• Fourth-quarter reported sales increased 1.5 percent; organic sales growth for the underlying base business increased 11.0 percent
  • Full-year 2023 reported sales decreased 8.1 percent due to anticipated decline in COVID-19 testing-related sales; organic sales growth for the underlying base business increased 11.6 percent
  • Full-year 2023 GAAP diluted EPS of $3.26; adjusted diluted EPS of $4.44
  • R&D pipeline continues to deliver steady cadence of new products

ABBOTT PARK, Ill., Jan. 24, 2024 /PRNewswire/ -- Abbott today announced financial results for the fourth quarter ended Dec. 31, 2023.

  • Fourth-quarter sales increased 1.5 percent on a reported basis, 2.1 percent on an organic basis, and 11.0 percent on an organic basis, excluding COVID-19 testing-related sales1.
  • Fourth-quarter GAAP diluted EPS of $0.91 and adjusted diluted EPS of $1.19, which excludes specified items.
  • Abbott issues full-year 2024 guidance for diluted EPS on a GAAP basis of $3.20 to $3.40 and full-year adjusted diluted EPS of $4.50 to $4.70.
  • Abbott projects full-year 2024 organic sales growth, excluding COVID-19 testing-related sales, to be in the range of 8.0% to 10.0%2.
  • In 2023, Abbott continued to recapture market share in the U.S. infant formula market. The company has now reclaimed its previous market-leading position, as measured on a volume basis.
  • In December, Abbott announced U.S. Food and Drug Administration (FDA) approval of its new laboratory automation system, GLP systems Track, to help laboratories optimize performance and safety to better meet the growing demand for diagnostic testing.
  • In January, Abbott announced that the first-in-human procedures were conducted using the company's new Volt Pulsed Field Ablation (PFA) System to treat patients with heart rhythm disorders such as atrial fibrillation (AFib). These procedures were part of Abbott's Volt CE Mark clinical study. Abbott anticipates approval for its U.S. clinical trial (IDE) for the Volt PFA System in the first half of 2024.
  • In January, Abbott announced that Tandem Diabetes Care's t:slim X2™3 insulin pump is the first automated insulin delivery system in the U.S. to integrate with Abbott's new FreeStyle Libre® 2 Plus sensor.

"The strength and diversity of the Abbott portfolio drove our success in 2023," said Robert B. Ford, chairman and chief executive officer, Abbott. "We're entering 2024 with a lot of positive momentum, and with our highly productive pipeline, we're well-positioned for growth in 2024 and beyond."

FOURTH-QUARTER BUSINESS OVERVIEW
Management believes that measuring sales growth rates on an organic basis, which excludes the impact of foreign exchange, the impact of exiting the pediatric nutrition business in China, and the impact of the acquisition of Cardiovascular Systems, Inc. (CSI), 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 has shifted to an endemic state, resulting in significantly lower 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.

Fourth Quarter 2023 Results (4Q23)


Sales 4Q23 ($ in millions)

Total Company


Nutrition


Diagnostics


Established
Pharmaceuticals


Medical Devices

U.S.

3,949


860


1,020



2,065

International

6,292


1,178


1,514


1,222


2,378

Total reported

10,241


2,038


2,534


1,222


4,443











% Change vs. 4Q22










U.S.

(6.4)


8.2


(38.8)


n/a


17.6

International

7.2


15.3


(6.0)


0.5


17.5

Total reported

1.5


12.2


(22.7)


0.5


17.5

Impact of foreign exchange

(0.8)


(0.7)


(0.4)


(8.3)


1.0

Impact of CSI acquisition

0.4





1.1

Impact of business exit

(0.2)


(1.0)




Organic

2.1


13.9


(22.3)


8.8


15.4

Impact of COVID-19 testing sales (4)

(8.9)



(24.5)



Organic (excluding COVID-19 tests)

11.0


13.9


2.2


8.8


15.4











    U.S.

7.1


8.2


(10.7)


n/a


15.5

    International

13.4


18.5


10.9


8.8


15.4

 

Full-Year 2023 Results (12M23)


Sales 12M23 ($ in millions)

Total Company


Nutrition


Diagnostics


Established
Pharmaceuticals


Medical Devices

U.S.

15,452


3,413


4,329



7,696

International

24,657


4,741


5,659


5,066


9,191

Total reported

40,109


8,154


9,988


5,066


16,887











% Change vs. 12M22










U.S.

(14.8)


16.9


(49.3)


n/a


15.2

International

(3.3)


4.4


(28.7)


3.1


13.2

Total reported

(8.1)


9.3


(39.4)


3.1


14.1

Impact of foreign exchange

(2.0)


(2.3)


(1.2)


(7.8)


(1.0)

Impact of CSI acquisition

0.3





0.9

Impact of business exit

(0.2)


(1.4)




Organic

(6.2)


13.0


(38.2)


10.9


14.2

Impact of COVID-19 testing sales (4)

(17.8)



(44.0)



Organic (excluding COVID-19 tests)

11.6


13.0


5.8


10.9


14.2











    U.S.

11.3


16.9


1.3


n/a


13.3

    International

11.7


10.4


8.5


10.9


14.9

 

Refer to table titled "Non-GAAP Revenue Reconciliation" for a reconciliation of adjusted historical revenue to reported revenue.

Nutrition


Fourth Quarter 2023 Results (4Q23)


Sales 4Q23 ($ in millions)

Total


Pediatric


Adult

U.S.

860


505


355

International

1,178


480


698

Total reported

2,038


985


1,053







% Change vs. 4Q22






U.S.

8.2


11.4


4.0

International

15.3


12.3


17.4

Total reported

12.2


11.8


12.5

Impact of foreign exchange

(0.7)


(0.5)


(0.9)

Impact of business exit

(1.0)


(2.2)


Organic

13.9


14.5


13.4







    U.S.

8.2


11.4


4.0

    International

18.5


17.9


18.9

 

Worldwide Nutrition sales increased 12.2 percent on a reported basis and 13.9 percent on an organic basis in the fourth 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 11.8 percent on a reported basis and 14.5 percent on an organic basis.  International sales increased 12.3 percent on a reported basis and 17.9 percent on an organic basis, which was led by strong growth in Canada and several countries in Latin America. In the U.S., sales growth of 11.4 percent was primarily driven by market share recovery in the infant formula business following a voluntary recall of certain products last year.

In Adult Nutrition, global sales increased 12.5 percent on a reported basis and 13.4 percent on an organic basis, which was led by strong global growth of Ensure®, Abbott's market-leading complete and balanced nutrition brand.

Full-Year 2023 Results (12M23)


Sales 12M23 ($ in millions)

Total


Pediatric


Adult

U.S.

3,413


1,977


1,436

International

4,741


1,957


2,784

Total reported

8,154


3,934


4,220







% Change vs. 12M22






U.S.

16.9


26.6


5.8

International

4.4


2.0


6.2

Total reported

9.3


13.0


6.1

Impact of foreign exchange

(2.3)


(1.8)


(2.7)

Impact of business exit

(1.4)


(3.1)


Organic

13.0


17.9


8.8







    U.S.

16.9


26.6


5.8

    International

10.4


10.3


10.4

 

Diagnostics


Fourth Quarter 2023 Results (4Q23)


Sales 4Q23 ($ in millions)

Total


Core Laboratory


Molecular


Point of Care


Rapid
Diagnostics *

U.S.

1,020


326


44


107


543

International

1,514


1,044


109


42


319

Total reported

2,534


1,370


153


149


862











% Change vs. 4Q22










U.S.

(38.8)


8.3


(27.7)


20.7


(55.3)

International

(6.0)


8.4


(7.8)


(1.0)


(34.4)

Total reported

(22.7)


8.4


(14.6)


13.6


(49.3)

Impact of foreign exchange

(0.4)


(0.7)


0.3


0.6


(0.1)

Organic

(22.3)


9.1


(14.9)


13.0


(49.2)

Impact of COVID-19 testing sales (4)

(24.5)


(0.6)


(16.6)



(35.5)

Organic (excluding COVID-19 tests)

2.2


9.7


1.7


13.0


(13.7)











    U.S.

(10.7)


8.8


(12.6)


20.7


(29.2)

    International

10.9


10.0


8.2


(2.9)


18.6

 

As expected, Diagnostics sales growth in the fourth quarter was negatively impacted by year-over-year declines in COVID-19 testing-related sales4. Worldwide COVID-19 testing sales were $288 million in the fourth quarter of 2023 compared to $1.069 billion in the fourth quarter of the prior year.

Excluding COVID-19 testing-related sales, global Diagnostics sales increased 1.7 percent on a reported basis and 2.2 percent on an organic basis.

Full-Year 2023 Results (12M23)


Sales 12M23 ($ in millions)

Total


Core Laboratory


Molecular


Point of Care


Rapid
Diagnostics *

U.S.

4,329


1,243


172


396


2,518

International

5,659


3,916


402


169


1,172

Total reported

9,988


5,159


574


565


3,690











% Change vs. 12M22










U.S.

(49.3)


9.3


(53.6)


6.4


(62.1)

International

(28.7)


4.4


(35.7)


10.3


(65.6)

Total reported

(39.4)


5.5


(42.3)


7.5


(63.3)

Impact of foreign exchange

(1.2)


(2.9)


(0.7)


(0.2)


(0.4)

Organic

(38.2)


8.4


(41.6)


7.7


(62.9)

Impact of COVID-19 testing sales (4)

(44.0)


(1.0)


(33.5)



(64.2)

Organic (excluding COVID-19 tests)

5.8


9.4


(8.1)


7.7


1.3











    U.S.

1.3


10.1


(17.8)


6.4


(4.8)

    International

8.5


9.1


(3.8)


10.8


11.6


*The Acelis Connected Health business was internally transferred from Rapid Diagnostics to Heart Failure on January 1, 2023. As a result, $28 million of sales in the fourth quarter of 2022 and $115 million in the full-year 2022 were moved from Rapid Diagnostics to Heart Failure. 


Established Pharmaceuticals


Fourth Quarter 2023 Results (4Q23)


Sales 4Q23 ($ in millions)

Total


Key Emerging
Markets


Other

U.S.



International

1,222


918


304

Total reported

1,222


918


304







% Change vs. 4Q22






U.S.

n/a


n/a


n/a

International

0.5


0.5


0.4

Total reported

0.5


0.5


0.4

Impact of foreign exchange

(8.3)


(10.9)


(0.4)

Organic

8.8


11.4


0.8







    U.S.

n/a


n/a


n/a

    International

8.8


11.4


0.8

 

Established Pharmaceuticals sales increased 0.5 percent on a reported basis and 8.8 percent on an organic basis in the fourth quarter.

Key Emerging Markets include several emerging countries that represent the most attractive long-term growth opportunities for Abbott's branded generics product portfolio. Sales in these geographies increased 0.5 percent on a reported basis and increased 11.4 percent on an organic basis, led by growth in several geographies and therapeutic areas, including cardiometabolic, gastroenterology, respiratory, and central nervous system/pain management.

Full-Year 2023 Results (12M23)


Sales 12M23 ($ in millions)

Total


Key Emerging
Markets


Other

U.S.



International

5,066


3,807


1,259

Total reported

5,066


3,807


1,259







% Change vs. 12M22






U.S.

n/a


n/a


n/a

International

3.1


1.1


9.8

Total reported

3.1


1.1


9.8

Impact of foreign exchange

(7.8)


(9.2)


(3.0)

Organic

10.9


10.3


12.8







    U.S.

n/a


n/a


n/a

    International

10.9


10.3


12.8

 

Medical Devices


Fourth Quarter 2023 Results (4Q23)


Sales 4Q23 ($ in millions)

Total


Rhythm
Management


Electro-

physiology


Heart
Failure *


Vascular


Structural
Heart


Neuro-
modulation


Diabetes
Care

U.S.

2,065


285


279


227


245


231


197


601

International

2,378


297


314


74


432


267


43


951

Total reported

4,443


582


593


301


677


498


240


1,552

















% Change vs. 4Q22
















U.S.

17.6


12.0


15.0


13.6


14.8


7.9


20.8


28.3

International

17.5


14.5


28.0


26.6


10.4


17.6


10.2


18.4

Total reported

17.5


13.3


21.5


16.6


12.0


12.9


18.8


22.0

Impact of foreign exchange

1.0


1.2


0.3


1.2


1.1


1.5



1.3

Impact of CSI acquisition

1.1





6.4




Organic

15.4


12.1


21.2


15.4


4.5


11.4


18.8


20.7

















    U.S.

15.5


12.0


15.0


13.6


(2.5)


7.9


20.8


28.3

    International

15.4


12.1


27.3


21.4


8.3


14.7


10.2


16.2

 

Worldwide Medical Devices sales increased 17.5 percent on a reported basis and 15.4 percent on an organic basis in the fourth quarter. Sales growth was led by double-digit organic growth in Diabetes Care, Neuromodulation, Structural Heart, Electrophysiology, Heart Failure, and Rhythm Management. Several recently launched products and new indications contributed to the strong performance, including Amplatzer®, Amulet®, Navitor®, TriClip®, and AVEIR®

In Electrophysiology, internationally, sales grew more than 25.0 percent on a reported and organic basis, which included sales growth of more than 20.0 percent in Europe.

In Diabetes Care, FreeStyle Libre sales were $1.4 billion, which represents sales growth of 25.5 percent on a reported basis and 23.8 percent on an organic basis.

Full-Year 2023 Results (12M23)


Sales 12M23 ($ in millions)

Total


Rhythm
Management


Electro-

physiology


Heart
Failure *


Vascular


Structural
Heart


Neuro-
modulation


Diabetes
Care

U.S.

7,696


1,085


1,008


888


978


883


725


2,129

International

9,191


1,170


1,187


273


1,703


1,061


165


3,632

Total reported

16,887


2,255


2,195


1,161


2,681


1,944


890


5,761

















% Change vs. 12M22
















U.S.

15.2


5.5


10.8


9.6


13.2


7.9


17.2


30.3

International

13.2


7.4


16.6


21.1


5.2


18.7


9.0


16.3

Total reported

14.1


6.5


13.9


12.1


8.0


13.6


15.5


21.1

Impact of foreign exchange

(1.0)


(1.0)


(2.0)


0.1


(1.3)


(0.7)


(0.9)


(0.8)

Impact of CSI acquisition

0.9





5.3




Organic

14.2


7.5


15.9


12.0


4.0


14.3


16.4


21.9

















    U.S.

13.3


5.5


10.8


9.6


(1.0)


7.9


17.2


30.3

    International

14.9


9.4


20.5


20.5


6.7


20.1


13.1


17.5


*The Acelis Connected Health business was internally transferred from Rapid Diagnostics to Heart Failure on January 1, 2023. As a result, $28 million of sales in the fourth quarter of 2022 and $115 million in the full-year 2022 were moved from Rapid Diagnostics to Heart Failure.

 

ABBOTT'S EARNINGS-PER-SHARE GUIDANCE
Abbott projects full-year 2024 diluted earnings per share under GAAP of $3.20 to $3.40. Abbott forecasts specified items for the full-year 2024 of $1.30 per share primarily related to intangible amortization, costs associated with acquisitions, restructuring and cost reduction initiatives and other net expenses. Excluding specified items, projected adjusted diluted earnings per share would be $4.50 to $4.70 for the full-year 2024.

ABBOTT DECLARES 400TH CONSECUTIVE QUARTERLY DIVIDEND
On Dec. 15, 2023, the board of directors of Abbott declared the company's quarterly dividend of $0.55 per share. Abbott's cash dividend is payable Feb. 15, 2024, to shareholders of record at the close of business on Jan. 12, 2024.

Abbott has increased its dividend payout for 52 consecutive years and is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.

About Abbott:
Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 114,000 colleagues serve people in more than 160 countries.

Connect with us at www.abbott.com, on LinkedIn at www.linkedin.com/company/abbott-/, on Facebook at www.facebook.com/Abbott and on Twitter @AbbottNews.

Abbott will live-webcast its fourth-quarter earnings conference call through its Investor Relations website at www.abbottinvestor.com at 8 a.m. Central time today. An archived edition of the webcast will be available later in the day.

— Private Securities Litigation Reform Act of 1995 —
A Caution Concerning Forward-Looking Statements

Some statements in this news release may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Economic, competitive, governmental, technological and other factors that may affect Abbott's operations are discussed in Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022, and are incorporated herein by reference. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.

1

In the fourth quarter of 2023, total worldwide sales were $10.241 billion and COVID-19 testing-related sales were $288 million. In the fourth quarter of 2022, total worldwide sales were $10.091 billion and COVID-19 testing-related sales were $1.069 billion.



2

Abbott has not provided the related GAAP financial measure for organic sales growth, excluding COVID-19 testing-related sales, on a forward-looking basis because the company is unable to predict with reasonable certainty the impact of foreign exchange due to the unpredictability of future changes in foreign exchange rates, which could significantly impact reported sales growth. In addition, as the COVID-19 pandemic has shifted to an endemic state, the company has determined that it is unable to predict with reasonable certainty future COVID-19 test sales due to the unpredictability of demand for Covid-19 tests.



3

t:slimX2™ is a trademark of Tandem Diabetes Care, Inc.



4

Diagnostic sales and COVID-19 testing-related sales in 2023 and 2022 are summarized below:




Sales 4Q23



COVID Tests Sales 4Q23


($ in millions)

U.S.


Int'l


Total



U.S.


Int'l


Total


Total Diagnostics

1,020


1,514


2,534



224


64


288


Core Laboratory

326


1,044


1,370



1


3


4


Molecular

44


109


153



5


2


7


Rapid Diagnostics

543


319


862



218


59


277

















Sales 4Q22



COVID Tests Sales 4Q22


($ in millions)

U.S.


Int'l


Total



U.S.


Int'l


Total


Total Diagnostics

1,667


1,610


3,277



776


293


1,069


Core Laboratory

301


963


1,264



3


7


10


Molecular

62


118


180



17


20


37


Rapid Diagnostics

1,216


486


1,702



756


266


1,022
















Sales 12M23



COVID Tests Sales 12M23


($ in millions)

U.S.


Int'l


Total



U.S.


Int'l


Total


Total Diagnostics

4,329


5,659


9,988



1,255


331


1,586


Core Laboratory

1,243


3,916


5,159



7


13


20


Molecular

172


402


574



24


19


43


Rapid Diagnostics

2,518


1,172


3,690



1,224


299


1,523

















Sales 12M22



COVID Tests Sales 12M22


($ in millions)

U.S.


Int'l


Total



U.S.


Int'l


Total


Total Diagnostics

8,531


7,938


16,469



5,498


2,870


8,368


Core Laboratory

1,137


3,751


4,888



16


46


62


Molecular

370


625


995



190


221


411


Rapid Diagnostics

6,652


3,409


10,061



5,292


2,603


7,895


 

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Earnings

Fourth Quarter Ended December 31, 2023 and 2022

(in millions, except per share data)

(unaudited)





4Q23


4Q22


% Change


Net Sales

$10,241


$10,091


1.5









Cost of products sold, excluding amortization expense

4,556


4,593


(0.8)


Amortization of intangible assets

481


496


(3.1)


Research and development

700


725


(3.6)


Selling, general, and administrative

2,724


2,973


(8.3)


Total Operating Cost and Expenses

8,461


8,787


(3.7)









Operating Earnings

1,780


1,304


36.5









Interest expense, net

70


66


5.9


Net foreign exchange (gain) loss

24


(14)


n/m


Other (income) expense, net

(109)


(68)


60.9


Earnings before taxes

1,795


1,320


36.0


Taxes on earnings

201


287


(29.6)









Net Earnings

$1,594


$1,033


54.2









Net Earnings excluding Specified Items, as described below

$2,094


$1,811


15.6

1)








Diluted Earnings per Common Share

$0.91


$0.59


54.2









Diluted Earnings per Common Share,

excluding Specified Items, as described below

$1.19


$1.03


15.5

1)








Average Number of Common Shares Outstanding

Plus Dilutive Common Stock Options

1,748


1,754





NOTES:

See table tilted "Non-GAAP Reconciliation of Financial Information" for an explanation of certain non-GAAP financial information.

n/m = Percent change is not meaningful.

See footnotes on the following section.



1)

2023 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $500 million, or $0.28 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions and other net expenses.




2022 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $778 million, or $0.44 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions, and other net expenses.

 

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Earnings

Twelve Months Ended December 31, 2023 and 2022

(in millions, except per share data)

(unaudited)





12M23


12M22


% Change


Net Sales

$40,109


$43,653


(8.1)









Cost of products sold, excluding amortization expense

17,975


19,142


(6.1)


Amortization of intangible assets

1,966


2,013


(2.3)


Research and development

2,741


2,888


(5.1)


Selling, general, and administrative

10,949


11,248


(2.7)


Total Operating Cost and Expenses

33,631


35,291


(4.7)









Operating Earnings

6,478


8,362


(22.5)









Interest expense, net

252


375


(33.0)


Net foreign exchange (gain) loss

41


2


n/m


Other (income) expense, net

(479)


(321)


49.3


Earnings before taxes

6,664


8,306


(19.8)


Taxes on earnings

941


1,373


(31.4)

1)








Net Earnings

$5,723


$6,933


(17.5)









Net Earnings excluding Specified Items, as described below

$7,802


$9,466


(17.6)

2)








Diluted Earnings per Common Share

$3.26


$3.91


(16.6)









Diluted Earnings per Common Share,

excluding Specified Items, as described below

$4.44


$5.34


(16.9)

2)








Average Number of Common Shares Outstanding

Plus Dilutive Common Stock Options

1,749


1,764





NOTES:

See table tilted "Non-GAAP Reconciliation of Financial Information" for an explanation of certain non-GAAP financial information.

n/m = Percent change is not meaningful.

See footnotes on the following section.



1)

Taxes on Earnings includes the recognition of approximately $22 million and $43 million of excess tax benefits associated with share-based compensation in 2023 and 2022, respectively.



2)

2023 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $2.079 billion, or $1.18 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions and other net expenses.




2022 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $2.533 billion, or $1.43 per share, for intangible amortization, charges related to a voluntary recall and restructuring actions, the impairment of R&D intangible assets, acquisition-related costs and other net expenses.

 

Abbott Laboratories and Subsidiaries

Non-GAAP Reconciliation of Financial Information

Fourth Quarter Ended December 31, 2023 and 2022

(in millions, except per share data)

(unaudited)



4Q23


As

Reported
(GAAP)


Specified
Items


As

Adjusted







Intangible Amortization

$            481


$          (481)


$              —

Gross Margin

5,204


518


5,722

R&D

700


(78)


622

SG&A

2,724


(35)


2,689

Other (income) expense, net

(109)


(9)


(118)

Earnings before taxes

1,795


640


2,435

Taxes on Earnings

201


140


341

Net Earnings

1,594


500


2,094

Diluted Earnings per Share

$           0.91


$           0.28


$           1.19

 

Specified items reflect intangible amortization expense of $481 million and other net expenses of $159 million associated with restructuring actions, costs associated with acquisitions and other net expenses. See table titled "Details of Specified Items" for additional details regarding specified items.


4Q22


As

Reported
(GAAP)


Specified
Items


As

Adjusted







Intangible Amortization

$            496


$          (496)


$              —

Gross Margin

5,002


612


5,614

R&D

725


(71)


654

SG&A

2,973


(144)


2,829

Other (income) expense, net

(68)


(24)


(92)

Earnings before taxes

1,320


851


2,171

Taxes on Earnings

287


73


360

Net Earnings

1,033


778


1,811

Diluted Earnings per Share

$           0.59


$           0.44


$           1.03

 

Specified items reflect intangible amortization expense of $496 million and other net expenses of $355 million associated with restructuring actions, costs associated with acquisitions and other expenses. See table titled "Details of Specified Items" for additional details regarding specified items.

Abbott Laboratories and Subsidiaries

Non-GAAP Reconciliation of Financial Information

Twelve Months Ended December 31, 2023 and 2022

(in millions, except per share data)

(unaudited)



12M23


As

Reported
(GAAP)


Specified
Items


As

Adjusted







Intangible Amortization

$         1,966


$       (1,966)


$              —

Gross Margin

20,168


2,109


22,277

R&D

2,741


(222)


2,519

SG&A

10,949


(102)


10,847

Other (income) expense, net

(479)


25


(454)

Earnings before taxes

6,664


2,408


9,072

Taxes on Earnings

941


329


1,270

Net Earnings

5,723


2,079


7,802

Diluted Earnings per Share

$           3.26


$           1.18


$           4.44

 

Specified items reflect intangible amortization expense of $1.966 billion and other net expenses of $442 million associated with restructuring actions, costs associated with acquisitions and other expenses. See table titled "Details of Specified Items" for additional details regarding specified items.


12M22


As

Reported
(GAAP)


Specified
Items


As

Adjusted







Intangible Amortization

$         2,013


$       (2,013)


$              —

Gross Margin

22,498


2,351


24,849

R&D

2,888


(282)


2,606

SG&A

11,248


(236)


11,012

Other (income) expense, net

(321)


(55)


(376)

Earnings before taxes

8,306


2,924


11,230

Taxes on Earnings

1,373


391


1,764

Net Earnings

6,933


2,533


9,466

Diluted Earnings per Share

$           3.91


$           1.43


$           5.34

Specified items reflect intangible amortization expense of $2.013 billion and other net expenses of $911 million that includes charges for the impairment of R&D intangible assets, costs associated with a product recall and restructuring actions, acquisition-related costs, and other net expenses. See table titled "Details of Specified Items" for additional details regarding specified items.

A reconciliation of the fourth-quarter tax rates for 2023 and 2022 is shown below: 


4Q23


($ in millions)

Pre-Tax

Income


Taxes on

Earnings


Tax

Rate


As reported (GAAP)

$         1,795


$            201


11.2 %


Specified items

640


140




Excluding specified items

$         2,435


$            341


14.0 %










4Q22


($ in millions)

Pre-Tax

Income


Taxes on

Earnings


Tax

Rate


As reported (GAAP)

$         1,320


$            287


21.7 %


Specified items

851


73




Excluding specified items

$         2,171


$            360


16.5 %


 

A reconciliation of the year-to-date tax rates for 2023 and 2022 is shown below: 


12M23


($ in millions)

Pre-Tax

Income


Taxes on

Earnings


Tax

Rate


As reported (GAAP)

$         6,664


$            941


14.1 %

1)

Specified items

2,408


329




Excluding specified items

$         9,072


$         1,270


14.0 %










12M22


($ in millions)

Pre-Tax

Income


Taxes on

Earnings


Tax

Rate


As reported (GAAP)

$         8,306


$         1,373


16.5 %

2)

Specified items

2,924


391




Excluding specified items

$       11,230


$         1,764


15.7 %




1)

2023 Taxes on Earnings includes the recognition of approximately $22 million in excess tax benefits associated with share-based compensation.



2)

2022 Taxes on Earnings includes the recognition of  approximately $43 million in excess tax benefits associated with share-based compensation.

 

Abbott Laboratories and Subsidiaries

Non-GAAP Revenue Reconciliation

Fourth Quarter and Twelve Months Ended December 31, 2023 and 2022

($ in millions)

(unaudited)




4Q23


4Q22


% Change vs. 4Q22














Non-GAAP



Abbott
Reported

Impact

of CSI
acquisition (a)

Impact from
business exit (b)

Adjusted
Revenue


Abbott
Reported

Impact from
business exit (b)

Adjusted
Revenue


Reported


Adjusted

Organic

Total Company


10,241

(40)

(7)

10,194


10,091

(23)

10,068


1.5


1.3

2.1

U.S.


3,949

(38)

3,911


4,219

4,219


(6.4)


(7.3)

(7.3)

Intl


6,292

(2)

(7)

6,283


5,872

(23)

5,849


7.2


7.4

8.8
















Total Nutrition


2,038

(7)

2,031


1,817

(23)

1,794


12.2


13.2

13.9

U.S.


860

860


795

795


8.2


8.2

8.2

Intl


1,178

(7)

1,171


1,022

(23)

999


15.3


17.2

18.5
















Pediatric Nutrition


985

(7)

978


882

(23)

859


11.8


14.0

14.5

U.S.


505

505


454

454


11.4


11.4

11.4

Intl


480

(7)

473


428

(23)

405


12.3


16.9

17.9
















Total Medical Devices


4,443

(40)

4,403


3,778

3,778


17.5


16.4

15.4

U.S.


2,065

(38)

2,027


1,754

1,754


17.6


15.5

15.5

Intl


2,378

(2)

2,376


2,024

2,024


17.5


17.4

15.4
















Vascular


677

(40)

637


605

605


12.0


5.6

4.5

U.S.


245

(38)

207


214

214


14.8


(2.5)

(2.5)

Intl


432

(2)

430


391

391


10.4


9.9

8.3

 


12M23


12M22


% Change vs. 12M22












Non-GAAP


Abbott
Reported

Impact

of CSI
acquisition (a)

Impact from
business exit (b)

Adjusted
Revenue


Abbott
Reported

Impact from
business exit (b)

Adjusted
Revenue


Reported

Adjusted

Organic

Total Company

40,109

(130)

(48)

39,931


43,653

(135)

43,518


(8.1)

(8.2)

(6.2)

U.S.

15,452

(123)

15,329


18,142

18,142


(14.8)

(15.5)

(15.5)

Intl

24,657

(7)

(48)

24,602


25,511

(135)

25,376


(3.3)

(3.0)

0.5














Total Nutrition

8,154

(48)

8,106


7,459

(135)

7,324


9.3

10.7

13.0

U.S.

3,413

3,413


2,919

2,919


16.9

16.9

16.9

Intl

4,741

(48)

4,693


4,540

(135)

4,405


4.4

6.6

10.4














Pediatric Nutrition

3,934

(48)

3,886


3,481

(135)

3,346


13.0

16.1

17.9

U.S.

1,977

1,977


1,562

1,562


26.6

26.6

26.6

Intl

1,957

(48)

1,909


1,919

(135)

1,784


2.0

7.1

10.3














Total Medical Devices

16,887

(130)

16,757


14,802

14,802


14.1

13.2

14.2

U.S.

7,696

(123)

7,573


6,681

6,681


15.2

13.3

13.3

Intl

9,191

(7)

9,184


8,121

8,121


13.2

13.1

14.9














Vascular

2,681

(130)

2,551


2,483

2,483


8.0

2.7

4.0

U.S.

978

(123)

855


864

864


13.2

(1.0)

(1.0)

Intl

1,703

(7)

1,696


1,619

1,619


5.2

4.7

6.7



(a)

Reflects the impact of the acquisition of Cardiovascular Systems, Inc. (CSI) on April 27, 2023.

(b)

Reflects the impact of exiting the pediatric nutrition business in China. This action was initiated in December 2022.

 

Abbott Laboratories and Subsidiaries

Details of Specified Items

Fourth Quarter Ended December 31, 2023

(in millions, except per share data)

(unaudited)



Acquisition or

Divestiture-

related (a)


Restructuring

and Cost

Reduction

Initiatives (b)


Intangible

Amortization


Other (c)


Total

Specifieds

Gross Margin

$                    1


$                  29


$                481


$                    7


$                518

R&D

(6)


(4)



(68)


(78)

SG&A

(15)


(5)



(15)


(35)

Other (income) expense, net

(6)




(3)


(9)

Earnings before taxes

$                  28


$                  38


$                481


$                  93


640

Taxes on Earnings (d)









140

Net Earnings









$                500

Diluted Earnings per Share









$               0.28



The table above provides additional details regarding the specified items described on tables titled "Non-GAAP Reconciliation of Financial Information."



a)

Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating acquired businesses, as well as legal and other costs related to business acquisitions.

b)

Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives.

c)

Other includes incremental costs to comply with the European Union's Medical Device Regulations (MDR) and In Vitro Diagnostics Medical Device Regulations (IVDR) requirements for previously approved products and charges for intangible asset impairments.

d)

Reflects the net tax benefit associated with the specified items.

 

Abbott Laboratories and Subsidiaries

Details of Specified Items

Fourth Quarter Ended December 31, 2022

(in millions, except per share data)

(unaudited)



Acquisition or

Divestiture-

related (a)


Restructuring

and Cost

Reduction

Initiatives (b)


Intangible

Amortization


Other (c)


Total

Specifieds

Gross Margin

$                  23


$                  87


$                496


$                    6


$                612

R&D

(6)


(34)



(31)


(71)

SG&A

(7)


(135)



(2)


(144)

Other (income) expense, net

3




(27)


(24)

Earnings before taxes

$                  33


$                256


$                496


$                  66


851

Taxes on Earnings (d)









73

Net Earnings









$                778

Diluted Earnings per Share









$               0.44



The table above provides additional details regarding the specified items described on tables titled "Non-GAAP Reconciliation of Financial Information."

a)

Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating the acquired businesses and include expenditures for the integration of systems, processes and business activities.



b)

Restructuring and cost reduction initiative expenses include severance, outplacement, and other direct costs associated with specific restructuring plans and cost reduction initiatives.



c)

Other includes incremental costs to comply with the European Union's Medical Device Regulations (MDR) and In Vitro Diagnostics Medical Device Regulations (IVDR) requirements for previously approved products as well as the impairment of an equity investment.

d)

Reflects the net tax benefit associated with the specified items.

 

Abbott Laboratories and Subsidiaries

Details of Specified Items

Twelve Months Ended December 31, 2023

(in millions, except per share data)

(unaudited)

 



Acquisition or

Divestiture-

related (a)


Restructuring

and Cost

Reduction

Initiatives (b)


Intangible

Amortization


Other (c)


Total

Specifieds

Gross Margin

$                  16


$                  80


$             1,966


$                  47


$             2,109

R&D

(19)


(9)



(194)


(222)

SG&A

(58)


(33)



(11)


(102)

Other (income) expense, net

40




(15)


25

Earnings before taxes

$                  53


$                122


$             1,966


$                267


2,408

Taxes on Earnings (d)









329

Net Earnings









$             2,079

Diluted Earnings per Share









$               1.18



The table above provides additional details regarding the specified items described on tables titled "Non-GAAP Reconciliation of Financial Information."



a)

Acquisition-related expenses include legal and other costs related to business acquisitions as well as integration costs, which represent incremental costs directly related to integrating acquired businesses.

b)

Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives.

c)

Other includes incremental costs to comply with the MDR and IVDR regulations for previously approved products and charges for intangible asset impairments.

d)

Reflects the net tax benefit associated with the specified items.

 

Abbott Laboratories and Subsidiaries

Details of Specified Items

Twelve Months Ended December 31, 2022

(in millions, except per share data)

(unaudited)



Acquisition or

Divestiture-

related (a)


Restructuring

and Cost

Reduction

Initiatives (b)


Intangible

Amortization


Other (c)


Total

Specifieds

Gross Margin

$                  79


$                  86


$             2,013


$                173


$             2,351

R&D

(16)


(38)



(228)


(282)

SG&A

(38)


(140)



(58)


(236)

Other (income) expense, net

(12)




(43)


(55)

Earnings before taxes

$                145


$                264


$             2,013


$                502


2,924

Taxes on Earnings (d)









391

Net Earnings









$             2,533

Diluted Earnings per Share









$               1.43



The table above provides additional details regarding the specified items described on tables titled "Non-GAAP Reconciliation of Financial Information."

a)

Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating the acquired businesses and include expenditures for the integration of systems, processes and business activities.

b)

Restructuring and cost reduction initiative expenses include severance, outplacement, and other direct costs associated with specific restructuring plans and cost reduction initiatives. The Gross Margin amount includes a credit associated with the charges taken in the second quarter of 2021 for a restructuring plan related to Abbott's manufacturing network for COVID-19 diagnostic tests.

c)

Other primarily relates to the net costs related to a voluntary recall within the Nutrition segment, charges associated with the impairments of R&D intangible assets and an equity investment acquired in a business combination, incremental costs to comply with the European Union's MDR and IVDR Regulations for previously approved products and costs related to certain litigation.

d)

Reflects the net tax benefit associated with the specified items, excess tax benefits associated with share-based compensation and net tax expense as a result of the resolution of various tax positions related to prior years.

 

Cision View original content:https://www.prnewswire.com/news-releases/abbott-reports-fourth-quarter-and-full-year-2023-results-issues-2024-financial-outlook-302043275.html

SOURCE Abbott

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