Abbott sees sales uptick in Q4 results, hitting upper end of full-year guidance
Abbott has released the financial results for its fourth quarter ended December 31, 2024. The producer of nutritional brands Ensure and Similac reported a 7.2% increase in sales on a reported basis and an 8.8% increase on an organic basis.
“We finished the year with very strong momentum. Sales growth and earnings per share growth in the fourth quarter were the highest of the year,” says Robert Ford, chairman and CEO, Abbott.
“We continued our track record for delivering on our commitments by achieving the upper end of our initial guidance ranges for 2024 and are well-positioned to deliver another year of strong growth in 2025.”
Excluding COVID-19 testing-related sales, organic growth climbed to 10.1%. The company’s fourth-quarter GAAP (generally accepted accounting principles) diluted earnings per share (EPS) reached US$5.27, while adjusted diluted EPS stood at US$1.34, excluding specific items.
Annual results
Full-year 2024 sales of US$42 billion increased 4.6% on a reported basis and 7.1% on an organic basis. Excluding COVID-19 testing-related sales, organic sales rose 9.6%.
Abbott achieved the upper end of the company’s initial full-year guidance ranges for organic sales growth and adjusted earnings per share, which were provided in January 2024.
The annual gross margin as a percent of sales improved 60 basis points on a GAAP basis compared to 2023 and improved 70 basis points on an adjusted basis.
Meanwhile, the company recorded a 2024 GAAP diluted EPS of US$7.64 and adjusted diluted EPS of US$4.67.
In August, Abbott’s low-fat Glucerna Protein Smart Shake for people with diabetes was shown in a new clinical trial to stimulate the release of GLP-1.During 2024, Abbott announced more than 15 new growth opportunities coming from the company’s R&D pipeline. These include a combination of new product approvals and new treatment indications.
In August, the company’s high-protein, low-fat Glucerna Protein Smart Shake designed for people with diabetes was shown in a new clinical trial to stimulate the release of GLP-1 and reduce individuals’ blood glucose response in comparison to a common breakfast choice.
In the prior month, Abbott received clearance from the US FDA for two new over-the-counter continuous glucose monitoring systems. Libre Rio targets people with type 2 diabetes, while Lingo is designed for adults wanting to understand and improve their health. The new systems are based on Abbott’s FreeStyle sensing technology.
2025 guidance
Abbott projects full-year 2025 organic sales growth to be in the range of 7.5% to 8.5%. Its adjusted operating margin is around 23.5% to 24% of sales, which reflects an increase of 150 basis points at the midpoint compared to 2024.
Abbott projects full-year 2025 adjusted diluted EPS of US$5.05 to US$5.25, which reflects double-digit growth at the midpoint.
