Abbott Laboratories (ABT) 25 Jan 232022 Q4 Earnings call transcript

Good morning and thank you for standing by. Welcome to Abbott’s Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] This call is being recorded by Abbott.

With the exception of any participants’ questions asked during the question-and-answer session, the entire call, including the question-and-answer session, is material copyrighted by Abbott. It cannot be recorded or rebroadcast without Abbott’s expressed written permission.

to like now would introduce Mr. I Vice Leinenweber, President, Investor Acquisitions. and Licensing Relations, Scott

thank us. and for are morning will Chief you Good and and Robert joining Vice Finance Chairman Bob Chief Financial Officer. Executive opening Robert and With Executive Funck, Officer; remarks. Bob provide President, and Ford, today me

will we comments, their your questions. Following take

XXXX. Risk results Act governmental, that forward-looking Abbott to on report risks financial the Private indicated of we started, XX-K get purposes technological expected to forward-looking these in our some affect XX, Before for that actual those factors Form competitive, and the the Litigation other XA, Economic, may cautions that statements of Reform statements. statements for discussed Factors results differ and are to including made for may today from maybe subject XXXX, Abbott’s XXXX. annual the ended Securities are materially December cause year operations forward-looking Item in uncertainties

measures no obligation subsequent events Abbott measures business news measures used understand of at are investors non-GAAP revisions law. available our filings are required GAAP non-GAAP on and to help except as the as statements reconciled developments, On past, result website from to by forward-looking be in any undertakes abbott.com. financial conference comparable performance. a regulatory or in These the Abbott’s call, as release release ongoing with earnings financial financial our will today, publicly today’s which to

predict commentary company impact growth. the On to future growth impact forward-looking excludes exchange sales otherwise sales reported excluding sales. exchange. growth, growth, to organic has sales unable a in could which Note noted, the organic Unless which foreign provided the COVID because not GAAP our refers sales financial foreign changes of that for on measure rates, Abbott basis, testing is

the to call With now Robert. that, over I turn will

as as our will morning, joining Thanks, our year. us. for I results Scott. everyone Good this XXXX Today, outlook well and discuss for you thank

the above share ongoing we year of set earnings is which well original full the guidance beginning XXXX, we per For year. the achieved EPS the of $X.XX, at

know, multinational As dynamic last based highly business and companies. U.S. few conditions challenging the particularly years, been for you over macro have

a strengthened big the medical our been healthcare and new course. heights inflation COVID-XX of and year. have trends We that and continue challenges impacting pandemic routine saw in certain staffing U.S. role to diagnostic this navigating procedure are negatively testing significantly played last challenges Supply chains dollar face customers device reached volumes.

starting I while we cautiously all As optimistic am however, a ease headwinds, that and remain these some we them the new peak start factors bit. year, in are to cases, see

a impact world the months, has Over to and and weakened eased the U.S., are many lessened somewhat of the few bit the U.S. past and on steadily dollar increasingly routine has improve the inflation society procedures hospital-based economies continue and In trends areas. reopening. COVID-XX around testing in

tests our pandemic. As I you years across to testing our has of leading several of full a part a past couple role how built, we big of been response and know, and world’s team what story of established and am has these in intentionality platforms the the the a suite proud COVID

of have COVID globally X delivered tests since start we total, nearly In billion the pandemic. the

is significantly. that, seasonal still transition of important, type expected forward, endemic decline to COVID Going more an while COVID-XX virus. we to testing, expect of with respiratory to And

hospitals, RSV centers along as urgent small in tests. continue well with important will respiratory flu, will at-home devices therefore, to systems variance and testing portfolio, of we desktop physician an our part including expect offer across We lab-based offices which testing care Strep, our and multiple and leading tests platforms, emerge, remain and as

that wrap our this our point-of-care of forms diagnostics over as upcoming through us growth efforts physician and investments It and back positive, in strengthened including of time, it’s molecular area clear position have impact new long-lasting across through strategic offices our instruments, increasing impact the areas such the our share priority enabled the will in opening the launches, of the of channels, ID It few and the to testing. product As while support several the testing returns success our initiatives for testing same on testing commercial in NOW, repurchases. company. increase in of recent at-home dividend platform COVID company, expansion we and years, shareholders R&D installed reflect at including the growth to of a last and in new base

enhanced to And reinforced going health even financial forward. position the our lastly, role of company which strategic sheet, as balance provide it played further build flexibility further. look and in It our we proud the overall the strategic society COVID am and years. on I and last strengthened grow meaningful had long-term we will impact fighting a few significant our purpose,

growth, to now earnings we full of around forecast for our XXXX. sales outlook $X of for billion forecast and ongoing this as organic testing morning, testing share COVID the forecast year We we in sales Turning $X.XX. COVID excluding sales single-digits announced we the per to $X.XX XXXX, high

Infants formula. federal infant underserved access participants X% of call the and last facility with to as results year. and to is area have infant I our Production our supply by one details previously, declined And provide fourth Nutrition, in will I at assistance start have at where mentioned and And up will manufacturing Children both ensure now result WIC, of was full quarter around food to sales Bob. as disruptions to we facilities before the running. priority initial more the program U.S. over business our formula the year Women, on turning a

our shelves. retail to and increase we the production infant brands As broader focus able a manufacturing with on building continued to levels our formula capacity recover, have of has inventory non-WIC been serving back market on

sales. the were and sales compromising in quarter ID NOW these testing platforms, $X.X in the in rapid fourth in year-over-year growth sales XX% was sales. COVID negatively expected, COVID-XX testing a by billion quarter as where globally with the U.S., internationally, of Diagnostics, to BinaxNOW Panbio impacted Turning fourth approximately including test decline

COVID diagnostics sales XX% was XX% testing in sales, worldwide where tests, year. over diagnostics, quarter. fourth excluding Growth grew COVID-XX by quarter to the led the in compared Excluding increased the rapid prior

As flu I mentioned infection installed new needs pandemic, and open expanded significantly footprint surged This growth expanded drove strong we the late other base earlier, last during ID testing respiratory the and when and supported NOW year. testing of channels.

year, immunoassay, of we continued past menus and and testing. suite expand Alinity, innovative instruments our chemistry this diagnostic During molecular across test rollout the platforms for clinical of our

or market, having in portfolio X% the pharmaceutical double-digit broad targeting quarter led in the at our China, fourth in space with over out performance Established attractive across specifically Pharmaceuticals and growth geographic EPD where Mexico. growth continues India, by high Moving level, full therapeutic a and EPD increased sales the perform global an on Brazil a areas. quarter including carved to year. Strong to the for several focus growing emerging attractive fast markets was geographies, XX%

was in fourth Internationally, the the and areas. during lingering growth diabetes in the up quarter and supply was both grew quarter quarter well in challenges couple And X.X% by care I in fourth wrap with growth surges a as devices, in full where impacted year. negatively the sales as led full Growth COVID U.S. year for and medical in electrophysiology, X% of heart sales the double-digit by structural China will

sales global of care, in Libre diabetes FreeStyle leading the In market year quarter and XX% sales grew over glucose U.S. for our full billion continuous reached fourth Libre, the monitoring system XXXX. $X.X

people slow continuous X, glucose by accurate portfolio chronic and stimulation Foundation. the of the device latest world’s was in years launches, with pacemaker best finally, of implantable sensor. and readings We treating XX technology smallest smallest rhythms, including Eterna, approvals our generation heart currently pain. our of replacement numerous wearable the to continue rechargeable And innovative FreeStyle to Navitor most leadless Aveir, pipeline aortic spinal U.S. medical last heart the valve for treatment cord named regulatory the Galen available system. the our Libre recently market provides recent strengthen in transcatheter Libre medical advancements system highly used which with

for highly XXXX year So successful in was summary, another Abbott.

early for with of this environment opportunities the cadence innovative steady improving overall about growth are a lie an the technologies early of strengthen the expected to and in strategic course about launching operating are of all to signs launch seeing position of or year. either that ahead our our the stages we continue are We over businesses that excited optimistic we and of

I to call turn will Bob. over now Bob? the

Thanks, Robert.

note impact earlier, to As all otherwise organic of please basis, unless that are exchange. an Scott noted, rates, growth sales references which the excludes on foreign mentioned

sales versus were while in fourth the billion provided October, the year. sales results, organic on back basis the the in quarter. testing-related we our sales quarter, to stronger an of decreased Turning a COVID quarter prior reflect in X.X% than year-over-year decline forecast in the which $X.X

both by and infant total XXXX. testing-related Abbott sales quarter increased Nutrition fourth X.X% organic year sales the disruptions formula basis for in that on COVID impacted business, year X.X% were manufacturing Excluding U.S. sales in and our the last an full

in on exchange in sales, as the Foreign which saw a time rates to dollar compared call impact favorable fourth impact of late year. weaken unfavorable of quarter a October X.X% exchange year-over-year sales our resulted on we earnings an the had at bit last somewhat

margin of impact ratio aspects certain inflation adjusted quarter. the XX.X% have for across XX% the SG&A other P&L on experienced the the gross sales was and was investment of sales R&D we quarter, sales, manufacturing businesses. distribution reflects costs fourth our of expense and the adjusted of was Adjusted in nutrition of X.X% Regarding disruptions and which the manufacturing

of full full to earnings year year for Turning the $X.XX for ongoing guidance we to our today, $X.XX. per XXXX, issued share outlook

an of quarter. For the the of be reported an expect approximately of X% impact sales our unfavorable impact Based reported current approximately the $X includes testing-related testing-related year, we quarter forecasted which to impact on in billion rates, single-digits. the unfavorable sales, would year We on exchange we $XXX our X% million forecast of first have growth sales COVID expected full sales with excluding around to around in on sales. COVID first forecast high organic

to year, We support R&D approximately reflects $XX of Also for around billion investments gross ratio SG&A the around margin investment of for forecast investment which adjusted an we billion, full of XX% the initiatives. forecast approximately year upcoming and and of $X.X growth a income several the $XXX rate year. product of strategic and of interest million, $XXX ongoing of and expense tax year forecast net full for around adjusted million, new XX% non-operating around We launches sales.

to our Robert our provides grow and shareholders the As particularly further strategic strength the which allowed and of the priorities, which health, in resiliency forward. us return our invest pandemic going strengthen to since the to strong has company our business, concurrently of strong mentioned, start base provides a on financial

With that, the open questions. for now we call will

Instructions] [Operator our first And JPMorgan. will from question you. Thank from come Robbie Marcus

open. line Your is

but should I morning, Thanks. Robert, you with we kick all with came range given guidance, lot how the the it with parts product maybe Great. moving how just moving new launches bottom Good both and be appreciate up involved. off, thinking there involved through on the could of lines about guidance of a Maybe build the different is business everyone. you macro lot to top a lines the up parts?

on as mean, gotten have were they in there – and versus here environment complex think remarks last have my October, And and a said we said is as significantly where macro it. and I in better I earnings mentioned that’s call. Sure. obviously I been our you I

effect But I have the say, areas COVID a business of little mean, the some bit that maybe too recall that right. many a moving in business don’t think run have I I there. Robbie, we would look products results we and a last think business at mean, and improvement this parts sometimes – that obviously, lot you year, distorting testing and that the the some our of of two factored segments. here. So the of have I impact is that company kind got I has stabilization we mean, really got I if necessarily had of of

perspective in and obviously, year. XXXX XXXX, was that than sold a So impact split sold Both the next in tests products negative. we from we of a COVID more actually of then those recall

to the was growth. So X% the excluding year obviously, tier, right, growing then And if of higher pre-pandemic take are out probably be equation, without out you X% look to kind X% the were and that growing in recall range which COVID at take to of side plus. single-digits, if business, back we to base of return probably market grew the recall XXXX, what comp on we at the of high you product those what pre-pandemic, the That’s a you top again COVID as we this high going testings, go and products. end impact that we single-digits,

And top line of with think all number guidance of I starts the the is from it that high we kind So launches, our part sure the that think our making good good one obviously are we that’s top is line. taking we advantage rate. product of feel parts, supports single-digit growth all what a that that lot And etcetera doing the I perspective, ongoing that have. probably of

will are look Aveir, single-digit year whether CardioMEMS, the a of you growth double-digit seeing our new launch looking be system mapping both have If that with ultimately ablation Amulet, high these kind recovery will it’s going we rate, on of side, growth Eterna that recovery, combined all we neuromodulation our to the rate, that at up are device a X, at product lined portfolio, procedures we steady launches low got in Navitor, catheter. have full Libre we impact, EP, combination

device are drive single growth the mean, those in we to continue rate. strong think to is high up EPD. going low to to able sorry, single-digit, see I well – high double-digit So, performance be portfolio I set

world continues I as great opportunity for the markets think to continue a emerging reopen, to us. those be

throughout our molecular we years in these in formula have diagnostics and rollout continued in We of our will position recovery Alinity see strengthened infant successful diagnostics core too. and

core to than guess, this of been a investment that were we have pre-pandemic these we we P&L, because you so I in growth COVID pre-pandemic with So in year SG&A, the our business, we think knew across stronger able that’s growth investments look single-digit high across really do with it’s the getting you company made. I think part drive we to the are able I put that other And fairly actually of, that areas, the that is the businesses. this investments at Abbott during all and what the and place, COVID if line, made whether the leverage is R&D flat we in

a the confidence really then So with I we’re And society installed $X capacity. about year, number kind and it the We’ve mean, top here. right billion think think and We’ve we now. line launching, pipeline have I the we base. products see transitioning right that’s of COVID, manufacturing next our got we and Obviously, starts we I that the strong forecast got have.

that. We the that factored but kind of in haven’t be any surge real to to capacity if happens, we do have able do

So a growth I’m moving there. of of real and terms sure sheet. I’d some the which get say in those Leading growth are will strong positions fundamentally, these long-term our areas, some opportunities. pieces we’re them pipeline, strong position in attractive strong into But balance in we of a

here. and good So that’s position constructed, I a we’re this how has in been that think

some we which quarterly commentary is some really about you cadence on year we FX Great. Thanks, is But helpful. should us And Robert. And you the what here? for any be the Really half the the versus down should first half Thanks FX of how thinking thinking full that gave helpful. one just and How lot. the about line? bottom compare gave did Maybe guide to second Bob, how be flows, on things P&L? P&L, a ‘XX?

Yes.

the the of things talked think cadence line of about for of starts some of So XXXX, the that kind if top business it really Robert you the with about. kind our and

device especially we in of new a lot launch medical have the activity, First, businesses. product our

about this launched will got today. sure launching last I’m talk the we year. those call will of some You on we either year, that products be

kind of feather year, of over launches the those line. of of that course kind grow impact the So you’ll into see top the

as we market in of see the the we infant we steady the Secondly, we in over to improvement a Europe. are will there procedure procedure segment trends to seeing U.S. of the improvement We’ve Nutrition business, a our the and and steady non-WIC been the in year. improvement trends to in continue see supply U.S. that seeing the kind on continue In particular, of formula expect market,

share And so will recover there.

And will the impact that so have course we over the the year. of of

Robbie, I’d there year, we’ve dynamics anticipate that a year. of China, start softer some assumed at over improve of but we in the say the the this start For given the of QX will course

those about – get to we’re And top here. so the over as middle earnings impacts all changes all Rob on in those the leverage flow the the line builds course to that of as will going through year

And so first be we’re will for then and we will the there. $X, – approximately from we quarter, build earnings think

move recently, where for have the over is always exchange, current but impact. headwind, last fall-through a On a a us At XXXX. than more ago, Translation approximately is as my exchange The headwind in your earnings. we that EPS, a bit on rates, were of rates it’s on from bit improved still on the in little I opening currencies while improved And headwind seen a has a remains X% a like year impact said foreign sales. $X.XX months few particularly piece complex. just question is headwind. still when is we it have exchange

impact that from One the is biggest drivers our hedging seeing of we’re the program.

seeing. that a on hedging we really less a year. sales, headwind impact was year repeat a won’t this pretty on modest than unique in there And That’s can dime. pretty those but benefit our realized last earnings really Last we’re gains impact fairly XXXX. on hedging not was year, hedging repeat And see last that on it dynamic $X.X realized gains over that or as won’t billion, that exchange the a you We gains significant XXXX of little the significant was year results. X% those

well. some seeing that from other multinationals We’re as

Thanks a lot.

from question Fargo. from Larry next our come Biegelsen And Instructions] [Operator will Wells you. Thank

open. is line Your

Thanks for feel Good given Robert, to the taking about Libre ask again, it important just morning. is. I compelled how question.

in Germany, And C, for maybe Thank the growth? where the of look think the like growth Libre? impacted for we by negatively been resolved? growth forward year? the drivers And transition resolution, about Libre to to Can to worldwide hear drivers to and when are you’ve what So be like And vitamin I’d do the follow-up. you one and it How you the expect can issues outlook year some talk had should issues those this I from this you X XX% supply international, about Basel XXXX. you. just exceed to

or I had a on products our in until was I expect that. say probably in little bit X by had Libre great international were X as side. on bit X in the kind strong generation orders, improvement back And you resolve over growth grew but And Larry. over year, think that, impacted so that little more of completely kind Libre year a Well, there performance. early a I’d not international Sure, of months a our situation U.S. significant full on We of number. growth a XX%. We XX% more mid-teens significant those we over can international the of in QX. said, improvement

mostly think chips it we supply the like had, I this a I key is behind chain on that that on is little side bit the was one things of us. said, international of

it let upgrade when that somewhat naturally. of Libre X.X of that from X upgrade we cycle complete. And X cycle, to The markets, takes X, years in Libre Libre other versus kind about a Libre key happen that an part we our with X we the did upgrade years, went when to from right? And you go some is with accelerated of X

go we in For more Libre of aggressively wanted to markets. some X, these

do sure the sales that force for behind-the-scenes takes generation and work our can those the away new that from all making scripts demand we upgrades. get So to

say about So I ongoing, that’s it still that’s but to would XX% XX% I’d – call complete.

of us that So kind allows here. additions international on driving the in starting XXXX then now to side new start

opportunity, terms it and will think growth of So think, expect think the in U.S. U.S. market I’d and is the we’ve I got expansion, behind the But I start Basel say, in also forecast we’re a users. I now us, opportunity, great largely in continued upgrade I our again, chain on activities And demand new we the internationally. issue that cycle, that supply behind seeing largely generation us, can

another that’s there that, I of think we of I see lot us for a is path driver growth. key one Yes, – can. So can XX% opportunities growth a think XXXX. of for And in growth I

of them expansion a mentioned Basel one is you that think significant the I opportunity. being

the I will don’t been required U.S.-only think It first. it Larry, over that’s charge to the U.S., will here, in able phenomenon. reimbursement. generating will be think a leading we’ve clinical but start, start the be the in think, we data I support of probably I to But in U.S., terms

X Type in you and if You’ve opportunity you $X or an got are versus reasonable Medicare. even assume starts take X that. Type in the of a difference with on depending the a even the third to it patients all million that Basel can you utilization about a range also about of MDI annual if the uptake and X But billion market speed pumper. into have rates U.S., And assume them penetration, consideration,

So think I a a situation. opportunity. great I U.S.-only growth it’s don’t is this like said, And I think

with clinical that think Libre this to expand it to that impact to has. see and given across the is world, I you the is start data the going going

I The submitted asked, our response. that for C us. So vitamin think another this opportunity you issue is we’ve great

as working the I pump as we that forecast couple ID of connect on the systems. I’m not start see a and say and then that to going with gets to this, soon We’re would with what is But try approved, FDA to product approval. quarters will that

product combined launched the very Europe a We of results that favorable. ID have Europe, system, connected system AID of been initial has in receptivity in product already

growth that’s for XXXX. us So key think in another driver I

it’s support running ketone I’ve to be again, generating say that sales, trial dual factoring for because be the XXXX don’t will seems I sensor important the activity the think be our glucose development for data to And but think, I algorithms. perspective, pumpers it’s with would it compline measure then I an pipeline a sensor I and to is the for this a finally, to think for mentioned, us on milestone the and as go-to the glucose ability the FDA ketones and sensor going into

obviously finally, say, – lot to then of of going trial. the would And be that’s that focus I a So having outside in of that’s us Libre, is broader platform using driver the key talked another for of more kind target. growth I’ve more Libre, platform Libre of expanding and about a terms for Lingo of outside diabetes running much this us. broadly

We that’s have been on that a working team separate development, Larry.

two We first products one In second will the this be Europe, will one this probably launching in the year first in of say half. year. I’d Lingo be the the and half second

a product $XX I’ve being XX% implies growth annual that So about talked Libre rate. a by XXXX billion

strongly this And think to the areas. I very on of been real. be able revenue we drive We for I that better that have And executing all will to we’ve these than product year. do kind think are opportunities to this very

helpful. super That’s

opportunity Just one at TriClip talked brief about JPMorgan. you follow-up, about excited being the

taking think expect year-end TRILUMINATE to I month. what ACC. you Do Thanks how a say can you relative about you U.S. for presenting the that just still thinking you was it opportunity in in But to mitral? do it’s limited approval ‘XX? still data you at by because questions. expect are the are the I know

couple which to for And tricuspid that tricuspid bigger leaders think mitral than was good there implanting trial. and is physicians when I’m in I I a challenging Europe. against why think And me the a make I traction that it when real it We’ve a far us. not bit is – little I get mitral. be the – it’s beginning, products to the lot X a heart it we clip have that the right the that it’s changes from there somewhat clip it’s think, people I is But they U.S. We for in great at we’re the with well procedure. with system with in COVID. area. but a it’s to the think think the opportunity that There of here comes that that we’ve would The are it could think think that valve technology would suffer in months. a yet. team invested repair say seen great that say in And nice Like faster the familiar of the I than was that some and of of I opportunity. today anatomy, market, already the a uptake the I great uptake large wanted now I But Europe. trial because for the shown just not more I think to I tricuspid repair of mean, XXXX. sure to in us. clip, the in are delivery will it’s first the definitely million repair be we’re go of treatment opportunity We said, group device a think for to launched, be launched I And market. one I launch you I the really options was clip-based that bring little clip presenting mitral must it’s for familiar proved wrong and available here going product’s really regurgitation. different done the technology that mapping did you

I here this opportunity too. another the in U.S., is great So think for us

position be products we’re think two implanting powerful ignoring in those And Abbott. our combination So MitraClip, the portfolio. will not I the very for of part entire of it’s

so Thanks Alright. much.

you. our Thank will Instructions] come next And [Operator from question Josh Jennings from Cowen.

line is Your open.

hoping this more you’ve Libre, the $XX on just out Robert, morning. taking Larry’s just questions. and the that on thinking just to billion I thanks target set. Hi, of for was follow-up question in Good kind years

and the under CGM hear I a years. great you I for for And roof long taking for fruit could reiterate device is one add share everything CGM the not and just a of consolidation the represent then billion it gain holds how to a X But launch a we’re for over life confidence here rationale Is XXXX, you question. between second next macro out in your advantageous or do Navitor And if are elderly expect don’t whether the just patients question just What would offering strategic the from think the to a for growth just considering that be the companies. current in what Navitor think And is risk maybe label? probably on just you that have low-hanging combined And United company? outlined that you another the win high Abbott target? or in States. maybe would – perspective? pump the launch $XX segment Abbott even risk to expectancy true either be it expect and would Thanks intermediate XXXX? pump play U.S. out-year

continue mean three a of I’d dominant I you real to mean, I XXXX, on how say on Well, math them. user XX%. your all, to share there I to I have But insulin mean, first Sure. get Libre, by the bit will are it’s XX%, do question segment. to right. billion guess get key a to about talked little and say, How heavy $XX I areas,

in globally, internationally. We with have both that U.S. the with the non-pumpers today the MDI and

the I bit be to catch-up is becomes, connectivity we okay, that, there do ketone company then to will for And said, of and terms I focus real that glucose leapfrog with currently of from segment is offered will I get sensor market. because And there. on what hear connectivity focus once X think do and that the Libre now to line the we again, But of a that with I sensor how we pumper going we over the approval in pumper on in is combined So think little product we to the importance play. continue the what will the see way to first that KOLs pump if want ultimately segment. up like the

globally, like of Basel amount utilization certain said, can to Basel part and So is that assume I the a globally, population number. a look that adds second the rate at you growth significant a expansion. rate, the And certain

at the lingo just really beyond expanding platform. And then diabetes of looking that third the is Libre and piece

up that and of that So years. those adding of can there kind we growth can X ultimately are execution us the the the over what we XX% gives confidence rate get sustain and next strategies

I a system. Regarding from quite an your one that benefits it’s segment. on listen, important pumps, questions significantly that combined think It’s

more now aggressively that. – we’re focusing We’re on

in it choose in the is to I the has what market pump able want combination. all As be one, spoken best sensor to pumpers an think relates choice. They to terms want the of

think have our right think I focus has the spoken, on are the the now, the so out spoken, that is I regulators systems interchangeability. will spoken, on the for providing that be pump view sensor want And they best And that consumers market there. that my

So I questions. I think that’s covered your Libre –

It’s we’re here segment Navitor. on it’s U.S., I you question billion. large this. market. the a in about had excited about $X a Listen, think It’s large a

sharing data comparing mean valve Our label it will we is approved systems. the about to it’s I this, patients. of the strong XX% CRP some already But got – it mean clinical now year about sorry, right to last high-risk XX% be released at but because I we’ve data only other it’s on profile. a specifically market for we’re

So I way to that think been we’ve sustainable. it that this about is wanting do enter intentional to in a very and market

that about at in implanted and pick our well another have a in I high be X, we where difficult. bit benefits X, Europe. we’re single-digit we obviously in years, we offer leader talked provides additional U.S. players I I Europe, think all And choice, mean, differentiated X in centers look not I I and we the think pretty think we market do in Expectations, in about is come we’re benefits versus share. can and market, us this to are might entrenched launched a the I we that But opportunity can share If the into half other available, shares up two There market. in allow that are that in that Europe, centers this. systems another in be of mid-teens. that the this little

you single, mid-teens. So where high competing, we’re together, put that but in we’re we’re the

a be think So I ramp. will this

that in a gain the roll the this over being to sustainable want able think in be We I next that sales double-digit a we’ve couple allows got place. years. share way out to strategy force us of of to in

Appreciated it. Thank you.

from will Thank Wuensch Citibank. next come Joanne Instructions] And question you. our [Operator from

open. Your line is

Good morning. And thank have I you for taking two. the questions.

on And the could you what share recovery where has the will the cash, in of return with you one are you. the to Nutrition. then and to if thoughts on think outline you terms with do where and first is second And Thank do company it repurchases? it do are The use has of when your growth? to question

working inventory the get the with production in QX, on is contracts on as very with opening The was started we into customers, year, started on to I looking the our statements, Well, our We good quarter as the we that’s into entered said Sturgis fourth and up the as levels very non-WIC shelves. here, hard. one as and I very back product brands, running. is then team and to this Sure. well WIC nonstop, are progressed around focus clock, on focus Nutrition, we in Number WIC said, go serve good. and very at

would say, at you’ve got you I rate, our growth year-over-year So look obviously, comp. if this

strip the You’re between in pre-pandemic right, etcetera, – right comp, Joanne, year But be level QX, of strip the to that nutrition going in growing is, February. effect guess overall because away this see look the last year-over-year our business this I coming at back where and on were market, the expect at our way X%. I X% growth business already impacted okay, away to to we

non-WIC of Our market have nice shares we a seeing recovery in the here in largely share cadence U.S. and in the WIC are recovered

in and But to obviously, on QX share the and we you are rate thing our will at in QX. think start print I much that see recovery So, important here looking the very the QX, already is is growth share have levels am end line other full in I your to what would sorry, the I for to our question? that year. year. was market back with like share set the the by of forecast pre-pandemic see our get we

and Thank repurchases? stand – whether where you. Thank Use on would you you. of share cash

Sure.

of cash, use While this. about talked

of balanced of and use growing dividend, it have approach. cash, kind strong we growing to We terms in committed a dividend. to would are this I if of were say a I rank taken

dividend that’s of probably increase number announced So, X% use We one last year. cash. that our in of about

one. priority of are appropriately two resourced investments. So, is terms ensuring these all and that’s lot our that in I new will products is got Number number manufacturing say obviously that a have CapEx of of launching we

And on say, as months did of we would a catching were probably first little nine had buybacks, acquisitions. leverage throughout our some in focusing we down the getting I catch-up dilution about $X did we up On post last we to year the of billion Joanne, buybacks. of of there, the bit terms of

do in And debt. a focused will will be be this would catch-up largely we buybacks other going on this year the would us here little and to we contemplating of there. of be kind So, is of key bit had forward, say we I of I that they offsetting say for terms dilution year. any use them kind going

going up and interest debt towers those we be those just given are move rates. not coming to some have off. want We to We renegotiating

where see of So, probably cash. that’s the you use

which will who question, I calls, on have over I is list. always talked has anybody we about side, that M&A – I the so preempt a know got interested. several are their there it on where On

We And are – can bring assessing going got where R&D an at the that. most are little makes accelerate then to its down in growth need augment whether sense cast areas – come for to bit. pipeline. our own valuations flexibility wide And success, we have I can a opportunities, pretty it whether financially have building are looking have our have businesses somehow whether it’s we it’s on position and can they here value, be or can again, shareholders, we devices it’s the and if we existing program we balance enhance will to the strategic enhance we actively area if we we sales, tuck-in Diagnostics path sheet it fits interest. that whether where that probably just net. to stabilize But to build or and up. a a a we think a our strategically, even Clearly, do

think shows we that record largely taken when I shareholders. when successful it’s that that been track very for have our have approach, taken our we approach,

you. Thank

Thank ISI. our will you. Kumar come from Instructions] question Vijay [Operator from And Evercore next

line Your open. is

first question taking my Good my for organic Maybe questions. Thanks guys. assumptions on morning your Hey Robert. to growth you here.

would ‘XX. for assumptions VBP give any If those number supply that some that chain, X is China heard from us I macro just for F be assuming any think I What plus a is reasonable could helpful. you around factors impact impact?

macro it’s China, will moved of mentioned a other ones for Vijay. a you Bob of some important kind talk just mean an growth it’s market the us, to about potentially It’s an it’s the I factors. important here. let and Well, little that play. But good reopening bit market I more

say, of it’s But impact market we China I only got Asia, kind where I about China, mean it’s for that going reliant, growth Southeast overly I reopening a of in real would a not us. areas positive nonetheless, think and predominantly EPD has other Asia, are us sales. in the our world. an say, areas, would position position. where less not have and is device in big total important X% a I we in for strong And to too. I of that have effect nutrition our strong in got some have And we think in our business spillover than

I starts I move growth seeing I think moves overall of see in said, good. China in there rebound opening going a But down, a over of we think the So, be strong etcetera. is Bob because lot think prospects the some that cases, will hospitalizations, quarter to to pretty – as Like our first choppiness there. is

electrophysiology impact. yes, more have restricted business. the So, mean you our VBP It’s does an I that that XXXX in for mentioned,

will the side. feel market opens of took impact there, the on think that up for we little of bit because VBP strategy a So, us we an but I

for going it’s for here, So, I think that medium, in to being net-net, positive be in of long-term it’s us. the an long-term terms us opportunity

XXXX in with Vijay. stents us business this happened year. this, vascular in in to happened would market I is the this what pre-VBP business. our We this levels call – seen back mean have That to I

so case, In did – or we VBP, In case necessarily the impact. some So, there contract. a contract, of the an we contracts. portion win is a that didn’t of the win of

the is about. have So, that headwinds launch Bob talked it, inflation, pipeline driver we recovery I about of got easing already to yes, we would and macro, talked product I off these a us. the the of seem procedures the and those has bit some be a think FX, growth and all say little have but for key

can has been of line? did when start margin Is Bob, Bob you year-on-year. a at When look hedging pressures your margins you I creep improve? all for you margins, And on at gross That’s then inflation, simple Is down at And gross on you guys XX%. a pre-pandemic, back shouldn’t bridge gross seeing up how why we were And XX%. hitting this spoke impact. to there one levels? step that that Understood. for pre-pandemic are much inflationary

Yes.

in year. remarks the step-up where my So, exited – around said that’s for have I we opening modest a from last XX% year, kind of as the

of facing. dynamics lot multinationals are in Vijay, that there expect, is would different this environment, you As a

headwinds. got some have We

to We how of gains have that are will in had including the going built talked we be going those ‘XX. that inventory through, last that a we inflationary year year. – repeat not this currency, see we about we We about flows sold to impact, are those talked hedging where

headwind that’s – of a that’s a a So, bit there.

U.S. positive positively. in more that the the recovery nutrition we as over positive recovery the business the On year say occurs contribute impact. of have forecasting will the side, course I a will would infant that are And

acceleration help of margin. gross continue are to we would see medical improvement consumer-facing taking offset and I gross device gross headwinds. margin are can, of And finally, our our in we will programs have positively then with say also the business as an standpoint, all product contribute more to businesses. those that those to say, overall mix we will that of higher our just I a price in than some from across businesses of company, our launches, where We kind would these new margins some And

the pre-pandemic of year inflation. has would that’s And about If you guiding really difference to continue question really terms pre-pandemic. big we say – been at kind we a mix continue to the see we in your of we here our as now, some would this were to a of kind and where – we work guiding to where we But to basis biggest see time impact in I that margin I are what cumulative over say on to standpoint of are right gross and continue to an improve. the where acceleration expect from would costs,

Understood. Thank you, guys.

from Thank question you. Bank Steed Travis come next our [Operator will from Instructions] America. of And

Your line is open.

Hi. taking question. the Thanks Good morning. for

Just a follow-up to Vijay’s question.

the is On the sure the $X anything still And moving in on of implied line. understand what’s It operating margin kind to of by what’s into kind like just guide? that expansion margin make piece, then XX% inflation out baked there. looks is baked on to I want billion margin X.XX get the the expansion the gross to parts call the guidance? XXXX I op

Yes.

margin, the – we of XX% gross the on on we kind yes, So, around operating where are were pre-pandemic. yes,

on testing. the digit high-single top excluding growth kind line in the getting COVID We of the the – are

of We are couple where the about the years. over P&L, talked getting able leverage down which last we were forward Robert invest

around about get So, XX% going gets we to expense are margin. and area to leverage that in the you op

programs some still going businesses both our to well as improvement But have able inflation, we impact of a where across can. that we our margin pretty terms been year, to mitigate good of we In have as see portion we price gross last from a taking meaningful. are that carryover through

helpful. a That’s couple questions And EP. Okay. of on product

thinking vitamin I understand new curious product just or that to how Libre the the other The I that your catheter on EP the and impact that maybe past. I mentioned are C, missed think the I to on And new, X, X the Libre Libre. on was mapping about know vitamin pathway am get system. C X on the was there? EP Libre in business. you timing you and want then is question ablation

Sure.

I it’s mean C, with X, the On off start Libre to X. Libre Vit going

to first, we then on want will done So, X. to that we Libre and get progress

move right and Europe flex force we Japan that focus our of catheter. tip TactiFlex, to X. have our now using I catheter mean last in is think then we we had in your the X. started question yes, year is the Libre Libre towards EP, will the together launch really on with end to flexible launched And is contact which in I So, on that new On

is feedback positive. really in that really, the So, have we got

new the TactiFlex. now combination I market-leading with mapping here HD mapping So, is very grid think of together and our in That enhanced catheter bringing our powerful. system combination

of interest. it’s PSA, Regarding an definitely area

we internal felt products. We have trialing actually taking that’s investing two stronger had are we current interesting on-market had seeing a it. some learnings programs, would saw right a the that about and area. And some opportunity. off growth in been now, an the of say from there is We one It’s I the that bake ongoing obviously but it’s

too I of think to the terms move over it’s will still completely market not. this or in say early to technology

from it put our all have of we I incorporating are some that right of sort think investing program why are on-market of products into have are and that and R&D heard current to now. our it’s being important in the program, we the development the in deficiencies hence, ones

portion investments of convert EP we it’s have. up area, I still probably that investment for it but the area investment. COVID. interesting made of important Cryo will area a And definitely It’s think us think ability an from sense important much an My the definitely product in to Cryo, to first So, benefited convert is see, how was during one, the of important I to market. kind but for

you. Thank Great.

will We more take one question.

Instructions] Matt from [Operator And come from you. Thank Miksic Barclays. last question will our

Your is line open.

for if and in. talk you it can this little of see could Thanks. the two the for can catalysts year? are we update if me could getting up that couple an maybe Robert, you in figure wrap with just five these past, products I of products, a a and have for terms look we pipeline CardioMEMS, the Amulet or in products, we with Thanks maybe Hey. on maybe of launches where kinds what just metrics size, scale, about bit momentum you these highlighted

Sure. the five run XXX%. and annual they actually run discussed they rate I around last – that exited around about exiting rate grew talked mean of I an have call, products at XXX. think They I on at of a and we XXX those them grew

kind in So, next I pretty year. maybe five those – XXX%, to of but have in expect this not high growth rate products

Amulet, listen, I think Regarding I it’s great said, – like it’s a space.

ensuring force. been good implanting We the here product year, technique have rolling out is the physicians. with building Key the last sales obviously focus

using We terms catalysts, using the now. and versus in those and of existing accounts I of our more more systems. about more product benefits getting accounts the as become that XXX physicians are product our share to expect in of growth right see accustomed other

increased sales our be I our sales of to to team and expand accounts. to a as what more of think has growth increased, on. has catalyst focused has competency be our want to we clinical able feel that that’s will We more will the now be more start expanding. we then increased, kind to confident expand and And do team force

Amulet on trial growth have of here been is catalysts, we to in that catalyst which obviously key to investing Another oral novel the is compare anticoagulant.

for last the has expansion enrollment year an kind that important done another step-up here an of one very in long-term the strategy of saw in CardioMEMS that’s indication continuing not XXXX, in opportunity. growth We driver Amulet. but a U.S., in So, sales. It’s seen trial good. that is nice

a great it’s think I long-term opportunity.

are investing products this probably have mean next and force lot driving I out. five think of say rolling I kind area, big the been it’s of growth. would we I part that of in a those sales And

that Next NCD. here big is area working on

some of will of regional terms some that remove think I hang-ups maybe reimbursement. in

we on the NCD going of as So, to is trials. something collected data be have part the of with all our working are we this that that year

So, up I as like products. that I the here. close think look they part call group would five of strong to very of

right. challenging, still whether here are macroeconomic it’s of we in specifically QX or in the as positioned. in are we competing not in There signs XXXX Just whether it’s remarks. back October. But of challenging stability. saw are There operating as Abbott is it’s in. definitely signs segments the a improvement, that side of few environment And remains well The

has is and would kind that to improving move We any view of to what for. scenarios. well is for. balance this a set kind been case. navigate situations here. that these an We testing our our We up built That’s not are or for pandemic this there like positioned sheet unforeseen volatility both start always if base And That’s was will of level to environment of to on that. set over these testing. our up portfolio capitalize that knew endemic we we what are here in knew this down XXXX, – process is moving It’s eventually

do growth the as digit in expect top-tier pre-pandemic or areas growth high-single And of the EPD without a at grow to sustain this it’s diagnostics, that make OpEx investment that’s be to result nutrition. this so growth. having into areas, us investing to we And devices, whether forward that able our did certain you to would level, that, allowed

gross working the is do we the our pressures. P&L our shift cost time, contributes our pre-pandemic flexibility talked balanced our same to on sheet this as returns getting and provide for to on company to but shareholders, strategic strong relentlessly take those GMI now provides to a our device to question, navigate. investing are the we working are And level, at that The we we and Vijay’s margin cost and where also finally, that. long-term. that business, And can So, growth accelerate back investments. while and getting going through balance need leverage that pressures. the to profiles cost of in it’s the this on we programs, approach mix be us our I net about flow our recognized we recognize combination the We in

for the thank overall. on call So, you being

and pandemic Abbott I move of this more as state. kind positioned state think of into we is well very endemic exit kind an of

are now about I well all it’s and think we positioned execution.

at This webcast abbottinvestor.com. you Thank website for conference us joining XX call Investor Abbott’s today now be you, you a.m. after Thank of available this concludes Abbott’s for of call. replay on and thank A operator Central questions. Relations your will all today. Time

concludes your This you. you today’s Thank participation. Thank conference call. for

disconnect. Everyone, have may You day. now wonderful a