Summary
Abbott Laboratories reported net sales of $9.75 billion for the first quarter of 2023, a decrease of 18.1% compared to the prior year's $11.9 billion. This decline was primarily driven by a significant drop in COVID-19 testing sales, which fell from $3.3 billion in Q1 2022 to $730 million in Q1 2023. Excluding COVID-19 testing sales and the impact of foreign exchange, Abbott's total net sales increased by 9.4%, indicating underlying strength in its other business segments. Despite the overall sales decline, Abbott's Medical Devices segment showed robust growth, increasing by 12.4% (excluding foreign exchange), fueled by strong performance in Diabetes Care (FreeStyle Libre sales up 25.4%), Structural Heart, and other cardiovascular areas. The Established Pharmaceutical Products and Nutritional Products segments also saw modest growth, while the Diagnostic Products segment experienced a substantial decrease largely due to the winding down of COVID-19 test demand. Diluted earnings per share were $0.75, down from $1.37 in the prior year, reflecting the impact of lower sales and other operational factors.
Financial Highlights
50 data points| Revenue | $9.75B |
| Cost of Revenue | $4.33B |
| Gross Profit | $5.42B |
| R&D Expenses | $654.00M |
| SG&A Expenses | $2.76B |
| Operating Expenses | $8.24B |
| Operating Income | $1.51B |
| Interest Expense | $153.00M |
| Net Income | $1.32B |
| EPS (Basic) | $0.75 |
| EPS (Diluted) | $0.75 |
| Shares Outstanding (Basic) | 1.74B |
| Shares Outstanding (Diluted) | 1.75B |
Key Highlights
- 1Net sales decreased by 18.1% year-over-year to $9.75 billion, primarily due to a significant reduction in COVID-19 testing sales.
- 2Excluding COVID-19 testing and foreign exchange impacts, underlying sales grew by 9.4%, highlighting resilience in core businesses.
- 3Medical Devices segment demonstrated strong performance with an 8.5% increase in net sales (12.4% excluding foreign exchange), led by Diabetes Care (FreeStyle Libre up 25.4%).
- 4Diagnostic Products segment sales declined substantially by 48.9% (47.1% excluding foreign exchange), largely attributed to the drop in COVID-19 test demand.
- 5Diluted Earnings Per Share (EPS) decreased to $0.75 from $1.37 in the prior year's quarter.
- 6The company completed the acquisition of Cardiovascular Systems, Inc. (CSI) for approximately $850 million in cash to bolster its vascular device offerings.
- 7Abbott returned $1.18 billion to shareholders through dividends and share repurchases in the quarter, with an additional $2.13 billion available for future repurchases.