Abbott Reports Fourth-Quarter 2020 Results; Issues Strong Double-Digit Growth Forecast for 2021
ABBOTT PARK, Ill., Jan. 27, 2021 /PRNewswire/ -- Abbott (NYSE: ABT) today announced financial results for the fourth quarter and full year ended Dec. 31, 2020, and issued its financial outlook for 2021.
- Fourth-quarter sales of $10.7 billion increased 28.7 percent on a reported basis and 28.4 percent on an organic basis, which excludes the impact of foreign exchange.
- Fourth-quarter GAAP diluted EPS was $1.20 and adjusted diluted EPS, which excludes specified items, was $1.45, reflecting 52.6 percent growth versus the prior year.1
- Full-year 2020 GAAP diluted EPS from continuing operations was $2.49 and adjusted diluted EPS from continuing operations was $3.65, at the upper-end of guidance range issued in January 2020.2
- Abbott issues full-year 2021 guidance for diluted EPS from continuing operations on a GAAP basis of at least $3.74 and full-year adjusted diluted EPS from continuing operations of at least $5.00, reflecting growth of more than 35 percent versus the prior year.3
- In the fourth quarter, global COVID-19 testing-related sales were $2.4 billion, led by combined sales of $1.9 billion from Abbott's BinaxNOW™, Panbio™ and ID NOW™ rapid testing platforms.
- R&D pipeline continued to be highly productive in 2020: U.S. approval of FreeStyle® Libre 2 and CE Mark of FreeStyle Libre 3 and Libre Sense Glucose Sport Biosensor; CE Mark of MitraClip® G4, TriClip™ and Tendyne™ heart valve devices; U.S. approval of Gallant™ cardiac rhythm devices; CE Mark of EnSite™ X 3D cardiac mapping system; portfolio expansions in Nutrition and Established Pharmaceuticals.
"Despite challenging conditions, we achieved double-digit EPS growth, delivered ground-breaking innovation and advanced our new product pipeline in 2020," said Robert B. Ford, president and chief executive officer, Abbott. "We exited the year with a lot of momentum and are forecasting EPS growth of more than 35 percent in 2021."
FOURTH-QUARTER BUSINESS OVERVIEW
Note: Management believes that measuring sales growth rates on an organic basis is an appropriate way for investors to best understand the underlying performance of the business. Organic sales growth excludes the impact of foreign exchange.
Following are sales by business segment and commentary for the fourth quarter 2020:
Total Company
($ in millions)
% Change vs. 4Q19 | ||||||||||||||||||
Sales 4Q20 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total * | 4,199 | 6,502 | 10,701 | 41.8 | 21.4 | 28.7 | 41.8 | 20.9 | 28.4 | |||||||||
Nutrition | 841 | 1,095 | 1,936 | 6.5 | 1.4 | 3.6 | 6.5 | 2.9 | 4.4 | |||||||||
Diagnostics | 1,981 | 2,364 | 4,345 | 158.5 | 83.0 | 111.1 | 158.5 | 79.6 | 108.9 | |||||||||
Established Pharmaceuticals | -- | 1,147 | 1,147 | n/a | (2.3) | (2.3) | n/a | 3.4 | 3.4 | |||||||||
Medical Devices | 1,369 | 1,888 | 3,257 | (2.5) | 4.9 | 1.7 | (2.5) | 1.2 | (0.4) |
* Total Q4 2020 Abbott sales from continuing operations include Other Sales of approximately $16 million. | ||||||||||||||||||
% Change vs. 12M19 | ||||||||||||||||||
Sales 12M20 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total * | 13,022 | 21,586 | 34,608 | 14.2 | 5.3 | 8.5 | 14.2 | 7.3 | 9.8 | |||||||||
Nutrition | 3,279 | 4,368 | 7,647 | 5.4 | 1.6 | 3.2 | 5.4 | 4.2 | 4.7 | |||||||||
Diagnostics | 4,774 | 6,031 | 10,805 | 65.3 | 25.0 | 40.1 | 65.3 | 25.8 | 40.6 | |||||||||
Established Pharmaceuticals | -- | 4,303 | 4,303 | n/a | (4.1) | (4.1) | n/a | 1.9 | 1.9 | |||||||||
Medical Devices | 4,931 | 6,856 | 11,787 | (8.2) | (0.1) | (3.7) | (8.2) | (0.3) | (3.8) |
* Total 12M 2020 Abbott sales from continuing operations include Other Sales of approximately $66 million. |
n/a = Not Applicable. |
Note: In order to compute results excluding the impact of exchange rates, current year U.S. dollar sales are multiplied or divided, as appropriate, by the current year average foreign exchange rates and then those amounts are multiplied or divided, as appropriate, by the prior year average foreign exchange rates. |
Fourth-quarter 2020 worldwide sales of $10.7 billion increased 28.7 percent on a reported basis and 28.4 percent on an organic basis.
Nutrition
($ in millions)
% Change vs. 4Q19 | ||||||||||||||||||
Sales 4Q20 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total | 841 | 1,095 | 1,936 | 6.5 | 1.4 | 3.6 | 6.5 | 2.9 | 4.4 | |||||||||
Pediatric | 497 | 511 | 1,008 | 5.2 | (9.5) | (2.8) | 5.2 | (8.4) | (2.2) | |||||||||
Adult | 344 | 584 | 928 | 8.4 | 13.4 | 11.5 | 8.4 | 15.3 | 12.7 | |||||||||
% Change vs. 12M19 | ||||||||||||||||||
Sales 12M20 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total | 3,279 | 4,368 | 7,647 | 5.4 | 1.6 | 3.2 | 5.4 | 4.2 | 4.7 | |||||||||
Pediatric | 1,987 | 2,140 | 4,127 | 5.8 | (6.2) | (0.8) | 5.8 | (4.1) | 0.3 | |||||||||
Adult | 1,292 | 2,228 | 3,520 | 4.9 | 10.5 | 8.4 | 4.9 | 13.6 | 10.3 |
Worldwide Nutrition sales increased 3.6 percent on a reported basis and 4.4 percent on an organic basis in the fourth quarter. Strong performance of Ensure®, Abbott's market-leading complete and balanced nutrition brand, and Glucerna®, Abbott's market-leading diabetes nutrition brand, led to global Adult Nutrition sales growth of 11.5 percent on a reported basis and 12.7 percent on an organic basis. In Pediatric Nutrition, U.S. sales growth of 5.2 percent was led by share growth of Similac®, Abbott's infant formula brand, which was offset by challenging conditions in Greater China.
Diagnostics
($ in millions)
% Change vs. 4Q19 | ||||||||||||||||||
Sales 4Q20 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total | 1,981 | 2,364 | 4,345 | 158.5 | 83.0 | 111.1 | 158.5 | 79.6 | 108.9 | |||||||||
Core Laboratory | 326 | 997 | 1,323 | 10.9 | 4.3 | 5.9 | 10.9 | 3.3 | 5.1 | |||||||||
Molecular | 192 | 290 | 482 | 427.0 | 263.1 | 314.5 | 427.0 | 254.2 | 308.3 | |||||||||
Point of Care | 91 | 38 | 129 | (11.9) | 14.2 | (5.5) | (11.9) | 12.3 | (6.0) | |||||||||
Rapid Diagnostics | 1,372 | 1,039 | 2,411 | 312.2 | 366.2 | 333.9 | 312.2 | 354.0 | 329.0 | |||||||||
% Change vs. 12M19 | ||||||||||||||||||
Sales 12M20 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total | 4,774 | 6,031 | 10,805 | 65.3 | 25.0 | 40.1 | 65.3 | 25.8 | 40.6 | |||||||||
Core Laboratory | 1,166 | 3,309 | 4,475 | 7.3 | (7.3) | (3.9) | 7.3 | (5.9) | (2.8) | |||||||||
Molecular | 621 | 817 | 1,438 | 315.5 | 178.8 | 224.9 | 315.5 | 179.9 | 225.7 | |||||||||
Point of Care | 369 | 147 | 516 | (15.9) | 20.2 | (8.0) | (15.9) | 20.6 | (7.9) | |||||||||
Rapid Diagnostics | 2,618 | 1,758 | 4,376 | 115.7 | 109.2 | 113.0 | 115.7 | 107.4 | 112.3 |
Worldwide Diagnostics sales increased 111.1 percent on a reported basis in the fourth quarter and increased 108.9 percent on an organic basis. Strong growth in the quarter was driven by demand for Abbott's portfolio of COVID-19 diagnostics tests across its rapid and lab-based platforms. Global COVID-19 testing-related sales were $2.4 billion in the fourth quarter, led by combined sales of $1.9 billion from Abbott's BinaxNOW, Panbio and ID NOW rapid testing platforms.
During 2020, Abbott mobilized its teams across multiple fronts to develop and launch multiple diagnostic tests for COVID-19:
- U.S. Emergency Use Authorization (EUA) of BinaxNOW COVID-19 Ag Card test, a portable, lateral flow rapid antigen test to detect COVID-19.
- CE Mark and World Health Organization emergency use listing of Panbio rapid antigen test to detect COVID-19.
- U.S. EUA of molecular test to detect COVID-19 on its ID NOW rapid point-of-care platform.
- U.S. EUA and CE Mark of molecular test on its m2000™ RealTime lab-based platform to detect COVID-19.
- U.S. EUA and CE Mark of molecular test on its Alinity™ m system to detect COVID-19.
- U.S. EUA and CE Mark of IgG (Immunoglobulin G) lab-based serology blood test on its ARCHITECT® i1000SR and i2000SR laboratory instruments for the detection of an antibody to determine if someone was previously infected with the virus.
- U.S. EUA and CE Mark of SARS-CoV-2 IgG lab-based serology blood test on its Alinity i system.
- Lateral flow COVID-19 rapid antibody test on its Panbio system in select countries for the detection of an antibody to determine if someone was previously infected with the virus.
- U.S. EUA and CE Mark of AdviseDx SARS-CoV-2 IgM (Immunoglobulin M) lab-based serology test for use on its ARCHITECT and Alinity platforms.
- CE Mark of IgG (Immunoglobulin G) quantitative lab-based serology test for use on its ARCHITECT and Alinity platforms.
- CE Mark of multiplex molecular tests on its Alinity m system to detect COVID-19, Flu A/B and RSV.
Established Pharmaceuticals
($ in millions)
% Change vs. 4Q19 | ||||||||||||||||||
Sales 4Q20 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total | -- | 1,147 | 1,147 | n/a | (2.3) | (2.3) | n/a | 3.4 | 3.4 | |||||||||
Key Emerging Markets | -- | 833 | 833 | n/a | (7.1) | (7.1) | n/a | 1.1 | 1.1 | |||||||||
Other | -- | 314 | 314 | n/a | 13.0 | 13.0 | n/a | 10.8 | 10.8 | |||||||||
% Change vs. 12M19 | ||||||||||||||||||
Sales 12M20 | Reported | Organic | ||||||||||||||||
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