Abbott Reports Third-Quarter 2019 Results
ABBOTT PARK, Ill., Oct. 16, 2019 /PRNewswire/ -- Abbott (NYSE: ABT) today announced financial results for the third quarter ended Sept. 30, 2019.
- Third-quarter worldwide sales of $8.1 billion increased 5.5 percent on a reported basis and 7.6 percent on an organic* basis.
- Reported diluted EPS from continuing operations under GAAP was $0.53 in the third quarter. Adjusted diluted EPS from continuing operations, which excludes specified items, was $0.84, an increase of 12.0 percent versus prior year1.
- Abbott narrowed its full-year 2019 outlook for diluted EPS from continuing operations on a GAAP basis to $2.06 to $2.08, and full-year adjusted diluted EPS from continuing operations to $3.23 to $3.25, reflecting 12.5 percent growth versus the prior year at the midpoint of the range2.
- FreeStyle Libre® achieved worldwide sales of $496 million in the quarter, an increase of 63.1 percent on a reported basis and 67.6 percent on an organic basis versus the prior year.
- During the third quarter, FreeStyle Libre obtained public reimbursement coverage in Ontario and Quebec, becoming the first and only sensor-based glucose monitoring system to be listed by any provincial health plan in Canada.
- Worldwide sales of MitraClip® were $176 million in the quarter, an increase of 30.4 percent on a reported basis and 31.9 percent on an organic basis, including U.S. growth of 45.7 percent versus the prior year. During the third quarter, Abbott announced U.S. FDA approval of its next-generation MitraClip device, which offers enhancements and more sizes to offer doctors further options.
- In September, Abbott announced data from its COAPT™ Trial that shows that MitraClip is projected to increase life-expectancy and quality of life compared to guideline-directed medical therapy alone in heart failure patients with secondary mitral regurgitation, or a leaky mitral heart valve.
- During the third quarter, Abbott received U.S. FDA approval for its Alinity®-S diagnostics system, the latest technology for screening and protecting the U.S. blood and plasma supply.
"We're performing exceptionally well across several areas," said Miles D. White, chairman and chief executive officer, Abbott. "We're right on track to achieve ongoing EPS and organic sales growth at the upper-end of our initial guidance ranges for the year."
* See note on organic growth below.
THIRD-QUARTER BUSINESS OVERVIEW
Note: Management believes that measuring sales growth rates on an organic basis is an appropriate way for investors to best understand the underlying performance of the business.
Organic sales growth:
- Excludes the prior year first, second and third-quarter results for a non-core business within U.S. Adult Nutrition, which was discontinued during the third quarter 2018; and
- Excludes the impact of foreign exchange.
Following are sales by business segment and commentary for the third quarter:
Total Company ($ in millions) | ||||||||||||||||||
% Change vs. 3Q18 | ||||||||||||||||||
Sales 3Q19 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total * | 2,834 | 5,242 | 8,076 | 4.7 | 5.9 | 5.5 | 5.0 | 8.9 | 7.6 | |||||||||
Nutrition | 788 | 1,086 | 1,874 | 1.8 | 2.1 | 2.0 | 3.0 | 4.4 | 3.8 | |||||||||
Diagnostics | 702 | 1,207 | 1,909 | 5.6 | 4.2 | 4.7 | 5.6 | 7.2 | 6.6 | |||||||||
Established Pharmaceuticals | -- | 1,212 | 1,212 | n/a | 4.4 | 4.4 | n/a | 7.9 | 7.9 | |||||||||
Medical Devices | 1,335 | 1,730 | 3,065 | 6.1 | 11.1 | 8.9 | 6.1 | 14.3 | 10.6 | |||||||||
* Total Q3 2019 Abbott sales from continuing operations include Other Sales of $16 million. | ||||||||||||||||||
% Change vs. 9M18 | ||||||||||||||||||
Sales 9M19 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total * | 8,438 | 15,152 | 23,590 | 4.4 | 2.9 | 3.4 | 4.9 | 8.7 | 7.4 | |||||||||
Nutrition | 2,321 | 3,220 | 5,541 | 0.3 | 2.6 | 1.6 | 2.0 | 7.4 | 5.2 | |||||||||
Diagnostics | 2,121 | 3,534 | 5,655 | 5.1 | 0.5 | 2.2 | 5.1 | 6.1 | 5.7 | |||||||||
Established Pharmaceuticals | -- | 3,312 | 3,312 | n/a | (0.6) | (0.6) | n/a | 6.5 | 6.5 | |||||||||
Medical Devices | 3,970 | 5,065 | 9,035 | 6.5 | 7.2 | 6.9 | 6.5 | 13.1 | 10.2 |
* Total 9M 2019 Abbott sales from continuing operations include Other Sales of $47 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. |
Third-quarter 2019 worldwide sales of $8.1 billion increased 5.5 percent on a reported basis. On an organic basis, worldwide sales increased 7.6 percent. Refer to tables titled "Non-GAAP Reconciliation of Adjusted Historical Revenue" for a reconciliation of adjusted historical revenue.
Nutrition ($ in millions) | ||||||||||||||||||
% Change vs. 3Q18 | ||||||||||||||||||
Sales 3Q19 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total | 788 | 1,086 | 1,874 | 1.8 | 2.1 | 2.0 | 3.0 | 4.4 | 3.8 | |||||||||
Pediatric | 478 | 566 | 1,044 | 4.1 | (2.4) | 0.5 | 4.1 | (0.7) | 1.4 | |||||||||
Adult | 310 | 520 | 830 | (1.5) | 7.5 | 3.9 | 1.3 | 10.4 | 6.9 | |||||||||
% Change vs. 9M18 | ||||||||||||||||||
Sales 9M19 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total | 2,321 | 3,220 | 5,541 | 0.3 | 2.6 | 1.6 | 2.0 | 7.4 | 5.2 | |||||||||
Pediatric | 1,406 | 1,718 | 3,124 | 2.2 | 0.6 | 1.3 | 2.2 | 4.8 | 3.6 | |||||||||
Adult | 915 | 1,502 | 2,417 | (2.4) | 4.9 | 2.0 | 1.8 | 10.6 | 7.2 |
Worldwide Nutrition sales increased 2.0 percent on a reported basis in the third quarter. On an organic basis, sales increased 3.8 percent. Refer to tables titled "Non-GAAP Reconciliation of Adjusted Historical Revenue" for a reconciliation of adjusted historical revenue.
Worldwide Pediatric Nutrition sales increased 0.5 percent on a reported basis in the third quarter, including an unfavorable 0.9 percent effect of foreign exchange, and increased 1.4 percent on an organic basis. In the U.S., sales growth was led by Abbott's market-leading toddler brands, PediaSure® and Pedialyte®. International sales declined 2.4 percent on a reported basis and 0.7 percent on an organic basis, driven by challenging market dynamics in Greater China, partially offset by growth across several countries in Southeast Asia and Latin America.
Worldwide Adult Nutrition sales increased 3.9 percent on a reported basis in the third quarter and increased 6.9 percent on an organic basis. International Adult Nutrition sales increased 7.5 percent on a reported basis and 10.4 percent on an organic basis in the third quarter. Sales performance in the quarter was led by strong growth of Ensure®, Abbott's market-leading complete and balanced nutrition brand, and Glucerna®, Abbott's market-leading diabetes-specific nutrition brand.
Diagnostics ($ in millions) | ||||||||||||||||||
% Change vs. 3Q18 | ||||||||||||||||||
Sales 3Q19 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total | 702 | 1,207 | 1,909 | 5.6 | 4.2 | 4.7 | 5.6 | 7.2 | 6.6 | |||||||||
Core Laboratory | 272 | 905 | 1,177 | 9.0 | 8.1 | 8.3 | 9.0 | 11.1 | 10.6 | |||||||||
Molecular | 35 | 76 | 111 | (6.6) | (8.3) | (7.8) | (6.6) | (6.3) | (6.4) | |||||||||
Point of Care | 112 | 32 | 144 | 7.0 | 4.1 | 6.3 | 7.0 | 5.6 | 6.7 | |||||||||
Rapid Diagnostics | 283 | 194 | 477 | 3.6 | (6.4) | (0.7) | 3.6 | (2.8) | 0.8 |
% Change vs. 9M18 | ||||||||||||||||||
Sales 9M19 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total | 2,121 | 3,534 | 5,655 | 5.1 | 0.5 | 2.2 | 5.1 | 6.1 | 5.7 | |||||||||
Core Laboratory | 793 | 2,614 | 3,407 | 9.3 | 4.2 | 5.4 | 9.3 | 10.1 | 10.0 | |||||||||
Molecular | 113 | 213 | 326 | (1.0) | (13.5) | (9.5) | (1.0) | (9.7) | (7.0) | |||||||||
Point of Care | 334 | 90 | 424 | 3.5 | (2.7) | 2.1 | 3.5 | (0.3) | 2.6 | |||||||||
Rapid Diagnostics | 881 | 617 | 1,498 | 3.0 | (7.7) | (1.7) | 3.0 | (2.4) | 0.6 |
Worldwide Diagnostics sales increased 4.7 percent on a reported basis in the third quarter, including an unfavorable 1.9 percent effect of foreign exchange, and increased 6.6 percent on an organic basis.
Core Laboratory Diagnostics sales increased 8.3 percent on a reported basis and 10.6 percent on an organic basis in the third quarter. Sales performance was led by above-market growth in the U.S. and internationally, where Abbott is achieving continued strong adoption of its Alinity family of innovative and highly differentiated diagnostic instruments. During the third quarter, Abbott received U.S. FDA approval for its Alinity-S blood and plasma screening diagnostics instrument and several testing assays.
Molecular Diagnostics sales decreased 7.8 percent on a reported basis in the third quarter, including an unfavorable 1.4 percent effect of foreign exchange, and decreased 6.4 percent on an organic basis. Internationally, sales growth in the quarter was negatively impacted by lower non-governmental organization purchases in Africa.
Point of Care Diagnostics sales increased 6.3 percent on a reported basis in the third quarter, including an unfavorable 0.4 percent effect of foreign exchange, and increased 6.7 percent on an organic basis. Sales growth was led by Abbott's market-leading i-STAT® handheld system in the U.S. and internationally.
Rapid Diagnostics sales decreased 0.7 percent on a reported basis in the third quarter, including an unfavorable 1.5 percent effect of foreign exchange, and increased 0.8 percent on an organic basis. Organic sales growth was led by infectious disease testing in developed markets and cardio-metabolic testing globally, partially offset by lower than expected infectious disease testing sales in Africa.
Established Pharmaceuticals ($ in millions) | ||||||||||||||||||
% Change vs. 3Q18 | ||||||||||||||||||
Sales 3Q19 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total | -- | 1,212 | 1,212 | n/a | 4.4 | 4.4 | n/a | 7.9 | 7.9 | |||||||||
Key Emerging Markets | -- | 891 | 891 | n/a | 2.8 | 2.8 | n/a | 6.8 | 6.8 | |||||||||
Other | -- | 321 | 321 | n/a | 9.2 |
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