Alcon Says Second-Quarter Results Show ‘Mid-Single Digit Growth’ Across All Product Categories

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GENEVA, Switzerland—Alcon (SIX/NYSE:ALC), in its second earnings report since being spun off by Novartis earlier this year, said sales rose 2 percent to $1.9 billion in the second quarter as the company achieved mid-single digit growth in all product categories. The sales increase was 5 percent at constant currency rates, according to the earnings announcement. On an operating basis, Alcon said its second-quarter operating loss totaled $53 million, which includes charges of $258 million from the amortization of certain intangible assets and $78 million of separation costs.

Excluding these and other adjustments, the company reported second-quarter core operating income of $310 million in the quarter ended June 30.

In the vision care business segment, net sales in the second quarter totaled $812 million (including contact lenses and ocular health) and increased 3 percent, or 6 percent on a constant currency basis, compared with the $789 million in the year-ago period. Sales of Dailies Total1 and Systane Complete “continued to achieve double-digit gains during the quarter,” while sales from the rest of the contact lens portfolio improved due to new product enhancements, better product flow and sales execution, Alcon reported.

Year-to-date revenues were comparable to the first six months of last year and increased 3 percent on a constant currency basis. (Contact lens sales totaled $493 million in the second quarter, an increase of 3 percent.)

Alcon chief executive officer David Endicott said the second-quarter results “demonstrate that we are solidly executing our growth drivers while successfully standing Alcon up as an independent company.”

He added, “We maintained strong surgical performance, driven by new product innovation in both implantables and consumables and demand for surgical equipment. We also delivered improvements in vision care, driven by double-digit growth of our Dailies Total1 globally, as well as solid sales execution in the U.S.”

Endicott noted that this week’s introduction of a new daily SiHy contact lens, Precision1, is expected to broaden the company’s contact lens portfolio and enhance its competitive offerings. “We’re investing in a critical manufacturing platform that we believe will deliver one of our most exciting U.S. launches and position our business for continued growth and expansion," he added.

In the earnings announcement, Alcon reconfirmed its business outlook for the full year.