Abbott Hoists Forecast Sails Higher Despite Infant Formula, Inflation, Exchange Headwinds
Although sales of infant formula and other pediatric nutritionals were down more than 20% in US and more than 13% worldwide during Q2 on an organic measure – excluding a currency exchange impact – Abbott reports 14.3% overall sales growth to $11.3bn.
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Consumer health product firms’ vistas include challenges of supply chain disruptions lingering from pandemic’s impact as well as potential for marketplace restrictions as additional varieties of the novel coronavirus spread. Clouds also include shifts in consumer spending, increases in costs caused by inflation and foreign exchange headwinds as the value of the US dollar strengthens against other currencies.
Two days before flooding closed its Sturgis plant, Abbott announced it would import 1.1m pounds of powder formula to the US from its manufacturing facility in Spain.
FDA report on inspection states Abbott and agency “found evidence" of Cronobacter species bacteria in powdered infant formula production environment and firm also identified bacteria in finished powdered formula products. Once Abbott gets FDA clearance to restart production at facility, it will need as much as two months before formula made there reaches stores.