PRESENTED BY

NAUROZ KHAN (358)ZIA ULLAH (362)

SHAZIA (359)

INTRODUCTIONAbbott Laboratories

CLASS : BBA 8TH

SUBJECT

FSA

TEACHER

SIR.FAZLE MUQEEM

History• Abbott Laboratories (NYSE: ABT) is a pharmaceutical health

care company.• It has 72,000 employees and operates in over 130 countries. • The company headquarters are in Abbott Park, North Chicago,

Illinois.• The company was founded by Chicago physician, Dr. Wallace

Calvin Abbott in 1888.• In 1985, the company developed the first HIV blood screening

test. • In 2008, Abbott had over $29 billion in revenue.

Business• Abbott's core businesses focus on pharmaceuticals, medical

devices and nutritional products, which have been supplemented through several notable acquisitions. The firm currently divides itself into several divisions:

• Animal Health: Anesthesia for animals, Clinicare liquid animal diets and other veterinary products.

• Diabetes Care: Glucose monitoring device and medicine.

Business Cont…• Diagnostics: Hematology, immunodiagnostic, oncology and

clinical chemistry (including the i-Stat).• Molecular: analysis of DNA, RNA, and proteins at the

molecular level.• Nutrition: Baby Nutrition (Similac, Isomil, and Gain), adult

health products (Ensure and ZonePerfect) and special dietary needs (Glucerna).

• Vascular: Stents, vessel closure devices, endovascular and coronary technologies.

Theme• 2010 has been a year of celebration for Abbott Pakistan as we

achieved our vision of Rs 10 billion sales. • We managed through several significant challenges, and

exceeded our strategic and financial goals.• Our Annual Report 2010's concept focuses on Celebration of

our achievements in 2010. Achieving is one of our core values means Customer- focused outcomes and world-class execution.

Mission

• We drive for meaningful results -demanding of ourselves and each other because our work impacts people's lives. To deliver consistently superior products and services which contribute significantly to improve the quality of life of the consumers.

Vision

• To be a premier healthcare company in Pakistan.

Promise

• The promise of our company is in the promise that our work holds for health and life.

Senior Management Team

• Asif Jooma (Chief Executive Officer)• Syed Anis Ahmed (Chief Financial Officer)• Sadi Syed (Operations Director)• Dr. Sarmad Maqbool (Marketing & Strategy

Director)• Dr. Farrukh Hafeez (Quality Assurance Director)

Key Competitors

Abbott Products

Our Core Values

• Pioneering: Leading-edge science and commercialization.

• Achieving: Customer-focused outcomes and world-class execution.

• Caring: Making a difference in people’s lives.• Enduring: Commitment and purpose.

Our Strategic Priorities

• Innovating for the Future (R & D).

• Protecting Patients & Consumers (Ensuring quality).

• Safeguarding the Environment.

Social Responsibilities

• Human Resource Development.

• Environment, Health and Safety.

Market Share

• Abbott Pakistan achieved a market share of 6.1% as per IMS (Dec 2010, 12 Months) in the pharmaceutical and nutrition market (2009 market share: 5.8%).

Manufacturing

• Abbott Pakistan manufactures over 150 different pharmaceutical and general health care products for the local and export markets.

Business Process Improvement• Abbott Pakistan has launched the RSO (Rationalization,

Standardization, and Optimization) program through which packaging of various products is standardized to achieve operational efficiencies such as cost improvement, cycle time reduction, and better inventory management.

• The TPM (Total Productive Maintenance) program was launched to minimize breakdowns and reduce machine change over time to increase the productivity.

Key Financial Data• Net sales for the thirteen months period registered an

increase of 30% over last financial year (20% increases on 12 months comparable basis).

• Profit after tax for the thirteen months period was Rs 1,177 million (Financial Year 2009: Rs 609 million). Earnings per share for the thirteen months period were Rs 12.02 (Financial Year 2009: Rs 6.22 per share).

Contribution to National Exchequer

• Your Company has contributed Rs 1,507 million (2009: Rs 1,062 million) to the government and its agencies on account of various government levies including income tax, custom duties and sales tax etc.

Vertical Analysis

Horizontal AnalysisProfit and Loss account Index analysis %

2010 2009 2008

Net sales 154.36 118.62 100

Cost of goods sold 157.03 131.68 100

Gross profit 149.33 94.01 100

Selling and distribution expenses

146.29 114.47 100

Administrative expenses 153.5 115.79 100

151.5 72 100

Other operating income 103.3 134.44 100

Other operating charges 197.25 199.48 100

140.64 70.81 100

Finance cost 130.54 93.38 100

Profit before taxation 140.66 70.76 100

Net taxation 151.02 71.43 100

Profit for year 136.18 70.47 100

Balance sheet Index Analysis %

2010 2009 2008

Total equity 109.6 90.75 100

Noncurrent liability 114.49 118.91 100

Current liabilities 127.6 118.1 100

Total equity and liabilities

114.67 98.3 100

Noncurrent assets 121.27 106.9 100

Current assets 111.62 94.33 100

Total assets 114.67 98.3 100

Ratio AnalysisLiquidity ratios

Current ratios 2.19 2.03 2.50

Quick ratios 0.97 0.94 1.24

Leverage ratios

Debt to equity 48 53 41.51

Debt to assets 32.4 34.76 29.33

Coverage ratios

Interest coverage ratios 492.27 347.92 458.8

Profitability ratios

Return on investment 20.3 12.3 17.1

Return on equity 30.1 18.8 24.2

Net profit margin 10.7 7.21 12.13

Gross profit margin 33.5 27.47 34.6