Abbott Reports Second-Quarter 2019 Results
- Accelerated and sustainable growth driven by strong performance across portfolio
- Raising full-year guidance for organic sales growth to 7 to 8 percent
- Double-digit EPS growth exceeded expectations; raising full-year forecast
- Long-term growth drivers – FreeStyle Libre, MitraClip and Alinity – achieving exceptional growth
ABBOTT PARK, Illinois, July 17, 2019 /PRNewswire/ -- Abbott (NYSE: ABT) today announced financial results for the second quarter ended June 30, 2019.
- Second-quarter worldwide sales of $8.0 billion increased 2.7 percent on a reported basis and 7.5 percent on an organic* basis.
- Reported diluted EPS from continuing operations under GAAP was $0.56 in the second quarter.
- Adjusted diluted EPS from continuing operations, which excludes specified items, was $0.82, above the previous guidance range.
- Abbott is raising its full-year 2019 outlook. Abbott projects organic sales growth of 7.0 to 8.0 percent1, diluted EPS from continuing operations on a GAAP basis of $2.06 to $2.12, and full-year adjusted diluted EPS from continuing operations of $3.21 to $3.27, reflecting double-digit growth.
- FreeStyle® Libre®, Abbott's revolutionary continuous glucose monitoring system, achieved worldwide sales of $433 million in the quarter, an increase of 63.9 percent on a reported basis and 72.9 percent on an organic basis versus the prior year. In the U.S., FreeStyle Libre is now reimbursed for approximately 75 percent of people with private pharmacy benefit insurance.
- Worldwide sales of MitraClip® were $169 million in the quarter, an increase of 26.7 percent on a reported basis and 30.6 percent on an organic basis versus the prior year, including U.S. growth of 56.1 percent. Earlier this week, Abbott announced U.S. FDA approval of its next-generation MitraClip device, which offers enhancements and more sizes to offer doctors further options.
- In July, Abbott received U.S. FDA approval for its Alinity®-S diagnostics system, the latest technology for screening and protecting the U.S. blood and plasma supply. Alinity-S is designed to provide faster and more efficient results within a smaller space versus commercially available competitive systems, while maintaining the highest levels of accuracy.
"Our sales growth accelerated and is sustainable," said Miles D. White, chairman and chief executive officer, Abbott. "We have great momentum and are raising our guidance above the strong outlook we previously set for the year."
* See note on organic growth below. |
SECOND-QUARTER BUSINESS OVERVIEW
Note: Management believes that measuring sales growth rates on an organic basis is an appropriate way for investors to best understand the underlying performance of the business.
Organic sales growth:
- Excludes the prior year first and second-quarter results for a non-core business within U.S. Adult Nutrition, which was discontinued during the third quarter 2018; and
- Excludes the impact of foreign exchange.
Following are sales by business segment and commentary for the second quarter:
Total Company | |||||||||||||||||
($ in millions) | |||||||||||||||||
% Change vs. 2Q18 | |||||||||||||||||
Sales 2Q19 | Reported | Organic | |||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | |||||||||
Total * | 2,850 | 5,129 | 7,979 | 5.5 | 1.3 | 2.7 | 6.0 | 8.3 | 7.5 | ||||||||
Nutrition | 786 | 1,089 | 1,875 | 0.7 | 1.1 | 0.9 | 2.3 | 7.0 | 5.1 | ||||||||
Diagnostics | 695 | 1,210 | 1,905 | 6.7 | (0.9) | 1.7 | 6.7 | 6.0 | 6.2 | ||||||||
Established Pharmaceuticals | -- | 1,108 | 1,108 | n/a | (1.8) | (1.8) | n/a | 6.1 | 6.1 | ||||||||
Medical Devices | 1,360 | 1,715 | 3,075 | 8.0 | 5.1 | 6.4 | 8.0 | 12.4 | 10.5 | ||||||||
* Total Q2 2019 Abbott sales from continuing operations include Other Sales of $16 million. |
% Change vs. 1H18 | |||||||||||||||||
Sales 1H19 | Reported | Organic | |||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | |||||||||
Total * | 5,604 | 9,910 | 15,514 | 4.2 | 1.3 | 2.4 | 4.8 | 8.6 | 7.3 | ||||||||
Nutrition | 1,533 | 2,134 | 3,667 | (0.4) | 2.8 | 1.5 | 1.6 | 9.0 | 5.9 | ||||||||
Diagnostics | 1,419 | 2,327 | 3,746 | 4.9 | (1.3) | 1.0 | 4.9 | 5.5 | 5.3 | ||||||||
Established Pharmaceuticals | -- | 2,100 | 2,100 | n/a | (3.3) | (3.3) | n/a | 5.7 | 5.7 | ||||||||
Medical Devices | 2,635 | 3,335 | 5,970 | 6.8 | 5.3 | 5.9 | 6.8 | 12.5 | 10.0 | ||||||||
* Total 1H 2019 Abbott sales from continuing operations include Other Sales of $31 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 2019 worldwide sales of $8.0 billion increased 2.7 percent on a reported basis. On an organic basis, worldwide sales increased 7.5 percent. Refer to tables titled "Non-GAAP Reconciliation of Adjusted Historical Revenue" for a reconciliation of adjusted historical revenue.
Nutrition | |||||||||||||||||
($ in millions) | |||||||||||||||||
% Change vs. 2Q18 | |||||||||||||||||
Sales 2Q19 | Reported | Organic | |||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | |||||||||
Total | 786 | 1,089 | 1,875 | 0.7 | 1.1 | 0.9 | 2.3 | 7.0 | 5.1 | ||||||||
Pediatric | 475 | 576 | 1,051 | 1.3 | (0.8) | 0.1 | 1.3 | 4.2 | 2.9 | ||||||||
Adult | 311 | 513 | 824 | (0.2) | 3.4 | 2.0 | 3.9 | 10.4 | 7.9 | ||||||||
% Change vs. 1H18 | |||||||||||||||||
Sales 1H19 | Reported | Organic | |||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | |||||||||
Total | 1,533 | 2,134 | 3,667 | (0.4) | 2.8 | 1.5 | 1.6 | 9.0 | 5.9 | ||||||||
Pediatric | 928 | 1,152 | 2,080 | 1.2 | 2.2 | 1.8 | 1.2 | 7.6 | 4.7 | ||||||||
Adult | 605 | 982 | 1,587 | (2.8) | 3.6 | 1.1 | 2.1 | 10.7 | 7.4 | ||||||||
Worldwide Nutrition sales increased 0.9 percent on a reported basis in the second quarter. On an organic basis, sales increased 5.1 percent. Refer to tables titled "Non-GAAP Reconciliation of Adjusted Historical Revenue" for a reconciliation of adjusted historical revenue.
Worldwide Pediatric Nutrition sales increased 0.1 percent on a reported basis in the second quarter, including an unfavorable 2.8 percent effect of foreign exchange, and increased 2.9 percent on an organic basis. Sales performance in the quarter was led by broad-based growth across several brands, and included above-market growth in several countries in Latin America and Asia.
Worldwide Adult Nutrition sales increased 2.0 percent on a reported basis in the second quarter and increased 7.9 percent on an organic basis. International Adult Nutrition sales increased 3.4 percent on a reported basis and 10.4 percent on an organic basis in the second 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. 2Q18 | |||||||||||||||||
Sales 2Q19 | Reported | Organic | |||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | |||||||||
Total | 695 | 1,210 | 1,905 | 6.7 | (0.9) | 1.7 | 6.7 | 6.0 | 6.2 | ||||||||
Core Laboratory | 272 | 897 | 1,169 | 9.7 | 1.9 | 3.6 | 9.7 | 9.3 | 9.4 | ||||||||
Molecular | 38 | 69 | 107 | (0.9) | (17.7) | (12.4) | (0.9) | (13.2) | (9.3) | ||||||||
Point of Care | 113 | 32 | 145 | 5.3 | 4.0 | 5.0 | 5.3 | 6.9 | 5.7 | ||||||||
Rapid Diagnostics | 272 | 212 | 484 | 5.4 | (6.3) | (0.1) | 5.4 | (0.1) | 2.8 | ||||||||
% Change vs. 1H18 | |||||||||||||||||
Sales 1H19 | Reported | Organic | |||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | |||||||||
Total | 1,419 | 2,327 | 3,746 | 4.9 | (1.3) | 1.0 | 4.9 | 5.5 | 5.3 | ||||||||
Core Laboratory | 521 | 1,709 | 2,230 | 9.5 | 2.3 | 3.9 | 9.5 | 9.7 | 9.6 | ||||||||
Molecular | 78 | 137 | 215 | 1.6 | (16.2) | (10.4) | 1.6 | (11.5) | (7.3) | ||||||||
Point of Care | 222 | 58 | 280 | 1.8 | (6.1) | 0.1 | 1.8 | (3.2) | 0.7 | ||||||||
Rapid Diagnostics | 598 | 423 | 1,021 | 2.7 | (8.3) | (2.2) | 2.7 | (2.2) | 0.6 | ||||||||
Worldwide Diagnostics sales increased 1.7 percent on a reported basis in the second quarter, including an unfavorable 4.5 percent effect of foreign exchange, and increased 6.2 percent on an organic basis.
Core Laboratory Diagnostics sales increased 3.6 percent on a reported basis and 9.4 percent on an organic basis in the second quarter. Sales performance in the quarter was led by above-market growth internationally, where Abbott is achieving continued strong adoption of its Alinity family of innovative and highly differentiated diagnostic instruments. In July, Abbott received U.S. FDA approval for its Alinity-S (blood and plasma screening) diagnostics system and several testing assays, designed to provide faster and more efficient results within a smaller space, while maintaining the highest levels of accuracy.
Molecular Diagnostics sales decreased 12.4 percent on a reported basis in the second quarter, including an unfavorable 3.1 percent effect of foreign exchange, and decreased 9.3 percent on an organic basis. As expected, sales growth in the quarter was negatively impacted by non-governmental organization (NGO) purchasing patterns in Africa.
Point of Care Diagnostics sales increased 5.0 percent on a reported basis in the second quarter, including an unfavorable 0.7 percent effect of foreign exchange, and increased 5.7 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 0.1 percent on a reported basis in the second quarter, including an unfavorable 2.9 percent effect of foreign exchange, and increased 2.8 percent on an organic basis. Organic sales growth was led by infectious disease testing in developed markets and cardio-metabolic testing globally.
Established Pharmaceuticals | |||||||||||||||||
($ in millions) | |||||||||||||||||
% Change vs. 2Q18 | |||||||||||||||||
Sales 2Q19 | Reported | Organic | |||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | |||||||||
Total | -- | 1,108 | 1,108 | n/a | (1.8) | (1.8) | n/a | 6.1 | 6.1 | ||||||||
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