10-Q - AbbVie Inc. (0001551152) (Filer)

Fri, May 9, 5:27 PM (13 days ago)

AbbVie Inc. (ABBV) reported a strong financial performance for the first quarter of 2025, with notable increases in revenue and earnings. The company's net revenues rose by 8% on a reported basis and 10% on a constant currency basis, reaching $13.3 billion. Operating earnings were $3.7 billion, and diluted earnings per share (EPS) stood at $0.72. The company's cash flows from operations amounted to $1.6 billion. Key financial metrics include: - **Revenue Growth**: Driven by strong market share uptake and growth across various indications, particularly for Skyrizi and Rinvoq. - **Profit Margins**: Gross margin increased to 70% of net revenues, up from 67% in the previous year, due to increased leverage from revenue growth and favorable product mix. - **Operating Costs**: Selling, general, and administrative (SG&A) expenses decreased to 25% of net revenues, down from 27%, primarily due to reduced acquisition and integration costs. - **Research and Development**: R&D expenses increased by 7% to $2.07 billion, reflecting continued investment in pipeline assets. - **Cash Flow**: Operating cash flows decreased compared to the prior year due to timing of working capital and litigation payments, but were partially offset by higher net revenues and acquisition-related expenses. AbbVie's strategic objectives include maximizing benefits from a diversified revenue base, leveraging commercial strength, investing in the pipeline, and generating substantial operating cash flows. The company anticipates several regulatory submissions and data readouts from key clinical trials in the next 12 months. Financial position and liquidity remain robust, with significant cash reserves and access to capital. The company's credit ratings were stable, and it has sufficient financial flexibility to support growth objectives. AbbVie continues to monitor economic conditions and credit risk, ensuring the solvency of customers and suppliers. Future operations may be impacted by global macroeconomic conditions, including trade disruptions and tariffs. The company is prepared to navigate these uncertainties while maintaining a strong financial position and continuing to invest in innovation and growth.