01—Abstract
Summary
Summary of the 10-K filed February 21, 2025. Cited figures are marked; the original filing is the authoritative source.
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.
02—Key points
Key Highlights
- Medical Devices segment experienced robust growth, led by double-digit increases in Diabetes Care, Structural Heart, Electrophysiology, and Heart Failure.
- Diabetes Care sales, driven by continuous glucose monitoring (CGM) systems, reached $6.4 billion, reflecting an 18.1% increase.
- U.S. Pediatric Nutritionals sales saw a significant increase of 11.7%, indicating successful market share recovery post-recall.
- Established Pharmaceutical Products segment sales grew by 9.2% (excluding foreign exchange), with strong performance in emerging markets.
- The company completed key acquisitions, including Bigfoot Biomedical and Cardiovascular Systems, Inc. (CSI), to bolster its product offerings.
- Abbott increased its quarterly dividend by 7.3% to $0.59 per share, reflecting confidence in its financial health.
- Despite a decrease in COVID-19 testing sales ($747 million in 2024), overall net sales grew by 4.6% year-over-year.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Abbott Laboratories kept $0.32.
- Revenue$41.95B100.0%
- Cost of revenue−$18.71B44.6%
- Gross profit$23.24B55.4%
- Operating costs−$16.42B39.1%
- Operating income$6.83B16.3%
- Interest, other & tax$6.58B15.7%
- Net income$13.40B31.9%
Where FY2024 revenue went
$41.95B- Cost of revenue: $18.71B, 45% of revenue
- SG&A: $11.70B, 28% of revenue
- Operating income: $6.83B, 16% of revenue
- R&D: $2.84B, 6.8% of revenue
- Other operating costs: $1.88B, 4.5% of revenue
Kept 16% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 21, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $41.95B$40.11B | +4.6% |
| Cost of Revenue | $18.71B$17.98B | +4.1% |
| Gross Profit | $23.24B$22.13B | +5.0% |
| R&D Expenses | $2.84B$2.74B | +3.8% |
| SG&A Expenses | $11.70B$10.95B | +6.8% |
| Operating Expenses | $35.13B$33.63B | +4.4% |
| Operating Income | $6.83B$6.48B | +5.4% |
| Net Income | $13.40B$5.72B | +134.2% |
| EPS (Basic) | $7.67$3.28 | +133.8% |
| EPS (Diluted) | $7.64$3.26 | +134.4% |
| Shares Outstanding (Basic) | 1.74B1.74B | 0.0% |
| Shares Outstanding (Diluted) | 1.75B1.75B | −0.1% |
05—Questions
Frequently Asked Questions
What were the main drivers of Abbott's sales growth in 2024?
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.
How is the company managing the decline in COVID-19 testing sales?
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.
What is the company's strategy for its Medical Devices segment moving forward?
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.
Are there any significant legal or regulatory challenges mentioned in the filing?
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.
06—Continue