Alcon Inc. (NYSE:ALC) Q4 2022 Earnings Call Transcript

Operator: Our next question comes from the line of Chris Gretler with Credit Suisse.

Chris Gretler: I have 2 questions. First, I wanted to come back to the contact lens business and elasticity. Could you actually speak about the price action you’ve taken internationally versus the U.S. and the relative price differentials in these markets. But you see different response and also what is the spillover effect of the price effect into ’23 and whether you intend to take a further price action? And the second question was just on simple on CapEx this year should be trending in the midterm guide of mid-single digit or not?

David Endicott: Yes. We really haven’t articulated the detail around the flow-through on price. It’s directionally low single digits. So I think what we believe is that both internationally and in the U.S. when we’ve taken price. We’ve done them in different moments in time. So I think the U.S. took some price originally at the very beginning of last year. International took, I think, something like closer to midyear. And then again, the U.S. announced an additional price increase for this year, late last year. So all of that said, it’s a little bit tricky to compare it side to side. What I would say is that directionally, we thought that we would get kind of low single-digit flow-through from those activities. They are different market to market. We’re very specific in how we think about products, markets and competitors and consumers, trying to make sure we get that mix right. And so a little tricky to answer that question any more specifically than that. CapEx.

Tim Stonesifer: Yes. Then on the CapEx, we’d expect this year, we’ll probably be at that 5% or 6% of revenue for CapEx on 2023.

Operator: Thank you. Ladies and gentlemen, this concludes our Q&A session and this concludes our call today. We thank you for your interest and participation. You may now disconnect your lines.