Abbott Reports Fourth-Quarter and Full-Year 2024 Results; Issues 2025 Financial Outlook

      By: PrNewswirePublished: Jan 22, 2025
      • Fourth-quarter sales of $11.0 billion; full-year 2024 sales of $42.0 billion
      • Fourth-quarter reported sales increased 7.2 percent; organic sales growth for the underlying base business increased 10.1 percent1
      • Full-year 2024 reported sales increased 4.6 percent; organic sales growth for the underlying base business increased 9.6 percent2
      • Abbott projects full-year 2025 organic sales growth to be in the range of 7.5% to 8.5%

      ABBOTT PARK, Ill., Jan. 22, 2025 /PRNewswire/ -- Abbott (NYSE: ABT) today announced financial results for the fourth quarter ended Dec. 31, 2024.

      • Fourth-quarter sales increased 7.2 percent on a reported basis, 8.8 percent on an organic basis, and 10.1 percent on an organic basis, excluding COVID-19 testing-related sales.
      • Fourth-quarter GAAP diluted EPS of $5.27 and adjusted diluted EPS of $1.34, which excludes specified items (see table titled "Non-GAAP Reconciliation of Financial Information").
      • Full-year 2024 sales of $42.0 billion increased 4.6 percent on a reported basis, 7.1 percent on an organic basis, and 9.6 percent on an organic basis, excluding COVID-19 testing-related sales.
      • Full-year 2024 gross margin as a percent of sales improved 60 basis points on a GAAP basis compared to 2023 and improved 70 basis points on an adjusted basis.
      • Full-year 2024 GAAP diluted EPS of $7.64 and adjusted diluted EPS of $4.67, which excludes specified items (see table titled "Non-GAAP Reconciliation of Financial Information").
      • For the full-year 2024, Abbott achieved the upper end of the initial guidance ranges the company provided in January 2024 for both organic sales growth and adjusted earnings per share.
      • During 2024, Abbott announced more than 15 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.
      • Abbott projects full-year 2025 organic sales growth to be in the range of 7.5% to 8.5%.
      • Abbott projects full-year 2025 adjusted operating margin to be 23.5% to 24.0% of sales, which reflects an increase of 150 basis points at the midpoint compared to 2024.
      • Abbott projects full-year 2025 adjusted diluted EPS of $5.05 to $5.25, which reflects double-digit growth at the midpoint.

      "We finished the year with very strong momentum. Sales growth and earnings per share growth in the fourth quarter were the highest of the year," said Robert B. Ford, chairman and chief executive officer, Abbott. "We continued our track record for delivering on our commitments by achieving the upper end of our initial guidance ranges for 2024 and are well-positioned to deliver another year of strong growth in 2025."

      FOURTH-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 in 2024, 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. 

      Fourth Quarter 2024 Results (4Q24)



      Sales 4Q24 ($ in millions)

      Total Company



      Nutrition



      Diagnostics



      Established

      Pharmaceuticals



      Medical Devices

      U.S.

      4,341



      928



      1,055



      —



      2,353

      International

      6,633



      1,201



      1,465



      1,268



      2,699

      Total reported

      10,974



      2,129



      2,520



      1,268



      5,052





















      % Change vs. 4Q23



















      U.S.

      10.0



      8.0



      3.5



      n/a



      14.0

      International

      5.4



      2.0



      (3.4)



      3.8



      13.5

      Total reported

      7.2



      4.5



      (0.6)



      3.8



      13.7

      Impact of foreign exchange

      (1.4)



      (1.7)



      (1.6)



      (4.7)



      (0.3)

      Impact of business exit*

      (0.2)



      (0.9)



      —



      —



      —

      Organic

      8.8



      7.1



      1.0



      8.5



      14.0

      Impact of COVID-19 testing sales (3)

      (1.3)



      —



      (5.1)



      —



      —

      Organic (excluding COVID-19 tests)

      10.1



      7.1



      6.1



      8.5



      14.0





















          U.S.

      13.5



      10.0



      15.9



      n/a



      14.0

          International

      8.1



      4.9



      0.8



      8.5



      14.0

       

      Full-Year 2024 Results (12M24)



      Sales 12M24 ($ in millions)

      Total Company



      Nutrition



      Diagnostics



      Established

      Pharmaceuticals



      Medical Devices

      U.S.

      16,323



      3,689



      3,830



      —



      8,788

      International

      25,627



      4,724



      5,511



      5,194



      10,198

      Total reported

      41,950



      8,413



      9,341



      5,194



      18,986





















      % Change vs. 12M23



















      U.S.

      5.6



      8.1



      (11.5)



      n/a



      14.2

      International

      3.9



      (0.4)



      (2.6)



      2.5



      11.0

      Total reported

      4.6



      3.2



      (6.5)



      2.5



      12.4

      Impact of foreign exchange

      (2.6)



      (2.7)



      (2.6)



      (6.7)



      (1.3)

      Impact of business exit and acquisition*

      0.1



      (0.5)



      —



      —



      0.3

      Organic

      7.1



      6.4



      (3.9)



      9.2



      13.4

      Impact of COVID-19 testing sales (3)

      (2.5)



      —



      (9.1)



      —



      —

      Organic (excluding COVID-19 tests)

      9.6



      6.4



      5.2



      9.2



      13.4





















          U.S.

      10.9



      9.2



      6.3



      n/a



      13.5

          International

      8.8



      4.4



      4.5



      9.2



      13.3

       

      Refer to table titled "Non-GAAP Revenue Reconciliation" for a reconciliation of adjusted historical revenue to reported revenue.

      *Quarter to date Dec. 31, 2024, reflects the impact of discontinuing the ZonePerfect® product line in the Nutrition business in March 2024.  Full-year Dec. 31, 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.

       

      Nutrition



      Fourth Quarter 2024 Results (4Q24)



      Sales 4Q24 ($ in millions)

      Total



      Pediatric



      Adult

      U.S.

      928



      562



      366

      International

      1,201



      438



      763

      Total reported

      2,129



      1,000



      1,129













      % Change vs. 4Q23











      U.S.

      8.0



      11.3



      3.2

      International

      2.0



      (8.9)



      9.5

      Total reported

      4.5



      1.5



      7.4

      Impact of foreign exchange

      (1.7)



      (1.0)



      (2.3)

      Impact of business exit*

      (0.9)



      —



      (1.7)

      Organic

      7.1



      2.5



      11.4













          U.S.

      10.0



      11.3



      8.1

          International

      4.9



      (6.7)



      13.0

       

      Worldwide Nutrition sales increased 4.5 percent on a reported basis and increased 7.1 percent on an organic basis in the fourth quarter.

      In Pediatric Nutrition, global sales increased 1.5 percent on a reported basis and 2.5 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 7.4 percent on a reported basis and 11.4 percent on an organic basis, which was led by strong growth of Ensure®, Abbott's market-leading complete and balanced nutrition brand, and Glucerna®, Abbott's market-leading brand of products designed to meet the nutritional requirements for people with diabetes.

      Full-Year 2024 Results (12M24)



      Sales 12M24 ($ in millions)

      Total



      Pediatric



      Adult

      U.S.

      3,689



      2,208



      1,481

      International

      4,724



      1,815



      2,909

      Total reported

      8,413



      4,023



      4,390













      % Change vs. 12M23











      U.S.

      8.1



      11.7



      3.2

      International

      (0.4)



      (7.3)



      4.5

      Total reported

      3.2



      2.2



      4.0

      Impact of foreign exchange

      (2.7)



      (1.5)



      (4.0)

      Impact of business exit*

      (0.5)



      —



      (0.9)

      Organic

      6.4



      3.7



      8.9













          U.S.

      9.2



      11.7



      5.8

          International

      4.4



      (4.3)



      10.5

      *Reflects the impact of discontinuing the ZonePerfect® product line. This action was initiated in March 2024.

       

      Diagnostics



      Fourth Quarter 2024 Results (4Q24)



      Sales 4Q24 ($ in millions)

      Total



      Core Laboratory



      Molecular



      Point of Care



      Rapid

      Diagnostics

      U.S.

      1,055



      363



      38



      100



      554

      International

      1,465



      1,024



      99



      47



      295

      Total reported

      2,520



      1,387



      137



      147



      849





















      % Change vs. 4Q23



















      U.S.

      3.5



      11.6



      (13.9)



      (6.1)



      2.1

      International

      (3.4)



      (1.9)



      (9.1)



      11.0



      (7.9)

      Total reported

      (0.6)



      1.3



      (10.5)



      (1.3)



      (1.6)

      Impact of foreign exchange

      (1.6)



      (2.5)



      (0.3)



      0.1



      (0.6)

      Organic

      1.0



      3.8



      (10.2)



      (1.4)



      (1.0)

      Impact of COVID-19 testing sales (3)

      (5.1)



      (0.2)



      (2.8)



      —



      (17.4)

      Organic (excluding COVID-19 tests)

      6.1



      4.0



      (7.4)



      (1.4)



      16.4





















          U.S.

      15.9



      11.9



      (7.2)



      (6.1)



      30.0

          International

      0.8



      1.5



      (7.5)



      10.7



      (0.6)

       

      As expected, Diagnostics sales growth in the fourth quarter was negatively impacted by year-over-year declines in COVID-19 testing-related sales3. Worldwide COVID-19 testing sales were $176 million in the fourth quarter of 2024 compared to $288 million in the fourth quarter of the prior year.

      Excluding COVID-19 testing-related sales, global Diagnostics sales increased 4.3 percent on a reported basis and increased 6.1 percent on an organic basis.

      Excluding COVID-19 testing-related sales, growth in Rapid Diagnostics was driven by strong demand for Abbott's portfolio of respiratory disease tests used to diagnose influenza, strep throat, and respiratory syncytial virus (RSV).

      Full-Year 2024 Results (12M24)



      Sales 12M24 ($ in millions)

      Total



      Core Laboratory



      Molecular



      Point of Care



      Rapid

      Diagnostics

      U.S.

      3,830



      1,332



      150



      408



      1,940

      International

      5,511



      3,903



      371



      180



      1,057

      Total reported

      9,341



      5,235



      521



      588



      2,997





















      % Change vs. 12M23



















      U.S.

      (11.5)



      7.2



      (12.7)



      3.1



      (23.0)

      International

      (2.6)



      (0.3)



      (7.7)



      6.4



      (9.8)

      Total reported

      (6.5)



      1.5



      (9.2)



      4.1



      (18.8)

      Impact of foreign exchange

      (2.6)



      (4.1)



      (0.7)



      —



      (1.0)

      Organic

      (3.9)



      5.6



      (8.5)



      4.1



      (17.8)

      Impact of COVID-19 testing sales (3)

      (9.1)



      (0.2)



      (5.3)



      —



      (23.8)

      Organic (excluding COVID-19 tests)

      5.2



      5.8



      (3.2)



      4.1



      6.0





















          U.S.

      6.3



      7.5



      (4.3)



      3.1



      7.4

          International

      4.5



      5.3



      (2.8)



      6.5



      3.8

       

      Established Pharmaceuticals



      Fourth Quarter 2024 Results (4Q24)



      Sales 4Q24 ($ in millions)

      Total



      Key Emerging

      Markets



      Other

      U.S.

      —



      —



      —

      International

      1,268



      948



      320

      Total reported

      1,268



      948



      320













      % Change vs. 4Q23











      U.S.

      n/a



      n/a



      n/a

      International

      3.8



      3.3



      5.2

      Total reported

      3.8



      3.3



      5.2

      Impact of foreign exchange

      (4.7)



      (5.5)



      (2.6)

      Organic

      8.5



      8.8



      7.8













          U.S.

      n/a



      n/a



      n/a

          International

      8.5



      8.8



      7.8

       

      Established Pharmaceuticals sales increased 3.8 percent on a reported basis and 8.5 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 3.3 percent on a reported basis and increased 8.8 percent on an organic basis, led by growth in several geographies and therapeutic areas, including gastroenterology, women's health, and central nervous system/pain management.

      Full-Year 2024 Results (12M24)



      Sales 12M24 ($ in millions)

      Total



      Key Emerging

      Markets



      Other

      U.S.

      —



      —



      —

      International

      5,194



      3,858



      1,336

      Total reported

      5,194



      3,858



      1,336













      % Change vs. 12M23











      U.S.

      n/a



      n/a



      n/a

      International

      2.5



      1.3



      6.1

      Total reported

      2.5



      1.3



      6.1

      Impact of foreign exchange

      (6.7)



      (8.2)



      (2.3)

      Organic

      9.2



      9.5



      8.4













          U.S.

      n/a



      n/a



      n/a

          International

      9.2



      9.5



      8.4

       

      Medical Devices



      Fourth Quarter 2024 Results (4Q24)



      Sales 4Q24 ($ in millions)

      Total



      Rhythm

      Management



      Electro-

      physiology



      Heart

      Failure



      Vascular



      Structural

      Heart



      Neuro-

      modulation



      Diabetes

      Care

      U.S.

      2,353



      303



      300



      253



      269



      290



      204



      734

      International

      2,699



      321



      343



      78



      456



      319



      53



      1,129

      Total reported

      5,052



      624



      643



      331



      725



      609



      257



      1,863

































      % Change vs. 4Q23































      U.S.

      14.0



      6.0



      7.7



      11.5



      9.7



      25.7



      4.2



      22.0

      International

      13.5



      8.2



      8.8



      5.0



      5.7



      19.5



      23.9



      18.8

      Total reported

      13.7



      7.1



      8.3



      9.9



      7.1



      22.4



      7.7



      20.1

      Impact of foreign exchange

      (0.3)



      (0.1)



      (0.5)



      0.3



      0.3



      (0.2)



      (0.7)



      (0.5)

      Organic

      14.0



      7.2



      8.8



      9.6



      6.8



      22.6



      8.4



      20.6

































          U.S.

      14.0



      6.0



      7.7



      11.5



      9.7



      25.7



      4.2



      22.0

          International

      14.0



      8.4



      9.8



      4.1



      5.2



      20.0



      27.8



      19.7

       

      Worldwide Medical Devices sales increased 13.7 percent on a reported basis and 14.0 percent on an organic basis in the fourth quarter, including double-digit growth in both the U.S. and internationally.

      Several products contributed to the strong performance, including FreeStyle Libre®, Navitor®, TriClip®, Amplatzer® Amulet®, and AVEIR®.

      In Diabetes Care, sales of continuous glucose monitors were $1.8 billion and grew 22.7 percent on a reported basis and 22.8 percent on an organic basis.

      For the full-year 2024, Medical Devices sales were $19 billion and increased more than $2 billion compared to the previous year.

      Full-Year 2024 Results (12M24)



      Sales 12M24 ($ in millions)

      Total



      Rhythm

      Management



      Electro-

      physiology



      Heart

      Failure



      Vascular



      Structural

      Heart



      Neuro-

      modulation



      Diabetes

      Care

      U.S.

      8,788



      1,154



      1,141



      986



      1,056



      1,051



      767



      2,633

      International

      10,198



      1,236



      1,326



      293



      1,781



      1,195



      195



      4,172

      Total reported

      18,986



      2,390



      2,467



      1,279



      2,837



      2,246



      962



      6,805

































      % Change vs. 12M23































      U.S.

      14.2



      6.3



      13.2



      11.1



      8.0



      19.0



      5.9



      23.6

      International

      11.0



      5.7



      11.6



      7.3



      4.6



      12.6



      18.4



      14.9

      Total reported

      12.4



      6.0



      12.3



      10.2



      5.8



      15.5



      8.2



      18.1

      Impact of foreign exchange

      (1.3)



      (0.9)



      (2.1)



      (0.1)



      (0.9)



      (1.5)



      (1.3)



      (1.6)

      Impact of acquisition*

      0.3



      —



      —



      —



      2.1



      —



      —



      —

      Organic

      13.4



      6.9



      14.4



      10.3



      4.6



      17.0



      9.5



      19.7

































          U.S.

      13.5



      6.3



      13.2



      11.1



      2.5



      19.0



      5.9



      23.6

          International

      13.3



      7.5



      15.4



      7.6



      5.8



      15.3



      25.5



      17.3



      *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 GUIDANCE

      Abbott projects full-year 2025 organic sales growth to be in the range of 7.5% to 8.5%.

      Abbott projects full-year 2025 adjusted operating margin to be 23.5% to 24.0% of sales.

      Abbott projects full-year 2025 adjusted diluted earnings per share of $5.05 to $5.25 and first-quarter 2025 adjusted diluted earnings per share of $1.05 to $1.09.

      Abbott has not provided the related GAAP financial measures on a forward-looking basis for these forward-looking non-GAAP financial measures because the company is unable to predict with reasonable certainty and without unreasonable effort the timing and impact of certain items such as restructuring and cost reduction initiatives, charges for intangible asset impairments, acquisition-related expenses, and foreign exchange, which could significantly impact Abbott's results in accordance with GAAP. 

      ABBOTT DECLARES 404th CONSECUTIVE QUARTERLY DIVIDEND

      On Dec. 13, 2024, the board of directors of Abbott declared the company's quarterly dividend of $0.59 per share. Abbott's cash dividend is payable Feb. 14, 2025, to shareholders of record at the close of business on Jan. 15, 2025.

      Abbott has increased its dividend payout for 53 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 fourth-quarter earnings conference call through its Investor Relations website at www.abbottinvestor.com at 8:30 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 fourth quarter of 2024, total worldwide sales were $10.974 billion and COVID-19 testing-related sales were $176 million. In the fourth quarter of 2023, total worldwide sales were $10.241 billion and COVID-19 testing-related sales were $288 million.





      2

      In the full-year 2024, total worldwide sales were $41.950 billion and COVID-19 testing related sales were $747 million. In the full-year 2023, total worldwide sales were $40.109 billion and COVID-19 testing sales were $1.586 billion.





      3

      Diagnostic sales and COVID-19 testing-related sales in 2024 and 2023 are summarized below:

       



      Sales 4Q24





      COVID Tests Sales 4Q24

      ($ in millions)

      U.S.



      Int'l



      Total





      U.S.



      Int'l



      Total

      Total Diagnostics

      1,055



      1,465



      2,520





      134



      42



      176

      Core Laboratory

      363



      1,024



      1,387





      1



      1



      2

      Molecular

      38



      99



      137





      1



      1



      2

      Rapid Diagnostics

      554



      295



      849





      132



      40



      172





























      Sales 4Q23





      COVID Tests Sales 4Q23

      ($ in millions)

      U.S.



      Int'l



      Total





      U.S.



      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 12M24





      COVID Tests Sales 12M24

      ($ in millions)

      U.S.



      Int'l



      Total





      U.S.



      Int'l



      Total

      Total Diagnostics

      3,830



      5,511



      9,341





      562



      185



      747

      Core Laboratory

      1,332



      3,903



      5,235





      4



      6



      10

      Molecular

      150



      371



      521





      8



      4



      12

      Rapid Diagnostics

      1,940



      1,057



      2,997





      550



      175



      725





























      Sales 12M23





      COVID Tests Sales 12M23

      ($ in millions)

      U.S.



      Int'l



      Total





      U.S.



      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

       

      Abbott Laboratories and Subsidiaries

      Condensed Consolidated Statement of Earnings

      Fourth Quarter Ended December 31, 2024 and 2023

      (in millions, except per share data)

      (unaudited)









      4Q24



      4Q23



      % Change



      Net Sales

      $10,974



      $10,241



      7.2

















      Cost of products sold, excluding amortization expense

      4,942



      4,556



      8.5



      Amortization of intangible assets

      465



      481



      (3.1)



      Research and development

      749



      700



      7.0



      Selling, general, and administrative

      2,907



      2,724



      6.7



      Total Operating Cost and Expenses

      9,063



      8,461



      7.1

















      Operating Earnings

      1,911



      1,780



      7.4

















      Interest expense, net

      45



      70



      (35.6)



      Net foreign exchange (gain) loss

      (10)



      24



      n/m



      Other (income) expense, net

      (154)



      (109)



      n/m



      Earnings before taxes

      2,030



      1,795



      13.1



      Taxes on earnings

      (7,199)



      201



      n/m

      1)















      Net Earnings

      $9,229



      $1,594



      n/m

















      Net Earnings excluding Specified Items, as described below

      $2,349



      $2,094



      12.2

      2)















      Diluted Earnings per Common Share

      $5.27



      $0.91



      n/m

















      Diluted Earnings per Common Share,

      excluding Specified Items, as described below

      $1.34



      $1.19



      12.6

      2)















      Average Number of Common Shares Outstanding

      Plus Dilutive Common Stock Options

      1,746



      1,748







       

      NOTES:

      See table titled "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 $7.497 billion in non-cash valuation allowance adjustments resulting from the restructuring of certain foreign affiliates and the confirmation of certain tax filing positions.





      2)

      2024 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax benefits of $6.880 billion, or $3.93 per share, for non-cash valuation allowance adjustments, intangible amortization, charges related to intangible impairments, expenses associated with restructuring actions, acquisitions and other net expenses.







      2023 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $500 million, or $0.28 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

      Twelve Months Ended December 31, 2024 and 2023

      (in millions, except per share data)

      (unaudited)









      12M24



      12M23



      % Change



      Net Sales

      $41,950



      $40,109



      4.6

















      Cost of products sold, excluding amortization expense

      18,706



      17,975



      4.1



      Amortization of intangible assets

      1,878



      1,966



      (4.4)



      Research and development

      2,844



      2,741



      3.8



      Selling, general, and administrative

      11,697



      10,949



      6.8



      Total Operating Cost and Expenses

      35,125



      33,631



      4.4

















      Operating Earnings

      6,825



      6,478



      5.4

















      Interest expense, net

      215



      252



      (14.5)



      Net foreign exchange (gain) loss

      (27)



      41



      n/m



      Other (income) expense, net

      (376)



      (479)



      n/m



      Earnings before taxes

      7,013



      6,664



      5.2



      Taxes on earnings

      (6,389)



      941



      n/m

      1)















      Net Earnings

      $13,402



      $5,723



      n/m

















      Net Earnings excluding Specified Items, as described below

      $8,200



      $7,802



      5.1

      2)















      Diluted Earnings per Common Share

      $7.64



      $3.26



      n/m

















      Diluted Earnings per Common Share,

      excluding Specified Items, as described below

      $4.67



      $4.44



      5.2

      2)















      Average Number of Common Shares Outstanding

      Plus Dilutive Common Stock Options

      1,748



      1,749







       

      NOTES:

      See table title "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 $7.497 billion in non-cash valuation allowance adjustments resulting from the restructuring of certain foreign affiliates and the confirmation of certain tax filing positions.







      2023 Taxes on Earnings includes the recognition of approximately $80 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 benefits of $5.202 billion, or $2.97 per share, for non-cash valuation allowance adjustments, intangible amortization, charges related to intangible impairments, expenses associated with restructuring actions, 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 $2.079 billion, or $1.18 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

      Fourth Quarter Ended December 31, 2024 and 2023

      (in millions, except per share data)

      (unaudited)





      4Q24



      As

      Reported

      (GAAP)



      Specified

      Items



      As

      Adjusted













      Intangible Amortization

      $            465



      $          (465)



      $              —

      Gross Margin

      5,567



      673



      6,240

      R&D

      749



      (59)



      690

      SG&A

      2,907



      (21)



      2,886

      Other (income) expense, net

      (154)



      20



      (134)

      Earnings before taxes

      2,030



      733



      2,763

      Taxes on Earnings

      (7,199)



      7,613



      414

      Net Earnings

      9,229



      (6,880)



      2,349

      Diluted Earnings per Share

      $           5.27



      $         (3.93)



      $           1.34

       

      Specified items reflect intangible amortization expense of $465 million and other net expenses of $268 million associated with intangible impairments, restructuring actions, acquisitions and other net expenses. See table titled "Details of Specified Items" for additional details regarding specified items.



      4Q23



      As

      Reported

      (GAAP)



      Specified

      Items



      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 $481 million and other net expenses of $159 million associated with restructuring actions, 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

      Twelve Months Ended December 31, 2024 and 2023

      (in millions, except per share data)

      (unaudited)





      12M24



      As

      Reported

      (GAAP)



      Specified

      Items



      As

      Adjusted













      Intangible Amortization

      $         1,878



      $       (1,878)



      $              —

      Gross Margin

      21,366



      2,213



      23,579

      R&D

      2,844



      (140)



      2,704

      SG&A

      11,697



      (117)



      11,580

      Other (income) expense, net

      (376)



      (163)



      (539)

      Earnings before taxes

      7,013



      2,633



      9,646

      Taxes on Earnings

      (6,389)



      7,835



      1,446

      Net Earnings

      13,402



      (5,202)



      8,200

      Diluted Earnings per Share

      $           7.64



      $         (2.97)



      $           4.67

       

      Specified items reflect intangible amortization expense of $1.878 billion and other net expenses of $755 million associated with intangible impairments, restructuring actions, acquisitions, a divestiture and other net expenses. See table titled "Details of Specified Items" for additional details regarding specified items.



      12M23



      As

      Reported

      (GAAP)



      Specified

      Items



      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 $1.966 billion and other net expenses of $442 million associated with restructuring actions, acquisitions and other net expenses. See table titled "Details of Specified Items" for additional details regarding specified items.

      A reconciliation of the fourth-quarter tax rates for 2024 and 2023 is shown below:



      4Q24



      ($ in millions)

      Pre-Tax

      Income



      Taxes on

      Earnings



      Tax

      Rate



      As reported (GAAP)

      $         2,030



      $       (7,199)



      (354.6 %)

      1)

      Specified items

      733



      7,613







      Excluding specified items

      $         2,763



      $           414



      15.0 %



















      4Q23



      ($ in millions)

      Pre-Tax

      Income



      Taxes on

      Earnings



      Tax

      Rate



      As reported (GAAP)

      $         1,795



      $           201



      11.2 %

      2)

      Specified items

      640



      140







      Excluding specified items

      $         2,435



      $           341



      14.0 %



       

      A reconciliation of the year-to-date tax rates for 2024 and 2023 is shown below:



      12M24



      ($ in millions)

      Pre-Tax

      Income



      Taxes on

      Earnings



      Tax

      Rate



      As reported (GAAP)

      $         7,013



      $       (6,389)



      (91.1 %)

      1)

      Specified items

      2,633



      7,835







      Excluding specified items

      $         9,646



      $        1,446



      15.0 %



















      12M23



      ($ in millions)

      Pre-Tax

      Income



      Taxes on

      Earnings



      Tax

      Rate



      As reported (GAAP)

      $         6,664



      $           941



      14.1 %

      2)

      Specified items

      2,408



      329







      Excluding specified items

      $         9,072



      $        1,270



      14.0 %







      1)

      2024 Taxes on Earnings includes $7.497 billion in non-cash valuation allowance adjustments resulting from the restructuring of certain foreign affiliates and the confirmation of certain tax filing positions.





      2)

      2023 Taxes on Earnings includes the recognition of approximately $80 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

      Fourth Quarter and Twelve Months Ended December 31, 2024 and 2023

      ($ in millions)

      (unaudited)







      4Q24



      4Q23



      % Change vs. 4Q23

























      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



      10,974

      (1)

      10,973



      10,241

      (17)

      10,224



      7.2



      7.4

      8.8

      U.S.



      4,341

      (1)

      4,340



      3,949

      (17)

      3,932



      10.0



      10.4

      10.4

      Intl



      6,633

      —

      6,633



      6,292

      —

      6,292



      5.4



      5.4

      7.7





























      Total Nutrition



      2,129

      (1)

      2,128



      2,038

      (17)

      2,021



      4.5



      5.4

      7.1

      U.S.



      928

      (1)

      927



      860

      (17)

      843



      8.0



      10.0

      10.0

      Intl



      1,201

      —

      1,201



      1,178

      —

      1,178



      2.0



      2.0

      4.9





























      Adult Nutrition



      1,129

      (1)

      1,128



      1,053

      (17)

      1,036



      7.4



      9.1

      11.4

      U.S.



      366

      (1)

      365



      355

      (17)

      338



      3.2



      8.1

      8.1

      Intl



      763

      —

      763



      698

      —

      698



      9.5



      9.5

      13.0





























      Total Medical Devices



      5,052

      —

      5,052



      4,443

      —

      4,443



      13.7



      13.7

      14.0

      U.S.



      2,353

      —

      2,353



      2,065

      —

      2,065



      14.0



      14.0

      14.0

      Intl



      2,699

      —

      2,699



      2,378

      —

      2,378



      13.5



      13.5

      14.0





























      Vascular



      725

      —

      725



      677

      —

      677



      7.1



      7.1

      6.8

      U.S.



      269

      —

      269



      245

      —

      245



      9.7



      9.7

      9.7

      Intl



      456

      —

      456



      432

      —

      432



      5.7



      5.7

      5.2

       



      12M24



      12M23



      % Change vs. 12M23























      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

      41,950

      (57)

      (14)

      41,879



      40,109

      (49)

      40,060



      4.6

      4.5

      7.1

      U.S.

      16,323

      (53)

      (14)

      16,256



      15,452

      (49)

      15,403



      5.6

      5.5

      5.5

      Intl

      25,627

      (4)

      —

      25,623



      24,657

      —

      24,657



      3.9

      3.9

      8.1



























      Total Nutrition

      8,413

      —

      (14)

      8,399



      8,154

      (49)

      8,105



      3.2

      3.7

      6.4

      U.S.

      3,689

      —

      (14)

      3,675



      3,413

      (49)

      3,364



      8.1

      9.2

      9.2

      Intl

      4,724

      —

      —

      4,724



      4,741

      —

      4,741



      (0.4)

      (0.4)

      4.4



























      Adult Nutrition

      4,390

      —

      (14)

      4,376



      4,220

      (49)

      4,171



      4.0

      4.9

      8.9

      U.S.

      1,481

      —

      (14)

      1,467



      1,436

      (49)

      1,387



      3.2

      5.8

      5.8

      Intl

      2,909

      —

      —

      2,909



      2,784

      —

      2,784



      4.5

      4.5

      10.5



























      Total Medical Devices

      18,986

      (57)

      —

      18,929



      16,887

      —

      16,887



      12.4

      12.1

      13.4

      U.S.

      8,788

      (53)

      —

      8,735



      7,696

      —

      7,696



      14.2

      13.5

      13.5

      Intl

      10,198

      (4)

      —

      10,194



      9,191

      —

      9,191



      11.0

      10.9

      13.3



























      Vascular

      2,837

      (57)

      —

      2,780



      2,681

      —

      2,681



      5.8

      3.7

      4.6

      U.S.

      1,056

      (53)

      —

      1,003



      978

      —

      978



      8.0

      2.5

      2.5

      Intl

      1,781

      (4)

      —

      1,777



      1,703

      —

      1,703



      4.6

      4.4

      5.8





      (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

      Fourth Quarter Ended December 31, 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

      $                  —



      $                  49



      $                465



      $                159



      $                673

      R&D

      (1)



      (20)



      —



      (38)



      (59)

      SG&A

      (5)



      (22)



      —



      6



      (21)

      Other (income) expense, net

      (2)



      —



      —



      22



      20

      Earnings before taxes

      $                    8



      $                  91



      $                465



      $                169



      733

      Taxes on Earnings (d)

















      7,613

      Net Earnings

















      $           (6,880)

      Diluted Earnings per Share

















      $             (3.93)





      The table above provides additional details regarding the specified items described on table titled "Non-GAAP Reconciliation of Financial Information."





      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 intangible asset impairment charges.





      d)

      Reflects the net tax benefit associated with the specified items, including non-cash valuation allowance adjustments.

       

      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 table 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 MDR and 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

      Twelve Months Ended December 31, 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



      $                125



      $             1,878



      $                208



      $             2,213

      R&D

      (5)



      (21)



      —



      (114)



      (140)

      SG&A

      (37)



      (39)



      —



      (41)



      (117)

      Other (income) expense, net

      (155)



      —



      —



      (8)



      (163)

      Earnings before taxes

      $                199



      $                185



      $             1,878



      $                371



      2,633

      Taxes on Earnings (d)

















      7,835

      Net Earnings

















      $           (5,202)

      Diluted Earnings per Share

















      $             (2.97)





      The table above provides additional details regarding the specified items described on table 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, including non-cash valuation allowance adjustments.

       

      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 table 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.

       

      Cision View original content:https://www.prnewswire.com/news-releases/abbott-reports-fourth-quarter-and-full-year-2024-results-issues-2025-financial-outlook-302357321.html

      SOURCE Abbott

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