Pharmaceuticals Alcon records lower growth in the third quarter

The ophthalmology group Alcon recorded weaker growth than expected in the third quarter and has revised its annual forecasts slightly downwards.

The ophthalmology group Alcon achieved growth of 6 percent in the third quarter, although this fell short of analysts' expectations. Sales amounted to 2.43 billion dollars, as the company announced after the close of trading in Switzerland. This news led to a temporary suspension of trading in the share on the US stock exchange.

Development in the business divisions

In the "Vision Care" segment, Alcon recorded growth of 7 percent to 1.10 billion dollars, with particularly strong growth in the contact lens business. In the "Surgical" segment, growth was somewhat lower at 5 percent to 1.34 billion dollars.

Despite an increase in the core margin to 20.6 percent, which is higher than the previous year's figure of 19.5 percent, average expectations were not quite met. However, CEO David Endicott was satisfied with the cash flow generated, which rose to USD 1.6 billion in the first nine months of 2024, compared to USD 937 million in the same period of the previous year.

Adjusted annual forecasts

Due to the less dynamic growth, Alcon has slightly lowered its forecasts for the year as a whole. Sales are now expected to be between 9.8 and 9.9 billion dollars, while the operating profit margin is estimated at 20.5 to 21.0 percent. UBS expects slight adjustments to consensus expectations and a negative reaction from the share, which fell by more than 1 percent shortly after the start of trading in Zurich.

Looking to the future

CEO David Endicott remains optimistic and is already focusing on the coming year, in which Alcon is expected to grow faster than the market. He is also confident about the targets up to 2027. Endicott expects further growth in the contact lens segment, particularly in the Chinese market.

On the subject of acquisitions, Endicott said that the Group could be more aggressive, but that this was not absolutely necessary. "It takes patience, sometimes two years to close a deal," he explained. The challenge lies in timing and finding suitable opportunities that support organic growth.