Company: DHR
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000313616-25-000043
Chunk: 168

Company: DANAHER CORP /DE/
Filing Date: 2025-02-20
Form: 10-K
Item: Item 5
Chunk 168
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 year, core sales in the molecular diagnostics business grew on a year-over-year basis primarily driven by increased sales of both respiratory and non-respiratory disease tests in North America.  In the segment’s clinical diagnostics businesses, core sales grew on a year-over-year basis led by the clinical lab business, and to a lesser extent by the pathology and acute care businesses.  The increased core sales in the clinical diagnostics businesses were driven by core sales growth in developed markets.  

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Operating Profit Performance

Operating profit margins increased 170 basis points during 2024 as compared to 2023.  The following factors impacted year-over-year operating profit margin comparisons.       

2024 vs. 2023 operating profit margin comparisons were favorably impacted by:

•Higher 2024 core sales, improvements in the segment’s operational and administrative cost structure and the impact of product mix - 250 basis points

2024 vs. 2023 operating profit margin comparisons were unfavorably impacted by:

•2024 loss on the termination of a commercial arrangement - 60 basis points

•2024 impairment charge related to a trade name, net of a 2023 impairment charge related to a technology-based intangible asset - 20 basis points

COST OF SALES AND GROSS PROFIT

 Year Ended December 31($ in millions)202420232022Sales$23,875 $23,890 $26,643 Cost of sales(9,669)(9,856)(10,455)Gross profit$14,206 $14,034 $16,188 Gross profit margin59.5 %58.7 %60.8 %

The year-over-year decrease in cost of sales during 2024 as compared with 2023 was due primarily to the impact of lower year-over-year sales volumes and $87 million of charges incurred in the second quarter of 2023, primarily related to inventory in the Biotechnology segment.  The decrease in cost of sales was partially offset by an acquisition-related charge of $25 million incurred in 2024 associated with the fair value adjustment to inventory recorded in connection with the acquisition of Abcam.

The year-over-year increase in gross profit margin during 2024 as compared with 2023 was favorably impacted by the 2023 inventory charges referenced above, the net positive impact from the gross profit margin of recent acquisitions, and incremental year-over-year cost savings associated with productivity improvement actions, net of the impact of product mix and an acquisition