Alcon rebounds after a 21% decline in sales

Recovered for two consecutive years after hitting an all-time-low of KRW 205.4 billion in 2023

SG&A expenses reduced KRW 83.6B→KRW 68.8B…confirmed improvement in revenue structure

After a 21.4% decline in sales in 2023, Alcon Korea rebounded within two years, with simultaneous improvements in operating profit and net income.

Beyond recovering its external scale, the company appears to have achieved both cost structure restructuring and a business portfolio realignment.

2023 inventory optimization and 'selection and concentration'

Alcon Korea's sales reached a peak of KRW 261.6 billion in 2022, up from KRW 238.3 billion in 2021, before decreasing by approximately 21.4% to KRW 205.4 billion in 2023.

While no direct external factors for the sudden drop in sales are stated, some background can be inferred from changes in the asset structure, such as 'timing of revenue recognition' and 'changes in inventory assets,' as detailed in the indicators.

In fact, 'revenue recognized at a point in time (primarily sales of products and goods),' which amounted to KRW 246.2 billion in 2022, dropped to KRW 189.9 billion in 2023.

Additionally, purchases of goods decreased significantly from KRW 264.0 billion in 2022 to KRW 163.3 billion in 2023.

Accounting treatments for inventory assets also affected gains and losses. In the 2023 audit report's adjustment items for operating cash flow, inventory valuation losses were indicated in parentheses, reflecting them as a reversal. Changes in the allowance for valuation losses on goods are also confirmed in the deferred tax notes.

However, since the audit report does not explain this as the result of poor performance in specific items or inventory clearance, the 2023 sales decrease can be interpreted as a phase in which reduced product sales coincided with inventory and channel adjustments.

After undergoing this process, sales is rebounding. After bottoming out at KRW 205.4 billion in 2023, sales rebounded to KRW 226.6 billion in 2024 and KRW 234.8 billion in 2025, recovering to 2021 figures.

Alcon Korea's 5-Year Sales: After bottoming out at KRW 205.4 billion in 2023, sales rebounded to KRW 226.6 billion in 2024 and KRW 234.8 billion in 2025 (Source: FSS DART, Unit: KRW 100 million)

Easing inventory burden while adjusting product sales

Notably, profitability indicators improved significantly during the revenue rebound process.

Generally, a decrease in revenue leads to lower profits due to fixed costs, but Alcon Korea has shown a trend of maintaining profitability.

Looking at the trend in operating profit, the company posted KRW 7.2 billion in 2023, even as sales plummeted, compared to KRW 9.1 billion in 2022.

In 2024, when the structural improvement was completed, the company recorded KRW 11.4 billion, a 57% surge from the previous year and the highest operating profit in the last five years, and continued its solid performance with KRW 10.6 billion in 2025.

Net income also doubled from KRW 4.1 billion in 2023 to KRW 8.2 billion in 2024, then to KRW 9.1 billion in 2025, demonstrating a robust internal foundation.

The factor that had the greatest impact on this profitability improvement was the control of selling, general, and administrative (SG&A) expenses. SG&A expenses, which reached KRW 83.6 billion in 2022, were significantly reduced to KRW 74.3 billion in 2023 and KRW 68.8 billion in 2024.

Specifically, the efficiency of marketing expense targeting stands out. Advertising and promotion expenses decreased every year, from KRW 19.8 billion in 2022 to KRW 12.4 billion in 2023, KRW 8.3 billion in 2024, and KRW 7.5 billion in 2025.

The fact that sales rebounded after 2024, despite cutting advertising costs by more than half, is considered a positive factor.

Alcon Korea's 5-Year Operating Profit & New Income: GREEN-operating profit, BLUE- Net Income (Source: FSS DART, Unit: KRW 100 million)

Expansion of the dual-axis portfolio…surgical and vision care

Alcon is building an unrivaled eye care ecosystem through its 'Surgical Division,' which handles surgical equipment, and the 'Vision Care Business,' which handles lenses and other products.

The biggest driver of the Surgical Division's momentum is 'PersonalEYES,' a comprehensive, personalized vision correction procedure launched in Korea in 2024.

This system, which creates a unique 3D virtual eye model for each patient through Sightmap equipment, presented clinical results showing that all patients recovered 1.0 vision and 89% achieved 1.2 vision three months after surgery.

Additionally, PanOptix, a trifocal intraocular lens launched in 2015, marks its 10th anniversary and become a major product, surpassing 3 million cumulative global implantations.

Wojciech Michalik, Head of Alcon Korea Vision Care Business

The Vision Care Business is also steadily expanding its market influence through products such as the large-capacity daily-wear soft contact lens 'Precision1 for Astigmatism WSL & EasyFit,' launched in August last year.

In fact, since 2022, the Alcon Korea Vision Care Business has been selected as the 'Alcon Affiliate of the Year' for three consecutive years, a first among Alcon's global branches.

Accordingly, former CEO Bang Hyo-jeong, who led the explosive growth of the Korean market, was promoted to Cluster President for Europe, and Wojciech Michalik, a 15-year ophthalmology expert, took office as the new General Manager in 2025 to demonstrate new leadership.

Roger Lopez, President of Alcon International Vision Care, stated, "As a global leader in eye care, Alcon strives to help internal talent grow into global leaders, and this personnel appointment reflects that strategic direction."

Lopez added, "Based on the leadership and achievements demonstrated by both leaders in their respective regions, we expect them to promote sustainable business in new markets and contribute to further strengthening the capabilities of the International Vision Care Business"