EX-99.12abt-2024q3xexhibitx991.htmEX-99.1 Document
Exhibit 99.1 1
News Release
Abbott Reports Third-Quarter 2024 Results and Raises Midpoint of Full-Year EPS Guidance Range
–Sales of $10.6 billion driven by strong underlying base business performance
–Reported sales growth of 4.9 percent; organic sales growth for underlying base business of 8.2 percent1, led by double-digit growth in Medical Devices
–Continues to strengthen portfolio with steady cadence of new product approvals, reimbursement coverage, and clinical data
ABBOTT PARK, Ill., Oct. 16, 2024 — Abbott today announced financial results for the third quarter ended Sept. 30, 2024.
•Third-quarter GAAP diluted EPS of $0.94 and adjusted diluted EPS of $1.21, which excludes specified items.
•G1Abbott maintains its full-year 2024 organic sales growth guidance range of 9.5% to 10.0%, excluding COVID-19 testing-related sales2.
•G2Abbott now projects full-year diluted EPS on a GAAP basis of $3.34 to $3.40 and G3projects adjusted diluted EPS of $4.64 to $4.70, which represents an increase at the midpoint of the guidance range.
•In October, Abbott's board of directors authorized a new share repurchase program of up to $7 billion of the company's common shares.
•In August, Abbott announced a unique global partnership with Medtronic to collaborate on connecting Abbott's world-leading continuous glucose monitoring (CGM) system with Medtronic's insulin delivery devices.
•In September, Abbott announced the U.S. launch of Lingo™, the company's first continuous glucose monitoring system available without a prescription and designed for people interested in improving their overall health and wellness.
•In September, Abbott announced a partnership with the Big Ten Conference® to conduct a nationwide blood donation competition to help increase the U.S. blood supply.
•In September, Abbott completed enrollment ahead of schedule in its VOLT-AF IDE trial, which is designed to evaluate the Volt™ Pulsed Field Ablation (PFA) System for treating patients with heart rhythm disorders such as atrial fibrillation (AFib).
"Our results this quarter demonstrate the strength of our diversified business model," said Robert B. Ford, chairman and chief executive officer, Abbott. "We're well-positioned to achieve the upper end of our initial guidance ranges for the year and have great momentum heading into next year."
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THIRD-QUARTER BUSINESS OVERVIEW
Management believes that measuring sales growth rates on an organic basis, which excludes the impact of foreign exchange and the impact of discontinuing the ZonePerfect® product line in the Nutrition business, 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.
Third Quarter 2024 Results (3Q24)
Sales 3Q24 ($ in millions)
Total Company
Nutrition
Diagnostics
Established Pharmaceuticals
Medical Devices
U.S.
4,202
950
1,032
—
2,216
International
6,433
1,116
1,380
1,406
2,531
Total reported
10,635
2,066
2,412
1,406
4,747
% Change vs. 3Q23
U.S.
10.1
10.4
1.8
n/a
14.2
International
1.7
(7.9)
(3.8)
2.7
9.6
Total reported
4.9
(0.3)
(1.5)
2.7
11.7
Impact of foreign exchange
(2.5)
(3.1)
(2.9)
(4.3)
(1.6)
Impact of business exit*
(0.2)
(0.6)
—
—
—
Organic
7.6
3.4
1.4
7.0
13.3
Impact of COVID-19 testing sales (3)
(0.6)
—
(1.9)
—
—
Organic (excluding COVID-19 tests)
8.2
3.4
3.3
7.0
13.3
U.S.
11.0
11.9
2.4
n/a
14.2
International
6.5
(2.6)
3.8
7.0
12.5
First Nine Months 2024 Results (9M24)
Sales 9M24 ($ in millions)
Total Company
Nutrition
Diagnostics
Established Pharmaceuticals
Medical Devices
U.S.
11,982
2,761
2,775
—
6,435
International
18,994
3,523
4,046
3,926
7,499
Total reported
30,976
6,284
6,821
3,926
13,934
% Change vs. 9M23
U.S.
4.2
8.1
(16.2)
n/a
14.3
International
3.4
(1.1)
(2.4)
2.1
10.1
Total reported
3.7
2.7
(8.5)
2.1
12.0
Impact of foreign exchange
(3.0)
(3.1)
(2.9)
(7.3)
(1.6)
Impact of business exit and acquisition*
0.1
(0.4)
—
—
0.4
Organic
6.6
6.2
(5.6)
9.4
13.2
Impact of COVID-19 testing sales (3)
(2.8)
—
(10.4)
—
—
Organic (excluding COVID-19 tests)
9.4
6.2
4.8
9.4
13.2
U.S.
10.0
9.0
3.0
n/a
13.3
International
9.0
4.2
5.9
9.4
13.1
Refer to page 16 for a reconciliation of adjusted historical revenue to reported revenue.
*Quarter to date Sept. 30, 2024, reflects the impact of discontinuing the ZonePerfect® product line in the Nutrition business in March 2024. Year to date Sept. 30, 2024, 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.
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Nutrition
Third Quarter 2024 Results (3Q24)
Sales 3Q24 ($ in millions)
Total
Pediatric
Adult
U.S.
950
568
382
International
1,116
387
729
Total reported
2,066
955
1,111
% Change vs. 3Q23
U.S.
10.4
12.2
7.9
International
(7.9)
(21.6)
1.5
Total reported
(0.3)
(4.5)
3.6
Impact of foreign exchange
(3.1)
(1.8)
(4.4)
Impact of business exit*
(0.6)
—
(1.1)
Organic
3.4
(2.7)
9.1
U.S.
11.9
12.2
11.5
International
(2.6)
(18.0)
8.0
Worldwide Nutrition sales decreased 0.3 percent on a reported basis and increased 3.4 percent on an organic basis in the third quarter, led by growth in Adult Nutrition.
In Adult Nutrition, global sales increased 3.6 percent on a reported basis and 9.1 percent on an organic basis, which was led by growth of Ensure®, Abbott's market-leading complete and balanced nutrition brand.
First Nine Months 2024 Results (9M24)
Sales 9M24 ($ in millions)
Total
Pediatric
Adult
U.S.
2,761
1,646
1,115
International
3,523
1,377
2,146
Total reported
6,284
3,023
3,261
% Change vs. 9M23
U.S.
8.1
11.8
3.2
International
(1.1)
(6.8)
2.8
Total reported
2.7
2.5
3.0
Impact of foreign exchange
(3.1)
(1.6)
(4.4)
Impact of business exit*
(0.4)
—
(0.7)
Organic
6.2
4.1
8.1
U.S.
9.0
11.8
5.0
International
4.2
(3.6)
9.7
*Reflects the impact of discontinuing the ZonePerfect® product line. This action was initiated in March 2024.
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Diagnostics
Third Quarter 2024 Results (3Q24)
Sales 3Q24 ($ in millions)
Total
Core Laboratory
Molecular
Point of Care
Rapid Diagnostics
U.S.
1,032
332
37
103
560
International
1,380
982
91
43
264
Total reported
2,412
1,314
128
146
824
% Change vs. 3Q23
U.S.
1.8
4.5
(2.8)
6.0
(0.2)
International
(3.8)
(1.5)
(3.9)
0.7
(12.2)
Total reported
(1.5)
—
(3.6)
4.4
(4.4)
Impact of foreign exchange
(2.9)
(4.3)
(1.5)
(0.2)
(1.4)
Organic
1.4
4.3
(2.1)
4.6
(3.0)
Impact of COVID-19 testing sales (3)
(1.9)
(0.2)
(3.9)
—
(3.4)
Organic (excluding COVID-19 tests)
3.3
4.5
1.8
4.6
0.4
U.S.
2.4
4.8
4.5
6.0
(1.0)
International
3.8
4.4
0.8
1.3
2.8
As expected, Diagnostics sales growth in the third quarter was negatively impacted by year-over-year declines in COVID-19 testing-related sales3. Worldwide COVID-19 testing sales were $265 million in the third quarter of 2024 compared to $305 million in the third quarter of the prior year.
Excluding COVID-19 testing-related sales, global Diagnostics sales increased 0.2 percent on a reported basis and increased 3.3 percent on an organic basis.
Excluding COVID-19 testing-related sales, global Core Laboratory Diagnostics sales grew 0.1 percent on a reported basis and increased 4.5 percent on an organic basis, led by continued adoption of Abbott's Alinity® family of diagnostics systems and testing portfolios.
First Nine Months 2024 Results (9M24)
Sales 9M24 ($ in millions)
Total
Core Laboratory
Molecular
Point of Care
Rapid Diagnostics
U.S.
2,775
969
112
308
1,386
International
4,046
2,879
272
133
762
Total reported
6,821
3,848
384
441
2,148
% Change vs. 9M23
U.S.
(16.2)
5.6
(12.3)
6.6
(29.8)
International
(2.4)
0.3
(7.2)
4.8
(10.6)
Total reported
(8.5)
1.5
(8.7)
6.0
(24.0)
Impact of foreign exchange
(2.9)
(4.8)
(0.8)
(0.1)
(1.1)
Organic
(5.6)
6.3
(7.9)
6.1
(22.9)
Impact of COVID-19 testing sales (3)
(10.4)
(0.2)
(6.3)
—
(25.0)
Organic (excluding COVID-19 tests)
4.8
6.5
(1.6)
6.1
2.1
U.S.
3.0
5.9
(3.3)
6.6
(0.1)
International
5.9
6.7
(0.9)
5.1
5.7
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Established Pharmaceuticals
Third Quarter 2024 Results (3Q24)
Sales 3Q24 ($ in millions)
Total
Key Emerging Markets
Other
U.S.
—
—
—
International
1,406
994
412
Total reported
1,406
994
412
% Change vs. 3Q23
U.S.
n/a
n/a
n/a
International
2.7
0.7
8.1
Total reported
2.7
0.7
8.1
Impact of foreign exchange
(4.3)
(4.7)
(3.1)
Organic
7.0
5.4
11.2
U.S.
n/a
n/a
n/a
International
7.0
5.4
11.2
Established Pharmaceuticals sales increased 2.7 percent on a reported basis and 7.0 percent on an organic basis in the third 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 0.7 percent on a reported basis and increased 5.4 percent on an organic basis, led by growth in several geographies and therapeutic areas, including gastroenterology, cardiometabolic, and central nervous system/pain management.
First Nine Months 2024 Results (9M24)
Sales 9M24 ($ in millions)
Total
Key Emerging Markets
Other
U.S.
—
—
—
International
3,926
2,910
1,016
Total reported
3,926
2,910
1,016
% Change vs. 9M23
U.S.
n/a
n/a
n/a
International
2.1
0.7
6.4
Total reported
2.1
0.7
6.4
Impact of foreign exchange
(7.3)
(9.0)
(2.2)
Organic
9.4
9.7
8.6
U.S.
n/a
n/a
n/a
International
9.4
9.7
8.6
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Medical Devices
Third Quarter 2024 Results (3Q24)
Sales 3Q24 ($ in millions)
Total
Rhythm Management
Electro-
physiology
Heart Failure
Vascular
Structural Heart
Neuro-modulation
Diabetes Care
U.S.
2,216
288
285
252
258
270
190
673
International
2,531
309
325
70
441
288
46
1,052
Total reported
4,747
597
610
322
699
558
236
1,725
% Change vs. 3Q23
U.S.
14.2
6.0
15.8
16.7
2.8
21.1
0.8
23.6
International
9.6
5.7
9.2
5.2
4.5
9.2
17.8
13.3
Total reported
11.7
5.9
12.2
14.0
3.9
14.6
3.8
17.1
Impact of foreign exchange
(1.6)
(1.1)
(2.1)
(0.4)
(1.0)
(1.9)
(1.4)
(2.0)
Organic
13.3
7.0
14.3
14.4
4.9
16.5
5.2
19.1
U.S.
14.2
6.0
15.8
16.7
2.8
21.1
0.8
23.6
International
12.5
7.9
13.0
6.6
6.2
12.6
25.7
16.5
Worldwide Medical Devices sales increased 11.7 percent on a reported basis and 13.3 percent on an organic basis in the third quarter, including double-digit organic growth in both the U.S. and internationally.
Sales growth was led by double-digit growth in Diabetes Care, Structural Heart, Heart Failure, and Electrophysiology. Several products contributed to the strong performance, including FreeStyle Libre®, Navitor®, TriClip®, Amplatzer® Amulet®, and AVEIR®.
In Electrophysiology, sales grew 12.2 percent on a reported basis and 14.3 percent on an organic basis, which included double-digit growth in catheters and cardiac mapping-related products.
In Diabetes Care, sales of continuous glucose monitors exceeded $1.6 billion and grew 19.1 percent on a reported basis and 20.7 percent on an organic basis.
First Nine Months 2024 Results (9M24)
Sales 9M24 ($ in millions)
Total
Rhythm Management
Electro-
physiology
Heart Failure
Vascular
Structural Heart
Neuro-modulation
Diabetes Care
U.S.
6,435
851
841
733
787
761
563
1,899
International
7,499
915
983
215
1,325
876
142
3,043
Total reported
13,934
1,766
1,824
948
2,112
1,637
705
4,942
% Change vs. 9M23
U.S.
14.3
6.4
15.3
11.0
7.4
16.7
6.5
24.3
International
10.1
4.8
12.6
8.2
4.2
10.3
16.5
13.5
Total reported
12.0
5.6
13.8
10.4
5.4
13.2
8.4
17.4
Impact of foreign exchange
(1.6)
(1.2)
(2.6)
(0.1)
(1.3)
(1.9)
(1.5)
(1.9)
Impact of acquisition*
0.4
—
—
—
2.8
—
—
—
Organic
13.2
6.8
16.4
10.5
3.9
15.1
9.9
19.3
U.S.
13.3
6.4
15.3
11.0
0.1
16.7
6.5
24.3
International
13.1
7.1
17.4
8.9
6.0
13.7
24.6
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.
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ABBOTT'S EARNINGS-PER-SHARE GUIDANCE
Abbott projects full-year 2024 diluted earnings per share under GAAP of $3.34 to $3.40. Abbott forecasts specified items for the full-year 2024 of $1.30 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 $4.64 to $4.70 for the full-year 2024.
G4Abbott projects fourth-quarter 2024 diluted earnings per share under GAAP of $0.96 to $1.02. Abbott forecasts specified items for the fourth-quarter 2024 of $0.35 per share primarily related to intangible amortization, restructuring and cost reduction initiatives and other net expenses. Excluding specified items, G5projected adjusted diluted earnings per share would be $1.31 to $1.37 for the fourth quarter 2024.
ABBOTT DECLARES 403RD CONSECUTIVE QUARTERLY DIVIDEND
On Sept. 19, 2024, the board of directors of Abbott declared the company's quarterly dividend of $0.55 per share. Abbott's cash dividend is payable Nov. 15, 2024, to shareholders of record at the close of business on Oct. 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 third-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.
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— 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.
Abbott Financial:
Michael Comilla, 224-668-1872
Tamika LeBean, 224-399-5082
Ryan Aliff, 224-667-2299
Abbott Media:
Karen Twigg May, 224-668-2681
Kate Dyer, 224-668-9965
1In the third quarter of 2024, total worldwide sales were $10.635 billion and COVID-19 testing-related sales were $265 million. In the third quarter of 2023, total worldwide sales were $10.143 billion and COVID-19 testing-related sales were $305 million.
2Abbott has not provided the related GAAP financial measure for organic sales growth, excluding COVID-19 testing-related sales, on a forward-looking basis because the company is unable to predict with reasonable certainty the impact of foreign exchange due to the unpredictability of future changes in foreign exchange rates, which could significantly impact reported sales growth. In addition, as the COVID-19 pandemic has shifted to an endemic state, the company has determined that it is unable to predict with reasonable certainty future COVID-19 test sales due to the unpredictability of demand for COVID-19 tests.
3Diagnostic sales and COVID-19 testing-related sales in 2024 and 2023 are summarized below:
Sales 3Q24
COVID Tests Sales 3Q24
($ in millions)
U.S.
Int'l
Total
U.S.
Int'l
Total
Total Diagnostics
1,032
1,380
2,412
206
59
265
Core Laboratory
332
982
1,314
1
2
3
Molecular
37
91
128
2
1
3
Rapid Diagnostics
560
264
824
203
56
259
Sales 3Q23
COVID Tests Sales 3Q23
($ in millions)
U.S.
Int'l
Total
U.S.
Int'l
Total
Total Diagnostics
1,013
1,436
2,449
207
98
305
Core Laboratory
317
997
1,314
2
3
5
Molecular
38
95
133
5
3
8
Rapid Diagnostics
561
301
862
200
92
292
Sales 9M24
COVID Tests Sales 9M24
($ in millions)
U.S.
Int'l
Total
U.S.
Int'l
Total
Total Diagnostics
2,775
4,046
6,821
428
143
571
Core Laboratory
969
2,879
3,848
3
5
8
Molecular
112
272
384
7
3
10
Rapid Diagnostics
1,386
762
2,148
418
135
553
Sales 9M23
COVID Tests Sales 9M23
($ in millions)
U.S.
Int'l
Total
U.S.
Int'l
Total
Total Diagnostics
3,309
4,145
7,454
1,031
267
1,298
Core Laboratory
917
2,872
3,789
6
10
16
Molecular
128
293
421
19
17
36
Rapid Diagnostics
1,975
853
2,828
1,006
240
1,246
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Abbott Laboratories and Subsidiaries
Condensed Consolidated Statement of Earnings
Third Quarter Ended September 30, 2024 and 2023
(in millions, except per share data)
(unaudited)
3Q24
3Q23
% Change
Net Sales
$10,635
$10,143
4.9
Cost of products sold, excluding amortization expense
4,698
4,605
2.0
Amortization of intangible assets
470
496
(5.1)
Research and development
713
672
6.1
Selling, general, and administrative
2,895
2,723
6.3
Total Operating Cost and Expenses
8,776
8,496
3.3
Operating Earnings
1,859
1,647
12.8
Interest expense, net
51
69
(26.0)
Net foreign exchange (gain) loss
(11)
(10)
n/m
Other (income) expense, net
(121)
(83)
n/m
Earnings before taxes
1,940
1,671
16.1
Taxes on earnings
294
235
25.6
Net Earnings
$1,646
$1,436
14.6
Net Earnings excluding Specified Items, as described below
$2,119
$2,000
5.9
1)
Diluted Earnings per Common Share
$0.94
$0.82
14.6
Diluted Earnings per Common Share,
excluding Specified Items, as described below
$1.21
$1.14
6.1
1)
Average Number of Common Shares Outstanding
Plus Dilutive Common Stock Options
1,748
1,748
NOTES:
See tables on page 13 for an explanation of certain non-GAAP financial information.
n/m = Percent change is not meaningful.
See footnotes on the following page.
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1)2024 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $473 million, or $0.27 per share, for intangible amortization, charges related to intangible impairment, 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 $564 million, or $0.32 per share, for intangible amortization, charges related to the impairment of R&D intangible assets, expenses associated with acquisitions, restructuring and cost reduction initiatives and other net expenses.
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Abbott Laboratories and Subsidiaries
Condensed Consolidated Statement of Earnings
Nine Months Ended September 30, 2024 and 2023
(in millions, except per share data)
(unaudited)
9M24
9M23
% Change
Net Sales
$30,976
$29,868
3.7
Cost of products sold, excluding amortization expense
13,764
13,419
2.6
Amortization of intangible assets
1,413
1,485
(4.9)
Research and development
2,095
2,041
2.6
Selling, general, and administrative
8,790
8,225
6.9
Total Operating Cost and Expenses
26,062
25,170
3.5
Operating Earnings
4,914
4,698
4.6
Interest expense, net
170
182
(6.4)
Net foreign exchange (gain) loss
(17)
17
n/m
Other (income) expense, net
(222)
(370)
n/m
Earnings before taxes
4,983
4,869
2.3
Taxes on earnings
810
740
9.6
1)
Net Earnings
$4,173
$4,129
1.0
Net Earnings excluding Specified Items, as described below
$5,851
$5,708
2.5
2)
Diluted Earnings per Common Share
$2.38
$2.35
1.3
Diluted Earnings per Common Share,
excluding Specified Items, as described below
$3.33
$3.25
2.5
2)
Average Number of Common Shares Outstanding
Plus Dilutive Common Stock Options
1,749
1,750
NOTES:
See tables on page 14 for an explanation of certain non-GAAP financial information.
n/m = Percent change is not meaningful.
See footnotes on the following page.
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Page 11 of 20
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 $59 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 $1.678 billion, or $0.95 per share, for intangible amortization, charges related to intangible impairment, 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 $1.579 billion, or $0.90 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions and other net expenses.
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Page 12 of 20
Abbott Laboratories and Subsidiaries
Non-GAAP Reconciliation of Financial Information
Third Quarter Ended September 30, 2024 and 2023
(in millions, except per share data)
(unaudited)
3Q24
As
Reported (GAAP)
Specified Items
As
Adjusted
Intangible Amortization
$
470
$
(470)
$
—
Gross Margin
5,467
516
5,983
R&D
713
(19)
694
SG&A
2,895
(5)
2,890
Other (income) expense, net
(121)
(12)
(133)
Earnings before taxes
1,940
552
2,492
Taxes on Earnings
294
79
373
Net Earnings
1,646
473
2,119
Diluted Earnings per Share
$
0.94
$
0.27
$
1.21
Specified items reflect intangible amortization expense of $470 million and other net expenses of $82 million associated with charges related to intangible impairment, acquisitions, a divestiture and other net expenses. See page 17 for additional details regarding specified items.
3Q23
As
Reported (GAAP)
Specified Items
As
Adjusted
Intangible Amortization
$
496
$
(496)
$
—
Gross Margin
5,042
542
5,584
R&D
672
(46)
626
SG&A
2,723
(43)
2,680
Other (income) expense, net
(83)
(23)
(106)
Earnings before taxes
1,671
654
2,325
Taxes on Earnings
235
90
325
Net Earnings
1,436
564
2,000
Diluted Earnings per Share
$
0.82
$
0.32
$
1.14
Specified items reflect intangible amortization expense of $496 million and other net expenses of $158 million associated with restructuring actions, costs associated with acquisitions and other net expenses. See page 18 for additional details regarding specified items.
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Page 13 of 20
Abbott Laboratories and Subsidiaries
Non-GAAP Reconciliation of Financial Information
Nine Months Ended September 30, 2024 and 2023
(in millions, except per share data)
(unaudited)
9M24
As
Reported (GAAP)
Specified Items
As
Adjusted
Intangible Amortization
$
1,413
$
(1,413)
$
—
Gross Margin
15,799
1,540
17,339
R&D
2,095
(81)
2,014
SG&A
8,790
(96)
8,694
Other (income) expense, net
(222)
(183)
(405)
Earnings before taxes
4,983
1,900
6,883
Taxes on Earnings
810
222
1,032
Net Earnings
4,173
1,678
5,851
Diluted Earnings per Share
$
2.38
$
0.95
$
3.33
Specified items reflect intangible amortization expense of $1.413 billion and other net expenses of $487 million associated with restructuring actions, acquisitions, a divestiture and other net expenses. See page 19 for additional details regarding specified items.
9M23
As
Reported (GAAP)
Specified Items
As
Adjusted
Intangible Amortization
$
1,485
$
(1,485)
$
—
Gross Margin
14,964
1,591
16,555
R&D
2,041
(144)
1,897
SG&A
8,225
(67)
8,158
Other (income) expense, net
(370)
34
(336)
Earnings before taxes
4,869
1,768
6,637
Taxes on Earnings
740
189
929
Net Earnings
4,129
1,579
5,708
Diluted Earnings per Share
$
2.35
$
0.90
$
3.25
Specified items reflect intangible amortization expense of $1.485 billion and other net expenses of $283 million associated with restructuring actions, costs associated with acquisitions and other expenses. See page 20 for additional details regarding specified items.
-- more --
Page 14 of 20
A reconciliation of the third-quarter tax rates for 2024 and 2023 is shown below:
3Q24
($ in millions)
Pre-Tax
Income
Taxes on
Earnings
Tax
Rate
As reported (GAAP)
$
1,940
$
294
15.2
%
Specified items
552
79
Excluding specified items
$
2,492
$
373
15.0
%
3Q23
($ in millions)
Pre-Tax
Income
Taxes on
Earnings
Tax
Rate
As reported (GAAP)
$
1,671
$
235
14.0
%
Specified items
654
90
Excluding specified items
$
2,325
$
325
14.0
%
A reconciliation of the year-to-date tax rates for 2024 and 2023 is shown below:
9M24
($ in millions)
Pre-Tax
Income
Taxes on
Earnings
Tax
Rate
As reported (GAAP)
$
4,983
$
810
16.3
%
1)
Specified items
1,900
222
Excluding specified items
$
6,883
$
1,032
15.0
%
9M23
($ in millions)
Pre-Tax
Income
Taxes on
Earnings
Tax
Rate
As reported (GAAP)
$
4,869
$
740
15.2
%
2)
Specified items
1,768
189
Excluding specified items
$
6,637
$
929
14.0
%
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.
2)2023 Taxes on Earnings includes the recognition of approximately $59 million of net tax expense as a result of the resolution of various tax positions related to prior years.
-- more --
Page 15 of 20
Abbott Laboratories and Subsidiaries
Non-GAAP Revenue Reconciliation
Third Quarter and Nine Months Ended September 30, 2024 and 2023
($ in millions)
(unaudited)
3Q24
3Q23
% Change vs. 3Q23
Non-GAAP
Abbott Reported
Impact from business exit (b)
Adjusted Revenue
Abbott Reported
Impact from business exit (b)
Adjusted Revenue
Reported
Adjusted
Organic
Total Company
10,635
(5)
10,630
10,143
(17)
10,126
4.9
5.1
7.6
U.S.
4,202
(5)
4,197
3,817
(17)
3,800
10.1
10.4
10.4
Intl
6,433
—
6,433
6,326
—
6,326
1.7
1.7
5.8
Total Nutrition
2,066
(5)
2,061
2,073
(17)
2,056
(0.3)
0.3
3.4
U.S.
950
(5)
945
860
(17)
843
10.4
11.9
11.9
Intl
1,116
—
1,116
1,213
—
1,213
(7.9)
(7.9)
(2.6)
Adult Nutrition
1,111
(5)
1,106
1,072
(17)
1,055
3.6
4.7
9.1
U.S.
382
(5)
377
354
(17)
337
7.9
11.5
11.5
Intl
729
—
729
718
—
718
1.5
1.5
8.0
Total Medical Devices
4,747
—
4,747
4,249
—
4,249
11.7
11.7
13.3
U.S.
2,216
—
2,216
1,940
—
1,940
14.2
14.2
14.2
Intl
2,531
—
2,531
2,309
—
2,309
9.6
9.6
12.5
Vascular
699
—
699
672
—
672
3.9
3.9
4.9
U.S.
258
—
258
251
—
251
2.8
2.8
2.8
Intl
441
—
441
421
—
421
4.5
4.5
6.2
9M24
9M23
% Change vs. 9M23
Non-GAAP
Abbott Reported
Impact of acquisition (a)
Impact from business exit (b)
Adjusted Revenue
Abbott Reported
Impact from business exit (b)
Adjusted Revenue
Reported
Adjusted
Organic
Total Company
30,976
(57)
(13)
30,906
29,868
(32)
29,836
3.7
3.6
6.6
U.S.
11,982
(53)
(13)
11,916
11,503
(32)
11,471
4.2
3.9
3.9
Intl
18,994
(4)
—
18,990
18,365
—
18,365
3.4
3.4
8.3
Total Nutrition
6,284
—
(13)
6,271
6,116
(32)
6,084
2.7
3.1
6.2
U.S.
2,761
—
(13)
2,748
2,553
(32)
2,521
8.1
9.0
9.0
Intl
3,523
—
—
3,523
3,563
—
3,563
(1.1)
(1.1)
4.2
Adult Nutrition
3,261
—
(13)
3,248
3,167
(32)
3,135
3.0
3.7
8.1
U.S.
1,115
—
(13)
1,102
1,081
(32)
1,049
3.2
5.0
5.0
Intl
2,146
—
—
2,146
2,086
—
2,086
2.8
2.8
9.7
Total Medical Devices
13,934
(57)
—
13,877
12,444
—
12,444
12.0
11.6
13.2
U.S.
6,435
(53)
—
6,382
5,631
—
5,631
14.3
13.3
13.3
Intl
7,499
(4)
—
7,495
6,813
—
6,813
10.1
10.0
13.1
Vascular
2,112
(57)
—
2,055
2,004
—
2,004
5.4
2.6
3.9
U.S.
787
(53)
—
734
733
—
733
7.4
0.1
0.1
Intl
1,325
(4)
—
1,321
1,271
—
1,271
4.2
3.9
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.
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Page 16 of 20
Abbott Laboratories and Subsidiaries
Details of Specified Items
Third Quarter Ended September 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
$
470
$
44
$
516
R&D
—
—
—
(19)
(19)
SG&A
(7)
2
—
—
(5)
Other (income) expense, net
(5)
—
—
(7)
(12)
Earnings before taxes
$
12
$
—
$
470
$
70
552
Taxes on Earnings (d)
79
Net Earnings
$
473
Diluted Earnings per Share
$
0.27
The table above provides additional details regarding the specified items described on page 13.
a)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 investment and intangible asset impairment charges.
d)Reflects the net tax benefit associated with the specified items.
-- more --
Page 17 of 20
Abbott Laboratories and Subsidiaries
Details of Specified Items
Third Quarter Ended September 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
$
3
$
19
$
496
$
24
$
542
R&D
(1)
(13)
—
(32)
(46)
SG&A
(22)
(22)
—
1
(43)
Other (income) expense, net
5
—
—
(28)
(23)
Earnings before taxes
$
21
$
54
$
496
$
83
654
Taxes on Earnings (d)
90
Net Earnings
$
564
Diluted Earnings per Share
$
0.32
The table above provides additional details regarding the specified items described on page 13.
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.
-- more --
Page 18 of 20
Abbott Laboratories and Subsidiaries
Details of Specified Items
Nine Months Ended September 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
$
76
$
1,413
$
49
$
1,540
R&D
(4)
(1)
—
(76)
(81)
SG&A
(32)
(17)
—
(47)
(96)
Other (income) expense, net
(140)
—
—
(43)
(183)
Earnings before taxes
$
178
$
94
$
1,413
$
215
1,900
Taxes on Earnings (d)
222
Net Earnings
$
1,678
Diluted Earnings per Share
$
0.95
The table above provides additional details regarding the specified items described on page 14.
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.
-- more --
Page 19 of 20
Abbott Laboratories and Subsidiaries
Details of Specified Items
Nine Months Ended September 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
$
15
$
51
$
1,485
$
40
$
1,591
R&D
(13)
(5)
—
(126)
(144)
SG&A
(43)
(28)
—
4
(67)
Other (income) expense, net
46
—
—
(12)
34
Earnings before taxes
$
25
$
84
$
1,485
$
174
1,768
Taxes on Earnings (d)
189
Net Earnings
$
1,579
Diluted Earnings per Share
$
0.90
The table above provides additional details regarding the specified items described on page 14.
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 and tax expense as a result of the resolution of various tax positions related to prior years.
###
Page 20 of 20
Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 0 | — | — |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 20 | — | — |
| Recession recession, downturn, contraction, slowdown | 0 | — | — |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 0 | — | — |
| Buybacks share repurchase, buyback program | 1 | — | — |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Source: SEC EDGAR · public domain · Highlights by Palanor