ABT - Earnings call transcript Q2 2022

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Operator

Good morning and thank you for standing by. Welcome to Abbott's Second Quarter 2022 Earnings Conference Call. All participants will be able to listen-only until the question-and-answer portion of this call. [Operator Instructions] This call is being recorded by Abbott.

With the exception of any participant's questions asked during the question-and-answer session, the entire call, including the question-and-answer session, is material copyrighted by Abbott. or Abbott's recorded written be cannot rebroadcast expressed without permission. It Mr. now like would to I introduce Scott Investor Vice Leinenweber, President, Acquisitions. Relations, Licensing and

Scott Leinenweber

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

questions. Following their comments, we'll take your

company competitive, factors the of Act statements subject Before today Abbott operations Item Abbott's to law. other that may no and forward-looking financial including purposes past, Note except news subsequent GAAP provided earnings XX-K in are call Unless exchange refers our will started, today, website at to report of indicated financial forward-looking are to for could our now the our reconciled events reported affect impact measures rates, as governmental, foreign XXXX. regulatory has may results be the future to that conference or measure Risk excludes turn Reform Litigation used developments, GAAP ongoing non-GAAP release XA, some These for measures growth. are these organic made exchange. cause materially Abbott financial any commentary a not as predict the may to the XXXX. by unable to the on that, of that on to get XX, to for and Securities non-GAAP undertakes call, growth in of is in in from we over forward-looking growth Private for which December sales that will in Economic, which With annual uncertainties sales results financial On measures on growth, sales forward-looking filings Robert. Abbott those Abbott's result expected basis XXXX, Form with foreign as to required performance. I help forward-looking our be statements abbott.com. the differ actual Factors, organic which investors revisions risks the impact a because noted, cautions and are on otherwise available obligation the sales business statements understand changes release financial today's publicly ended from statements. discussed comparable year technological

Robert Ford

and share everyone, and us. Devices. morning, diversified strength Good growth performance execution first than Today, another you in led Medical of XX% more nearly this XX.X% Based of on the reflecting year. increased share year. Scott. in joining an increased six our to to in results This at compared Pharmaceuticals, as full macro Thanks, organic as health per months, basis speaks challenging earnings growth the the we Sales for to were least thank through strong model care on $X.XX and quarter. per the Diagnostics for quarter, environment. our reported $X.XX, we our well Earnings last Established guidance resilience strong by

with platforms our advance and approvals. pipeline to strengthen growth new long-term several continue We R&D product our

organic organic achieving this this growth in or half first health I'll to over Our Brazil, to quarter including the the several Vietnam. perform supply including the and I'll across a second dynamic more past strong. EPD year in by sales our high for a X% execute China, with than environment, now a Mexico chain Bob. double-digit than results very countries, led Colombia, year. and of over growth level in and quarter. and start our the half, turning call Strong detail has double-digit increased at growth was financial continues Established XX% quarter remained before where more resilient remains Pharmaceuticals, sales more summarize EPD, performance

quarter. the including in Panbio XX% in over grew in came and BinaxNOW sales rapid quarter, sales internationally which than the COVID where were NOW of from $X.X the ID tests, XX% billion test Diagnostics, US, more to Moving globally.

accepted and to proven has combating and important important including people in to best rapid been to be variants and of in very testing. As outcomes, we help tool has to time predicted due rapid easily had prevent some the quickly testing accessibility, severity while have an become virus escape transmission. quarantine have and a role of become the its and emergence reducing ago, And vaccines with slow new help we widely immunity, have identify that tool new affordability at-home the play cases to tests shown

beyond been As you demand testing COVID forecasting term has the near know, challenging.

few As next sales. approaching such, endemic-like modest a our the testing forecast contemplates of months for amount

US our around We to to are this Earlier initiated help and testing certain now is regular see for of facilities. know, with our starting and facility, in lot including we needs. at that voluntary meet were metabolic and capacity to world, ready production month, the of turn formula at with a manufacturing we a February one partial where if I'll this manufactured EleCare in the and products of to US needs Nutrition, happen, governments surveillance recall we surge you testing we as formulas. specialty available infant winter. formula resumed that capacity internationally US, discussions the in If have another ensure

see That we everything Similac testing delivery We couple some at product so from are global manufacturing months, shelves. to leveraged a of already phases in access we possible restart our to US, the retailers will accelerate have the importing product takes recovery product including store registered for as FDA in do to reach reminder, of once production. the network supply formula final production, to plant it they to as can increase said, weeks as begin we families And to We've past to need of as share over the our Ireland. retail several to soon possible. started

the allowance FDA imports. for expanded began from discretion that We importing from product also after important receiving Spain the

Nutrition information from and seriously, Abbott note CDC As results the no April, take concluded and I said important investigation linked evidence We FDA, infant enhancements and illnesses growth the that Adult sales the and quarter. our to the no across sales In expand lastly, the standard We're in and any and we're industry Devices, Nutrition there global it's Failure. formulas operations us. Heart quality led growth manufacturing by to in grew the otherwise. new at set to X.X% redundancy. more in of Cardiovascular our the of debts, increased business, is network X.X% very that or our market-leading And the Across quarter, this a X% number depend capacity our impacted steps reearn and taking on and to manufacturing to trust committed Structural sales internationally, suggest Ensure in also I'll was safety with Medical families of our broader than Devices, led to to Glucerna brands. plant. in by wrap We're where making Heart up matter on including the

cardiovascular the part growth improve, challenges, in was than of in procedure modest surges anticipated to their While the more control implemented spread to lockdowns China as what and that staffing several notably back COVID had in continued trends were health April we somewhat factors, the to care virus. quarter of efforts most due

quarter Diabetes XX% on X of in second improve globally. and in more of dynamics organic the exceeds In We expect an million basis base to year. the our the than now half sales Care, FreeStyle these user users grew Libre

therapy smallest highest to the world's glucose US innovative approval which device of accuracy be FreeStyle During and the Medical new ever designed Device heart glucose and that is pacemaker system, expandable the quarter, needs time. And provides we if the of a chamber to Libre our needs level with over under products, evolve if of in development continuous which the rhythms. portfolio the for Aveir, notably was is clearance our to slow industry. be Aveir wearable US specifically to sensor retrievable strengthen monitoring dual our currently continued leadless device, most to results of management with removed FDA X thinnest the

strong diversified across our of several good and macro care achieving our summary, health portfolio for our we're to nutrition manufacturing areas the result now over Bob? turn performance facility. the dynamic as six of guidance We're Bob. resilient the I'll highly raising progress our model strong year. months, in continues environment. growth through in to So And EPS a the restarting call prove a first making

Bob Funck

Robert. Thanks,

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

which Turning the global results. our was led XX.X% an quarter for Medical related Pharmaceuticals Diagnostics, growth billion along with in basis and the organic strong Established $X.X by of quarter. sales COVID in increased to testing Devices, on second Sales

at manufactured and February formula negatively one the impacted plants. During US of in certain our quarter, manufacturing shutdown by recall infant products second were voluntary of sales a

products, quarter. associated Excluding recalled and X.X% second sales Abbott the increased organic COVID an with US testing on sales the related basis sales in the

of an had sales. unfavorable on quarter exchange Foreign impact year-over-year second X.X%

the the dollar in the at a several of we versus earnings more currencies, During which call strengthen in on quarter, exchange resulted continue rates saw compared unfavorable April. to time sales to impact US our

adjusted ratio Adjusted we second costs investment XX.X% nutrition of incremental of sales, which of the sales was the adjusted impacts reflects quarter. X.X% recall aspects investment other in Regarding recent the and distribution XX.X% gross and the in saw P&L, and certain inflation, manufacturing margin in the was was quarter. R&D sales, of the SG&A of

XX.X%. Lastly, second adjusted our was tax rate quarter

areas note, outlook the digits combined year June impacted testing-related over Medical full the organic $X.X of next the single we of organic sales recall. total It million to of sales the which the testing-related in We billion, We not nutrition Pharmaceuticals, single high be approximately COVID high $XXX testing-related our sales for digits. important company recall, few our to of businesses, billion sales, impact XXXX. impacted to includes sales growth, growth and includes to and Established through COVID months. of the year-to-date Turning by Diagnostics, forecast forecast sales forecast projected for excluding of remainder Devices, excluding COVID $X.X sales the nutrition, which is total by the in products excluding mid

a to sales We quarter our update testing-related one at will appropriate. continue as COVID time forecast,

open we based approximately impact have reported on current we'll questions. X% exchange for year now Lastly, unfavorable expect would With rates, call the our sales. of now on to that, an full

Operator

And Instructions] your from question now [Operator Robbie Marcus open. is will you. Thank JPMorgan. from And first line come our

Robbie Marcus

lot to in is done. July question. a a And A think be really Congrats I investors business on of point we a for shifting of going the forward? how Robert, the COVID is the and Nutrition since about where uncertainty to on start year. we're And How at next Where business get maybe only for forward XXXX. steady out next have But lot sitting the going of Great. half in little greedy maybe go to lot should would good back? is does -- numbers XXXX. testing? 'XX come a here taking focus to device of there's pieces year. helpful. quarter. start Thanks how moving So, thinking make quickly can you be of the Any sit thoughts I'll and in assumptions of there's this there for have fast

Robert Ford

I XXXX. Well, Sure. lot think uncertainty everybody of regarding for a there's

relates think I it our still it's US like pretty super hear us. strong care a us. as to there's you've it, And commodity highlighted I of macro about health think is Obviously, seems environment significant, the a that. it here. kind there's and don't challenging. you obviously, business inflation There's some But call the aspects dollar. pretty of And to challenges, for a then staffing cycle significant unique

kind retail, cetera, are of lot indicators, a risk are combinations housing, that going the if towards face. of lot or and a look recession. an et companies those you of, challenges all consumer the And tend point So to financial auto, at those, to increased

And large say resilient durability itself has can only very the what in environment, environment. I a proven mean and you proved of is kind defer government-funded. to somewhat. model the spend this these them of that And resilient. portion be diversified products, whether So that's A of be got essential healthcare we've pretty I historically, procedures would macro in is, to it's healthcare

headwinds facing all we'll we're So those I be all at a are macro that the level, think, facing. and

You here. mentioned COVID as a factor

in would it's first we've year -- know, COVID Last compared amount of would how tests at testing this to months But interesting. year time, all as this move of away. an last were of You we shipped year. COVID just actually the six talking about

be how able don't said, So like the going I especially, think to surge. I capacity we're see months that and during winter to But Robbie, fall need to to that. we've got to over think And prudent forecast here. evolve, obviously, deal cases it's winter a the I with

the April. pretty in we site. the of we're you lot those we some we're at. portion mentioned, where recovering factors And that continue forward positively. to manufacturing that recovered thought back going originally say, see that be Nutrition, were that share So good versus I on restarting key we would the are We've of obviously, nicely, A here focus to already moving lost. we of a looking

this that not that brands, proactive over next also and do platforms, move investment macro we've So months approach where pass can businesses. for at and is on the We're here. of have and taking areas taking I still at got consumer any These our at We're control haven't long-term we that We're the structure. risk put what and place would we've our we definitely environment. period increased out, where not about the businesses, hurdles and going calls we looked but of we wait that in that of I We're our to flip-side, our cost that can we're sit And base see that as just the other elements to growth we couple are looking factors price in here of obviously able talked structure structure. at where on given looking our cost terms too, play very because a improve. a say on. previous we've this looking to can, The kind though, this can and been at of in We're program that we macro seen our these inventory is in to we important to in can cost into we're looking it of we're inflationary necessarily going right? now impact. strength historically price. terms

we're right got amount that ensuring the we've So of inventory.

that that we've all got together, put macro Robbie, else I So headwinds has. everybody

is I Regarding where we is that laid see planned year up year, we to COVID Nutrition, of where and months, never one beyond I ending -- testing forecast your next forecast ability that the months believed is is well-aligned be challenge. that. the forecast our The where won't think that just six our end assume there we've performance COVID question out. simply us ultimately to that's testing to any three to the

I'm provides attractive strong strong. ongoing today markets, I leading fundamentally, that positions about strong think lot got We've sure a some balance a our very talk we'll lot of business So also. flexibility. We've of got growth strategic upcoming and remains and a sheet in long-term us pipeline and that of launch activity financial

elements So a level, number Robbie, couple on are and right over the that see it but of the with to ultimately, elements we're like now, difficult pin here. high to a months some out those at these play it's of working next

Robbie Marcus

that about we're basically just supply everyone inflation, to cetera. were talking Maybe from the you is Great. cost as a something Robert, this at et that, structure hearing Abbott, and follow-up chain,

anyone of at sales, that in benefit You're position the you've medtech from lot that. of been where healthy still COVID. margins are against A operating healthy than more start which since reinvestment the probably else enviable in margins COVID of grown testing this and has

to question see as we it's reevaluating just difficult anything for here, operating straight your about -- I a base a medtech margins and going So cost been think while going it's investors margins you and forward your but up. just

investors start your margin base want to down testing maybe potentially you the of do future? is how operating in slow So sales about where COVID thinking

Robert Ford

fully at with cost say I I way appreciate ways, in you driver the you on couple like different terms COVID that next of structure it would the a in characterized piece, the agree always number don't being you the I Robbie. get I year's Yes. necessarily guess of here. to ultimate

whether made I it progress devices of think historically, in a our and on in we lot was nutrition. gross margins

that growth business as grow, rates business business profile seen is our in and last to of device So continues couple the of that these you've that over years. accretive,

margin. helps the that So

noise the say, inflation challenge side, supplier, that we on would the supplier -- with last kind it more say, gross probably I some deal it. from I we've Our I happens we're biggest EPD, here some really Devices input one in Nutrition, go commodity over perspective up here less in the there's Yes, of the would commodities. is with and seeing a impacting But costs of challenge, another And had, six Diagnostics. side. on months so margin on impacting would real been of say, is Nutrition side. has so Yes, that and is part the

next look biggest have of there. anticipate kind year. commodities, those of cost of be say, So slowing like I other the but some is, the months, how driver some down would we're kind going I the the over to there see Nutrition part to don't that's But that couple of seeing of to next

paying continue. April as that I We on the know formula we're example, bringing and facility, competitive and in about that, the products, from for made opening we And airfreight. I statements we So distribution. a production recall. will overseas. comments lot product -- freight of March in don't since you in brought restart from story that's the my rebates And all when initiated actually, wick since for assume overseas,

kind position So investment of think I recovery. that's and some once facility need freight get into go share running, money in we back overseas shipments. an that next don't we to our up starts necessary to anticipate And that those brand that expenses I see that, same towards as year. put we And was from

action now action. areas at going that take So and We're as we look investment thesis we're hypothesis have to said, where our a at to take going said, an need passing I to we're that -- hurdle to higher look for or going being structure. we'll cost

characterize margin. I'd how that's our So

Robbie Marcus

Great. lot. Thanks I appreciate thoughts. the a

Robert Ford

Thanks.

Operator

Thank our from line question you. your now Jennings is comes next open, from And And Joshua Cowen. sir.

Joshua Jennings

the questions. start better to hoping and takes. puts the taking Hi. Good XXXX with was EPS understand floor guidance a I Thanks of the follow-up just morning. for and the the raise on

increase I But XQ US guys driven understand by that are beat puts a move guess July. in wanted and you kind seems the there realizing how it the the the think did. of floor, a at better but I of the in questions delta that you and lot takes increase, is and some follow-up. dollar to like the is $X.XX around in $X.XX $X.XX just have it one again, that arrived

Robert Ford

Yes. Sure.

think of mean, lot or seen their I you'll at looked of we we their maintain business. very -- base looked guidance I And a see beat strength and we've QX And reduce actually kind companies of full for numbers the the at our either our it. basically carefully. year

to So of see the that single of recalled, we and nutrition AN, if growing the -- you parts Nutrition that exclude kind rate forward. going continue growth business our high was we're digits,

element since business we hundred we So is of dollars significant, felt the are that here there. push navigate And of and a the call. We to had sales, that gave base that through the these couple our inflation pretty strength that some million number between April. COVID of right? January, in some we costs that big power another when assumed headwinds Inflation April in macro guidance in then provided initial had and we of enough we increased we've

what lockdown in then our the I pretty that staffing we're US are dramatic EP lab that the guess. and health The dollar. I'd call, also. would being referenced, example, issues especially of you absorbing, currency, those cancellations saw in, I that's in for And on business we QX, say, absorbed here challenges, strengthening as China, COVID element core -- one So care

said making freight factor to of So support distribution, costs we're as share whether I the we've to And some had on investments and all also the in Robbie, of additional some wick nutrition recovery. side, the it's assumed we've that. rebate, the to

Josh. making top base to beginning on we've elements on and the our that's then of could. of incremental we're that $X.XX be business that really side gotten -- headwinds element here, -- now. And a Yes, COVID what But those the nutrition So still of we and the could be year guidance. macro together to could floor-like two it said, is. And you that need elements And There there, you It's some nutrition, least two better? pandemic, you put guidance Could those the as sales. on better. number make offset together our that the inflation, at with absorbing raise here. investments since able that's full these be on floor all right currency, those

Joshua Jennings

And hear comp cut you they're But think biggest to questions. those? on is? Thanks. -- do are you hospitals trends you share Devices Medical XQ. color the business you in the throughout to think of again and do high-level half. a you saw elective what that couple back then in that able and in talk second just volumes challenges Robert. well Thanks, the I equipped headwinds procedure the it's you and have the challenge the the And And Thanks tough follow-up of that on month-over-month accelerate half XQ, for in one about overcome But out procedure just for did kind in quarter to XQ encouraging improvement on are taking to did July. facing And you anything to color wondering, improvement just the you any hospitals see? share just can elective the in

Robert Ford

Yes. Sure.

significant for a mean, in I last year mentioned QX I pretty revenue think medtech. you a was lot there,

the than and there QX lower at internationally. QX, comp little and actually US aspect higher bit levels, volumes, volumes Abbott's second there was a growth from if that and So look procedure over X% sales, is pre-pandemic and quarter But procedures to in there. sequential I they're

here really back was we I that, more what modest growth, there's in anticipated and bit are right? had aspect than the April, we seeing it but little think is factors So three a And there.

that towards. positive, factor people and the have go the tested to in think there. they just they there's to the planning US, staffing challenges And procedures specifically, stay at that bit of I hospital a could while were impact them, as home, a said, I had more didn't One some an in of as the little

news what on the to all them that we've procedures So got out. year, follow those pushed are, and they an where are. last we is We got did the good procedures up we know up on know and opportunity following like

So internationally, but think some of China you back for headwind headwinds think I there. similar availability. input that due And we factor the saw was some I to was the then was and had us for really timing there, third material us occurred lockdowns biggest the order and that the

So build materials in product. of terms receive when the you to the

Now inventory, are half. in anticipate building we don't going to forward the case and the second I that be

are So what facts those our really those business in -- are more April. had we our than modest predicted a device really little the bit that fact

activity. those got think better. get I launch One, we've

to So second and how and US cancellations the involve I'm talking that momentum those there's better to lot more certain in planning. at some booked more of maybe the launched a sure having of amount know to talk you to will also, happen. because And do -- systems, we'll out half. a of figure procedures about got that might we've they've will products staff looking that gain in And that just that

dynamics. understand that that also will as think I So hospitals these better the get

better also execution. but pipeline in not the the portfolio of excited these our the terms because we're of will second get launching half, and issues, the of only some I'm because products device which I of about and think So

Joshua Jennings

again. Great. Thanks,

Operator

will And our next line is question from Biegelsen open. your And Fargo. come you. from Larry Thank now Wells

Larry Biegelsen

can Robert, guys. morning, Good hear me okay? you

Robert Ford

Yes, I can Larry.

Larry Biegelsen

out cut Yes. bit. a It’s little

good wanted on quarter. -- Should Libre. Any how with just for two nice taking And we there. gradual So, have international you about little guys for Libre sounds a C X? are in some a we think interaction I made rollout wanted issue? about And it the Libre like softer progress vitamin lastly, multipart you the than feeling just of It the expected. was law to did I US? with question just another terms is kind a here a Or I follow-up. start have saw like how and this rollout me. one in full Robert, timing X question. just And -- to we Libre of to launch of a Libre, numbers? Is kind should the large expect the of of we thanks issue X? be this resolving

Robert Ford

Sure.

Germany then actually we're in X, the and very terms with base, of Libre had of very in seeing the think X from systems. benefits conversions We've upgrading excited. some success Libre I good competitive

So, to CGM mark. launch process exciting launch little team. the be gradual. the the sub-X% US is But US bit it be underway. for And is going a a is It that with only will more

So we're contracts, cetera. going et on contracts, contracts, to work to Care PBM Managed get to pharmacy

second physicians Libre we by maintain that grew way, did product. in And the opportunity I've without XX% we're is in to given really that which, XX% building well But in X. even rate So, actually We this Libre seen quarter. with the the inventory. what think Europe, without I We're quarter, even the X. can growth US familiarizing think business, I this the right, US XX% a great for our

it in cetera, out-of-pocket, those et is of the and least a co-pays, play and are understanding interdependencies at important in very driver for growth very the going do I patients role contracts, towards an be go we into in different. important. CGM think, Larry, of end coinsurance, that those as the they year is the the US, a we that's little think I and where to us have XXXX. model, I So pharma-like mean, devices, but big

environment even stronger. the value think of going in be be an looking I more are I proposition Libre consumers employers managing is and to expenses, going think where closely their at to

fixed, to time. C X. on address We've to to QX our going work relates updates that. to yes, launching question Europe an US. only to obviously, be with going We're actually your this the made Libre in partners further provide vitamin in progress. AID I'm with very in able good have Regarding be we done But system the over Europe

that. get -- more updates So on you'll but

what both is we received ketone exciting I the of designation become is piece to, go-to that's The of to in connectivity, that in believe under a the glucose-ketone spoken the from the think and with dual to just international, bring US ability that announced ADA I've that even measurement FDA. algorithms. Breakthrough on those that's sensor going development at perfect sensor June advisers more because the pump though, this sensor in scientific the pump and connectivity, and the for the

this existing an for ideal to manufacturers. even is for sensor and think companies I pump So, going new be pump

international, say. timing parts, on two our there's the question then FX from we X headwind a there in businesses. would there. some to Well, in that place your Germany international a Regarding is -- of I little little impacted as a And timing Libre was and lot there, bit bit mechanism of convert of

I covered for Larry. all So you,

Larry Biegelsen

very was it. appreciate Really comprehensive. That

for follow-up, And sitting of I've asked I know Just seen a Robert, a of you're but we cash. on lot have recent this calls, a my valuations. on recent re-rating lot

see terms are testing have to opportunities? that looking a And starting to comes color of you you COVID might think more Any down, size some I are fill. earnings deal gap investors need at? when So in on saying, that you're you

to deal important a to Thanks. an potential COVID testing? offset in is accretive how decline So it find

Robert Ford

now. more what we'll testing in selling guess have I COVID selling first of the more. year. I was the I guess sold I last We're as more six the same we last on kind side, And year. how Well, right probably out months versus see here things we're mean, play to said, comment mean, I that

because really we've yes, the your there. balance though, as don't regarding obviously valuations anything side, has got somewhat, environment capacity, the the ones on I the come challenging you seen comment, and down. I said, that the down, just obviously, companies, mean, for in that come down significantly I and and M&A dynamic have the is all flexibility. mean, changed it's valuations valuation macro So our these even has sheet have But come think

be to environments we're So we here to have and I mindful strategically financially playing point while I gotten when out. targets -- we the and be are to think have need to be still assessing they these do some think that cash, of these disciplined right macro given we of going potential

definitely the I management the board yes, think of of for of level study, strategically I being and stabilize and goes past their of with level outlook. think does become that a reset five of time period on would I'd say to the sense Larry, be areas transactions more four, it needs financial financially. So been of always valuations the and review, here. make interested kind to little about said, sense And does of teams has increased but has we types potential and of here, before make at the of, analysis the it the a their level lot we're their it I've targets over market looking That clear comfortable the back a months

changed yet. nothing's So

Larry Biegelsen

that. Thanks Thanks for Thanks for detail. taking questions. for

Operator

your Joanne come from open. next Thank our Wuensch will question And line from Citi. you. now And is

Joanne Wuensch

morning taking Good them for put thank upfront. to and all the going you thank I'm questions.

where the you or Some the union share just towards Structural Heart Thank a are will and view MitraClip, cash update your to state some sort repurchases you and you're Amulet? on products, on question, of us if key questions you regarding as are Portico where you. M&A, a then on you your the cash the Could us And for? of could be franchise. follow-up remind using you not for give previous using what

Robert Ford

Sure.

I focus for us division this the about is we've important that the talked such On how Structural and an there. Heart had side,

for. and this of quarter procedure. the Amulet, We've hoping performing got trends implanters So on of the I'd that say on completing are had that were an a to that are the expansion of in we've also aligned amount Amulet expansion the product and an accounts using good very amount we

the the the lot was just as in And challenges of really had proctors. beginning, was trained, we needed you implanters to January get of November, there travel. and we with in a February, challenge One remember, December,

encouraged that's nice ramp in looking What really the terms the I'm there. we're adopters. So, is early actually from the of very traction about seeing

implanting and year, QX in double So last utilization of is the those of that their than some more of the training average user. began that

of implanters. new in increase and of the there, terms existing the both driving productivity then So, things the and of we're the seeing in accounts sales utilization increase

device being estimate the -- centers expect probably PMA, that digit. estimate a improvement to the we October really about now Europe case. -- the encouraging at that in been mid-teens. is Navitor from has had was we at we've But us of very is us and that's an for single especially was And in highest here when now as patients. the sales. Navitor look TAVR approval high be on to filed Portico. of using introduced competitive the product we're also terms a On the the TAVR last Portico And US. XX%, you tough XX% opportunity right in which second strong, of expect I Europe, year, the side, And high into terms quarter a our its in TAVR year for are we it Navitor last this Last an clinical to where because comp that have see in the about on shares and been sales US MitraClip, of Navitor right centers in the quarter in launch system, this in I for next-generation in ever procedures, market we've or know, our profile I the in side that risk quarter.

procedures. So probably there's of this by rescheduling and impacted little and that COVID health bit no of is here doubt the a more some staffing the the challenges care one

as yet we expansion time. steadily for benefited So, I indication And functional the I don't to from fully previously, improve over we that think from the these MR. expect said I dynamics received the

opportunity and So, a remains there's underpenetrated of growth for still lot there. the market pretty

of better activity just a quarters. Heart what and get was to in question? a of other that next I over business, Structural lot the our good And your So, expect couple of lot then performance,

Joanne Wuensch

on repurchases, you. share for to do had not Thank It using it use if cash of M&A. you're

Robert Ford

we've continue investing hand. Electrophysiology, we'll in several the We're go half and bought dividend, We're we we've of balanced as an for kind dividend, that year. a and areas, Nutrition. that's we cash approach shares the Libre, had that back through and been deploying our expansions our mindful growing listen, always MitraClip, it. investing We're of second to the the half in the in in Well on of cash. assess of Sure. capacity important part our something year first And of

organic allocation second be is our continue able pretty balanced, dividend, committed to business. of some invest and So We'll the first And for continue in towards done the to great to half. drive the half. approach us the the opportunities there's we're to organically capital assess to to part the share buybacks in

Joanne Wuensch

you. Thank

Operator

you. Thank

Our ISI. will next from Evercore come question Vijay from Kumar

Your line is open.

Vijay Kumar

floor that the It to at flowing the close Robert. half, in half? strong about on half the revenues $X.XX, on the I Hi, here. $X.XX-ish for my of back inflation. some for here, FX here seems little $X.XX-ish. in something still there, back back Is XXXX, earnings so $X.XX, that's half the of for implied through to we XQ where guess, EPS base XXXX, on earnings when there going light that's back -- first you between question. taking winding look Thanks COVID below a is guidance. One did guys Is have else for a Congrats on floor fiscal the this $X.XX annualizing was you that's guidance half --

Bob Funck

Vijay, that this I'll is take Hey, question. Bob,

an in of of factors reinvest this and think swing a years. I an And to of our as P&L are a that be Probably an monitoring the using about point. kind there the into are couple specific of last couple of to on testing our us, over business, COVID lot rate awful top flexibility strength that's back assessment. think provided of -- that that, lot There's implied warrants obviously we're going kind wouldn't further I XXXX. quarter indicator thinking it's on how fourth environment at macro exit prudent of us

see and Robert, COVID of as kind -- so plays our testing about, we'll how kind talked of part of out. And as

see We continue very to strong demand.

incrementally some just that budgeting fully close year, what year. on touched we're And level away. investment as know, the making Robert of will in process and and it's look -- we'll overall those talked this through point And we our next investing, over of element also investments so expect go that or stick even as time pinpoint good priorities. is working a that to at which progress, structure, and for part cost fact to modulate take and about But the of around, Robert there's the nutritional our some that difficult at the recall you

see over ramp the share, And power recapturing that we'll so that, of earnings combined business with up time.

that pipeline has highly productive our to So especially drive devices. And corporation. growth, accretive in and -- the we growth been that's overall and finally, then as

those that's we start So think as elements corporation. drive devices. overall moving those we'll XXXX, are the accretive in all incorporate growth, to growth parts. we about big especially And as and that to And

as big those start are next our those we forecast in about incorporate So all parts. to we'll moving And year. think elements XXXX,

Robert Ford

to year year. having Vijay, I a about guess, of I'll is big and actually full strength a dollar significant forecasted also. US that mean portion just that, when this it's happen we of impact add basis, the and pretty we're talk I that in the on impact second to half of the the

facing. with plays we're that also together a the that aspects role So inflation

challenge. So the that's really

Vijay Kumar

And helpful. last one. maybe one That's

of if line north with base in mid ex-China ex-Nutrition business did XQ have to With investors is the at second to single-digit of, base half I mid-single trajectory business and X%, high high guidance high in the single-digits, sort which of single, half look the at baked single? that back the

Robert Ford

So And confident And we that upside to a I number. said, on is and also. for I set that that. been feel the here opportunity in opportunities just here contemplating like believe think back half all got floor where this we've We've there's takes reiterate I'll these that that we've again, we puts discussing, floor.

Scott Leinenweber

his just Bob say, high single-digits the would of remarks, point. prepared I of businesses we Vijay. your kind expect Hey, remainder to excluding Nutrition, said in as the for

doing there So the right. is you're math

Vijay Kumar

Scott. helpful, That's

That's is Thanks some guide So back assuming helpful. half. the here in guys. impact the

Operator

our And is line come from And America. question Bank next you. of your open. Thank from now will Travis Steed

Travis Steed

you Hi, hear Can good me morning. okay?

Robert Ford

Yes.

Travis Steed

Great.

with takes. And to top wanted on onetime one on know margin a like couple I a of the Just FX. and of you inflation puts ask costs mentioned contracts to more lot Robbie's question, and and nutrition

of pull onetime margin FX margin operating If to up. this remains the carry levers nutrition headwinds, think you of year's people. there's environment something line grow But that of go year. macro much as investments can for the sure naturally I I about and don't this That's other on just year this next of back those if nutrition base to ability know later assume wanted the most away just kind into commitment flagged not margins. how about ramp year's those and also over any J&J So stable, that and the

Robert Ford

to always commitment shoot we the grow Listen, the Yes. always there. is growth. -- for that operating margin We've

if, You if the same. conditions the big big that's the had remain a if and right, there

on don't we can going these to anticipate of know having that bit. But look Bob to I product. competitive overseas. amount year. that flew from don't fly wick a of there I mentioned talk what don't about currency that pay I little in anticipate rebates but some next kind the is formula like So costs, having in are to those I

our sure business back I as we we coming our to work of of we've half that because of IMF that we that of share in investment steady next the regain we're of We some or of that last seen have half our of little a, we from back. that Nutrition would profile months. And quarter last call, to want couple what products that we recall, of mean, share. say, I regained can that so the lost half a regain about I the And couple months, would on start the share. profile in bit out a make lost

these more onetime So like I of said, nature. in costs, some are

Bob, know, comment on don't there? you I side, FX have the On do a

Bob Funck

taught history time. a long period guess hold for if has rarely of ever say rates I I'd that Well, us

challenging. for pretty pinpoint next at moving projection an There's year to accurate trying is awful parts. point kind of of an this lot So

said, cetera. upon for our there's see kind to of into play best As That different always we can. to impact look year different level, a of as you as how part banks rate year. this where impacts today, we're And mitigate go, know, high portion will way based different so Obviously, economies, the a seeing of central decent actions, need to a we at of we taking strengths long we're out. opportunities planning things et carry at next process, currency

Travis Steed

launch Thank the in who to partner to I look want helpful. heard don't form you QX. any AID say Europe is an or insulin like you by know right. additional make you're I in system for sounds to if Libre willing And that I might do with fashion? going like sure you'd like It that That's color. X be or what product

Robert Ford

Yes.

an announcement made about month, we think partnership I the -- ago. several X.X about one months

partner. So European that's Ypsomed, and another a manufacturer local with yes,

our end in be is yes, to So target to Europe. able the year of the by launch that

Travis Steed

Thanks Great. Okay. the lot a for questions.

Scott Leinenweber

we'll more question. take Operator, one

Operator

from And our you. Thank Jayson question open. come James. last Bedford will from Raymond your And now is line

Jayson Bedford

for the Hi, questions. and good thanks morning taking

couple. a Just

like obviously, ramp and and the segment. context feel you are to here. any today profit the production I'm just And on the levels? back way thinking where when nutrition in of to were be recapture and manufacturing First, in you last where you year frame this Is full potential you'll there infant

Robert Ford

not talking call Similac, restarted or date mean, very X, it, not want close I we The specialty of in said, kind of formula. here, to I Sure. would that, but we're Well, talking necessarily more put the base the as July we're production we our we're exact to say. formulas. what don't began I production of and Jayson, weeks. I an months,

ramp shorten a time to ready to going that we're know availability. on-shelf work and obviously between So We there. we're the close have go And to to and hard team manufacturer up. to we that's very have

a to that dedicated specifically frame also. working team accelerated there's on time that's So

where at. continue we'll be efforts to network And those to So of to able like our augment I recapture. we're use share global

Jayson Bedford

I'm XXXX market around XXXX. assuming Robert, be -- debate manufacturing So we for clean when should USP, just look standpoint, you the it And is at a share? from in

Robert Ford

expectation. our That's Yes.

of of inventory is growth market in the there debate in XXXX much share a is bit the be might also little market think build. terms and then how market I of predominantly understanding today's on

rates. seen increase in We birth have an

opportunity that. to another So that's also for -- offset maybe to

like in And we've couple I network our pretty lost question, using we yes, it's about months. able the previous the think about recovery. mostly I of done think market share, I regain those to share but -- had be market I in market first to that So think said, well share

at about in and to right made that why, yes, said, looking recovery, So we've I position here the our next share over put in to which investments us as really be some five is XXXX. three, share months able it's in, four, -- during

your environment, Obviously, same is, companies. guess, that think I'll just lot a going that's a pretty the close I be it's in there here. dynamic. I So for the And uncertainty so some of lot poll the to of questions

strong. segment in Diagnostics, we've And we shows just well. right historically testing now, year. and that happen remind I thought what and what a to Libre equation are new product still do R&D very share are financial as recover. strong. year For We're or to our making Abbott last And get international believe said, grow drive going like here. the continue is opportunities as to was progress EPD specifically, Cases in continue to and performing recovery But were and growth data And health that would last the will of is Adult pipeline also I very well. Nutrition is to level business our ultimately, remain It's the recovery our that up. is COVID growth. launches I very to back trend. do that forecasted leaner not strong. recover, I as portfolio, had there expect as is It we The still and portion I ourselves here. had. Cardiovascular perform where portfolio, the Device we all continues at in April, testing but same albeit not we same that big But

actually Our a are preferred have our of test somewhat tests brand sales here. from become very up format a over and and well done

think and our look cases we hopefully, some And to And our well. headwinds. what's our raised a So ability to macro the rarity in to year. see year, our challenges very continue We're for is it the full and tough. of And in this the guidance But as the investing easing half unique, up some I manage portfolio. and I and second to macro in leverage think the We're of be of execution we'll that's strength environment the held and there. I very anticipate growth to cases, I some platforms. in other the on portfolio the the that's navigating diversification speaks

So with joining for that, we'll wrap thank you up, today. us and

Scott Leinenweber

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

Operator

you. concludes This call. participation wonderful Thank Thank for have you disconnect. your a may Everyone, day. conference now and you today's

Abbott Laboratories (ABT) 20 Jul 222022 Q2 Earnings call transcript