Abbott Laboratories · NYSE:ABT
Abbott Laboratories — Q3 2019 Earnings Presentation
20 slides from Abbott Laboratories's earnings presentation, Nov 26, 2019
Slide 1: Corporate Briefing Session - 2019
Corporate Briefing Session - 2019 26th November, 2019
Slide 2: Table of Contents
Abbott Pakistan - Analyst Briefing – Q3 2019 Table of Contents • Company Overview • Economic Overview • Financial Results for 2018 • Financial Results for Q3 2019 • Q&A pk.abbott.com
Slide 3: Company Overview
Abbott Pakistan - Analyst Briefing – Q3 2019 Company Overview Incorporated on July 02, 1948 Other segments 1962 – First Two manufacturing (mainly includes manufacturing diagnostics and facility set-up in facilities diabetes) Karachi Abbott Laboratories (Pakistan) Limited 1982 – Listed as 1,579 Emplo
Slide 4: Pakistan – Macro Economic Overview
Abbott Pakistan - Analyst Briefing – Q3 2019 Pakistan – Macro Economic Overview Gross Domestic Product Growth (GDP%) Pakistan Economy – Retrospective Keystones • FY19 GDP growth estimated at 3.29 (decline of 2.2% from prior 7% IMF & World Bank Projection for 2020 2.4% year). 7% • Future outlook for
Slide 5: Twin Deficit
Abbott Pakistan - Analyst Briefing – Q3 2019 Twin Deficit Current Account Deficit vs. Exchange rate Rising Fiscal Deficit & Public Debt 0.5 168 9.00% 90.00% 158 8.00% 80.00% 0.0 148 7.00% 70.00% -0.5 138 6.00% 60.00% 128 -1.0 5.00% 50.00% 118 4.00% 40.00% -1.5 108 3.00% 30.00% 98 -2.0 2.00% 20.00% 8
Slide 6: Foreign Exchange Parity
Abbott Pakistan - Analyst Briefing – Q3 2019 Foreign Exchange Parity USD/PKR Movement – 47% devaluation over past 23 months Policy Reforms by SBP 1 • Two way movement in USD/PKR signifying market Reinstating Central Bank’s driven flexible regime instead of controlled float Autonomy regime. 164.06 •
Slide 7: Financial Results - 2018
Financial Results - 2018
Slide 8: Key Highlights – FY2018
Abbott Pakistan - Analyst Briefing – Q3 2019 Key Highlights – FY2018 • Overall revenue of the Company increased by 13.9% reaching Rs. 29.72 bn. Rs. 29.72bn 13.9% • Pharma remains the biggest Sales Revenue Sales Growth segment of the Company followed by Nutrition. • Decline in profitability mainly on
Slide 9: Revenue Analysis – FY18
Abbott Pakistan - Analyst Briefing – Q3 2019 Revenue Analysis – FY18 30,000 29,719 29,000 Segment wise Revenue 13.9% (PKR in millions) 28,000 PKR in millions % 27,000 Segment 2018 2017 growth 26,000 26,088 25,000 Pharmaceutical 21,879 19,537 12.0% 24,000 2017 2018 Revenue Nutritional 5,349 4,329 23.
Slide 10: Segment Gross Profit analysis – FY18
Abbott Pakistan - Analyst Briefing – Q3 2019 Segment Gross Profit analysis – FY18 Segment GP 12,000 Segment-wise GP (PKR in millions) 10,500 10,089 9,775 9,000 7,500 Segment 2018 GP % 2017 GP % 6,000 4,500 3,000 1,500 Pharmaceutical 7,588 34.7% 7,808 40.0% - 2017 2018 - Segment profitability has bee
Slide 11: Financial Results – Q3 2019
Financial Results – Q3 2019
Slide 12: Key Highlights – Q3 2019
Abbott Pakistan - Analyst Briefing – Q3 2019 Key Highlights – Q3 2019 • Overall revenue of the Company increased by 3.2% reaching Rs. 22.28 bn. Rs. 22.28bn 3.2% • Sales growth of the Company has Sales Revenue Sales Growth slowed on the back of overall challenging economic and regulatory environment.
Slide 13: Revenue Analysis – Q3 2019
Abbott Pakistan - Analyst Briefing – Q3 2019 Revenue Analysis – Q3 2019 Sales 25,000 3.2% Segment wise Revenue 20,000 (PKR in millions) 21,594 22,280 PKR in millions 15,000 Jan - Sep Jan - Sep % Inc / Segment 2019 2018 (Dec) 10,000 5,000 Pharmaceutical 15,674 15,834 (1.0%) - Q3 2018 Q3 2019 Nutritio
Slide 14: Segment Gross Profit analysis – Q3 2019
Abbott Pakistan - Analyst Briefing – Q3 2019 Segment Gross Profit analysis – Q3 2019 Segment GP 8,000 7,318 Segment-wise GP (PKR in millions) 7,000 6,316 6,000 PKR in millions 5,000 Jan - Sep Jan - Sep Segment 2019 GP % 2018 GP % 4,000 3,000 2,000 1,000 Pharmaceutical 4,787 30.5% 5,632 35.6% - Q3 20
Slide 15: Statement of Profit or Loss – Q3 2019
Abbott Pakistan - Analyst Briefing – Q3 2019 Statement of Profit or Loss – Q3 2019 Description % Jan - Sep % Jan - Sep Variance – Favorable / 2019 2018 (Unfavorable) Rupees in millions % Sales 100 22,280 100 21,594 686 3 Cost of Sales 72 15,964 66 14,275 (1,689) (12) Gross Profit 28 6,316 34 7,319 (
Slide 16: EPS Analysis – Q3 2019
Abbott Pakistan - Analyst Briefing – Q3 2019 EPS Analysis – Q3 2019 Earnings per share 22.00 21.15 20.00 18.00 Other charges – lower statutory charges Rs. 0.31 Other income – lower cash balances (Rs. 0.83) Finance costs – increase driven by leases (Rs. 0.26) 16.00 Taxation – depleting margins Rs. 2.
Slide 17: Key Financial Ratios
Abbott Pakistan - Analyst Briefing – Q3 2019 Key Financial Ratios Ratio Unit Sep – 2019 Sep – 2018 Profit Margins 40.0% Profitability Ratios 33.9% Margins depletion on account 35.0% of Rupee devaluation and 28.4% Gross profit margin % 28.4 33.9 30.0% inflation. 25.0% Net profit margin % 3.5 9.6 20.0
Slide 18: Statement of Financial Position – Sep 30, 2019
Abbott Pakistan - Analyst Briefing – Q3 2019 Statement of Financial Position – Sep 30, 2019 Description Sep Dec Variance Description Sep Dec Variance 2019 2018 2019 2018 Rupees in Millions % Rupees in Millions % Non-current assets Share capital and reserves Property, plant and 8,016 7,192 824 12 equ
Slide 19: Q&A
Q&A
Slide 20: Thank you
Thank you
Abbott Laboratories (Pakistan) — Q3 2019 Earnings Presentation on 6ix