Abbott Reports Second-Quarter 2024 Results and Raises Full-Year Guidance
- Sales of $10.4 billion driven by strong underlying base business performance
- Reported sales growth of 4.0 percent; organic sales growth for underlying base business of 9.3 percent1, led by double-digit growth in Medical Devices
- Continues to strengthen portfolio with new product approvals
ABBOTT PARK, Ill., July 18, 2024 /PRNewswire/ -- Abbott (NYSE: ABT) today announced financial results for the second quarter ended June 30, 2024.
- Second-quarter GAAP diluted EPS of $0.74 and adjusted diluted EPS of $1.14, which excludes specified items.
- Abbott raised its full-year 2024 EPS guidance range. Abbott projects full-year diluted EPS on a GAAP basis of $3.30 to $3.40 and projects adjusted diluted EPS of $4.61 to $4.71.
- Abbott narrowed its full-year 2024 organic sales growth guidance range, excluding COVID-19 testing-related sales, to 9.5% to 10.0%, which represents an increase at the midpoint of the range2.
- In April, Abbott announced U.S. Food and Drug Administration (FDA) approval of the Esprit™ below-the-knee (BTK) system, a breakthrough innovation for people living with peripheral artery disease. This system is designed to keep arteries open and deliver a drug to support vessel healing prior to completely dissolving.
- In June, Abbott announced U.S. FDA clearance for two new over-the-counter continuous glucose monitoring systems — Lingo™ and Libre Rio™, which are based on Abbott's world-leading FreeStyle Libre® continuous glucose monitoring technology3.
- In June, Abbott obtained CE Mark for its AVEIR® dual chamber (DR) leadless pacemaker system, the world's first dual chamber leadless pacemaker system that treats people with abnormal or slow heart rhythms.
- During the first half of 2024, Abbott announced 10 new growth opportunities coming from the company's highly productive R&D pipeline. These include a combination of new product approvals and new treatment indications.
"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)
Visual performance / price development - Abbott Laboratories
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