Abbott(US:ABT)2025-01-22 12:13Sales Performance - Fourth-quarter sales of $11.0 billion, with reported sales increasing 7.2% and organic sales growth of 10.1% excluding COVID-19 testing-related sales[3] - Full-year 2024 sales of $42.0 billion, with reported sales increasing 4.6% and organic sales growth of 9.6% excluding COVID-19 testing-related sales[3] - Worldwide Nutrition sales increased 4.5% on a reported basis and 7.1% on an organic basis in the fourth quarter[9] - Global Diagnostics sales increased 4.3% on a reported basis and 6.1% on an organic basis excluding COVID-19 testing-related sales[12] - Established Pharmaceuticals sales increased 3.8% on a reported basis and 8.5% on an organic basis in Q4 2024, with international sales reaching $1,268 million[17] - Key Emerging Markets sales grew 3.3% on a reported basis and 8.8% on an organic basis in Q4 2024, driven by growth in gastroenterology, women's health, and central nervous system/pain management[18] - Full-year 2024 Established Pharmaceuticals sales totaled $5,194 million, with organic growth of 9.2%[19] - Medical Devices sales increased 13.7% on a reported basis and 14.0% on an organic basis in Q4 2024, reaching $5,052 million[21] - Diabetes Care sales grew 22.7% on a reported basis and 22.8% on an organic basis in Q4 2024, with continuous glucose monitors contributing $1.8 billion[21] - Full-year 2024 Medical Devices sales were $19 billion, an increase of over $2 billion compared to the previous year[22] - Total worldwide sales in Q4 2024 were $10.974 billion, with COVID-19 testing-related sales at $176 million[33] - Full-year 2024 total worldwide sales were $41.950 billion, with COVID-19 testing-related sales at $747 million[33] - Net Sales for 4Q24 increased by 7.2% to $10.974 billion compared to $10.241 billion in 4Q23[35] - Total Company revenue for 4Q24 was $10.974 billion, a 7.2% increase compared to 4Q23[54] - U.S. revenue for 4Q24 was $4.341 billion, up 10.0% compared to 4Q23[54] - International revenue for 4Q24 was $6.633 billion, a 5.4% increase compared to 4Q23[54] - Total Nutrition revenue for 4Q24 was $2.129 billion, up 4.5% compared to 4Q23[54] - Adult Nutrition revenue for 4Q24 was $1.129 billion, a 7.4% increase compared to 4Q23[54] - Total Medical Devices revenue for 4Q24 was $5.052 billion, up 13.7% compared to 4Q23[54] - Total Company revenue for 12M24 was $41.950 billion, a 4.6% increase compared to 12M23[54] - Total Medical Devices revenue for 12M24 was $18.986 billion, up 12.4% compared to 12M23[54] Earnings and Profitability - Full-year 2024 GAAP diluted EPS of $7.64 and adjusted diluted EPS of $4.67[3] - Abbott projects full-year 2025 adjusted diluted EPS of $5.05 to $5.25, reflecting double-digit growth at the midpoint[3] - Operating Earnings for 4Q24 rose by 7.4% to $1.911 billion from $1.780 billion in 4Q23[35] - Net Earnings for 4Q24 surged to $9.229 billion, significantly impacted by a $7.497 billion non-cash valuation allowance adjustment[35][37] - Diluted Earnings per Common Share for 4Q24 was $5.27, up from $0.91 in 4Q23, largely due to the same valuation allowance adjustment[35][37] - Operating Earnings for 12M24 increased by 5.4% to $6.825 billion from $6.478 billion in 12M23[39] - Net Earnings for 12M24 jumped to $13.402 billion, influenced by a $7.497 billion non-cash valuation allowance adjustment[39][41] - Diluted Earnings per Common Share for 12M24 was $7.64, up from $3.26 in 12M23, primarily due to the valuation allowance adjustment[39][41] - Abbott projects full-year 2025 adjusted operating margin to be 23.5% to 24.0% of sales, reflecting an increase of 150 basis points at the midpoint compared to 2024[3] Research and Development - Abbott announced more than 15 new growth opportunities from its R&D pipeline in 2024, including new product approvals and treatment indications[3] - R&D expenses for 4Q24 increased by 7.0% to $749 million compared to $700 million in 4Q23[35] Expenses and Costs - SG&A expenses for 4Q24 rose by 6.7% to $2.907 billion from $2.724 billion in 4Q23[35] - Acquisition-related expenses include legal and other costs related to business acquisitions as well as integration costs[68] - Restructuring and cost reduction initiative expenses include severance and outplacement costs[68] - Other expenses include costs to comply with MDR and IVDR regulations and charges for intangible asset impairments[68] - Net tax benefit associated with specified items is reflected[68] COVID-19 Testing Sales - 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[12] - Total worldwide sales in Q4 2024 were $10.974 billion, with COVID-19 testing-related sales at $176 million[33] - Full-year 2024 total worldwide sales were $41.950 billion, with COVID-19 testing-related sales at $747 million[33] Dividend and Shareholder Returns - Abbott declared a quarterly dividend of $0.59 per share, marking its 404th consecutive quarterly dividend[26] Product Line Discontinuation - The company discontinued the ZonePerfect® product line in the Nutrition business, impacting revenue by $1 billion in 4Q24 and $14 billion in 12M24[55] Acquisitions and Organic Growth - The acquisition of CSI on April 27, 2023, impacted organic sales growth calculations for January through April 2024[54] - Abbott projects full-year 2025 organic sales growth to be in the range of 7.5% to 8.5%[3] - Abbott projects full-year 2025 organic sales growth to be in the range of 7.5% to 8.5%[24]