Abbott Reports Fourth-Quarter and Full-Year 2023 Results; Issues 2024 Financial Outlook
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Insights
The reported quarterly sales growth of 1.5% and organic sales growth of 11.0% for Abbott's base business, excluding COVID-19 testing-related sales, indicate a strong underlying performance, particularly notable given the reported full-year sales decline of 8.1%. The decline is attributed to the anticipated reduction in COVID-19 testing sales, which is unsurprising as the demand for such testing diminishes with the progression of the pandemic from a global emergency to an endemic state. The provided full-year 2024 guidance suggests a conservative outlook with GAAP diluted EPS ranging from $3.20 to $3.40 and adjusted diluted EPS from $4.50 to $4.70, reflecting ongoing business confidence.
The company's dividend declaration for the 400th consecutive quarter, along with a history of increasing payouts for 52 years, positions Abbott as a Dividend Aristocrat. This status is often sought after by income-focused investors as it indicates a robust track record of shareholder returns. The ability to maintain and grow dividends is typically a sign of financial health and disciplined capital allocation strategies.
Abbott's market share recovery in the U.S. infant formula market is a significant development, particularly following past product recalls. The recovery not only indicates effective crisis management but also suggests strong brand resilience and customer loyalty. Additionally, the FDA approval of the GLP systems Track™ and progress with the Volt PFA System for treating atrial fibrillation highlight the company's commitment to innovation and its ability to navigate regulatory pathways.
Furthermore, the integration of Tandem Diabetes Care's t:slim X2™ insulin pump with Abbott's new FreeStyle Libre® 2 Plus sensor exemplifies strategic partnerships in the medical device sector, potentially enhancing competitive positioning and patient outcomes. These developments are likely to bolster Abbott's medical devices segment, which already shows robust growth and may contribute positively to future revenue streams.
The medical devices segment shows a particularly strong performance with a 17.5% reported growth, underpinned by double-digit organic growth across multiple product categories. This is a reflection of Abbott's successful product launches and the acquisition of new indications. The Electrophysiology sub-segment's international growth of over 25% is noteworthy, suggesting a successful expansion strategy in global markets, potentially Europe.
The company's R&D pipeline, including the Volt™ Pulsed Field Ablation (PFA) System, is indicative of a strategic focus on high-growth areas such as cardiac arrhythmia treatments. With the expected approval for its U.S. clinical trial, Abbott is poised to capture a significant market share in this space, considering the prevalence of conditions like atrial fibrillation. The ability to deliver innovative solutions that address unmet medical needs is crucial for long-term growth in the healthcare sector.
- Fourth-quarter reported sales increased 1.5 percent; organic sales growth for the underlying base business increased 11.0 percent
- Full-year 2023 reported sales decreased 8.1 percent due to anticipated decline in COVID-19 testing-related sales; organic sales growth for the underlying base business increased 11.6 percent
- Full-year 2023 GAAP diluted EPS of
$3.26 $4.44 - R&D pipeline continues to deliver steady cadence of new products
ABBOTT PARK, Ill., Jan. 24, 2024 /PRNewswire/ -- Abbott today announced financial results for the fourth quarter ended Dec. 31, 2023.
- Fourth-quarter sales increased 1.5 percent on a reported basis, 2.1 percent on an organic basis, and 11.0 percent on an organic basis, excluding COVID-19 testing-related sales1.
- Fourth-quarter GAAP diluted EPS of
$0.91 $1.19 - Abbott issues full-year 2024 guidance for diluted EPS on a GAAP basis of
$3.20 $3.40 $4.50 $4.70 - Abbott projects full-year 2024 organic sales growth, excluding COVID-19 testing-related sales, to be in the range of
8.0% to10.0% 2. - In 2023, Abbott continued to recapture market share in the
U.S. infant formula market. The company has now reclaimed its previous market-leading position, as measured on a volume basis. - In December, Abbott announced
U.S. Food and Drug Administration (FDA) approval of its new laboratory automation system, GLP systems Track™, to help laboratories optimize performance and safety to better meet the growing demand for diagnostic testing. - In January, Abbott announced that the first-in-human procedures were conducted using the company's new Volt™ Pulsed Field Ablation (PFA) System to treat patients with heart rhythm disorders such as atrial fibrillation (AFib). These procedures were part of Abbott's Volt CE Mark clinical study. Abbott anticipates approval for its
U.S. clinical trial (IDE) for the Volt PFA System in the first half of 2024. - In January, Abbott announced that Tandem Diabetes Care's t:slim X2™3 insulin pump is the first automated insulin delivery system in the
U.S. to integrate with Abbott's new FreeStyle Libre® 2 Plus sensor.
"The strength and diversity of the Abbott portfolio drove our success in 2023," said Robert B. Ford, chairman and chief executive officer, Abbott. "We're entering 2024 with a lot of positive momentum, and with our highly productive pipeline, we're well-positioned for growth in 2024 and beyond."
FOURTH-QUARTER BUSINESS OVERVIEW
Management believes that measuring sales growth rates on an organic basis, which excludes the impact of foreign exchange, the impact of exiting the pediatric nutrition business in
Note: In order to compute results excluding the impact of exchange rates, current year
Fourth Quarter 2023 Results (4Q23) | |||||||||
Sales 4Q23 ($ in millions) | Total Company | Nutrition | Diagnostics | Established | Medical Devices | ||||
3,949 | 860 | 1,020 | — | 2,065 | |||||
International | 6,292 | 1,178 | 1,514 | 1,222 | 2,378 | ||||
Total reported | 10,241 | 2,038 | 2,534 | 1,222 | 4,443 | ||||
% Change vs. 4Q22 | |||||||||
(6.4) | 8.2 | (38.8) | n/a | 17.6 | |||||
International | 7.2 | 15.3 | (6.0) | 0.5 | 17.5 | ||||
Total reported | 1.5 | 12.2 | (22.7) | 0.5 | 17.5 | ||||
Impact of foreign exchange | (0.8) | (0.7) | (0.4) | (8.3) | 1.0 | ||||
Impact of CSI acquisition | 0.4 | — | — | — | 1.1 | ||||
Impact of business exit | (0.2) | (1.0) | — | — | — | ||||
Organic | 2.1 | 13.9 | (22.3) | 8.8 | 15.4 | ||||
Impact of COVID-19 testing sales (4) | (8.9) | — | (24.5) | — | — | ||||
Organic (excluding COVID-19 tests) | 11.0 | 13.9 | 2.2 | 8.8 | 15.4 | ||||
| 7.1 | 8.2 | (10.7) | n/a | 15.5 | ||||
International | 13.4 | 18.5 | 10.9 | 8.8 | 15.4 | ||||
Full-Year 2023 Results (12M23) | |||||||||
Sales 12M23 ($ in millions) | Total Company | Nutrition | Diagnostics | Established | Medical Devices | ||||
15,452 | 3,413 | 4,329 | — | 7,696 | |||||
International | 24,657 | 4,741 | 5,659 | 5,066 | 9,191 | ||||
Total reported | 40,109 | 8,154 | 9,988 | 5,066 | 16,887 | ||||
% Change vs. 12M22 | |||||||||
(14.8) | 16.9 | (49.3) | n/a | 15.2 | |||||
International | (3.3) | 4.4 | (28.7) | 3.1 | 13.2 | ||||
Total reported | (8.1) | 9.3 | (39.4) | 3.1 | 14.1 | ||||
Impact of foreign exchange | (2.0) | (2.3) | (1.2) | (7.8) | (1.0) | ||||
Impact of CSI acquisition | 0.3 | — | — | — | 0.9 | ||||
Impact of business exit | (0.2) | (1.4) | — | — | — | ||||
Organic | (6.2) | 13.0 | (38.2) | 10.9 | 14.2 | ||||
Impact of COVID-19 testing sales (4) | (17.8) | — | (44.0) | — | — | ||||
Organic (excluding COVID-19 tests) | 11.6 | 13.0 | 5.8 | 10.9 | 14.2 | ||||
| 11.3 | 16.9 | 1.3 | n/a | 13.3 | ||||
International | 11.7 | 10.4 | 8.5 | 10.9 | 14.9 | ||||
Refer to table titled "Non-GAAP Revenue Reconciliation" for a reconciliation of adjusted historical revenue to reported revenue.
Nutrition | |||||
Fourth Quarter 2023 Results (4Q23) | |||||
Sales 4Q23 ($ in millions) | Total | Pediatric | Adult | ||
860 | 505 | 355 | |||
International | 1,178 | 480 | 698 | ||
Total reported | 2,038 | 985 | 1,053 | ||
% Change vs. 4Q22 | |||||
8.2 | 11.4 | 4.0 | |||
International | 15.3 | 12.3 | 17.4 | ||
Total reported | 12.2 | 11.8 | 12.5 | ||
Impact of foreign exchange | (0.7) | (0.5) | (0.9) | ||
Impact of business exit | (1.0) | (2.2) | — | ||
Organic | 13.9 | 14.5 | 13.4 | ||
| 8.2 | 11.4 | 4.0 | ||
International | 18.5 | 17.9 | 18.9 | ||
Worldwide Nutrition sales increased 12.2 percent on a reported basis and 13.9 percent on an organic basis in the fourth quarter. Refer to table titled "Non-GAAP Revenue Reconciliation" for a reconciliation of adjusted historical revenue to reported revenue.
In Pediatric Nutrition, global sales increased 11.8 percent on a reported basis and 14.5 percent on an organic basis. International sales increased 12.3 percent on a reported basis and 17.9 percent on an organic basis, which was led by strong growth in
In Adult Nutrition, global sales increased 12.5 percent on a reported basis and 13.4 percent on an organic basis, which was led by strong global growth of Ensure®, Abbott's market-leading complete and balanced nutrition brand.
Full-Year 2023 Results (12M23) | |||||
Sales 12M23 ($ in millions) | Total | Pediatric | Adult | ||
3,413 | 1,977 | 1,436 | |||
International | 4,741 | 1,957 | 2,784 | ||
Total reported | 8,154 | 3,934 | 4,220 | ||
% Change vs. 12M22 | |||||
16.9 | 26.6 | 5.8 | |||
International | 4.4 | 2.0 | 6.2 | ||
Total reported | 9.3 | 13.0 | 6.1 | ||
Impact of foreign exchange | (2.3) | (1.8) | (2.7) | ||
Impact of business exit | (1.4) | (3.1) | — | ||
Organic | 13.0 | 17.9 | 8.8 | ||
| 16.9 | 26.6 | 5.8 | ||
International | 10.4 | 10.3 | 10.4 | ||
Diagnostics | |||||||||
Fourth Quarter 2023 Results (4Q23) | |||||||||
Sales 4Q23 ($ in millions) | Total | Core Laboratory | Molecular | Point of Care | Rapid | ||||
1,020 | 326 | 44 | 107 | 543 | |||||
International | 1,514 | 1,044 | 109 | 42 | 319 | ||||
Total reported | 2,534 | 1,370 | 153 | 149 | 862 | ||||
% Change vs. 4Q22 | |||||||||
(38.8) | 8.3 | (27.7) | 20.7 | (55.3) | |||||
International | (6.0) | 8.4 | (7.8) | (1.0) | (34.4) | ||||
Total reported | (22.7) | 8.4 | (14.6) | 13.6 | (49.3) | ||||
Impact of foreign exchange | (0.4) | (0.7) | 0.3 | 0.6 | (0.1) | ||||
Organic | (22.3) | 9.1 | (14.9) | 13.0 | (49.2) | ||||
Impact of COVID-19 testing sales (4) | (24.5) | (0.6) | (16.6) | — | (35.5) | ||||
Organic (excluding COVID-19 tests) | 2.2 | 9.7 | 1.7 | 13.0 | (13.7) | ||||
| (10.7) | 8.8 | (12.6) | 20.7 | (29.2) | ||||
International | 10.9 | 10.0 | 8.2 | (2.9) | 18.6 | ||||
As expected, Diagnostics sales growth in the fourth quarter was negatively impacted by year-over-year declines in COVID-19 testing-related sales4. Worldwide COVID-19 testing sales were
Excluding COVID-19 testing-related sales, global Diagnostics sales increased 1.7 percent on a reported basis and 2.2 percent on an organic basis.
Full-Year 2023 Results (12M23) | |||||||||
Sales 12M23 ($ in millions) | Total | Core Laboratory | Molecular | Point of Care | Rapid | ||||
4,329 | 1,243 | 172 | 396 | 2,518 | |||||
International | 5,659 | 3,916 | 402 | 169 | 1,172 | ||||
Total reported | 9,988 | 5,159 | 574 | 565 | 3,690 | ||||
% Change vs. 12M22 | |||||||||
(49.3) | 9.3 | (53.6) | 6.4 | (62.1) | |||||
International | (28.7) | 4.4 | (35.7) | 10.3 | (65.6) | ||||
Total reported | (39.4) | 5.5 | (42.3) | 7.5 | (63.3) | ||||
Impact of foreign exchange | (1.2) | (2.9) | (0.7) | (0.2) | (0.4) | ||||
Organic | (38.2) | 8.4 | (41.6) | 7.7 | (62.9) | ||||
Impact of COVID-19 testing sales (4) | (44.0) | (1.0) | (33.5) | — | (64.2) | ||||
Organic (excluding COVID-19 tests) | 5.8 | 9.4 | (8.1) | 7.7 | 1.3 | ||||
| 1.3 | 10.1 | (17.8) | 6.4 | (4.8) | ||||
International | 8.5 | 9.1 | (3.8) | 10.8 | 11.6 | ||||
*The Acelis Connected Health business was internally transferred from Rapid Diagnostics to Heart Failure on January 1, 2023. As a result, |
Established Pharmaceuticals | |||||
Fourth Quarter 2023 Results (4Q23) | |||||
Sales 4Q23 ($ in millions) | Total | Key Emerging | Other | ||
— | — | — | |||
International | 1,222 | 918 | 304 | ||
Total reported | 1,222 | 918 | 304 | ||
% Change vs. 4Q22 | |||||
n/a | n/a | n/a | |||
International | 0.5 | 0.5 | 0.4 | ||
Total reported | 0.5 | 0.5 | 0.4 | ||
Impact of foreign exchange | (8.3) | (10.9) | (0.4) | ||
Organic | 8.8 | 11.4 | 0.8 | ||
| n/a | n/a | n/a | ||
International | 8.8 | 11.4 | 0.8 | ||
Established Pharmaceuticals sales increased 0.5 percent on a reported basis and 8.8 percent on an organic basis in the fourth 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 increased 0.5 percent on a reported basis and increased 11.4 percent on an organic basis, led by growth in several geographies and therapeutic areas, including cardiometabolic, gastroenterology, respiratory, and central nervous system/pain management.
Full-Year 2023 Results (12M23) | |||||
Sales 12M23 ($ in millions) | Total | Key Emerging | Other | ||
— | — | — | |||
International | 5,066 | 3,807 | 1,259 | ||
Total reported | 5,066 | 3,807 | 1,259 | ||
% Change vs. 12M22 | |||||
n/a | n/a | n/a | |||
International | 3.1 | 1.1 | 9.8 | ||
Total reported | 3.1 | 1.1 | 9.8 | ||
Impact of foreign exchange | (7.8) | (9.2) | (3.0) | ||
Organic | 10.9 | 10.3 | 12.8 | ||
| n/a | n/a | n/a | ||
International | 10.9 | 10.3 | 12.8 | ||
Medical Devices | |||||||||||||||
Fourth Quarter 2023 Results (4Q23) | |||||||||||||||
Sales 4Q23 ($ in millions) | Total | Rhythm | Electro- physiology | Heart | Vascular | Structural | Neuro- | Diabetes | |||||||
2,065 | 285 | 279 | 227 | 245 | 231 | 197 | 601 | ||||||||
International | 2,378 | 297 | 314 | 74 | 432 | 267 | 43 | 951 | |||||||
Total reported | 4,443 | 582 | 593 | 301 | 677 | 498 | 240 | 1,552 | |||||||
% Change vs. 4Q22 | |||||||||||||||
17.6 | 12.0 | 15.0 | 13.6 | 14.8 | 7.9 | 20.8 | 28.3 | ||||||||
International | 17.5 | 14.5 | 28.0 | 26.6 | 10.4 | 17.6 | 10.2 | 18.4 | |||||||
Total reported | 17.5 | 13.3 | 21.5 | 16.6 | 12.0 | 12.9 | 18.8 | 22.0 | |||||||
Impact of foreign exchange | 1.0 | 1.2 | 0.3 | 1.2 | 1.1 | 1.5 | — | 1.3 | |||||||
Impact of CSI acquisition | 1.1 | — | — | — | 6.4 | — | — | — | |||||||
Organic | 15.4 | 12.1 | 21.2 | 15.4 | 4.5 | 11.4 | 18.8 | 20.7 | |||||||
| 15.5 | 12.0 | 15.0 | 13.6 | (2.5) | 7.9 | 20.8 | 28.3 | |||||||
International | 15.4 | 12.1 | 27.3 | 21.4 | 8.3 | 14.7 | 10.2 | 16.2 | |||||||
Worldwide Medical Devices sales increased 17.5 percent on a reported basis and 15.4 percent on an organic basis in the fourth quarter. Sales growth was led by double-digit organic growth in Diabetes Care, Neuromodulation, Structural Heart, Electrophysiology, Heart Failure, and Rhythm Management. Several recently launched products and new indications contributed to the strong performance, including Amplatzer®, Amulet®, Navitor®, TriClip®, and AVEIR®.
In Electrophysiology, internationally, sales grew more than 25.0 percent on a reported and organic basis, which included sales growth of more than 20.0 percent in
In Diabetes Care, FreeStyle Libre sales were
Full-Year 2023 Results (12M23) | |||||||||||||||
Sales 12M23 ($ in millions) | Total | Rhythm | Electro- physiology | Heart | Vascular | Structural | Neuro- | Diabetes | |||||||
7,696 | 1,085 | 1,008 | 888 | 978 | 883 | 725 | 2,129 | ||||||||
International | 9,191 | 1,170 | 1,187 | 273 | 1,703 | 1,061 | 165 | 3,632 | |||||||
Total reported | 16,887 | 2,255 | 2,195 | 1,161 | 2,681 | 1,944 | 890 | 5,761 | |||||||
% Change vs. 12M22 | |||||||||||||||
15.2 | 5.5 | 10.8 | 9.6 | 13.2 | 7.9 | 17.2 | 30.3 | ||||||||
International | 13.2 | 7.4 | 16.6 | 21.1 | 5.2 | 18.7 | 9.0 | 16.3 | |||||||
Total reported | 14.1 | 6.5 | 13.9 | 12.1 | 8.0 | 13.6 | 15.5 | 21.1 | |||||||
Impact of foreign exchange | (1.0) | (1.0) | (2.0) | 0.1 | (1.3) | (0.7) | (0.9) | (0.8) | |||||||
Impact of CSI acquisition | 0.9 | — | — | — | 5.3 | — | — | — | |||||||
Organic | 14.2 | 7.5 | 15.9 | 12.0 | 4.0 | 14.3 | 16.4 | 21.9 | |||||||
| 13.3 | 5.5 | 10.8 | 9.6 | (1.0) | 7.9 | 17.2 | 30.3 | |||||||
International | 14.9 | 9.4 | 20.5 | 20.5 | 6.7 | 20.1 | 13.1 | 17.5 | |||||||
*The Acelis Connected Health business was internally transferred from Rapid Diagnostics to Heart Failure on January 1, 2023. As a result, |
ABBOTT'S EARNINGS-PER-SHARE GUIDANCE
Abbott projects full-year 2024 diluted earnings per share under GAAP of
ABBOTT DECLARES 400TH CONSECUTIVE QUARTERLY DIVIDEND
On Dec. 15, 2023, the board of directors of Abbott declared the company's quarterly dividend of
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, on LinkedIn at www.linkedin.com/company/abbott-/, on Facebook at www.facebook.com/Abbott and on Twitter @AbbottNews.
Abbott will live-webcast its fourth-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 December 31, 2022, 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 fourth quarter of 2023, total worldwide sales were |
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 | t:slimX2™ is a trademark of Tandem Diabetes Care, Inc. |
4 | Diagnostic sales and COVID-19 testing-related sales in 2023 and 2022 are summarized below: |
Sales 4Q23 | COVID Tests Sales 4Q23 | ||||||||||||
($ in millions) | Int'l | Total | Int'l | Total | |||||||||
Total Diagnostics | 1,020 | 1,514 | 2,534 | 224 | 64 | 288 | |||||||
Core Laboratory | 326 | 1,044 | 1,370 | 1 | 3 | 4 | |||||||
Molecular | 44 | 109 | 153 | 5 | 2 | 7 | |||||||
Rapid Diagnostics | 543 | 319 | 862 | 218 | 59 | 277 | |||||||
Sales 4Q22 | COVID Tests Sales 4Q22 | ||||||||||||
($ in millions) | Int'l | Total | Int'l | Total | |||||||||
Total Diagnostics | 1,667 | 1,610 | 3,277 | 776 | 293 | 1,069 | |||||||
Core Laboratory | 301 | 963 | 1,264 | 3 | 7 | 10 | |||||||
Molecular | 62 | 118 | 180 | 17 | 20 | 37 | |||||||
Rapid Diagnostics | 1,216 | 486 | 1,702 | 756 | 266 | 1,022 | |||||||
Sales 12M23 | COVID Tests Sales 12M23 | ||||||||||||
($ in millions) | Int'l | Total | Int'l | Total | |||||||||
Total Diagnostics | 4,329 | 5,659 | 9,988 | 1,255 | 331 | 1,586 | |||||||
Core Laboratory | 1,243 | 3,916 | 5,159 | 7 | 13 | 20 | |||||||
Molecular | 172 | 402 | 574 | 24 | 19 | 43 | |||||||
Rapid Diagnostics | 2,518 | 1,172 | 3,690 | 1,224 | 299 | 1,523 | |||||||
Sales 12M22 | COVID Tests Sales 12M22 | ||||||||||||
($ in millions) | Int'l | Total | Int'l | Total | |||||||||
Total Diagnostics | 8,531 | 7,938 | 16,469 | 5,498 | 2,870 | 8,368 | |||||||
Core Laboratory | 1,137 | 3,751 | 4,888 | 16 | 46 | 62 | |||||||
Molecular | 370 | 625 | 995 | 190 | 221 | 411 | |||||||
Rapid Diagnostics | 6,652 | 3,409 | 10,061 | 5,292 | 2,603 | 7,895 | |||||||
Abbott Laboratories and Subsidiaries Condensed Consolidated Statement of Earnings Fourth Quarter Ended December 31, 2023 and 2022 (in millions, except per share data) (unaudited) | ||||||
4Q23 | 4Q22 | % Change | ||||
Net Sales | 1.5 | |||||
Cost of products sold, excluding amortization expense | 4,556 | 4,593 | (0.8) | |||
Amortization of intangible assets | 481 | 496 | (3.1) | |||
Research and development | 700 | 725 | (3.6) | |||
Selling, general, and administrative | 2,724 | 2,973 | (8.3) | |||
Total Operating Cost and Expenses | 8,461 | 8,787 | (3.7) | |||
Operating Earnings | 1,780 | 1,304 | 36.5 | |||
Interest expense, net | 70 | 66 | 5.9 | |||
Net foreign exchange (gain) loss | 24 | (14) | n/m | |||
Other (income) expense, net | (109) | (68) | 60.9 | |||
Earnings before taxes | 1,795 | 1,320 | 36.0 | |||
Taxes on earnings | 201 | 287 | (29.6) | |||
Net Earnings | 54.2 | |||||
Net Earnings excluding Specified Items, as described below | 15.6 | 1) | ||||
Diluted Earnings per Common Share | 54.2 | |||||
Diluted Earnings per Common Share, excluding Specified Items, as described below | 15.5 | 1) | ||||
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options | 1,748 | 1,754 | ||||
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) | 2023 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of |
2022 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of | |
Abbott Laboratories and Subsidiaries Condensed Consolidated Statement of Earnings Twelve Months Ended December 31, 2023 and 2022 (in millions, except per share data) (unaudited) | ||||||
12M23 | 12M22 | % Change | ||||
Net Sales | (8.1) | |||||
Cost of products sold, excluding amortization expense | 17,975 | 19,142 | (6.1) | |||
Amortization of intangible assets | 1,966 | 2,013 | (2.3) | |||
Research and development | 2,741 | 2,888 | (5.1) | |||
Selling, general, and administrative | 10,949 | 11,248 | (2.7) | |||
Total Operating Cost and Expenses | 33,631 | 35,291 | (4.7) | |||
Operating Earnings | 6,478 | 8,362 | (22.5) | |||
Interest expense, net | 252 | 375 | (33.0) | |||
Net foreign exchange (gain) loss | 41 | 2 | n/m | |||
Other (income) expense, net | (479) | (321) | 49.3 | |||
Earnings before taxes | 6,664 | 8,306 | (19.8) | |||
Taxes on earnings | 941 | 1,373 | (31.4) | 1) | ||
Net Earnings | (17.5) | |||||
Net Earnings excluding Specified Items, as described below | (17.6) | 2) | ||||
Diluted Earnings per Common Share | (16.6) | |||||
Diluted Earnings per Common Share, excluding Specified Items, as described below | (16.9) | 2) | ||||
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options | 1,749 | 1,764 | ||||
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) | Taxes on Earnings includes the recognition of approximately |
2) | 2023 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of |
2022 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of | |
Abbott Laboratories and Subsidiaries Non-GAAP Reconciliation of Financial Information Fourth Quarter Ended December 31, 2023 and 2022 (in millions, except per share data) (unaudited) | |||||
4Q23 | |||||
As Reported | Specified | As Adjusted | |||
Intangible Amortization | $ 481 | $ (481) | $ — | ||
Gross Margin | 5,204 | 518 | 5,722 | ||
R&D | 700 | (78) | 622 | ||
SG&A | 2,724 | (35) | 2,689 | ||
Other (income) expense, net | (109) | (9) | (118) | ||
Earnings before taxes | 1,795 | 640 | 2,435 | ||
Taxes on Earnings | 201 | 140 | 341 | ||
Net Earnings | 1,594 | 500 | 2,094 | ||
Diluted Earnings per Share | $ 0.91 | $ 0.28 | $ 1.19 | ||
Specified items reflect intangible amortization expense of
4Q22 | |||||
As Reported | Specified | As Adjusted | |||
Intangible Amortization | $ 496 | $ (496) | $ — | ||
Gross Margin | 5,002 | 612 | 5,614 | ||
R&D | 725 | (71) | 654 | ||
SG&A | 2,973 | (144) | 2,829 | ||
Other (income) expense, net | (68) | (24) | (92) | ||
Earnings before taxes | 1,320 | 851 | 2,171 | ||
Taxes on Earnings | 287 | 73 | 360 | ||
Net Earnings | 1,033 | 778 | 1,811 | ||
Diluted Earnings per Share | $ 0.59 | $ 0.44 | $ 1.03 | ||
Specified items reflect intangible amortization expense of
Abbott Laboratories and Subsidiaries Non-GAAP Reconciliation of Financial Information Twelve Months Ended December 31, 2023 and 2022 (in millions, except per share data) (unaudited) | |||||
12M23 | |||||
As Reported | Specified | As Adjusted | |||
Intangible Amortization | $ 1,966 | $ (1,966) | $ — | ||
Gross Margin | 20,168 | 2,109 | 22,277 | ||
R&D | 2,741 | (222) | 2,519 | ||
SG&A | 10,949 | (102) | 10,847 | ||
Other (income) expense, net | (479) | 25 | (454) | ||
Earnings before taxes | 6,664 | 2,408 | 9,072 | ||
Taxes on Earnings | 941 | 329 | 1,270 | ||
Net Earnings | 5,723 | 2,079 | 7,802 | ||
Diluted Earnings per Share | $ 3.26 | $ 1.18 | $ 4.44 | ||
Specified items reflect intangible amortization expense of
12M22 | |||||
As Reported | Specified | As Adjusted | |||
Intangible Amortization | $ 2,013 | $ (2,013) | $ — | ||
Gross Margin | 22,498 | 2,351 | 24,849 | ||
R&D | 2,888 | (282) | 2,606 | ||
SG&A | 11,248 | (236) | 11,012 | ||
Other (income) expense, net | (321) | (55) | (376) | ||
Earnings before taxes | 8,306 | 2,924 | 11,230 | ||
Taxes on Earnings | 1,373 | 391 | 1,764 | ||
Net Earnings | 6,933 | 2,533 | 9,466 | ||
Diluted Earnings per Share | $ 3.91 | $ 1.43 | $ 5.34 | ||
Specified items reflect intangible amortization expense of
A reconciliation of the fourth-quarter tax rates for 2023 and 2022 is shown below:
4Q23 | ||||||
($ in millions) | Pre-Tax Income | Taxes on Earnings | Tax Rate | |||
As reported (GAAP) | $ 1,795 | $ 201 | 11.2 % | |||
Specified items | 640 | 140 | ||||
Excluding specified items | $ 2,435 | $ 341 | 14.0 % | |||
4Q22 | ||||||
($ in millions) | Pre-Tax Income | Taxes on Earnings | Tax Rate | |||
As reported (GAAP) | $ 1,320 | $ 287 | 21.7 % | |||
Specified items | 851 | 73 | ||||
Excluding specified items | $ 2,171 | $ 360 | 16.5 % | |||
A reconciliation of the year-to-date tax rates for 2023 and 2022 is shown below:
12M23 | ||||||
($ in millions) | Pre-Tax Income | Taxes on Earnings | Tax Rate | |||
As reported (GAAP) | $ 6,664 | $ 941 | 14.1 % | 1) | ||
Specified items | 2,408 | 329 | ||||
Excluding specified items | $ 9,072 | $ 1,270 | 14.0 % | |||
12M22 | ||||||
($ in millions) | Pre-Tax Income | Taxes on Earnings | Tax Rate | |||
As reported (GAAP) | $ 8,306 | $ 1,373 | 16.5 % | 2) | ||
Specified items | 2,924 | 391 | ||||
Excluding specified items | $ 11,230 | $ 1,764 | 15.7 % | |||
1) | 2023 Taxes on Earnings includes the recognition of approximately |
2) | 2022 Taxes on Earnings includes the recognition of approximately |
Abbott Laboratories and Subsidiaries Non-GAAP Revenue Reconciliation Fourth Quarter and Twelve Months Ended December 31, 2023 and 2022 ($ in millions) (unaudited) | ||||||||||||||
4Q23 | 4Q22 | % Change vs. 4Q22 | ||||||||||||
Non-GAAP | ||||||||||||||
Abbott | Impact of CSI | Impact from | Adjusted | Abbott | Impact from | Adjusted | Reported | Adjusted | Organic | |||||
Total Company | 10,241 | (40) | (7) | 10,194 | 10,091 | (23) | 10,068 | 1.5 | 1.3 | 2.1 | ||||
3,949 | (38) | — | 3,911 | 4,219 | — | 4,219 | (6.4) | (7.3) | (7.3) | |||||
Intl | 6,292 | (2) | (7) | 6,283 | 5,872 | (23) | 5,849 | 7.2 | 7.4 | 8.8 | ||||
Total Nutrition | 2,038 | — | (7) | 2,031 | 1,817 | (23) | 1,794 | 12.2 | 13.2 | 13.9 | ||||
860 | — | — | 860 | 795 | — | 795 | 8.2 | 8.2 | 8.2 | |||||
Intl | 1,178 | — | (7) | 1,171 | 1,022 | (23) | 999 | 15.3 | 17.2 | 18.5 | ||||
Pediatric Nutrition | 985 | — | (7) | 978 | 882 | (23) | 859 | 11.8 | 14.0 | 14.5 | ||||
505 | — | — | 505 | 454 | — | 454 | 11.4 | 11.4 | 11.4 | |||||
Intl | 480 | — | (7) | 473 | 428 | (23) | 405 | 12.3 | 16.9 | 17.9 | ||||
Total Medical Devices | 4,443 | (40) | — | 4,403 | 3,778 | — | 3,778 | 17.5 | 16.4 | 15.4 | ||||
2,065 | (38) | — | 2,027 | 1,754 | — | 1,754 | 17.6 | 15.5 | 15.5 | |||||
Intl | 2,378 | (2) | — | 2,376 | 2,024 | — | 2,024 | 17.5 | 17.4 | 15.4 | ||||
Vascular | 677 | (40) | — | 637 | 605 | — | 605 | 12.0 | 5.6 | 4.5 | ||||
245 | (38) | — | 207 | 214 | — | 214 | 14.8 | (2.5) | (2.5) | |||||
Intl | 432 | (2) | — | 430 | 391 | — | 391 | 10.4 | 9.9 | 8.3 | ||||
12M23 | 12M22 | % Change vs. 12M22 | ||||||||||
Non-GAAP | ||||||||||||
Abbott | Impact of CSI | Impact from | Adjusted | Abbott | Impact from | Adjusted | Reported | Adjusted | Organic | |||
Total Company | 40,109 | (130) | (48) | 39,931 | 43,653 | (135) | 43,518 | (8.1) | (8.2) | (6.2) | ||
15,452 | (123) | — | 15,329 | 18,142 | — | 18,142 | (14.8) | (15.5) | (15.5) | |||
Intl | 24,657 | (7) | (48) | 24,602 | 25,511 | (135) | 25,376 | (3.3) | (3.0) | 0.5 | ||
Total Nutrition | 8,154 | — | (48) | 8,106 | 7,459 | (135) | 7,324 | 9.3 | 10.7 | 13.0 | ||
3,413 | — | — | 3,413 | 2,919 | — | 2,919 | 16.9 | 16.9 | 16.9 | |||
Intl | 4,741 | — | (48) | 4,693 | 4,540 | (135) | 4,405 | 4.4 | 6.6 | 10.4 | ||
Pediatric Nutrition | 3,934 | — | (48) | 3,886 | 3,481 | (135) | 3,346 | 13.0 | 16.1 | 17.9 | ||
1,977 | — | — | 1,977 | 1,562 | — | 1,562 | 26.6 | 26.6 | 26.6 | |||
Intl | 1,957 | — | (48) | 1,909 | 1,919 | (135) | 1,784 | 2.0 | 7.1 | 10.3 | ||
Total Medical Devices | 16,887 | (130) | — | 16,757 | 14,802 | — | 14,802 | 14.1 | 13.2 | 14.2 | ||
7,696 | (123) | — | 7,573 | 6,681 | — | 6,681 | 15.2 | 13.3 | 13.3 | |||
Intl | 9,191 | (7) | — | 9,184 | 8,121 | — | 8,121 | 13.2 | 13.1 | 14.9 | ||
Vascular | 2,681 | (130) | — | 2,551 | 2,483 | — | 2,483 | 8.0 | 2.7 | 4.0 | ||
978 | (123) | — | 855 | 864 | — | 864 | 13.2 | (1.0) | (1.0) | |||
Intl | 1,703 | (7) | — | 1,696 | 1,619 | — | 1,619 | 5.2 | 4.7 | 6.7 | ||
(a) | Reflects the impact of the acquisition of Cardiovascular Systems, Inc. (CSI) on April 27, 2023. |
(b) | Reflects the impact of exiting the pediatric nutrition business in |
Abbott Laboratories and Subsidiaries Details of Specified Items Fourth Quarter Ended December 31, 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 | $ 1 | $ 29 | $ 481 | $ 7 | $ 518 | ||||
R&D | (6) | (4) | — | (68) | (78) | ||||
SG&A | (15) | (5) | — | (15) | (35) | ||||
Other (income) expense, net | (6) | — | — | (3) | (9) | ||||
Earnings before taxes | $ 28 | $ 38 | $ 481 | $ 93 | 640 | ||||
Taxes on Earnings (d) | 140 | ||||||||
Net Earnings | $ 500 | ||||||||
Diluted Earnings per Share | $ 0.28 | ||||||||
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 integration costs, which represent incremental costs directly related to integrating acquired businesses, as well as legal and 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 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. |
Abbott Laboratories and Subsidiaries Details of Specified Items Fourth Quarter Ended December 31, 2022 (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 | $ 23 | $ 87 | $ 496 | $ 6 | $ 612 | ||||
R&D | (6) | (34) | — | (31) | (71) | ||||
SG&A | (7) | (135) | — | (2) | (144) | ||||
Other (income) expense, net | 3 | — | — | (27) | (24) | ||||
Earnings before taxes | $ 33 | $ 256 | $ 496 | $ 66 | 851 | ||||
Taxes on Earnings (d) | 73 | ||||||||
Net Earnings | $ 778 | ||||||||
Diluted Earnings per Share | $ 0.44 | ||||||||
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 integration costs, which represent incremental costs directly related to integrating the acquired businesses and include expenditures for the integration of systems, processes and business activities. |
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 as well as the impairment of an equity investment. |
d) | Reflects the net tax benefit associated with the specified items. |
Abbott Laboratories and Subsidiaries Details of Specified Items Twelve Months Ended December 31, 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 | $ 16 | $ 80 | $ 1,966 | $ 47 | $ 2,109 | ||||
R&D | (19) | (9) | — | (194) | (222) | ||||
SG&A | (58) | (33) | — | (11) | (102) | ||||
Other (income) expense, net | 40 | — | — | (15) | 25 | ||||
Earnings before taxes | $ 53 | $ 122 | $ 1,966 | $ 267 | 2,408 | ||||
Taxes on Earnings (d) | 329 | ||||||||
Net Earnings | $ 2,079 | ||||||||
Diluted Earnings per Share | $ 1.18 | ||||||||
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. |
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. |
Abbott Laboratories and Subsidiaries Details of Specified Items Twelve Months Ended December 31, 2022 (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 | $ 79 | $ 86 | $ 2,013 | $ 173 | $ 2,351 | ||||
R&D | (16) | (38) | — | (228) | (282) | ||||
SG&A | (38) | (140) | — | (58) | (236) | ||||
Other (income) expense, net | (12) | — | — | (43) | (55) | ||||
Earnings before taxes | $ 145 | $ 264 | $ 2,013 | $ 502 | 2,924 | ||||
Taxes on Earnings (d) | 391 | ||||||||
Net Earnings | $ 2,533 | ||||||||
Diluted Earnings per Share | $ 1.43 | ||||||||
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 integration costs, which represent incremental costs directly related to integrating the acquired businesses and include expenditures for the integration of systems, processes and business activities. |
b) | Restructuring and cost reduction initiative expenses include severance, outplacement, and other direct costs associated with specific restructuring plans and cost reduction initiatives. The Gross Margin amount includes a credit associated with the charges taken in the second quarter of 2021 for a restructuring plan related to Abbott's manufacturing network for COVID-19 diagnostic tests. |
c) | Other primarily relates to the net costs related to a voluntary recall within the Nutrition segment, charges associated with the impairments of R&D intangible assets and an equity investment acquired in a business combination, incremental costs to comply with the European Union's MDR and IVDR Regulations for previously approved products and costs related to certain litigation. |
d) | Reflects the net tax benefit associated with the specified items, excess tax benefits associated with share-based compensation and net tax expense as a result of the resolution of various tax positions related to prior years. |
View original content:https://www.prnewswire.com/news-releases/abbott-reports-fourth-quarter-and-full-year-2023-results-issues-2024-financial-outlook-302043275.html
SOURCE Abbott
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