Abbott(ABT) - 2024 Q3 - Quarterly Report

Sales Performance - Total net sales for the third quarter of 2024 increased by 4.9% to $10.635 billion, with a 7.4% increase excluding the impact of foreign exchange[93]. - Medical Devices segment sales grew by 11.7% to$ 4.747 billion in Q3 2024, with a 13.3% increase excluding foreign exchange effects[93]. - Established Pharmaceutical Products sales rose by 2.7% to $1.406 billion in Q3 2024, with a 7.0% increase when excluding foreign exchange[93]. - COVID-19 testing-related sales decreased to$ 265 million in Q3 2024 from $305 million in Q3 2023, impacting overall sales growth[95]. - For the first nine months of 2024, total net sales increased by 3.7% to$ 30.976 billion, with a 6.7% increase excluding foreign exchange[94]. - Medical Devices sales for the first nine months of 2024 increased by 12.0% to $13.934 billion, with a 13.6% increase excluding foreign exchange[94]. - Nutritional Products sales grew by 2.7% to$ 6.284 billion in the first nine months of 2024, with a 5.8% increase excluding foreign exchange[94]. - Rapid Diagnostics sales fell by 24.0% in the first nine months of 2024, primarily due to decreased demand for COVID-19 tests[101]. - Abbott's continuous glucose monitoring (CGM) systems sales reached $4.7 billion in the first nine months of 2024, reflecting a 21.4% increase over the same period in 2023[103]. - In the first nine months of 2024, sales in Electrophysiology increased by 16.4%, Structural Heart by 15.1%, Heart Failure by 10.5%, and Neuromodulation by 9.9%, all excluding foreign exchange effects[105]. Financial Metrics - Abbott's gross profit margin improved to 51.4% in Q3 2024 from 49.7% in Q3 2023, driven by higher pricing and gross margin improvement initiatives[106]. - Research and development (R&D) expenses rose by$ 41 million to $713 million in Q3 2024, and by$ 54 million to $2.1 billion in the first nine months of 2024, reflecting increased project spending[107]. - Selling, general and administrative expenses increased by$ 172 million, or 6.3%, in Q3 2024, and by $565 million, or 6.9%, in the first nine months of 2024 compared to the prior year[108]. - Abbott's cash and cash equivalents increased from$ 6.9 billion at the end of 2023 to $7.6 billion by September 30, 2024, primarily due to cash generated from operations[120]. - Net cash from operating activities for the first nine months of 2024 totaled approximately$ 5.7 billion, an increase of $1.5 billion from the prior year[121]. Shareholder Actions - Abbott repurchased approximately 7 million common shares for$ 750 million in Q3 2024, with $659 million remaining available for repurchase under the 2021 program[126]. - Abbott declared a quarterly dividend of$ 0.55 per share in each of the first three quarters of 2024, representing a 7.8% increase over the previous year[127]. - A total of 7,006,363 shares were repurchased from July 1, 2024, to September 30, 2024, at an average price of $107.046 per share[140]. - The board of directors authorized a new repurchase plan of up to$ 7 billion in common shares on October 11, 2024, in addition to the remaining $1.03 billion from the previous plan[140]. Acquisitions and Approvals - Abbott completed the acquisition of Cardiovascular Systems, Inc. for$ 851 million in April 2023, enhancing its vascular device offerings[130]. - Abbott received FDA approvals for the Esprit™ BTK system and TriClip in April 2024, and CE Mark for the AVEIR dual chamber leadless pacemaker system in June 2024[106]. Compliance and Legal Matters - Abbott Laboratories' disclosure controls and procedures were evaluated as effective by the CEO and CFO, ensuring timely and accurate reporting as required by the SEC[135]. - No changes in Abbott's internal control over financial reporting were reported for the quarter ended September 30, 2024[136]. - Abbott is involved in multiple civil lawsuits related to its infant formula products, with potential material impacts on cash flows or results of operations[138].