Abbott Laboratories : 4Q 2022 Press Release

News Release

Abbott Reports Fourth-Quarter and Full-Year 2022 Results; Issues 2023 Financial Outlook

• Fourth-quartersales of $10.1 billion; full-year 2022 sales of $43.7 billion
• Full-year2022 sales growth of 1.3 percent; organic sales growth of 6.4 percent
• Full-year2022 GAAP diluted EPS of $3.91; adjusted diluted EPS of $5.34
• Continues to strengthen portfolio with steady cadence of new product approvals

ABBOTT PARK, Ill., Jan. 25, 2023 - Abbott today announced financial results for the fourth quarter ended Dec. 31, 2022.

• Fourth-quartersales of $10.1 billion, which were negatively impacted by an expected year-over-year decline in COVID-19testing-related sales, decreased 12.0 percent on a reported basis and
• 1. percent on an organic basis, which excludes the impact of foreign exchange.
• Excluding COVID-19testing-related sales1, fourth-quarter sales decreased 1.4 percent on a reported basis and increased 5.4 percent on an organic basis.
• Excluding COVID-19testing-related sales2 and U.S. infant formula sales that were impacted by manufacturing disruptions3, full-year 2022 sales increased 1.9 percent on a reported basis and
• 1. percent on an organic basis.
• GAAP diluted EPS was $0.59 in the fourth quarter. Excluding specified items, adjusted diluted EPS was $1.03.
• Abbott issues full-year 2023 guidance for diluted EPS from continuing operations on a GAAP basis of $3.05 to $3.25 and full-year adjusted EPS from continuing operations of $4.30 to $4.50.
• Abbott projects full-year 2023 organic sales growth, excluding COVID-19testing-related sales, of high-single digits4 and COVID-19testing-related sales of around $2.0 billion.
• In October, Abbott's market-leading FreeStyle Libre® continuous glucose monitoring system was named the "Best Medical Technology" of the last 50 years by the Galien Foundation.
• In December, Abbott announced U.S. Food and Drug Administration (FDA) approval of its EternaTM
  spinal cord stimulation system - the smallest implantable, rechargeable system currently available for the treatment of chronic pain.5
• In January, Abbott announced U.S. FDA approval of its minimally invasive NavitorTM transcatheter aortic valve implantation (TAVI) system for people with severe aortic stenosis who are at high risk for surgery.

"We significantly exceeded the EPS guidance we provided at the beginning of last year despite challenging global business conditions," said Robert B. Ford, chairman and chief executive officer, Abbott. "Our R&D pipeline continues to be highly productive with several recent and upcoming new product launches that position us well going forward."

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FOURTH-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. 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. Management further believes that measuring sales growth rates on an organic basis excluding COVID-19 tests is an appropriate way for investors to best understand the underlying performance of the business in the fourth quarter ended December 31, 2022 as well as in 2023 as the COVID-19 pandemic shifts to an endemic state, resulting in significantly lower expected demand for COVID-19 tests.

Total Company($ in millions)

													% Change vs. 4Q21
			Sales 4Q22					Reported						Organic
	U.S.			Int'l			Total		U.S.		Int'l		Total		U.S.		Int'l		Total
Total 6	4,219			5,872			10,091		(13.1)		(11.2)		(12.0)		(13.1)		(0.9)		(6.1)
Nutrition	795	1,022			1,817		(14.4)	(8.3)	(11.1)	(14.4)	1.4	(5.7)
Diagnostics	1,695	1,610			3,305		(29.0)	(22.8)	(26.1)	(29.0)	(12.5)	(21.3)
Established Pharmaceuticals	-	1,216			1,216		n/a	1.0	1.0		n/a	7.9	7.9
Medical Devices	1,726	2,024			3,750		12.2	(8.4)		-	12.2	4.1	7.4
													% Change vs. 12M21
		Sales 12M22					Reported						Organic
	U.S.			Int'l			Total		U.S.		Int'l		Total		U.S.		Int'l		Total
Total 6	18,142			25,511			43,653		9.0		(3.5)		1.3		9.0		4.7		6.4
Nutrition	2,919	4,540			7,459		(17.9)	(4.2)	(10.1)	(17.9)	2.5	(6.2)
Diagnostics	8,646	7,938			16,584		21.3	(6.8)	6.0	21.3	1.3	10.4
Established Pharmaceuticals	-	4,912			4,912		n/a	4.1	4.1		n/a	10.6	10.6
Medical Devices	6,566	8,121			14,687		10.9	(3.8)	2.2	10.9	6.2	8.1

n/a = Not Applicable.

Worldwide COVID-19testing-related sales were $1.069 billion in the fourth quarter of 2022 compared to $2.319 billion in the fourth quarter of the prior year. Worldwide COVID-19 testing- related sales were $8.368 billion in the full year of 2022 compared to $7.679 billion in the prior year.

The following tables summarize sales excluding COVID-19testing-related sales and the change in reported and organic sales excluding COVID-19testing-related sales in 2022 versus the prior year2:

																% Change vs. 4Q21
	Sales excl. COVID tests 4Q22				Reported excl. COVID tests				Organic excl. COVID tests
	U.S.		Int'l		Total				U.S.				Int'l				Total				U.S.				Int'l				Total
Total 1	3,443	5,579	9,022		5.8		(5.4)			(1.4)			5.8			5.3		5.4
Diagnostics	919	1,317	2,236		16.8		(3.6)			3.8			16.8			8.0		11.2
																	% Change vs. 12M21
	Sales excl. COVID tests 12M22			Reported excl. COVID tests		Organic excl. COVID tests
	U.S.		Int'l		Total			U.S.			Int'l		Total		U.S.		Int'l			Total
Total	12,644	22,641	35,285	2.5	(1.8)	(0.3)	2.5		6.5	5.1
Diagnostics	3,148	5,068	8,216	11.4	(1.4)	3.1		11.4		7.1	8.6

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Nutrition

($ in millions)

											% Change vs. 4Q21
		Sales 4Q22					Reported						Organic
	U.S.		Int'l		Total		U.S.		Int'l		Total		U.S.		Int'l		Total
Total	795		1,022		1,817		(14.4)		(8.3)		(11.1)		(14.4)		1.4		(5.7)
Pediatric	454	428		882		(20.4)	(8.9)	(15.2)	(20.4)	(1.2)	(11.8)
Adult	341	594		935		(4.8)	(7.9)	(6.8)	(4.8)	3.4	0.5

												% Change vs. 12M21
		Sales 12M22					Reported						Organic
	U.S.		Int'l			Total		U.S.		Int'l		Total		U.S.		Int'l		Total
Total	2,919		4,540			7,459		(17.9)		(4.2)		(10.1)		(17.9)		2.5		(6.2)
Pediatric	1,562	1,919			3,481		(28.7)	(8.9)	(19.0)	(28.7)	(3.9)	(16.6)
Adult	1,357	2,621			3,978		(0.5)	(0.4)	(0.4)	(0.5)	7.6	4.8

Worldwide Nutrition sales decreased 11.1 percent on a reported basis and 5.7 percent on an organic basis in the fourth quarter. Total worldwide Nutrition and Pediatric Nutrition sales were negatively impacted as a result of manufacturing disruptions during 2022 of certain infant formula products3 at Abbott's Sturgis, Michigan, facility. The manufacturing facility has subsequently restarted production.

In Adult Nutrition, global sales decreased 6.8 percent on a reported basis and increased 0.5 percent on an organic basis in the fourth quarter, led by Ensure®, Abbott's market-leading complete and balanced nutrition brand.

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Diagnostics($ in millions)

												% Change vs. 4Q21
		Sales 4Q22					Reported						Organic
	U.S.		Int'l			Total		U.S.		Int'l		Total		U.S.		Int'l		Total
Total	1,695		1,610			3,305		(29.0)		(22.8)		(26.1)		(29.0)		(12.5)		(21.3)
Core Laboratory	301	963			1,264		0.2	(8.1)	(6.3)	0.2	3.5	2.8
Molecular	62	118			180		(54.2)	(43.9)	(47.9)	(54.2)	(38.6)	(44.7)
Point of Care	88	43			131		(7.6)	7.0	(3.3)	(7.6)	14.4	(1.2)
Rapid Diagnostics	1,244	486			1,730		(33.0)	(38.2)	(34.5)	(33.0)	(28.3)	(31.6)
												% Change vs. 12M21
		Sales 12M22					Reported						Organic
	U.S.		Int'l			Total		U.S.		Int'l		Total		U.S.		Int'l		Total
Total	8,646		7,938			16,584		21.3		(6.8)		6.0		21.3		1.3		10.4
Core Laboratory	1,137	3,751			4,888		(0.7)	(5.8)	(4.7)	(0.7)	2.7	1.9
Molecular	370	625			995		(34.6)	(27.4)	(30.3)	(34.6)	(22.6)	(27.4)
Point of Care	372	153			525		(3.2)	0.8	(2.1)	(3.2)	6.0	(0.6)
Rapid Diagnostics	6,767	3,409			10,176		34.4	(3.1)	19.0	34.4	5.4	22.5

As expected, Diagnostics sales in the fourth quarter were negatively impacted by year-over-year declines in COVID-19testing-related sales. Worldwide COVID-19testing-related sales were $1.069 billion in the fourth quarter of 2022 compared to $2.319 billion in the fourth quarter of the prior year.

The following tables summarize sales excluding COVID-19testing-related sales and the change in reported and organic sales excluding COVID-19testing-related sales in 2022 versus the prior year2:

											% Change vs. 4Q21
	Sales excl. COVID tests 4Q22		Reported excl. COVID tests		Organic excl. COVID tests
	U.S.		Int'l		Total		U.S.		Int'l		Total		U.S.		Int'l		Total
Total	919		1,317		2,236		16.8		(3.6)		3.8		16.8		8.0		11.2
Core Laboratory	298	956	1,254		1.5	(5.3)	(3.8)	1.5	6.8	5.6
Molecular	45	98	143		(0.2)	(8.3)	(5.9)	(0.2)	(0.4)	(0.3)
Point of Care	88	43	131		(7.6)	7.0	(3.3)	(7.6)	14.4	(1.2)
Rapid Diagnostics	488	220	708		38.3	4.6	25.7	38.3	16.8	30.3
											% Change vs. 12M21
	Sales excl. COVID tests 12M22		Reported excl. COVID tests		Organic excl. COVID tests
	U.S.		Int'l		Total		U.S.		Int'l		Total		U.S.		Int'l		Total
Total	3,148		5,068		8,216		11.4		(1.4)		3.1		11.4		7.1		8.6
Core Laboratory	1,121	3,705	4,826		1.3	(2.9)	(2.0)	1.3	5.8	4.8
Molecular	180	404	584		11.4	8.0	9.0	11.4	14.8	13.8
Point of Care	372	153	525		(3.2)	0.8	(2.1)	(3.2)	6.0	(0.6)
Rapid Diagnostics	1,475	806	2,281		25.6	1.3	15.8	25.6	9.4	19.1

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Established Pharmaceuticals($ in millions)

													% Change vs. 4Q21
			Sales 4Q22					Reported						Organic
	U.S.			Int'l			Total		U.S.		Int'l		Total		U.S.		Int'l		Total
Total		-		1,216			1,216		n/a		1.0		1.0		n/a		7.9		7.9
Key Emerging Markets	-	902			902		n/a	3.9	3.9		n/a	10.3	10.3
Other	-	314			314		n/a	(6.5)	(6.5)		n/a	1.9	1.9
													% Change vs. 12M21
			Sales 12M22					Reported						Organic
	U.S.			Int'l			Total		U.S.		Int'l		Total		U.S.		Int'l		Total
Total		-		4,912			4,912		n/a		4.1		4.1		n/a		10.6		10.6
Key Emerging Markets	-	3,728			3,728		n/a	5.4	5.4		n/a	11.8	11.8
Other	-	1,184			1,184		n/a	0.4	0.4		n/a	7.3	7.3

Established Pharmaceuticals sales increased 1.0 percent on a reported basis and 7.9 percent on an organic basis in the fourth quarter.

Key Emerging Markets include several emerging countries that represent the most attractive long- term growth opportunities for Abbott's branded generics product portfolio. Sales in these geographies increased 3.9 percent on a reported basis and 10.3 percent on an organic basis, led by strong growth in several geographies including India, China, Brazil and Mexico, and across several therapeutic areas, including cardiometabolic, women's health and central nervous system/pain management.

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