
Diluted (loss)/earnings per share ($)
(0.98
)
0.24
Basic - weighted average shares
outstanding (millions)(7)
488.8
488.8
Diluted - weighted average shares
outstanding (millions)(7)
488.8
491.4
Refer to the associated explanatory footnotes at the end of the
'Reconciliation of IFRS Results to Core Results' tables.
Explanatory footnotes to IFRS Results to Core Results
reconciliation tables
(1)
Includes recurring amortization for all intangible assets other
than software.
(2)
Includes impairment charges related to
intangible assets.
(3)
Separation costs are expected to be
incurred over the two to three-year period following the completion
of the spin-off from Novartis and primarily include costs related
to IT and third party consulting fees.
(4)
Transformation costs, primarily related to
restructuring and third party consulting fees, for the multi-year
transformation program.
(5)
For the three months ended June 30, 2021,
Research & development includes the amortization of option
rights. Other expense includes fair value adjustments of financial
assets.
For the three months ended June 30, 2020,
Gross profit includes losses on disposal of property, plant &
equipment and a fair value adjustment of a contingent consideration
liability. Research & development includes amortization of
option rights. Other income and expense include fair value
adjustments of financial assets.
For the six months ended June 30, 2021,
Research & development includes the amortization of option
rights. Other income and Other expense include fair value
adjustments of financial assets.
For the six months ended June 30, 2020,
Gross profit includes $9 million losses on disposal of property,
plant & equipment partially offset by a $5 million fair value
adjustment of a contingent consideration liability. Research &
development includes a $34 million fair value adjustment of a
contingent consideration liability, partially offset by $23 million
in amortization of option rights. Other income primarily includes
fair value adjustments of a financial asset.
(6)
For the three months ended June 30, 2021,
total tax adjustments of $26 million include tax associated with
operating income core adjustments and discrete tax items. Tax
associated with operating income core adjustments of $153 million
totaled $29 million with an average tax rate of 19.0%.
For the three months ended June 30, 2020,
total tax adjustments of $68 million include tax associated with
operating income core adjustments and discrete tax items. Tax
associated with operating income core adjustments of $387 million
totaled $67 million with an average tax rate of 17.3%.
For the six months ended June 30, 2021,
total tax adjustments of $64 million include tax associated with
operating income core adjustments and discrete tax items. Tax
associated with operating income core adjustments of $348 million
totaled $67 million with an average tax rate of 19.3%.
For the six months ended June 30, 2020,
total tax adjustments of $122 million include tax associated with
operating income core adjustments and discrete tax items. Tax
associated with operating income core adjustments of $717 million
totaled $132 million with an average tax rate of 18.4%. Core tax
adjustments for discrete items totaled $10 million primarily
related to tax expense from the delayed spin of a legal entity.
(7)
For the three and six months ended June
30, 2021 and the six months ended June 30, 2020, core basic
earnings per share is calculated using the weighted-average shares
of common stock outstanding during the period. Core diluted
earnings per share also contemplate dilutive shares associated with
unvested equity-based awards as described in Note 5 to the
Condensed Consolidated Interim Financial Statements.
For the three months ended June 30, 2020,
core basic and diluted loss per share was calculated using the
weighted-average shares of common stock outstanding during the
period.
About Alcon
Alcon helps people see brilliantly. As the global leader in eye
care with a heritage spanning more than seven decades, we offer the
broadest portfolio of products to enhance sight and improve
people’s lives. Our Surgical and Vision Care products touch the
lives of more than 260 million people in over 140 countries each
year living with conditions like cataracts, glaucoma, retinal
diseases and refractive errors. Our more than 23,000 associates are
enhancing the quality of life through innovative products,
partnerships with eye care professionals and programs that advance
access to quality eye care. Learn more at www.alcon.com.
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Investor Relations Karen
King Allen Trang + 41 589 112 110 (Geneva) + 1 817 615 2789 (Fort
Worth) investor.relations@alcon.com
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Worth) globalmedia.relations@alcon.com
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