01—Abstract
Summary
Summary of the 10-K filed February 19, 2016. Cited figures are marked; the original filing is the authoritative source.
Abbott Laboratories' 2015 10-K report reveals a company undergoing significant strategic shifts, including divestitures and acquisitions, aimed at strengthening its core healthcare businesses.
The company reported net sales of $20.4 billiona, with international markets accounting for approximately 70% of total sales. Key business segments include Established Pharmaceutical Products, Nutritional Products, Diagnostic Products, and Vascular Products. The year was marked by the sale of the developed markets branded generics pharmaceuticals business to Mylan and the acquisition of CFR Pharmaceuticals, bolstering its presence in emerging markets.
Abbott also highlighted its ongoing investment in research and development, totaling $1.4 billionb in 2015, across its diverse product portfolio. The company's financial health remains robust, with a strong cash flow and a commitment to returning value to shareholders through dividends and share repurchases. Looking ahead, Abbott announced its definitive agreement to acquire Alere Inc., a move expected to significantly enhance its diagnostics business.
02—Key points
Key Highlights
- Abbott Laboratories reported net sales of $20.4 billion for the fiscal year ended December 31, 2015.
- The company sold its developed markets branded generics pharmaceuticals business to Mylan Inc. in February 2015.
- Abbott completed the acquisition of CFR Pharmaceuticals S.A. in September 2014, strengthening its emerging markets presence.
- Research and development expenses were $1.4 billion in 2015, demonstrating continued investment in innovation.
- The company announced a definitive agreement to acquire Alere Inc., a leader in point-of-care diagnostics, for $5.8 billion.
- International sales constituted approximately 70% of Abbott's total net sales.
- Abbott continued to return value to shareholders, declaring dividends and repurchasing shares throughout the year.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2015, Abbott Laboratories kept $0.22.
- Revenue$20.41B100.0%
- Cost of revenue−$8.75B42.9%
- Gross profit$11.66B57.1%
- Operating costs−$8.79B43.1%
- Operating income$2.87B14.1%
- Interest, other & tax$1.56B7.6%
- Net income$4.42B21.7%
Where FY2015 revenue went
$20.41B- Cost of revenue: $8.75B, 43% of revenue
- SG&A: $6.79B, 33% of revenue
- Operating income: $2.87B, 14% of revenue
- Other operating costs: $2.01B, 9.8% of revenue
Kept 14% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2015filed February 19, 2016Financial Statements
FY2015 against FY2014
| Line item | FY2015FY2014 | Change |
|---|---|---|
| Revenue | $20.41B$20.25B | +0.8% |
| Cost of Revenue | $8.75B$9.22B | −5.1% |
| Gross Profit | $11.66B$11.03B | +5.7% |
| SG&A Expenses | $6.79B$6.53B | +3.9% |
| Operating Expenses | $17.54B$17.65B | −0.6% |
| Operating Income | $2.87B$2.60B | +10.3% |
| Interest Expense | $163.00M$150.00M | +8.7% |
| Net Income | $4.42B$2.28B | +93.7% |
| EPS (Basic) | $2.94$1.50 | +96.0% |
| EPS (Diluted) | $2.92$1.49 | +96.0% |
| Shares Outstanding (Basic) | 1.50B1.52B | −1.3% |
| Shares Outstanding (Diluted) | 1.51B1.53B | −1.4% |
05—Questions
Frequently Asked Questions
What were Abbott's main business segments in 2015?
Abbott's principal business segments in 2015 were Established Pharmaceutical Products, Nutritional Products, Diagnostic Products, and Vascular Products.
What significant strategic transactions did Abbott undertake in 2015?
In 2015, Abbott completed the sale of its developed markets branded generics pharmaceuticals business to Mylan Inc. Additionally, it acquired Tendyne Holdings, Inc. and announced a definitive agreement to acquire Alere Inc.
How did Abbott's international operations perform?
International sales represented approximately 70% of Abbott's total net sales in 2015. Sales in emerging markets specifically saw robust growth, increasing by 17.1% excluding foreign exchange impacts.
What is the outlook for Abbott's diagnostics business following the Alere acquisition announcement?
The announced acquisition of Alere Inc., a global leader in point-of-care diagnostics, is expected to significantly advance Abbott's global diagnostics presence and leadership, making it a key strategic growth area for the company.
06—Continue