Company: DHR
Filing Date: 2025-04-22
Form Type: 10-Q
Source: 0000313616-25-000088
Chunk: 37

Company: DANAHER CORP /DE/
Filing Date: 2025-04-22
Form: 10-Q
Item: Item 1
Chunk 37
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-over-year basis as increases in the pathology and acute care diagnostics businesses more than offset declines in the clinical lab business. 

Operating Profit Performance

Operating profit margin decreased 350 basis points during the three-month period ended March 28, 2025 as compared to the comparable period of 2024.  The following factors unfavorably impacted year-over-year operating profit margin:

•Lower first quarter 2025 core sales, the impact of product mix and the impact of reduced leverage in the segment’s operational and administrative cost structure - 340 basis points

•The impact of a product line disposition which did not qualify as discontinued operations - 10 basis points

COST OF SALES AND GROSS PROFIT

Three-Month Period Ended($ in millions)March 28, 2025March 29, 2024Sales$5,741 $5,796 Cost of sales(2,230)(2,309)Gross profit$3,511 $3,487 Gross profit margin61.2 %60.2 %

Cost of sales decreased year-over-year during the three-month period ended March 28, 2025 as compared to the comparable period in 2024.  The decrease during the three-month period was primarily due to the impact of currency exchange rates, product mix and a $25 million acquisition-related charge associated with the fair value adjustment to inventory recorded in the first quarter of 2024 in connection with the acquisition of Abcam plc.  These decreases were partially offset by a $15 million impairment charge related to a facility in the Biotechnology segment recorded in the first quarter of 2025. 

Year-over-year gross profit margin increased during the three-month period ended March 28, 2025 as compared to the comparable period in 2024.  In the three-month period, the increase was due to the impact of product mix and the impact of an acquisition-related charge recorded in the first quarter of 2024, net of the facility impairment recorded in the first quarter of 2025, both referenced above. 

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OPERATING EXPENSES

Three-Month Period Ended($ in millions)March 28, 2025March 29, 2024Sales$5,741 $5,796 Selling, general and administrative expenses1,858 1,807 Research and development expenses379 368 SG&A as a % of sales32.4 %31.2 %R&D as a % of sales6