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10-QPeriod: Q2 FY2022

AbbVie Inc. Quarterly Report for Q2 Ended Jun 30, 2022

Filed August 4, 2022For Securities:ABBV

Summary

AbbVie Inc. reported solid financial performance for the second quarter and first half of 2022, demonstrating revenue growth and strategic pipeline advancements. Net revenues increased by 4.5% to $14.6 billion for the quarter and 4.3% to $28.1 billion for the first half, driven by strong performance in its immunology, neuroscience, and aesthetics portfolios, notably Skyrizi and Rinvoq. Despite a significant increase in SG&A expenses primarily due to a $2.2 billion litigation reserve charge, the company maintained healthy gross margins and managed R&D expenses effectively. Diluted earnings per share were $0.51 for the quarter and $3.03 for the first half, with notable after-tax costs including amortization of intangibles and litigation expenses. AbbVie also continued to return value to shareholders through dividends and share repurchases, underscoring its commitment to both growth and capital return.

Financial Statements
Beta
Revenue$14.58B
Cost of Revenue$4.17B
Gross Profit$10.41B
SG&A Expenses$5.41B
Operating Expenses$11.29B
Operating Income$3.29B
Interest Expense$556.00M
Net Income$924.00M
EPS (Basic)$0.52
EPS (Diluted)$0.51
Shares Outstanding (Basic)1.77B
Shares Outstanding (Diluted)1.78B

Key Highlights

  • 1AbbVie reported total net revenues of $14.58 billion for the three months ended June 30, 2022, a 4.5% increase year-over-year, and $28.12 billion for the six months ended June 30, 2022, a 4.3% increase year-over-year.
  • 2Key growth drivers included Skyrizi, with net revenues up 85.9% and 75.7% for the three and six-month periods respectively, and Rinvoq, with net revenues up 56.3% and 55.1% over the same periods, reflecting strong market uptake.
  • 3Humira sales showed resilience, increasing 5.8% for the quarter and 1.7% for the six months, although international revenues declined due to biosimilar competition.
  • 4Diluted earnings per share attributable to AbbVie Inc. were $0.51 for the three months and $3.03 for the six months ended June 30, 2022.
  • 5Selling, General, and Administrative (SG&A) expenses increased significantly due to a $2.2 billion litigation reserve charge for opioid litigation.
  • 6The company returned $5.0 billion to shareholders through dividends and repurchased $1.1 billion in stock during the first six months of 2022.
  • 7AbbVie's pipeline remains robust with approximately 80 compounds in development across key therapeutic areas like immunology, oncology, and neuroscience.

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