CLAIM #3145 · Abbott Laboratories (ABT) · 2024Q1 earnings call · Apr 17, 2024 · due Dec 31, 2024
“But probably the biggest the biggest opportunity we have here Travis, is just to expand the gross margin through portfolio mix.”
Robert Ford · CEO
In context
“teed : Just on gross margins, kind of thinking about the path back to pre COVID levels over the long term and is this the right kind of cadence that you're -- this year's cadence, the right way to think about that? Robert Ford: I think that's a good cadence. I think we're forecasting here about 70 basis points of improvement this year. Feel good about that. I've talked about this not being a question of if, just a question of when, so I think that's not a bad cadence. And we're going to focus on the things that we can control and the things that we can control are obviously our cost and our cost teams and the teams that are working on improving gross margin, they're delivering great results here, while at the same time maintaining high service levels not running to back orders, et cetera. But probably the biggest the biggest opportunity we have here Travis, is just to expand the gross margin through portfolio mix. When you have our medical device businesses growing at mid-teens consistently over the last, whatever, four or five quarters, that has a real strong impact on our gross margin. So a lot of focus on what we control our gross margin, the cadence. That's what we are targeting. It's not really a question of if it's just a question of when. Operator: Our next question will come from Vijay Kumar from Evercore, ISI. Vijay Kumar : Robert, I had a two forward question. A lot of questions on pipeline, but I'm curious when people ask us on sustainability of growth, if you could elaborate on pipeline, what else is there? When you look at the future, that gives us the confidence of sustaining its premium growth within the med tech industry. My second part was on the financial modeling side, looks like”
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SEC filings for ABT ↗ · Claim quote is verbatim from the 2024Q1 earnings call.