On April 16, 2025 Abbott (NYSE: ABT) reported financial results for the first quarter ended March 31, 2025 (Press release, Abbott, APR 16, 2025, View Source [SID1234651954]).
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First-quarter sales increased 4.0 percent on a reported basis, 6.9 percent on an organic basis, or 8.3 percent when excluding COVID-19 testing-related sales.
First-quarter GAAP diluted EPS of $0.76 and adjusted diluted EPS of $1.09, which excludes specified items and reflects double-digit growth compared to the prior year.
Abbott reaffirms all previously provided full-year 2025 financial guidance.
In March, Abbott obtained CE Mark for its Volt PFA System to treat patients battling atrial fibrillation (AFib). With the earlier-than-expected CE Mark, Abbott has begun commercial PFA cases in the EU with physicians who have already gained experience with the Volt PFA System through participation in Abbott’s PFA clinical studies. The company will further expand the use of Volt in EU markets throughout the second half of the year.
In March, Abbott announced the initiation of its U.S. pivotal trial, TECTONIC, to evaluate its investigational Coronary Intravascular Lithotripsy (IVL) System in treating severe calcification in coronary arteries prior to implanting a stent.
In March, Abbott presented new two-year data from its TRILUMINATE pivotal trial that showed Abbott’s TriClip device significantly reduced the rate of heart failure-related hospitalizations, while continuing to provide a sustained reduction of tricuspid regurgitation and significant improvements in quality of life.
Abbott’s two new manufacturing and R&D investments in Illinois and Texas, totaling $0.5 billion, are projected to go live by the end of 2025.
"Once again, Abbott’s diversified business model delivered top-tier sales and EPS growth," said Robert B. Ford, chairman and chief executive officer, Abbott. "It is this diversification and execution that allows Abbott to navigate through periods of uncertainty and continually deliver sustainable growth."
FIRST-QUARTER BUSINESS OVERVIEW
Management believes that measuring sales growth rates on an organic basis, which excludes the impact of foreign exchange and the impact of discontinuing the ZonePerfect product line in the Nutrition business, is an appropriate way for investors to best understand the core underlying performance of the business.
Note: In order to compute results excluding the impact of exchange rates, current year U.S. dollar sales are multiplied or divided, as appropriate, by the current year average foreign exchange rates and then those amounts are multiplied or divided, as appropriate, by the prior year average foreign exchange rates.
First Quarter 2025 Results (1Q25)
Sales 1Q25 ($ in millions)
Total Company
Nutrition
Diagnostics
Established
Pharmaceuticals
Medical Devices
U.S.
4,168
955
871
—
2,339
International
6,190
1,191
1,183
1,260
2,556
Total reported
10,358
2,146
2,054
1,260
4,895
% Change vs. 1Q24
U.S.
8.4
8.8
(6.4)
n/a
15.0
International
1.2
0.1
(7.8)
2.7
5.7
Total reported
4.0
3.8
(7.2)
2.7
9.9
Impact of foreign exchange
(2.8)
(2.4)
(2.3)
(5.1)
(2.7)
Impact of business exit*
(0.1)
(0.6)
—
—
—
Organic
6.9
6.8
(4.9)
7.8
12.6
U.S.
8.8
10.4
(6.4)
n/a
15.0
International
5.7
4.2
(3.8)
7.8
10.5
Refer to table titled "Non-GAAP Revenue Reconciliation" for a reconciliation of adjusted historical revenue to reported revenue.
*Quarter to date March 31, 2025, reflects the impact of discontinuing the ZonePerfect product line in the Nutrition business in March 2024.
Total company sales increased 4.0 percent on a reported basis, 6.9 percent on an organic basis, or 8.3 percent when excluding COVID-19 testing-related sales1.
Nutrition
First Quarter 2025 Results (1Q25)
Sales 1Q25 ($ in millions)
Total
Pediatric
Adult
U.S.
955
588
367
International
1,191
453
738
Total reported
2,146
1,041
1,105
% Change vs. 1Q24
U.S.
8.8
14.2
1.1
International
0.1
(8.4)
6.1
Total reported
3.8
3.2
4.4
Impact of foreign exchange
(2.4)
(1.7)
(2.9)
Impact of business exit*
(0.6)
—
(1.4)
Organic
6.8
4.9
8.7
U.S.
10.4
14.2
4.8
International
4.2
(4.8)
10.6
*Reflects the impact of discontinuing the ZonePerfect product line. This action was initiated in March 2024.
Worldwide Nutrition sales increased 3.8 percent on a reported basis and 6.8 percent on an organic basis in the first quarter.
In Pediatric Nutrition, global sales increased 3.2 percent on a reported basis and 4.9 percent on an organic basis. Sales growth in the U.S. was driven by growth across Abbott’s comprehensive portfolio of products designed to meet the unique nutrition needs of infants and children.
In Adult Nutrition, global sales increased 4.4 percent on a reported basis and 8.7 percent on an organic basis, which was led by strong growth of Ensure, Abbott’s market-leading complete and balanced nutrition brand, and Glucerna, Abbott’s market-leading brand of products designed to meet the nutritional requirements for people with diabetes.
Diagnostics
First Quarter 2025 Results (1Q25)
Sales 1Q25 ($ in millions)
Total
Core Laboratory
Molecular
Point of Care
Rapid
Diagnostics
U.S.
871
332
40
100
399
International
1,183
845
82
42
214
Total reported
2,054
1,177
122
142
613
% Change vs. 1Q24
U.S.
(6.4)
7.1
(4.4)
1.5
(16.9)
International
(7.8)
(5.6)
(6.7)
4.4
(17.9)
Total reported
(7.2)
(2.3)
(5.9)
2.4
(17.3)
Impact of foreign exchange
(2.3)
(3.2)
(2.4)
(0.8)
(1.2)
Organic
(4.9)
0.9
(3.5)
3.2
(16.1)
U.S.
(6.4)
7.1
(4.4)
1.5
(16.9)
International
(3.8)
(1.3)
(3.1)
7.3
(14.6)
Global Diagnostics sales decreased 7.2 percent on a reported basis, decreased 4.9 percent on an organic basis, or increased 0.5 percent when excluding COVID-19 testing-related sales1.
Diagnostics sales growth was impacted by the year-over-year decline in COVID-19 testing-related sales and volume-based procurement programs in China.
COVID-19 testing-related sales were $84 million in the quarter, compared to $204 million in the first quarter of the prior year.
Global Core Laboratory Diagnostics sales decreased 2.3 percent on a reported basis and increased 0.9 percent on an organic basis. Growth in the quarter was impacted by volume-based procurement programs in China.
Established Pharmaceuticals
First Quarter 2025 Results (1Q25)
Sales 1Q25 ($ in millions)
Total
Key Emerging
Markets
Other
U.S.
—
—
—
International
1,260
965
295
Total reported
1,260
965
295
% Change vs. 1Q24
U.S.
n/a
n/a
n/a
International
2.7
4.0
(1.2)
Total reported
2.7
4.0
(1.2)
Impact of foreign exchange
(5.1)
(5.3)
(4.3)
Organic
7.8
9.3
3.1
U.S.
n/a
n/a
n/a
International
7.8
9.3
3.1
Established Pharmaceuticals sales increased 2.7 percent on a reported basis and 7.8 percent on an organic basis in the first 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 4.0 percent on a reported basis and 9.3 percent on an organic basis, led by double-digit growth in several countries across Asia, Latin America and the Middle East.
Medical Devices
First Quarter 2025 Results (1Q25)
Sales 1Q25 ($ in millions)
Total
Rhythm
Management
Electro-
physiology
Heart
Failure
Vascular
Structural
Heart
Neuro-
modulation
Diabetes
Care
U.S.
2,339
304
299
262
268
282
176
748
International
2,556
281
330
77
442
295
52
1,079
Total reported
4,895
585
629
339
710
577
228
1,827
% Change vs. 1Q24
U.S.
15.0
12.3
11.1
10.6
5.5
20.9
(2.8)
27.1
International
5.7
(3.7)
4.0
14.3
1.6
4.6
16.3
10.1
Total reported
9.9
4.0
7.3
11.4
3.0
11.9
1.0
16.5
Impact of foreign exchange
(2.7)
(2.1)
(2.6)
(1.0)
(2.7)
(2.8)
(1.2)
(3.3)
Organic
12.6
6.1
9.9
12.4
5.7
14.7
2.2
19.8
U.S.
15.0
12.3
11.1
10.6
5.5
20.9
(2.8)
27.1
International
10.5
0.3
8.8
19.1
5.8
9.6
22.7
15.4
Worldwide Medical Devices sales increased 9.9 percent on a reported basis and 12.6 percent on an organic basis in the first quarter.
Sales growth in the quarter was led by Diabetes Care, Structural Heart, Heart Failure and Electrophysiology.
Several products contributed to the strong performance, including FreeStyle Libre, Navitor, TriClip, Amplatzer Amulet, and AVEIR.
In Diabetes Care, sales of continuous glucose monitors were $1.7 billion and grew 18.3 percent on a reported basis and 21.6 percent on an organic basis.
ABBOTT’S FINANCIAL GUIDANCE
Abbott projects full-year 2025 organic sales growth to be in the range of 7.5% to 8.5%.
Abbott projects full-year 2025 adjusted operating margin to be 23.5% to 24.0% of sales.
Abbott projects full-year 2025 adjusted diluted earnings per share of $5.05 to $5.25 and second-quarter 2025 adjusted diluted earnings per share of $1.23 to $1.27.
Abbott has not provided the related GAAP financial measures on a forward-looking basis for these forward-looking non-GAAP financial measures because the company is unable to predict with reasonable certainty and without unreasonable effort the timing and impact of certain items such as restructuring and cost reduction initiatives, charges for intangible asset impairments, acquisition-related expenses, and foreign exchange, which could significantly impact Abbott’s results in accordance with GAAP.
ABBOTT DECLARES 405th CONSECUTIVE QUARTERLY DIVIDEND
On Feb. 21, 2025, the board of directors of Abbott declared the company’s quarterly dividend of $0.59 per share. Abbott’s cash dividend is payable May 15, 2025, to shareholders of record at the close of business on April 15, 2025.
Abbott has increased its dividend payout for 53 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.