Abbott Laboratories Annual Report (Form 10-K) for the fiscal year ended December 31, 2024

Press release · 02/22 01:03
Abbott Laboratories Annual Report (Form 10-K) for the fiscal year ended December 31, 2024

Abbott Laboratories Annual Report (Form 10-K) for the fiscal year ended December 31, 2024

Abbott Laboratories reported its annual financial results for the fiscal year ended December 31, 2024. The company’s net sales increased by 4.1% to $43.8 billion, driven by growth in its established pharmaceuticals, diagnostic products, and nutritional products segments. Net earnings rose to $6.4 billion, or $2.44 per diluted share, compared to $5.9 billion, or $2.23 per diluted share, in the prior year. The company’s cash flow from operations was $7.3 billion, and its debt-to-equity ratio was 0.44. Abbott also declared a quarterly dividend of $0.45 per share, payable on February 15, 2025. The company’s financial performance was driven by its diversified portfolio of products, strong operational execution, and strategic investments in research and development and emerging markets.

Financial Overview

Abbott is a diversified global healthcare company that derives its revenues primarily from the sale of medical devices, diagnostic testing products, nutritional products, and branded generic pharmaceuticals. The company operates in over 160 countries worldwide, with international markets comprising 61% of consolidated net sales.

Revenue and Profit Trends

  • Abbott’s sales growth in 2024 was driven by strong performance in its Medical Devices, Established Pharmaceutical, and Nutritional businesses. This was partially offset by a decline in COVID-19 testing-related sales as the pandemic shifted to an endemic state.
  • Excluding the impact of COVID-19 testing, Abbott’s total net sales increased 7.0% in 2024 and 9.2% in 2023.
  • Operating margin increased to 16.3% in 2024 from 16.2% in 2023, reflecting the favorable impact of margin improvement initiatives, partially offset by foreign exchange and inflation.

Segment Performance

  • Medical Devices: Sales grew 13.7% in 2024 and 15.1% in 2023, driven by double-digit growth across multiple businesses including Diabetes Care, Structural Heart, Electrophysiology, and Heart Failure. Operating margin increased to 32.4% in 2024.
  • Diagnostics: Sales decreased 3.9% in 2024 and 38.2% in 2023 due to lower COVID-19 test demand, partially offset by growth in routine diagnostic tests. Operating margin declined to 22.2% in 2024.
  • Nutritional Products: Total sales increased 5.9% in 2024 and 11.6% in 2023, driven by market share recovery in U.S. infant formula and growth in adult nutrition products. Operating margin improved to 17.9% in 2024.
  • Established Pharmaceuticals: Sales grew 9.2% in 2024 and 10.9% in 2023, led by higher revenue in emerging markets. Operating margin increased to 23.7% in 2024.

Financial Position and Outlook

  • Abbott ended 2024 with $8.0 billion in cash and short-term investments and $14.1 billion in long-term debt.
  • The company expects to continue investing in R&D to drive growth, with a focus on areas like diagnostics, medical devices, and nutritional products.
  • Abbott remains committed to maintaining an investment grade credit rating and returning capital to shareholders through dividends and share repurchases.

Overall, Abbott delivered solid financial performance in 2024, demonstrating the strength and diversification of its healthcare portfolio. The company is well-positioned to capitalize on growth opportunities while navigating challenges like foreign exchange and inflationary pressures.