10-KPeriod: FY2024

ABBOTT LABORATORIES Annual Report, Year Ended Dec 31, 2024

Filed February 21, 2025For Securities:ABT

Summary

Abbott Laboratories reported a solid financial performance for the fiscal year ending December 31, 2024, driven by robust growth across its Medical Devices, Established Pharmaceutical Products, and Nutritional Products segments. The Medical Devices segment, in particular, demonstrated strong momentum with double-digit growth in key areas such as Diabetes Care, Structural Heart, Electrophysiology, and Heart Failure, bolstered by product approvals and expanded indications. The company's recovery in its U.S. Pediatric Nutrition business following a 2022 recall has been significant, with market share gains contributing to overall segment growth. Despite a continued decline in COVID-19 testing-related sales, which is a secular trend, Abbott's core businesses showed resilience. The company's focus on innovation and strategic acquisitions, such as Bigfoot Biomedical and Cardiovascular Systems, Inc. (CSI), are strengthening its product portfolio and market position. Abbott also demonstrated a commitment to shareholder returns by increasing its quarterly dividend and continuing share repurchases. While the company faces ongoing regulatory scrutiny and potential market challenges, its diversified business model and strong product pipeline position it for sustained growth.

Financial Highlights

51 data points
Beta

Revenue

$41.95B

55.4% Gross Margin

Net Income

$13.40B

31.9% Net Margin

EPS (Diluted)

$7.64

Total Assets

$81.41B

Cash & Equivalents

$7.62B

Free Cash Flow

$6.35B

Financial Statements
Beta
Revenue$41.95B
Cost of Revenue$18.71B
Gross Profit$23.24B
R&D Expenses$2.84B
SG&A Expenses$11.70B
Operating Expenses$35.13B
Operating Income$6.83B
Net Income$13.40B
EPS (Basic)$7.67
EPS (Diluted)$7.64
Shares Outstanding (Basic)1.74B
Shares Outstanding (Diluted)1.75B

Key Highlights

  • 1Medical Devices segment experienced robust growth, led by double-digit increases in Diabetes Care, Structural Heart, Electrophysiology, and Heart Failure.
  • 2Diabetes Care sales, driven by continuous glucose monitoring (CGM) systems, reached $6.4 billion, reflecting an 18.1% increase.
  • 3U.S. Pediatric Nutritionals sales saw a significant increase of 11.7%, indicating successful market share recovery post-recall.
  • 4Established Pharmaceutical Products segment sales grew by 9.2% (excluding foreign exchange), with strong performance in emerging markets.
  • 5The company completed key acquisitions, including Bigfoot Biomedical and Cardiovascular Systems, Inc. (CSI), to bolster its product offerings.
  • 6Abbott increased its quarterly dividend by 7.3% to $0.59 per share, reflecting confidence in its financial health.
  • 7Despite a decrease in COVID-19 testing sales ($747 million in 2024), overall net sales grew by 4.6% year-over-year.

Frequently Asked Questions

Abbott's sales growth in 2024 was primarily driven by strong performance in its Medical Devices segment, particularly in Diabetes Care, Structural Heart, Electrophysiology, and Heart Failure. The Established Pharmaceutical Products and Nutritional Products segments also contributed positively, with notable recovery in U.S. Pediatric Nutritionals and continued growth in emerging markets for pharmaceuticals.

Abbott acknowledges the year-over-year decline in COVID-19 testing-related sales as a secular trend. The company is offsetting this decline with growth in its other core businesses, including routine diagnostic tests and the ongoing deployment of its Alinity testing platform. Excluding COVID-19 testing sales, Abbott's total net sales increased by 7.0% in 2024.

Abbott plans to continue investing in and growing its Medical Devices segment. Key areas of focus for R&D and commercialization include next-generation rhythm management technologies, enhancements to heart failure devices, advanced electrophysiology technologies, cardiovascular devices, structural heart solutions, neuromodulation, and further development of its continuous glucose monitoring products for diabetes management and beyond.

The filing mentions ongoing lawsuits related to certain specialty infant formula products alleging links to necrotizing enterocolitis (NEC). While a jury awarded significant damages in one case, Abbott is appealing and maintains confidence in its products. Additionally, there is a criminal investigation by the DOJ related to infant formula manufacturing and a civil investigative demand from the FTC concerning WIC infant formula contracts. The company is also contesting IRS notices regarding income tax adjustments.