CLAIM #3059 · Abbott Laboratories (ABT) · 2023Q2 earnings call · Jul 19, 2023 · due Dec 31, 2023
“And I think for the balance of the year, we would expect to see gross margins roughly in the range of 56%, and then we would look for steady improvement after that.”
Robert Funck · CFO
In context
“ly on. Maybe my team will surprise me, but I absolutely expect this to be a significant contributor over time for us. And so that third part of the growth stool here for that platform is out of the gates, and we're excited to see what we can do. Robert Funck: Okay. So Vijay, on the gross margin question. So back in January, we guided a gross margin profile of 56% of sales for the full year. And through the first half of the year, the base business, so excluding COVID testing, is right in line with that. We are, however, seeing lower gross margins on our COVID test do -- really due to the significant decline in volumes that we've seen compared to our assumptions at the beginning of the year. And so that's really what's being reflected in a little bit lower gross margin that you've seen. And I think for the balance of the year, we would expect to see gross margins roughly in the range of 56%, and then we would look for steady improvement after that. As Robert talked about, it's a key focus area for us. Each of our businesses have gross margin improvement programs in place, with teams that are dedicated to that effort. And as -- so as we work into 2024, we would expect to see some improvement overall in our gross margins. Operator: Our next question will come from Joanne Wuensch from Citi. Joanne Wuensch: Briefly, can you sort of tear apart the Electrophysiology growth rate of 17%? How much of that is in the U.S.? How much of that is oUS? And what do you think is driving that? And then I'll just jump in with my second question, which is, if you have reclaimed about 75% of the Pediatric Nutritional business, can you get to 100%? Or do you think you're more or less where you can get to? Robert Ford: Sure. So really good growth on EP.”
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SEC filings for ABT ↗ · Claim quote is verbatim from the 2023Q2 earnings call.