Abbott Reports First-Quarter 2023 Results; Increases Outlook For Underlying Base Business
- Sales of $9.7 billion driven by strong underlying base business performance
- Reported sales decreased 18.1 percent due to anticipated decline in COVID-19 testing-related sales versus prior year
- Organic sales growth for underlying base business of 10.0 percent, led by Medical Devices, Established Pharmaceuticals and Nutrition
ABBOTT PARK, Ill., April 19, 2023 /PRNewswire/ -- Abbott (NYSE: ABT) today announced financial results for the first quarter ended March 31, 2023.
- First-quarter GAAP diluted EPS of $0.75 and adjusted diluted EPS of $1.03, which excludes specified items.
- Projected full-year 2023 diluted EPS from continuing operations on a GAAP basis of $3.05 to $3.25 remains unchanged.
- Projected full-year adjusted EPS from continuing operations of $4.30 to $4.50 remains unchanged and now reflects an increased outlook for the underlying base business offset by a lower forecasted earnings contribution from COVID-19 testing-related sales.
- Abbott now projects full-year 2023 organic sales growth, excluding COVID-19 testing-related sales1, of at least high single-digits2 and COVID-19 testing-related sales of approximately $1.5 billion.
- In January, Abbott announced U.S. Food and Drug Administration (FDA) approval of Navitor®, its second-generation transcatheter aortic valve implantation system, for people with severe aortic stenosis who are at high risk for surgery.
- In March, data was presented at the American College of Cardiology Scientific Sessions showing Abbott's TriClip® system was superior to current medical therapy in treating patients with severe tricuspid regurgitation, or a leaky tricuspid heart valve.
- In March, Abbott's market-leading FreeStyle Libre® continuous glucose monitoring system received U.S. FDA clearance for integration with automated insulin delivery systems. Abbott is partnering with leading insulin pump manufacturers to integrate their systems with FreeStyle Libre 2 and FreeStyle Libre 3 as soon as possible.
"Our first-quarter results reflect a very strong start to the year," said Robert B. Ford, chairman and chief executive officer, Abbott. "Growth in our underlying base businesses accelerated, including particularly strong results in Medical Devices, Established Pharmaceuticals and Nutrition."
FIRST-QUARTER BUSINESS OVERVIEW
Management believes that measuring sales growth rates on an organic basis, which excludes the impact of foreign exchange, as well as the impact of exiting the pediatric nutrition business in China, is an appropriate way for investors to best understand the core underlying performance of the business.
Management further believes that measuring sales growth rates on an organic basis excluding COVID-19 tests is an appropriate way for investors to best understand underlying base business performance as the COVID-19 pandemic shifts to an endemic state, resulting in significantly lower expected demand for COVID-19 tests.
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.
Total Company | |||||||||
Reported Sales | |||||||||
Sales 1Q23 ($ in millions) | Total Company | Nutrition | Diagnostics | Established | Medical Devices | ||||
U.S. | 3,928 | 812 | 1,335 | — | 1,778 | ||||
International | 5,819 | 1,155 | 1,353 | 1,189 | 2,122 | ||||
Total reported | 9,747 | 1,967 | 2,688 | 1,189 | 3,900 | ||||
% Change vs. 1Q22 | |||||||||
U.S. | (20.4) | 19.9 | (50.8) | n/a | 15.1 | ||||
International | (16.4) | (5.1) | (46.9) | 3.7 | 3.5 | ||||
Total reported | (18.1) | 3.8 | (48.9) | 3.7 | 8.5 | ||||
Organic Sales | |||||||||
% Change vs. 1Q22 | Total Company | Nutrition | Diagnostics | Established | Medical Devices | ||||
Reported | (18.1) | 3.8 | (48.9) | 3.7 | 8.5 | ||||
Impact of foreign exchange | (3.3) | (3.9) | (1.8) | (7.4) | (3.9) | ||||
Impact of business exit | (0.3) | (2.6) | — | — | — | ||||
Organic | (14.5) | 10.3 | (47.1) | 11.1 | 12.4 | ||||
Impact of COVID-19 testing sales3 | (24.5) | — | (51.5) | — | — | ||||
Organic excluding COVID-19 tests | 10.0 | 10.3 | 4.4 | 11.1 | 12.4 | ||||
U.S. | 12.6 | 19.9 | 0.3 | n/a | 15.1 | ||||
International | 8.6 | 4.8 | 6.8 | 11.1 | 10.4 |
n/a = Not Applicable. |
Refer to table titled "Non-GAAP Revenue Reconciliation" for a reconciliation of adjusted historical revenue to reported revenue.
Nutrition | |||||||
Reported Sales | |||||||
Sales 1Q23 ($ in millions) | Total | Pediatric | Adult | ||||
U.S. | 812 | 459 | 353 | ||||
International | 1,155 | 465 | 690 | ||||
Total reported | 1,967 | 924 | 1,043 | ||||
% Change vs. 1Q22 | |||||||
U.S. | 19.9 | 36.1 | 3.9 | ||||
International | (5.1) | (8.6) | (2.6) | ||||
Total reported | 3.8 | 9.2 | (0.5) | ||||
Organic Sales | |||||||
% Change vs. 1Q22 | Total | Pediatric | Adult | ||||
Reported | 3.8 | 9.2 | (0.5) | ||||
Impact of foreign exchange | (3.9) | (2.8) | (4.7) | ||||
Impact of business exit | (2.6) | (6.4) | — | ||||
Organic | 10.3 | 18.4 | 4.2 | ||||
U.S. | 19.9 | 36.1 | 3.9 | ||||
International | 4.8 | 5.3 | 4.4 |
Worldwide Nutrition sales increased 3.8 percent on a reported basis and 10.3 percent on an organic basis in the first quarter. Refer to table titled "Non-GAAP Revenue Reconciliation" for a reconciliation of adjusted historical revenue to reported revenue.
In Pediatric Nutrition, global sales increased 9.2 percent on a reported basis and 18.4 percent on an organic basis. In the U.S., sales growth of 36.1 percent includes the impact of lower sales in the first quarter of the prior year due to a voluntary recall of certain infant formula products. Following a temporary manufacturing stoppage of these products, Abbott subsequently restarted production last year and continues to make good progress recovering market share in this business.
In Adult Nutrition, global sales decreased 0.5 percent on a reported basis and increased 4.2 percent on an organic basis, which was led by strong global growth of Ensure®, Abbott's market-leading complete and balanced nutrition brand.
Diagnostics | |||||||||
Reported Sales | |||||||||
Sales 1Q23 ($ in millions) | Total | Core Laboratory | Molecular | Point of Care | Rapid | ||||
U.S. | 1,335 | 289 | 47 | 93 | 906 | ||||
International | 1,353 | 893 | 100 | 41 | 319 | ||||
Total reported | 2,688 | 1,182 | 147 | 134 | 1,225 | ||||
% Change vs. 1Q22 | |||||||||
U.S. | (50.8) | 7.7 | (72.7) | 2.9 | (58.4) | ||||
International | (46.9) | (2.5) | (59.7) | 9.2 | (76.3) | ||||
Total reported | (48.9) | (0.2) | (65.0) | 4.7 | (65.3) | ||||
Organic Sales | |||||||||
% Change vs. 1Q22 | Total | Core Laboratory | Molecular | Point of Care | Rapid | ||||
Reported | (48.9) | (0.2) | (65.0) | 4.7 | (65.3) | ||||
Impact of foreign exchange | (1.8) | (5.3) | (1.0) | (1.0) | (0.8) | ||||
Organic | (47.1) | 5.1 | (64.0) | 5.7 | (64.5) | ||||
Impact of COVID-19 testing sales3 | (51.5) | (2.0) | (39.2) | — | (72.5) | ||||
Organic excluding COVID-19 tests | 4.4 | 7.1 | (24.8) | 5.7 | 8.0 | ||||
U.S. | 0.3 | 9.0 | (36.7) | 2.9 | (0.9) | ||||
International | 6.8 | 6.5 | (18.9) | 12.7 | 23.2 |
*The Acelis Connected Health business was internally transferred from Rapid Diagnostics to Heart Failure on January 1, 2023. As a result, $29 million of sales for the first quarter of 2022 were moved from Rapid Diagnostics to Heart Failure. |
As expected, Diagnostics sales growth in the first quarter was negatively impacted by year-over-year declines in COVID-19 testing-related sales3. Worldwide COVID-19 testing sales were $730 million in the first quarter of 2023 compared to $3.304 billion in the first quarter of the prior year.
Excluding COVID-19 testing-related sales, global Diagnostics sales increased 0.2 percent on a reported basis and increased 4.4 percent on an organic basis. Organic sales growth, excluding COVID-19 testing-related sales, was led by Core Laboratory, Point of Care and Rapid Diagnostics. In Molecular Diagnostics, growth was negatively impacted by lower demand for seasonal respiratory testing compared to significantly higher-than-usual demand in the first quarter of the prior year.
Established Pharmaceuticals | ||||||||
Reported Sales | ||||||||
Sales 1Q23 ($ in millions) | Total | Key Emerging | Other | |||||
U.S. | — | — | — | |||||
International | 1,189 | 912 | 277 | |||||
Total reported | 1,189 | 912 | 277 | |||||
% Change vs. 1Q22 | ||||||||
U.S. | n/a | n/a | n/a | |||||
By: PR Newswire Association LLC.
- 19 Apr 2023
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