Abbott Reports Second-Quarter 2020 Results, Exceeds Analysts' Expectations
ABBOTT PARK, Ill., July 16, 2020 /PRNewswire/ -- Abbott (NYSE: ABT) today announced financial results for the second quarter ended June 30, 2020.
- Second-quarter worldwide sales of $7.3 billion decreased 8.2 percent on a reported basis and 5.4 percent on an organic basis, which excludes the impact of foreign exchange.
- Reported diluted EPS from continuing operations under GAAP was $0.30 and adjusted diluted EPS from continuing operations, which excludes specified items, was $0.57 in the second quarter.
- Abbott projects full-year 2020 diluted EPS from continuing operations on a GAAP basis of at least $2.00 and full-year adjusted diluted EPS from continuing operations of at least $3.25.
- In April, Abbott announced CE Mark approval for its TriClip™ heart valve repair system, the world's first minimally invasive, clip-based tricuspid heart valve repair device.
- In June, Abbott announced U.S. FDA approval of FreeStyle® Libre 2 as an integrated continuous glucose monitoring (iCGM) system for adults and children ages 4 and older with diabetes, achieving the highest level of accuracy and performance standards.1
- Last week, Abbott announced U.S. FDA approval of its next-generation Gallant™ implantable cardioverter defibrillator and cardiac resynchronization therapy defibrillator devices to help manage heart rhythm disorders. These devices offer Bluetooth technology and a new patient smartphone app for improved remote monitoring and enhanced patient-physician engagement.
"Our diversified business model has proven to be a true strength during this time," said Robert B. Ford, president and chief executive officer, Abbott. "We're a leader in the global COVID-19 testing efforts, we've continued to advance our pipeline and, importantly, we saw significant improvements in growth trends throughout the quarter in the business areas that were initially most impacted by the pandemic."
SECOND-QUARTER BUSINESS OVERVIEW
Note: Management believes that measuring sales growth rates on an organic basis is an appropriate way for investors to best understand the underlying performance of the business. Organic sales growth excludes the impact of foreign exchange.
Following are sales by business segment and commentary for the second quarter 2020:
Total Company
($ in millions)
% Change vs. 2Q19 | ||||||||||||||||||
Sales 2Q20 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total * | 2,638 | 4,690 | 7,328 | (7.4) | (8.6) | (8.2) | (7.4) | (4.2) | (5.4) | |||||||||
Nutrition | 808 | 1,075 | 1,883 | 2.9 | (1.4) | 0.4 | 2.9 | 3.3 | 3.1 | |||||||||
Diagnostics | 857 | 1,137 | 1,994 | 23.2 | (5.9) | 4.7 | 23.2 | (2.2) | 7.1 | |||||||||
Established Pharmaceuticals | -- | 1,013 | 1,013 | n/a | (8.6) | (8.6) | n/a | (0.7) | (0.7) | |||||||||
Medical Devices | 966 | 1,457 | 2,423 | (29.0) | (15.0) | (21.2) | (29.0) | (12.7) | (19.9) |
* Total Q2 2020 Abbott sales from continuing operations include Other Sales of approximately $15 million. |
% Change vs. 1H19 | ||||||||||||||||||
Sales 1H20 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total * | 5,494 | 9,560 | 15,054 | (1.9) | (3.5) | (3.0) | (1.9) | 0.0 | (0.7) | |||||||||
Nutrition | 1,620 | 2,167 | 3,787 | 5.7 | 1.5 | 3.3 | 5.7 | 4.7 | 5.1 | |||||||||
Diagnostics | 1,660 | 2,160 | 3,820 | 16.9 | (7.1) | 2.0 | 16.9 | (3.9) | 4.0 | |||||||||
Established Pharmaceuticals | -- | 2,057 | 2,057 | n/a | (2.1) | (2.1) | n/a | 4.0 | 4.0 | |||||||||
Medical Devices | 2,199 | 3,161 | 5,360 | (16.6) | (5.2) | (10.2) | (16.6) | (2.7) | (8.8) |
* Total 1H 2020 Abbott sales from continuing operations include Other Sales of approximately $30 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. |
Second-quarter 2020 worldwide sales of $7.3 billion decreased 8.2 percent on a reported basis. On an organic basis, worldwide sales decreased 5.4 percent. First-half 2020 worldwide sales of $15.1 billion decreased 3.0 percent on a reported basis and 0.7 percent on an organic basis.
Nutrition
($ in millions)
% Change vs. 2Q19 | |||||||||||||||||||||||
Sales 2Q20 | Reported | Organic | |||||||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | |||||||||||||||
Total | 808 | 1,075 | 1,883 | 2.9 | (1.4) | 0.4 | 2.9 | 3.3 | 3.1 | ||||||||||||||
Pediatric | 484 | 540 | 1,024 | 2.1 | (6.4) | (2.6) | 2.1 | (2.2) | (0.3) | ||||||||||||||
Adult | 324 | 535 | 859 | 4.2 | 4.3 | 4.3 | 4.2 | 9.3 | 7.4 | ||||||||||||||
% Change vs. 1H19 | |||||||||||||||||||||||
Sales 1H20 | Reported | Organic | |||||||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | |||||||||||||||
Total | 1,620 | 2,167 | 3,787 | 5.7 | 1.5 | 3.3 | 5.7 | 4.7 | 5.1 | ||||||||||||||
Pediatric | 1,002 | 1,111 | 2,113 | 8.0 | (3.6) | 1.6 | 8.0 | (1.0) | 3.0 | ||||||||||||||
Adult | 618 | 1,056 | 1,674 | 2.2 | 7.6 | 5.5 | 2.2 | 11.5 | 7.9 |
Worldwide Nutrition sales increased 0.4 percent on a reported basis and 3.1 percent on an organic basis in the second quarter. Strong U.S. and international sales performance of Ensure®, Abbott's market-leading complete and balanced nutrition brand, led to global Adult Nutrition sales growth of 7.4 percent on an organic basis. In Pediatric Nutrition, sales were led by U.S. growth of Pedialyte®, Abbott's oral rehydration brand, as well as growth in Southeast Asia, which were offset by challenging conditions in Greater China.
For the first half of 2020, worldwide Nutrition sales increased 3.3 percent on a reported basis and 5.1 percent on an organic basis, including organic sales growth of 3.0 percent in Pediatric Nutrition and 7.9 percent in Adult Nutrition.
Diagnostics
($ in millions)
% Change vs. 2Q19 | ||||||||||||||||||
Sales 2Q20 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total | 857 | 1,137 | 1,994 | 23.2 | (5.9) | 4.7 | 23.2 | (2.2) | 7.1 | |||||||||
Core Laboratory | 289 | 698 | 987 | 6.4 | (22.2) | (15.5) | 6.4 | (19.0) | (13.1) | |||||||||
Molecular | 144 | 215 | 359 | 276.7 | 209.9 | 233.6 | 276.7 | 222.1 | 241.4 | |||||||||
Point of Care | 79 | 39 | 118 | (30.6) | 25.8 | (18.3) | (30.6) | 29.0 | (17.6) | |||||||||
Rapid Diagnostics | 345 | 185 | 530 | 26.9 | (12.6) | 9.6 | 26.9 | (9.2) | 11.0 | |||||||||
% Change vs. 1H19 | ||||||||||||||||||
Sales 1H20 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total | 1,660 | 2,160 | 3,820 | 16.9 | (7.1) | 2.0 | 16.9 | (3.9) | 4.0 | |||||||||
Core Laboratory | 556 | 1,420 | 1,976 | 6.7 | (16.9) | (11.4) | 6.7 | (14.0) | (9.2) | |||||||||
Molecular | 209 | 289 | 498 | 166.1 | 111.1 | 131.1 | 166.1 | 118.2 | 135.7 | |||||||||
Point of Care | 182 | 74 | 256 | (18.0) | 28.9 | (8.4) | (18.0) | 31.4 | (7.8) | |||||||||
Rapid Diagnostics | 713 | 377 | 1,090 | 19.3 | (10.9) | 6.8 | 19.3 | (7.8) | 8.1 |
Worldwide Diagnostics sales increased 4.7 percent on a reported basis in the second quarter, including an unfavorable 2.4 percent effect of foreign exchange, and increased 7.1 percent on an organic basis.
In Core Laboratory Diagnostics, lower routine diagnostics testing due to COVID-19 was partially offset by sales of Abbott's COVID-19 laboratory-based tests for the detection of the IgG antibody, which determines if someone was previously infected with the virus. Core Laboratory IgG antibody testing-related sales on Abbott's Architect® and Alinity™ i platforms were $152 million in the quarter.
Molecular Diagnostics sales increased 233.6 percent on a reported basis and 241.4 percent on an organic basis in the second quarter. Strong growth was driven by demand for Abbott's laboratory-based molecular tests for COVID-19 on its m2000™ and Alinity™ m platforms. Molecular Diagnostics COVID-19 testing-related sales were $283 million in the quarter.
Rapid Diagnostics sales increased 9.6 percent on a reported basis and 11.0 percent on an organic basis in the second quarter. Lower base business sales were more than offset by strong demand for Abbott's point-of-care COVID-19 molecular test on its ID NOW™ platform. Rapid Diagnostics COVID-19 testing-related sales were $180 million in the quarter.
Established Pharmaceuticals
($ in millions)
% Change vs. 2Q19 | ||||||||||||||||||
Sales 2Q20 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S.
- 16 Jul 2020
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