Abbott(ABT)2025-02-21 21:07Sales and Revenue - Abbott's sales outside of the U.S. accounted for approximately 61% of its net sales in 2024[95] - Abbott's international sales accounted for approximately 61% of its net sales in 2024[101] - Abbott's ability to manage a global supply chain is critical to its revenue and profitability[101] Regulatory and Compliance Risks - Changes in healthcare regulations may adversely impact the demand for Abbott's products, affecting pricing and reimbursement[86] - Abbott is subject to various international laws and regulations that could impose new obligations and restrict operations, potentially affecting revenues and profitability[84] - Adverse changes in tax laws and regulations could materially affect Abbott's effective tax rate and financial condition[97] Economic and Market Conditions - Abbott's profitability is affected by fluctuations in foreign currency exchange rates, with significant portions of revenues and costs realized in currencies other than U.S. dollars[95] - Economic deterioration in certain countries may increase collection risks for Abbott's trade receivables[98] - Changes in inflation rates and interest rates can impact Abbott's cost structure and financial performance[102] Public Health and Safety Concerns - The company faced a voluntary recall of certain powder infant formula products in February 2022, which temporarily halted manufacturing at its Sturgis, Michigan facility[83] - The company is exposed to risks related to public health crises, which can disrupt operations and reduce demand for certain products[99] - Public health crises, such as infectious disease outbreaks, can significantly reduce demand for Abbott's products and disrupt operations[99] - Significant safety concerns regarding Abbott's products could lead to reduced market acceptance and sales[89] Geopolitical Risks - Abbott's business may be adversely affected by geopolitical risks, including the ongoing situation in Ukraine, which has led to economic volatility and operational disruptions[104] - Abbott faces risks from geopolitical instability, including the impact of Russia's invasion of Ukraine on its operations and financial condition[104] - The company has not experienced material impacts from recent geopolitical disruptions but future implications remain uncertain[104] Business Risks - The company is subject to cost containment efforts that may reduce future revenues and operating income[91] - Abbott's future revenues may be impacted by the expiration or loss of intellectual property protections[88] - The company is subject to various business risks, including trade protection measures and differing local product preferences[102] - Abbott does not guarantee that forward-looking statements will be achieved due to various risk factors[105]