Abbott(ABT) - 2025 Q1 - Quarterly Report

Sales Performance - Total net sales for the first quarter of 2025 increased by 4.0% to $10,358 million compared to$9,964 million in the first quarter of 2024, with a 6.8% increase excluding foreign exchange impact [90][92]. - Medical Devices segment sales grew by 12.6% to $4,895 million, driven by strong performance in Diabetes Care, Structural Heart, and Electrophysiology [90][97]. - Established Pharmaceutical Products sales increased by 7.8$1,260 million, with Key Emerging Markets showing a 9.3% growth [90][95]. - Nutritional Products sales rose by 6.2% to $2,146 million, with U.S. Pediatric Nutritionals experiencing a significant 14.2$2,054 million, primarily due to a decline in COVID-19 testing-related sales, which fell from $204 million to$84 million year-over-year [90][92]. Financial Metrics - Gross profit margin improved to 52.8% in Q1 2025 from 50.5% in Q1 2024, reflecting successful gross margin improvement initiatives [99]. - Research and development expenses increased by 4.6% to $716 million, driven by higher spending on various projects [100]. - Other income increased from$111 million in Q1 2024 to $127 million in Q1 2025, primarily due to lower investment impairments [102]. - Interest expense decreased by$12 million to $49 million in Q1 2025, attributed to the repayment of long-term debt and increased interest income [103]. - Net cash from operating activities for Q1 2025 totaled$1.4 billion, an increase of $392 million from the prior year, driven by higher segment operating earnings [111]. Cash and Debt Management - Cash and cash equivalents decreased from$7.6 billion at December 31, 2024, to $6.5 billion at March 31, 2025, due to$1.0 billion debt repayment and other expenditures [110]. - Abbott repaid $1.0 billion of its 2.95$7 billion [113]. - Abbott's long-term debt rating is AA- by S&P Global Ratings and Aa3 by Moody's Investors Service, with expectations to maintain an investment grade rating [112]. Shareholder Returns - A quarterly dividend of $0.59 per share was declared in Q1 2025, representing a 7.3$0.55 per share dividend in Q1 2024 [114]. Legal Matters - Abbott is involved in various legal proceedings, including lawsuits related to its preterm infant formula products, with ongoing appeals and trials [119]. Restructuring Efforts - Abbott recorded $34 million in employee-related severance and other charges as part of its restructuring plans to streamline operations [101].