Abbott Laboratories, a global healthcare company, reported its latest financial performance in its 10-K filing. The company's revenues are primarily derived from the sale of a broad line of healthcare products, including medical devices, diagnostic testing products, nutritional products, and branded generic pharmaceuticals. In 2024, Abbott's total net sales reached approximately $34.9 billion, with international markets accounting for 61% of consolidated net sales.
The company's sales growth in 2024 was primarily driven by the Medical Devices, Established Pharmaceutical, and Nutritional businesses. Abbott's operating margin profile increased to 16.3% in 2024, reflecting the favorable impact of margin improvement initiatives, partially offset by foreign exchange and inflation.
In the Medical Devices segment, sales saw significant growth, with double-digit increases in Diabetes Care, Structural Heart, Electrophysiology, and Heart Failure. Key product approvals in this segment included FDA clearances for new over-the-counter CGM systems and the approval of various medical devices.
In the Diagnostics segment, sales decreased due to lower demand for COVID-19 tests, partially offset by higher volume of routine diagnostic tests and the continued deployment of Abbott's Alinity testing platform.
The Nutritional Products segment saw growth in both pediatric and adult nutrition sales, driven by market share recovery in the U.S. infant formula business and the continued growth of products such as Ensure and Glucerna.
Abbott's Established Pharmaceutical Products segment also experienced sales increases in emerging markets, with operating margin improvements driven by margin improvement initiatives and higher sales.
At the end of 2024, Abbott had approximately $8.0 billion in cash and cash equivalents and short-term investments, with long-term debt totaling $14.1 billion.
The company declared dividends of $2.24 per share in 2024, representing a 7.7% increase from the previous year. Dividends paid totaled $3.8 billion in 2024.
Looking ahead to 2025, Abbott plans to focus on investing in product development areas that provide opportunities for strong sustainable growth. In the diagnostics business, the focus will be on driving sales growth from the Alinity suite of diagnostics instruments and rapid diagnostic testing systems. In the medical devices business, Abbott aims to grow recently launched products and expand its market position. The nutritional business will continue to focus on driving global growth and enhancing its portfolio with science-based products and line extensions. The established pharmaceuticals business will focus on growing its business in emerging markets.
The 10-K filing also highlighted critical accounting policies, including sales rebates and income taxes. Abbott's sales are subject to various forms of rebates and allowances, with 48% of consolidated gross revenues subject to these reductions. The company also operates in numerous countries where its income tax returns are subject to audits and adjustments.
The market has reacted to these announcements by moving the company's shares 1.3% to a price of $134.92. If you want to know more, read the company's complete 10-K report here.
