Abbott Laboratories (ABT) reported ~$4.9 billion in total revenues in 1Q16. Of that, ~$1.7 billion came from the company’s Nutrition segment sales. The segment accounted for about 34.2% of Abbott’s total revenues. These sales figures represent a ~4.3% YoY (year-over-year) increase in 1Q16 on an operational basis. However, the negative foreign exchange impact of ~4.2% led to the reported increase in revenues of ~0.1%. Pediatric nutrition sales witnessed stronger YoY growth at 0.5% on a reported basis. This compares to the reported decline of 0.5% in adult nutrition sales. The operational sales growth of the adult and pediatric nutrition segments came to about 4.3% and 4.4% respectively.
Key growth drivers
Abbott is a leading manufacturer of the adult and pediatric nutritional products. The segment growth is led by innovation along with expansion across international markets, especially emerging nations. Recently launched Similac Advance and Go & Grow Non-GMO products along with the continued demand for Ensure led the above-market sales growth in the United States. However, the Eleva uptake in China in the country’s premium market segment led international sales growth. Moreover, the company’s double-digit sales growth in the adult nutrition market in Latin America and its pediatric segment growth in Russia and a number of Latin American countries helped boost the nutrition segment’s growth.
Some of Abbott’s major competitors in nutrition include Johnson and Johnson (JNJ) and Mead Johnson Nutrition (MJN). Boston Scientific (BSX) is one of Abbott’s other major peers in the US medical devices industry. For fundamental details on Abbott’s Nutritional segment, read Why Abbott Laboratories Is a Leader in Nutritional Products.
Investors seeking exposure to Abbott Laboratories can invest in the iShares MSCI USA Minimum Volatility ETF (USMV). Abbott accounts for approximately 0.92% of USMV’s total holdings.