ABBOTT PARK, Ill., July 18, 2024 /PRNewswire/ -- Abbott (NYSE: ABT) today announced financial results for the second quarter ended June 30, 2024.
"We achieved another quarter of strong growth in our underlying base business," said Robert B. Ford, chairman and chief executive officer, Abbott. "We have a lot of positive momentum heading into the second half of the year and are raising our full-year guidance."
SECOND-QUARTER BUSINESS OVERVIEW
Management believes that measuring sales growth rates on an organic basis, which excludes the impact of foreign exchange, the impact of discontinuing the ZonePerfect® product line in the Nutrition business, and the impact of the acquisition of Cardiovascular Systems, Inc. (CSI) during the first year post-acquisition, is an appropriate way for investors to best understand the core underlying performance of the business. Management further believes that measuring sales growth rates on an organic basis excluding COVID-19 tests is an appropriate way for investors to best understand underlying base business performance as the COVID-19 pandemic has shifted to an endemic state, resulting in significantly lower demand for COVID-19 tests.
Note: In order to compute results excluding the impact of exchange rates, current year U.S. dollar sales are multiplied or divided, as appropriate, by the current year average foreign exchange rates and then those amounts are multiplied or divided, as appropriate, by the prior year average foreign exchange rates.
Second Quarter 2024 Results (2Q24) | |||||||||
Sales 2Q24 ($ in millions) | Total Company | Nutrition | Diagnostics | Established | Medical Devices | ||||
U.S. | 3,934 | 933 | 812 | — | 2,185 | ||||
International | 6,443 | 1,217 | 1,383 | 1,294 | 2,549 | ||||
Total reported | 10,377 | 2,150 | 2,195 | 1,294 | 4,734 | ||||
% Change vs. 2Q23 | |||||||||
U.S. | 4.7 | 6.0 | (15.5) | n/a | 14.2 | ||||
International | 3.6 | 1.7 | 1.9 | 0.6 | 7.0 | ||||
Total reported | 4.0 | 3.5 | (5.3) | 0.6 | 10.2 | ||||
Impact of foreign exchange | (3.5) | (3.6) | (3.8) | (7.5) | (2.2) | ||||
Impact of business exit and acquisition* | 0.1 | (0.4) | — | — | 0.3 | ||||
Organic | 7.4 | 7.5 | (1.5) | 8.1 | 12.1 | ||||
Impact of COVID-19 testing sales (4) | (1.9) | — | (7.4) | — | — | ||||
Organic (excluding COVID-19 tests) | 9.3 | 7.5 | 5.9 | 8.1 | 12.1 | ||||
U.S. | 9.0 | 6.9 | (0.3) | n/a | 13.5 | ||||
International | 9.4 | 7.9 | 9.5 | 8.1 | 10.9 | ||||
First Half 2024 Results (1H24) | |||||||||
Sales 1H24 ($ in millions) | Total Company | Nutrition | Diagnostics | Established | Medical Devices | ||||
U.S. | 7,780 | 1,811 | 1,743 | — | 4,219 | ||||
International | 12,561 | 2,407 | 2,666 | 2,520 | 4,968 | ||||
Total reported | 20,341 | 4,218 | 4,409 | 2,520 | 9,187 | ||||
% Change vs. 1H23 | |||||||||
U.S. | 1.2 | 7.0 | (24.1) | n/a | 14.3 | ||||
International | 4.3 | 2.4 | (1.6) | 1.8 | 10.3 | ||||
Total reported | 3.1 | 4.3 | (11.9) | 1.8 | 12.1 | ||||
Impact of foreign exchange | (3.2) | (3.1) | (2.9) | (9.0) | (1.7) | ||||
Impact of business exit and acquisition* | 0.2 | (0.2) | — | — | 0.7 | ||||
Organic | 6.1 | 7.6 | (9.0) | 10.8 | 13.1 | ||||
Impact of COVID-19 testing sales (4) | (3.9) | — | (14.7) | — | — | ||||
Organic (excluding COVID-19 tests) | 10.0 | 7.6 | 5.7 | 10.8 | 13.1 | ||||
U.S. | 9.5 | 7.5 | 3.3 | n/a | 12.8 | ||||
International | 10.3 | 7.7 | 7.1 | 10.8 | 13.4 | ||||
Refer to table titled "Non-GAAP Revenue Reconciliation" for a reconciliation of adjusted historical revenue to reported revenue.
*Reflects the impact of discontinuing the ZonePerfect® product line in the Nutrition business in March 2024 and the acquisition of CSI on April 27, 2023. Organic sales growth excludes the impact of the acquired business from January through April 2024.
Nutrition | |||||
Second Quarter 2024 Results (2Q24) | |||||
Sales 2Q24 ($ in millions) | Total | Pediatric | Adult | ||
U.S. | 933 | 564 | 369 | ||
International | 1,217 | 495 | 722 | ||
Total reported | 2,150 | 1,059 | 1,091 | ||
% Change vs. 2Q23 | |||||
U.S. | 6.0 | 11.3 | (1.2) | ||
International | 1.7 | (4.4) | 6.4 | ||
Total reported | 3.5 | 3.4 | 3.7 | ||
Impact of foreign exchange | (3.6) | (1.6) | (5.4) | ||
Impact of business exit* | (0.4) | — | (0.8) | ||
Organic | 7.5 | 5.0 | 9.9 | ||
U.S. | 6.9 | 11.3 | 0.8 | ||
International | 7.9 | (1.0) | 14.7 | ||
Worldwide Nutrition sales increased 3.5 percent on a reported basis and 7.5 percent on an organic basis in the second quarter.
In Pediatric Nutrition, global sales increased 3.4 percent on a reported basis and 5.0 percent on an organic basis. Sales in the U.S. reflect continued market share gains in the infant formula business.
In Adult Nutrition, global sales increased 3.7 percent on a reported basis and 9.9 percent on an organic basis, which was led by strong growth of Ensure®, Abbott's market-leading complete and balanced nutrition brand.
First Half 2024 Results (1H24) | |||||
Sales 1H24 ($ in millions) | Total | Pediatric | Adult | ||
U.S. | 1,811 | 1,078 | 733 | ||
International | 2,407 | 990 | 1,417 | ||
Total reported | 4,218 | 2,068 | 2,150 | ||
% Change vs. 1H23 | |||||
U.S. | 7.0 | 11.6 | 0.8 | ||
International | 2.4 | 0.7 | 3.6 | ||
Total reported | 4.3 | 6.1 | 2.6 | ||
Impact of foreign exchange | (3.1) | (1.5) | (4.6) | ||
Impact of business exit* | (0.2) | — | (0.4) | ||
Organic | 7.6 | 7.6 | 7.6 | ||
U.S. | 7.5 | 11.6 | 1.9 | ||
International | 7.7 | 3.7 | 10.5 | ||
*Reflects the impact of discontinuing the ZonePerfect® product line. This action was initiated in March 2024. |
Diagnostics | |||||||||
Second Quarter 2024 Results (2Q24) | |||||||||
Sales 2Q24 ($ in millions) | Total | Core Laboratory | Molecular | Point of Care | Rapid | ||||
U.S. | 812 | 327 | 33 | 107 | 345 | ||||
International | 1,383 | 1,002 | 94 | 49 | 238 | ||||
Total reported | 2,195 | 1,329 | 127 | 156 | 583 | ||||
% Change vs. 2Q23 | |||||||||
U.S. | (15.5) | 5.1 | (22.5) | 8.1 | (32.1) | ||||
International | 1.9 | 2.1 | (4.9) | 14.1 | 2.1 | ||||
Total reported | (5.3) | 2.8 | (10.3) | 9.9 | (21.3) | ||||
Impact of foreign exchange | (3.8) | (5.8) | (0.9) | (0.1) | (1.5) | ||||
Organic | (1.5) | 8.6 | (9.4) | 10.0 | (19.8) | ||||
Impact of COVID-19 testing sales (4) | (7.4) | (0.2) | (3.8) | — | (20.2) | ||||
Organic (excluding COVID-19 tests) | 5.9 | 8.8 | (5.6) | 10.0 | 0.4 | ||||
U.S. | (0.3) | 5.3 | (19.0) | 8.1 | (6.6) | ||||
International | 9.5 | 9.9 | — | 14.5 | 11.0 | ||||
As expected, Diagnostics sales growth in the second quarter was negatively impacted by year-over-year declines in COVID-19 testing-related sales4. Worldwide COVID-19 testing sales were $102 million in the second quarter of 2024 compared to $263 million in the second quarter of the prior year.
Excluding COVID-19 testing-related sales, global Diagnostics sales increased 1.8 percent on a reported basis and 5.9 percent on an organic basis.
Excluding COVID-19 testing-related sales, global Core Laboratory Diagnostics sales increased 3.0 percent on a reported basis and 8.8 percent on an organic basis, led by continued strong adoption of Abbott's Alinity® family of diagnostics systems and testing portfolios.
First Half 2024 Results (1H24) | |||||||||
Sales 1H24 ($ in millions) | Total | Core Laboratory | Molecular | Point of Care | Rapid | ||||
U.S. | 1,743 | 637 | 75 | 205 | 826 | ||||
International | 2,666 | 1,897 | 181 | 90 | 498 | ||||
Total reported | 4,409 | 2,534 | 256 | 295 | 1,324 | ||||
% Change vs. 1H23 | |||||||||
U.S. | (24.1) | 6.2 | (16.3) | 6.9 | (41.6) | ||||
International | (1.6) | 1.2 | (8.8) | 6.9 | (9.7) | ||||
Total reported | (11.9) | 2.4 | (11.1) | 6.9 | (32.7) | ||||
Impact of foreign exchange | (2.9) | (4.9) | (0.6) | — | (1.1) | ||||
Organic | (9.0) | 7.3 | (10.5) | 6.9 | (31.6) | ||||
Impact of COVID-19 testing sales (4) | (14.7) | (0.3) | (7.3) | — | (34.6) | ||||
Organic (excluding COVID-19 tests) | 5.7 | 7.6 | (3.2) | 6.9 | 3.0 | ||||
U.S. | 3.3 | 6.5 | (6.7) | 6.9 | 0.3 | ||||
International | 7.1 | 7.9 | (1.8) | 7.1 | 7.1 | ||||
Established Pharmaceuticals | |||||
Second Quarter 2024 Results (2Q24) | |||||
Sales 2Q24 ($ in millions) | Total | Key Emerging | Other | ||
U.S. | — | — | — | ||
International | 1,294 | 988 | 306 | ||
Total reported | 1,294 | 988 | 306 | ||
% Change vs. 2Q23 | |||||
U.S. | n/a | n/a | n/a | ||
International | 0.6 | (0.2) | 3.1 | ||
Total reported | 0.6 | (0.2) | 3.1 | ||
Impact of foreign exchange | (7.5) | (9.0) | (2.6) | ||
Organic | 8.1 | 8.8 | 5.7 | ||
U.S. | n/a | n/a | n/a | ||
International | 8.1 | 8.8 | 5.7 | ||
Established Pharmaceuticals sales increased 0.6 percent on a reported basis and 8.1 percent on an organic basis in the second quarter.
Key Emerging Markets include several emerging countries that represent the most attractive long-term growth opportunities for Abbott's branded generics product portfolio. Sales in these geographies decreased 0.2 percent on a reported basis and increased 8.8 percent on an organic basis, led by growth in several geographies and therapeutic areas, including cardiometabolic, gastroenterology, and central nervous system/pain management.
First Half 2024 Results (1H24) | |||||
Sales 1H24 ($ in millions) | Total | Key Emerging | Other | ||
U.S. | — | — | — | ||
International | 2,520 | 1,916 | 604 | ||
Total reported | 2,520 | 1,916 | 604 | ||
% Change vs. 1H23 | |||||
U.S. | n/a | n/a | n/a | ||
International | 1.8 | 0.7 | 5.3 | ||
Total reported | 1.8 | 0.7 | 5.3 | ||
Impact of foreign exchange | (9.0) | (11.3) | (1.6) | ||
Organic | 10.8 | 12.0 | 6.9 | ||
U.S. | n/a | n/a | n/a | ||
International | 10.8 | 12.0 | 6.9 | ||
Medical Devices | |||||||||||||||
Second Quarter 2024 Results (2Q24) | |||||||||||||||
Sales 2Q24 ($ in millions) | Total | Rhythm | Electro- physiology | Heart | Vascular | Structural | Neuro- | Diabetes | |||||||
U.S. | 2,185 | 292 | 287 | 244 | 275 | 258 | 192 | 637 | |||||||
International | 2,549 | 315 | 340 | 77 | 449 | 306 | 51 | 1,011 | |||||||
Total reported | 4,734 | 607 | 627 | 321 | 724 | 564 | 243 | 1,648 | |||||||
% Change vs. 2Q23 | |||||||||||||||
U.S. | 14.2 | 8.5 | 16.8 | 7.7 | 4.3 | 17.9 | 3.7 | 26.3 | |||||||
International | 7.0 | 0.4 | 10.5 | 11.4 | (0.4) | 9.4 | 21.7 | 10.0 | |||||||
Total reported | 10.2 | 4.2 | 13.3 | 8.6 | 1.3 | 13.2 | 7.0 | 15.8 | |||||||
Impact of foreign exchange | (2.2) | (1.7) | (3.4) | (0.3) | (2.0) | (2.4) | (1.2) | (2.4) | |||||||
Impact of acquisition* | 0.3 | — | — | — | 2.1 | — | — | — | |||||||
Organic | 12.1 | 5.9 | 16.7 | 8.9 | 1.2 | 15.6 | 8.2 | 18.2 | |||||||
U.S. | 13.5 | 8.5 | 16.8 | 7.7 | (0.8) | 17.9 | 3.7 | 26.3 | |||||||
International | 10.9 | 3.7 | 16.7 | 12.8 | 2.5 | 13.8 | 28.4 | 13.7 | |||||||
Worldwide Medical Devices sales increased 10.2 percent on a reported basis and 12.1 percent on an organic basis in the second quarter, including double-digit organic growth in both the U.S. and internationally.
Sales growth was led by double-digit growth in Diabetes Care, Electrophysiology, and Structural Heart. Several recently launched products and new indications contributed to the strong performance, including Amplatzer® Amulet®, Navitor®, TriClip®, and AVEIR®.
In Electrophysiology, sales grew 13.3 percent on a reported basis and 16.7 percent on an organic basis, which included double-digit growth in catheters and cardiac mapping-related products, and double-digit growth in all major geographic regions.
In Diabetes Care, FreeStyle Libre sales were $1.6 billion, which represents sales growth of 18.4 percent on a reported basis and 20.4 percent on an organic basis.
First Half 2024 Results (1H24) | |||||||||||||||
Sales 1H24 ($ in millions) | Total | Rhythm | Electro- physiology | Heart | Vascular | Structural | Neuro- | Diabetes | |||||||
U.S. | 4,219 | 563 | 556 | 481 | 529 | 491 | 373 | 1,226 | |||||||
International | 4,968 | 606 | 658 | 145 | 884 | 588 | 96 | 1,991 | |||||||
Total reported | 9,187 | 1,169 | 1,214 | 626 | 1,413 | 1,079 | 469 | 3,217 | |||||||
% Change vs. 1H23 | |||||||||||||||
U.S. | 14.3 | 6.6 | 15.0 | 8.2 | 9.8 | 14.4 | 9.6 | 24.6 | |||||||
International | 10.3 | 4.4 | 14.4 | 9.7 | 4.1 | 10.9 | 15.9 | 13.6 | |||||||
Total reported | 12.1 | 5.4 | 14.7 | 8.6 | 6.1 | 12.5 | 10.9 | 17.6 | |||||||
Impact of foreign exchange | (1.7) | (1.3) | (2.8) | (0.1) | (1.5) | (1.8) | (1.6) | (1.8) | |||||||
Impact of acquisition* | 0.7 | — | — | — | 4.3 | — | — | — | |||||||
Organic | 13.1 | 6.7 | 17.5 | 8.7 | 3.3 | 14.3 | 12.5 | 19.4 | |||||||
U.S. | 12.8 | 6.6 | 15.0 | 8.2 | (1.3) | 14.4 | 9.6 | 24.6 | |||||||
International | 13.4 | 6.8 | 19.6 | 10.1 | 6.0 | 14.3 | 24.1 | 16.5 | |||||||
*Abbott completed the acquisition of CSI on April 27, 2023. For purposes of calculating organic sales growth, the impact from this acquired business has been excluded from January through April 2024. |
ABBOTT'S EARNINGS-PER-SHARE GUIDANCE
Abbott projects full-year 2024 diluted earnings per share under GAAP of $3.30 to $3.40. Abbott forecasts specified items for the full-year 2024 of $1.31 per share primarily related to intangible amortization, restructuring and cost reduction initiatives and other net expenses. Excluding specified items, projected adjusted diluted earnings per share would be $4.61 to $4.71 for the full-year 2024.
Abbott projects third-quarter 2024 diluted earnings per share under GAAP of $0.85 to $0.89. Abbott forecasts specified items for the third-quarter 2024 of $0.33 per share primarily related to intangible amortization, restructuring and cost reduction initiatives and other net expenses. Excluding specified items, projected adjusted diluted earnings per share would be $1.18 to $1.22 for the third quarter 2024.
ABBOTT DECLARES 402ND CONSECUTIVE QUARTERLY DIVIDEND
On June 14, 2024, the board of directors of Abbott declared the company's quarterly dividend of $0.55 per share. Abbott's cash dividend is payable Aug. 15, 2024, to shareholders of record at the close of business on July 15, 2024.
Abbott has increased its dividend payout for 52 consecutive years and is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.
About Abbott
Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 114,000 colleagues serve people in more than 160 countries.
Connect with us at www.abbott.com and on LinkedIn, Facebook, Instagram, X and YouTube.
Abbott will live-webcast its second-quarter earnings conference call through its Investor Relations website at www.abbottinvestor.com at 8 a.m. Central time today. An archived edition of the webcast will be available later in the day.
— Private Securities Litigation Reform Act of 1995 — A Caution Concerning Forward-Looking Statements
Some statements in this news release may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Economic, competitive, governmental, technological and other factors that may affect Abbott's operations are discussed in Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended Dec. 31, 2023, and are incorporated herein by reference. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.
1 | In the second quarter of 2024, total worldwide sales were $10.377 billion and COVID-19 testing-related sales were $102 million. In the second quarter of 2023, total worldwide sales were $9.978 billion and COVID-19 testing-related sales were $263 million. |
2 | Abbott has not provided the related GAAP financial measure for organic sales growth, excluding COVID-19 testing-related sales, on a forward-looking basis because the company is unable to predict with reasonable certainty the impact of foreign exchange due to the unpredictability of future changes in foreign exchange rates, which could significantly impact reported sales growth. In addition, as the COVID-19 pandemic has shifted to an endemic state, the company has determined that it is unable to predict with reasonable certainty future COVID-19 test sales due to the unpredictability of demand for COVID-19 tests. |
3 | Data on file. Abbott Diabetes Care. |
4 | Diagnostic sales and COVID-19 testing-related sales in 2024 and 2023 are summarized below: |
Sales 2Q24 | COVID Tests Sales 2Q24 | |||||||||||
($ in millions) | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||
Total Diagnostics | 812 | 1,383 | 2,195 | 69 | 33 | 102 | ||||||
Core Laboratory | 327 | 1,002 | 1,329 | 1 | 1 | 2 | ||||||
Molecular | 33 | 94 | 127 | 2 | 1 | 3 | ||||||
Rapid Diagnostics | 345 | 238 | 583 | 66 | 31 | 97 | ||||||
Sales 2Q23 | COVID Tests Sales 2Q23 | |||||||||||
($ in millions) | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||
Total Diagnostics | 961 | 1,356 | 2,317 | 216 | 47 | 263 | ||||||
Core Laboratory | 311 | 982 | 1,293 | 2 | 3 | 5 | ||||||
Molecular | 43 | 98 | 141 | 4 | 4 | 8 | ||||||
Rapid Diagnostics | 508 | 233 | 741 | 210 | 40 | 250 | ||||||
Sales 1H24 | COVID Tests Sales 1H24 | |||||||||||
($ in millions) | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||
Total Diagnostics | 1,743 | 2,666 | 4,409 | 222 | 84 | 306 | ||||||
Core Laboratory | 637 | 1,897 | 2,534 | 2 | 3 | 5 | ||||||
Molecular | 75 | 181 | 256 | 5 | 2 | 7 | ||||||
Rapid Diagnostics | 826 | 498 | 1,324 | 215 | 79 | 294 | ||||||
Sales 1H23 | COVID Tests Sales 1H23 | |||||||||||
($ in millions) | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||
Total Diagnostics | 2,296 | 2,709 | 5,005 | 824 | 169 | 993 | ||||||
Core Laboratory | 600 | 1,875 | 2,475 | 4 | 7 | 11 | ||||||
Molecular | 90 | 198 | 288 | 14 | 14 | 28 | ||||||
Rapid Diagnostics | 1,414 | 552 | 1,966 | 806 | 148 | 954 | ||||||
Abbott Laboratories and Subsidiaries Condensed Consolidated Statement of Earnings Second Quarter Ended June 30, 2024 and 2023 (in millions, except per share data) (unaudited) | ||||||
2Q24 | 2Q23 | % Change | ||||
Net Sales | $10,377 | $9,978 | 4.0 | |||
Cost of products sold, excluding amortization expense | 4,603 | 4,483 | 2.7 | |||
Amortization of intangible assets | 471 | 498 | (5.6) | |||
Research and development | 698 | 715 | (2.3) | |||
Selling, general, and administrative | 2,936 | 2,740 | 7.1 | |||
Total Operating Cost and Expenses | 8,708 | 8,436 | 3.2 | |||
Operating Earnings | 1,669 | 1,542 | 8.2 | |||
Interest expense, net | 58 | 61 | (5.1) | |||
Net foreign exchange (gain) loss | (6) | 21 | n/m | |||
Other (income) expense, net | 10 | (176) | n/m | |||
Earnings before taxes | 1,607 | 1,636 | (1.8) | |||
Taxes on earnings | 305 | 261 | 17.1 | 1) | ||
Net Earnings | $1,302 | $1,375 | (5.3) | |||
Net Earnings excluding Specified Items, as described below | $2,003 | $1,893 | 5.8 | 2) | ||
Diluted Earnings per Common Share | $0.74 | $0.78 | (5.1) | |||
Diluted Earnings per Common Share, excluding Specified Items, as described below | $1.14 | $1.08 | 5.6 | 2) | ||
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options | 1,751 | 1,750 | ||||
NOTES: | |
See table tilted "Non-GAAP Reconciliation of Financial Information" for an explanation of certain non-GAAP financial information. | |
n/m = Percent change is not meaningful. | |
See footnotes on the following section. | |
1) | 2024 Taxes on Earnings includes the recognition of approximately $25 million of net tax expense as a result of the resolution of various tax positions related to prior years. |
2023 Taxes on Earnings includes the recognition of approximately $40 million of net tax expense as a result of the resolution of various tax positions related to prior years. | |
2) | 2024 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $701 million, or $0.40 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions and a divestiture, and other net expenses. |
2023 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $518 million, or $0.30 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions and other net expenses. | |
Abbott Laboratories and Subsidiaries Condensed Consolidated Statement of Earnings First Half Ended June 30, 2024 and 2023 (in millions, except per share data) (unaudited) | ||||||
1H24 | 1H23 | % Change | ||||
Net Sales | $20,341 | $19,725 | 3.1 | |||
Cost of products sold, excluding amortization expense | 9,066 | 8,814 | 2.9 | |||
Amortization of intangible assets | 943 | 989 | (4.7) | |||
Research and development | 1,382 | 1,369 | 0.9 | |||
Selling, general, and administrative | 5,895 | 5,502 | 7.1 | |||
Total Operating Cost and Expenses | 17,286 | 16,674 | 3.7 | |||
Operating Earnings | 3,055 | 3,051 | 0.2 | |||
Interest expense, net | 119 | 113 | 5.6 | |||
Net foreign exchange (gain) loss | (6) | 27 | n/m | |||
Other (income) expense, net | (101) | (287) | n/m | |||
Earnings before taxes | 3,043 | 3,198 | (4.8) | |||
Taxes on earnings | 516 | 505 | 2.2 | 1) | ||
Net Earnings | $2,527 | $2,693 | (6.2) | |||
Net Earnings excluding Specified Items, as described below | $3,732 | $3,708 | 0.7 | 2) | ||
Diluted Earnings per Common Share | $1.44 | $1.53 | (5.9) | |||
Diluted Earnings per Common Share, excluding Specified Items, as described below | $2.12 | $2.11 | 0.5 | 2) | ||
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options | 1,750 | 1,751 | ||||
NOTES: | |
See table tilted "Non-GAAP Reconciliation of Financial Information" for an explanation of certain non-GAAP financial information. | |
n/m = Percent change is not meaningful. | |
See footnotes on the following section. | |
1) | 2024 Taxes on Earnings includes the recognition of approximately $35 million of net tax expense as a result of the resolution of various tax positions related to prior years. |
2023 Taxes on Earnings includes the recognition of approximately $62 million of net tax expense as a result of the resolution of various tax positions related to prior years. | |
2) | 2024 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $1.205 billion, or $0.68 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions and a divestiture, and other net expenses. |
2023 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $1.015 billion, or $0.58 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions and other net expenses. | |
Abbott Laboratories and Subsidiaries Non-GAAP Reconciliation of Financial Information Second Quarter Ended June 30, 2024 and 2023 (in millions, except per share data) (unaudited) | |||||
2Q24 | |||||
As Reported | Specified | As Adjusted | |||
Intangible Amortization | $ 471 | $ (471) | $ — | ||
Gross Margin | 5,303 | 506 | 5,809 | ||
R&D | 698 | (41) | 657 | ||
SG&A | 2,936 | (57) | 2,879 | ||
Other (income) expense, net | 10 | (145) | (135) | ||
Earnings before taxes | 1,607 | 749 | 2,356 | ||
Taxes on Earnings | 305 | 48 | 353 | ||
Net Earnings | 1,302 | 701 | 2,003 | ||
Diluted Earnings per Share | $ 0.74 | $ 0.40 | $ 1.14 | ||
Specified items reflect intangible amortization expense of $471 million and other net expenses of $278 million associated with restructuring actions, acquisitions, a divestiture and other net expenses. See table titled "Details of Specified Items" for additional details regarding specified items.
2Q23 | |||||
As Reported | Specified | As Adjusted | |||
Intangible Amortization | $ 498 | $ (498) | $ — | ||
Gross Margin | 4,997 | 529 | 5,526 | ||
R&D | 715 | (72) | 643 | ||
SG&A | 2,740 | (22) | 2,718 | ||
Other (income) expense, net | (176) | 57 | (119) | ||
Earnings before taxes | 1,636 | 566 | 2,202 | ||
Taxes on Earnings | 261 | 48 | 309 | ||
Net Earnings | 1,375 | 518 | 1,893 | ||
Diluted Earnings per Share | $ 0.78 | $ 0.30 | $ 1.08 | ||
Specified items reflect intangible amortization expense of $498 million and other net expenses of $68 million associated with restructuring actions, costs associated with acquisitions and other net expenses. See table titled "Details of Specified Items" for additional details regarding specified items.
Abbott Laboratories and Subsidiaries Non-GAAP Reconciliation of Financial Information First Half Ended June 30, 2024 and 2023 (in millions, except per share data) (unaudited) | |||||
1H24 | |||||
As Reported | Specified | As Adjusted | |||
Intangible Amortization | $ 943 | $ (943) | $ — | ||
Gross Margin | 10,332 | 1,024 | 11,356 | ||
R&D | 1,382 | (62) | 1,320 | ||
SG&A | 5,895 | (91) | 5,804 | ||
Other (income) expense, net | (101) | (171) | (272) | ||
Earnings before taxes | 3,043 | 1,348 | 4,391 | ||
Taxes on Earnings | 516 | 143 | 659 | ||
Net Earnings | 2,527 | 1,205 | 3,732 | ||
Diluted Earnings per Share | $ 1.44 | $ 0.68 | $ 2.12 | ||
Specified items reflect intangible amortization expense of $943 million and other net expenses of $405 million associated with restructuring actions, acquisitions, a divestiture and other net expenses. See table titled "Details of Specified Items" for additional details regarding specified items.
1H23 | |||||
As Reported | Specified | As Adjusted | |||
Intangible Amortization | $ 989 | $ (989) | $ — | ||
Gross Margin | 9,922 | 1,049 | 10,971 | ||
R&D | 1,369 | (98) | 1,271 | ||
SG&A | 5,502 | (24) | 5,478 | ||
Other (income) expense, net | (287) | 57 | (230) | ||
Earnings before taxes | 3,198 | 1,114 | 4,312 | ||
Taxes on Earnings | 505 | 99 | 604 | ||
Net Earnings | 2,693 | 1,015 | 3,708 | ||
Diluted Earnings per Share | $ 1.53 | $ 0.58 | $ 2.11 | ||
Specified items reflect intangible amortization expense of $989 million and other net expenses of $125 million associated with restructuring actions, costs associated with acquisitions and other expenses. See table titled "Details of Specified Items" for additional details regarding specified items.
A reconciliation of the second-quarter tax rates for 2024 and 2023 is shown below:
2Q24 | ||||||
($ in millions) | Pre-Tax Income | Taxes on Earnings | Tax Rate | |||
As reported (GAAP) | $ 1,607 | $ 305 | 19.0 % | 1) | ||
Specified items | 749 | 48 | ||||
Excluding specified items | $ 2,356 | $ 353 | 15.0 % | |||
2Q23 | ||||||
($ in millions) | Pre-Tax Income | Taxes on Earnings | Tax Rate | |||
As reported (GAAP) | $ 1,636 | $ 261 | 15.9 % | 2) | ||
Specified items | 566 | 48 | ||||
Excluding specified items | $ 2,202 | $ 309 | 14.0 % | |||
1) | 2024 Taxes on Earnings includes the recognition of approximately $25 million of net tax expense as a result of the resolution of various tax positions related to prior years. |
2) | 2023 Taxes on Earnings includes the recognition of approximately $40 million of net tax expense as a result of the resolution of various tax positions related to prior years. |
A reconciliation of the year-to-date tax rates for 2024 and 2023 is shown below:
1H24 | ||||||
($ in millions) | Pre-Tax Income | Taxes on Earnings | Tax Rate | |||
As reported (GAAP) | $ 3,043 | $ 516 | 17.0 % | 3) | ||
Specified items | 1,348 | 143 | ||||
Excluding specified items | $ 4,391 | $ 659 | 15.0 % | |||
1H23 | ||||||
($ in millions) | Pre-Tax Income | Taxes on Earnings | Tax Rate | |||
As reported (GAAP) | $ 3,198 | $ 505 | 15.8 % | 4) | ||
Specified items | 1,114 | 99 | ||||
Excluding specified items | $ 4,312 | $ 604 | 14.0 % | |||
3) | 2024 Taxes on Earnings includes the recognition of approximately $35 million of net tax expense as a result of the resolution of various tax positions related to prior years. |
4) | 2023 Taxes on Earnings includes the recognition of approximately $62 million of net tax expense as a result of the resolution of various tax positions related to prior years. |
Abbott Laboratories and Subsidiaries Non-GAAP Revenue Reconciliation Second Quarter and First Half Ended June 30, 2024 and 2023 ($ in millions) (unaudited) | ||||||||||||||
2Q24 | 2Q23 | % Change vs. 2Q23 | ||||||||||||
Non-GAAP | ||||||||||||||
Abbott | Impact of | Impact | Adjusted | Abbott | Impact | Adjusted | Reported | Adjusted | Organic | |||||
Total Company | 10,377 | (15) | (8) | 10,354 | 9,978 | (15) | 9,963 | 4.0 | 3.9 | 7.4 | ||||
U.S. | 3,934 | (13) | (8) | 3,913 | 3,758 | (15) | 3,743 | 4.7 | 4.6 | 4.6 | ||||
Intl | 6,443 | (2) | — | 6,441 | 6,220 | — | 6,220 | 3.6 | 3.5 | 9.2 | ||||
Total Nutrition | 2,150 | — | (8) | 2,142 | 2,076 | (15) | 2,061 | 3.5 | 3.9 | 7.5 | ||||
U.S. | 933 | — | (8) | 925 | 881 | (15) | 866 | 6.0 | 6.9 | 6.9 | ||||
Intl | 1,217 | — | — | 1,217 | 1,195 | — | 1,195 | 1.7 | 1.7 | 7.9 | ||||
Adult Nutrition | 1,091 | — | (8) | 1,083 | 1,052 | (15) | 1,037 | 3.7 | 4.5 | 9.9 | ||||
U.S. | 369 | — | (8) | 361 | 374 | (15) | 359 | (1.2) | 0.8 | 0.8 | ||||
Intl | 722 | — | — | 722 | 678 | — | 678 | 6.4 | 6.4 | 14.7 | ||||
Total Medical Devices | 4,734 | (15) | — | 4,719 | 4,295 | — | 4,295 | 10.2 | 9.9 | 12.1 | ||||
U.S. | 2,185 | (13) | — | 2,172 | 1,913 | — | 1,913 | 14.2 | 13.5 | 13.5 | ||||
Intl | 2,549 | (2) | — | 2,547 | 2,382 | — | 2,382 | 7.0 | 7.0 | 10.9 | ||||
Vascular | 724 | (15) | — | 709 | 715 | — | 715 | 1.3 | (0.8) | 1.2 | ||||
U.S. | 275 | (13) | — | 262 | 264 | — | 264 | 4.3 | (0.8) | (0.8) | ||||
Intl | 449 | (2) | — | 447 | 451 | — | 451 | (0.4) | (0.6) | 2.5 | ||||
1H24 | 1H23 | % Change vs. 1H23 | ||||||||||||
Non-GAAP | ||||||||||||||
Abbott | Impact of | Impact | Adjusted | Abbott | Impact | Adjusted | Reported | Adjusted | Organic | |||||
Total Company | 20,341 | (57) | (8) | 20,276 | 19,725 | (15) | 19,710 | 3.1 | 2.9 | 6.1 | ||||
U.S. | 7,780 | (53) | (8) | 7,719 | 7,686 | (15) | 7,671 | 1.2 | 0.6 | 0.6 | ||||
Intl | 12,561 | (4) | — | 12,557 | 12,039 | — | 12,039 | 4.3 | 4.3 | 9.6 | ||||
Total Nutrition | 4,218 | — | (8) | 4,210 | 4,043 | (15) | 4,028 | 4.3 | 4.5 | 7.6 | ||||
U.S. | 1,811 | — | (8) | 1,803 | 1,693 | (15) | 1,678 | 7.0 | 7.5 | 7.5 | ||||
Intl | 2,407 | — | — | 2,407 | 2,350 | — | 2,350 | 2.4 | 2.4 | 7.7 | ||||
Adult Nutrition | 2,150 | — | (8) | 2,142 | 2,095 | (15) | 2,080 | 2.6 | 3.0 | 7.6 | ||||
U.S. | 733 | — | (8) | 725 | 727 | (15) | 712 | 0.8 | 1.9 | 1.9 | ||||
Intl | 1,417 | — | — | 1,417 | 1,368 | — | 1,368 | 3.6 | 3.6 | 10.5 | ||||
Total Medical Devices | 9,187 | (57) | — | 9,130 | 8,195 | — | 8,195 | 12.1 | 11.4 | 13.1 | ||||
U.S. | 4,219 | (53) | — | 4,166 | 3,691 | — | 3,691 | 14.3 | 12.8 | 12.8 | ||||
Intl | 4,968 | (4) | — | 4,964 | 4,504 | — | 4,504 | 10.3 | 10.2 | 13.4 | ||||
Vascular | 1,413 | (57) | — | 1,356 | 1,332 | — | 1,332 | 6.1 | 1.8 | 3.3 | ||||
U.S. | 529 | (53) | — | 476 | 482 | — | 482 | 9.8 | (1.3) | (1.3) | ||||
Intl | 884 | (4) | — | 880 | 850 | — | 850 | 4.1 | 3.6 | 6.0 | ||||
(a) Abbott completed the acquisition of CSI on April 27, 2023. For purposes of calculating organic sales growth, the impact from this acquired business has been excluded from January through April 2024. | |
(b) Reflects the impact of discontinuing the ZonePerfect® product line in the Nutrition business. This action was initiated in March 2024. |
Abbott Laboratories and Subsidiaries Details of Specified Items Second Quarter Ended June 30, 2024 (in millions, except per share data) (unaudited) | |||||||||
Acquisition or Divestiture- related (a) | Restructuring and Cost Reduction Initiatives (b) | Intangible Amortization | Other (c) | Total Specifieds | |||||
Gross Margin | $ 1 | $ 32 | $ 471 | $ 2 | $ 506 | ||||
R&D | (1) | 1 | — | (41) | (41) | ||||
SG&A | (11) | (10) | — | (36) | (57) | ||||
Other (income) expense, net | (147) | — | — | 2 | (145) | ||||
Earnings before taxes | $ 160 | $ 41 | $ 471 | $ 77 | 749 | ||||
Taxes on Earnings (d) | 48 | ||||||||
Net Earnings | $ 701 | ||||||||
Diluted Earnings per Share | $ 0.40 | ||||||||
The table above provides additional details regarding the specified items described on tables titled "Non-GAAP Reconciliation of Financial Information." | |
a) | Includes the loss on the sale of a non-core business. Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating acquired businesses. |
b) | Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives. |
c) | Other includes incremental costs to comply with the European Union's Medical Device Regulations (MDR) and In Vitro Diagnostics Medical Device Regulations (IVDR) requirements for previously approved products and an intangible asset impairment charge. |
d) | Reflects the net tax benefit associated with the specified items and tax expense as a result of the resolution of various tax positions related to prior years. |
Abbott Laboratories and Subsidiaries Details of Specified Items Second Quarter Ended June 30, 2023 (in millions, except per share data) (unaudited) | |||||||||
Acquisition or Divestiture- related (a) | Restructuring and Cost Reduction Initiatives (b) | Intangible Amortization | Other (c) | Total Specifieds | |||||
Gross Margin | $ 7 | $ 11 | $ 498 | $ 13 | $ 529 | ||||
R&D | (8) | 7 | — | (71) | (72) | ||||
SG&A | (17) | (2) | — | (3) | (22) | ||||
Other (income) expense, net | 47 | — | — | 10 | 57 | ||||
Earnings before taxes | $ (15) | $ 6 | $ 498 | $ 77 | 566 | ||||
Taxes on Earnings (d) | 48 | ||||||||
Net Earnings | $ 518 | ||||||||
Diluted Earnings per Share | $ 0.30 | ||||||||
The table above provides additional details regarding the specified items described on tables titled "Non-GAAP Reconciliation of Financial Information." | |
a) | Acquisition-related expenses include legal and other costs related to business acquisitions as well as integration costs, which represent incremental costs directly related to integrating acquired businesses. These costs were more than offset by fair value adjustments to contingent consideration related to business acquisitions. |
b) | Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives. |
c) | Other includes incremental costs to comply with the European Union's Medical Device Regulations (MDR) and In Vitro Diagnostics Medical Device Regulations (IVDR) requirements for previously approved products and charges for intangible asset impairments. |
d) | Reflects the net tax benefit associated with the specified items and tax expense as a result of the resolution of various tax positions related to prior years. |
Abbott Laboratories and Subsidiaries Details of Specified Items First Half Ended June 30, 2024 (in millions, except per share data) (unaudited) | |||||||||
Acquisition or Divestiture- related (a) | Restructuring and Cost Reduction Initiatives (b) | Intangible Amortization | Other (c) | Total Specifieds | |||||
Gross Margin | $ 2 | $ 74 | $ 943 | $ 5 | $ 1,024 | ||||
R&D | (4) | (1) | — | (57) | (62) | ||||
SG&A | (25) | (19) | — | (47) | (91) | ||||
Other (income) expense, net | (135) | — | — | (36) | (171) | ||||
Earnings before taxes | $ 166 | $ 94 | $ 943 | $ 145 | 1,348 | ||||
Taxes on Earnings (d) | 143 | ||||||||
Net Earnings | $ 1,205 | ||||||||
Diluted Earnings per Share | $ 0.68 | ||||||||
The table above provides additional details regarding the specified items described on tables titled "Non-GAAP Reconciliation of Financial Information." | |
a) | Includes the loss on the sale of a non-core business. Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating acquired businesses, as well as other costs related to business acquisitions. |
b) | Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives. |
c) | Other includes incremental costs to comply with the MDR and IVDR regulations for previously approved products and charges for investment and intangible asset impairments. |
d) | Reflects the net tax benefit associated with the specified items and tax expense as a result of the resolution of various tax positions related to prior years. |
Abbott Laboratories and Subsidiaries Details of Specified Items First Half Ended June 30, 2023 (in millions, except per share data) (unaudited) | |||||||||
Acquisition or Divestiture- related (a) | Restructuring and Cost Reduction Initiatives (b) | Intangible Amortization | Other (c) | Total Specifieds | |||||
Gross Margin | $ 12 | $ 32 | $ 989 | $ 16 | $ 1,049 | ||||
R&D | (12) | 8 | — | (94) | (98) | ||||
SG&A | (21) | (6) | — | 3 | (24) | ||||
Other (income) expense, net | 41 | — | — | 16 | 57 | ||||
Earnings before taxes | $ 4 | $ 30 | $ 989 | $ 91 | 1,114 | ||||
Taxes on Earnings (d) | 99 | ||||||||
Net Earnings | $ 1,015 | ||||||||
Diluted Earnings per Share | $ 0.58 | ||||||||
The table above provides additional details regarding the specified items described on tables titled "Non-GAAP Reconciliation of Financial Information." | |
a) | Acquisition-related expenses include legal and other costs related to business acquisitions as well as integration costs, which represent incremental costs directly related to integrating acquired businesses. These costs were partially offset by fair value adjustments to contingent consideration related to business acquisitions. |
b) | Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives. |
c) | Other includes incremental costs to comply with the MDR and IVDR regulations for previously approved products and charges for intangible asset impairments. |
d) | Reflects the net tax benefit associated with the specified items and tax expense as a result of the resolution of various tax positions related to prior years. |
| Last Trade: | US$112.80 |
| Daily Change: | -2.19 -1.90 |
| Daily Volume: | 3,323,889 |
| Market Cap: | US$195.140B |
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