Thursday, May 16, 2019
Living on your own two legs is expensive. This is felt in the first quarter by the ophthalmologist company Alcon. Resolving Novartis' responsibility leads to significant costs and loss of profit. Experts still see a lot of work for the Swiss.
The Swiss ophthalmology group Alcon started life as a separate company with red numbers. Costs associated with spin-off from former parent company Novartis, new IT, and development and research led to an operating loss of $ 48 million in the first quarter, the Geneva-based company said. Sales of just under $ 1.8 billion were at the same level as the previous year.
For the full year, excluding currency effects, Alcon predicted a revenue increase of three to five percent and an operating profit margin of 17 to 18 percent adjusted for special items. The currency-adjusted revenue growth in the first quarter was four percent and the adjusted operating profit margin was 17.7 percent.
The pharmaceutical giant Novartis split off its long-suffering Alcon, which struggled with growth and income, in April and drove it. With a market capitalization of $ 30 billion, the group that specializes in eye surgery and contact lenses is the largest newcomer to the floor in Zurich for nine years and plays a leading role worldwide.
Alcon, founded in Fort Worth, Texas, offered its shareholders normal dividends in the course of 2020 of around 10 percent of the adjusted net result. In addition, the company wants to become more profitable: an adjusted operating profit margin in the range of low to medium-sized 20 percent is envisaged in 2023.
According to analysts, the annual forecast was within the expected range. "It shows that much still needs to be done at Alcon to achieve the 2023 targets," said Daniel Buchta, analyst at Vontobel. Alcon shares, which have continued to gain value since listing as a result of the demand from institutional Anglo-American investors, have risen slightly, making them one of the most sought after European equities in healthcare.