The specialist in ophthalmology Alcon recorded an increase in sales in the 4th quarter as well as in the whole of the 2019 financial year. However, it still recorded losses due to depreciation on intangible assets, he said on Tuesday evening.
In the 4th quarter, sales increased by approximately 5% to 1.88 billion dollars (1.83 billion francs). Over the full financial year 2019, turnover reached 7.51 billion (7.33 billion francs). Both divisions posted growth last year.
Operationally, Alcon recorded an annual loss of 187 million dollars (182.51 million francs), against 248 million in 2018. Profitability was weighed down in particular by depreciation on high intangible assets, without effects on cash. , as well as the costs of the separation from the former parent company Novartis.
The group believes that it is well positioned. Adjusted for these factors, basic operating profit was $ 1.27 billion (CHF 1.24 billion), after $ 1.21 billion in 2018. The operating margin improved by 20 basis points at 17.2%.
The annual net loss (IFRS standard) amounted to 656 million dollars (640.24 million francs) after 227 million in 2018. Basic net profit reached 925 million (902.78 million francs). In the fourth quarter alone, Alcon recorded a net loss of $ 91 million (73 million in Q4 2018). The corrected result amounts to 223 million.
Expectations fulfilled
The figures presented by Alcon more or less correspond to analysts’ expectations. The latter expected a turnover of 7.44 billion dollars, a loss of 625 million and a basic profit of 926 million, according to the AWP consensus established on the basis of their forecasts.
Quoted in the press release, general manager David Endicott explained that the year under review was a big step in the history of the company. “We finalized our spin-off as an independent company, posted strong growth in turnover and improved our basic profitability.”
Alcon published annual results for the first time as an independent company. The 4th quarter was only the third lived as such. Alcon had been separated from Novartis and floated on the stock market in early April 2019.
For the current fiscal year 2020, Alcon expects sales growth of 5-6% at constant exchange rates. The adjusted operating profit margin should be between 17.5% and 18.5%.
Alcon has also communicated medium-term goals in the past. The group aims for annual sales growth in the range of a percentage to an average figure and a basic operating margin at the bottom of the 20% range. (Ps / nxp)
Created: 02/26.2020, 12:10 am
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