Abbott Laboratories Inc has posted dismissal performance during the fourth quarter ended December 2015 and its net sales declined by 3.1 per cent to $5,188 million from $5,356 million in the corresponding period of last year. Its net profit declined by 15.2 per cent to $767 million from $905 million. With lower profit, its EPS declined $0.51 from $0.59 in the last period.
Prior year financial results have been adjusted to exclude the sales from Abbott's developed markets branded generics pharmaceuticals and animal health businesses that were sold to Mylan and Zoetis, respectively, in the first quarter of 2015. Therefore, sales and growth rates shown in the following charts represent continuing operations.
The sales of nutrition division declined marginally by 0.2 per cent to $1,800 million and that of diagnostics also declined by 1.1 per cent to $1,220 million during the fourth quarter. The sales of established pharmaceuticals amounted to $885 million and the sales of medical devices declined by 5.9 per cent to $1,297 million.
Miles D White, chairman and CEO said, “In 2015, we achieved top-tier sales and earnings growth despite a challenging currency environment. Our underlying performance continues to be strong.”
For the full year ended December 2015, Abbott's net sales remained almost stagnant at $20,405 million as against $20,247 million. Its net earnings increased smartly by 93.6 per cent to $3,258 million from $3,038 million. R&D expenditure increased by 4.5 per cent to$1,405 million from $1,345 million. Gain on sale of discontinued operations worked out to $1,752 million as against nil in the last period.
The net sales of nutrition division improved marginally to $6,976 million during the year 2015. The sales of established pharmaceuticals segment increased by 19.3 per cent to $3,720 million due to commercial initiatives and locally-relevant portfolio expansion in key geographies. During the year, it successfully integrated the acquisition of FCR Pharmaceuticals in Latin America and Veropharm in Russia. These businesses strengthened Abbott's capabilities, relevant product portfolios, and leadership in key geographies. However, the sales of diagnostics and medical devices declined by 1.6 per cent and 6.5 per cent to $4,646 million and $5,042 million respectively. Full year sales in emerging markets increased double digits excluding the impact of 2014 acquisitions and foreign exchange.