Abbott strong numbers driven by key brands

News: Revenues grew 11.8% YoY to Rs.1224.4 crore. EBITDA margins were steady YoY at 22% while EBITDA for the quarter grew 11.3% YoY to Rs.269.1 crore. PAT was up 12.5% YoY to Rs.199.2 crore.

Views: Abbott India’s numbers were strong on the back of 14.3% YoY growth in top five therapies (anti-diabetic, GI, VMN, anti-infective, CNS) according to MAT December 2021, IQVIA. Notwithstanding quarterly gyrations, we remain positive on the company due to its robust and sustainable business model backed by stable growth, debt-free b/s, favourable market dynamics with doctor prescription stickiness and lower perceived risk factors. We continue to believe in Abbott’s strong growth track in power brands and capability of new launches on a fairly consistent basis.

Impact: Positive