Medtronic Reports Strong Fiscal Year 2024 Results with $32.4 Billion in Revenue

May 25, 2024 00:26 CST Updated 00:26

Medtronic

Chronic Disease Medical Device and Therapy Developer

May 23, 2024Medtronic (NYSE: MDT) officially announced its financial performance for the fourth quarter of fiscal year 2024 and the full-year results. According to the detailed financial report, the group...The fourth quarter achieved revenue of $8.6 billion (RMB 62.284 billion), representing a 0.5% increase from the previous period., with an organic growth rate as high as 5.4%.

Fourth Fiscal Quarter,All four divisions of Medtronic achieved organic revenue growth in the mid-single digits or higher!

# Medtronic! Continued Positive Earnings Report

Fiscal Year 2024,Medtronic's total revenue reached $32.4 billion (equivalent toRMB234.651 billion yuan), achieving a year-on-year growth of 3.6%,Net profit of 3.676 billion US dollars (equivalent toRMBRMB 26.623 billion), a year-on-year decrease of 2.2%.

Looking Back at Fiscal Year 2023, MedtronicMedtronicTotal revenue of $31.227 billion (approximately 224.8 billion RMB), with a net profit margin of 12%. Sales rank second in the global medical device market, and the continued positive growth seems to indicateMedtronic is expected to regain its position as the leading medical device company.

▲Main Products Approved for the Company in FY2024

By region:

The Americas contributed $16.562 billion in revenue, non-U.S. developed areas contributed $9.979 billion, and other markets contributed $5.823 billion.

By product line:

1. Cardiovascular Product Portfolio

Including Cardiac Rhythm, Heart Failure (CRHF), Structural Heart and Aortic (SHA), Coronary and Peripheral Vascular (CPV) departments.

Fourth Quarter Revenue was $3.13 billion, a 5.2% decrease year-over-year, with organic growth of 4.0%.，SHA and CPV with median organic growth, CRHF with low single-digit organic growth；Total Revenue for FY2024 was $11.831 billion, representing reported growth of 2.7% and organic growth of 5.0%.Among them, SHA grew by a high single-digit percentage, CPV grew by a mid single-digit percentage, and CRHF grew by a low single-digit percentage, all organically.

Department Highlights:

CRHF Q4 Results Include Low Single-Digit Growth in Arrhythmia Management, Driven by High Single-Digit Growth in Cardiac Pacing Therapies, Including 20%+ Growth in the Micra™ Transcatheter Pacing System; Cardiac Ablation Solutions Grew in the Mid-Single Digits, with Strong Growth in Pulse Field Ablation (PFA) Offsetting a Decline in Cryoablation.
SHA's Q4 performance was driven by high single-digit growth in the Structural Heart and Cardiac Surgery businesses; Structural Heart achieved double-digit growth in Western Europe and Japan due to the continued adoption of the Evolut™ FX Transcatheter Aortic Valve Replacement (TAVR) system.
In the fourth quarter, coronary CPV achieved mid-single-digit growth, with strong growth in catheters and balloons; Peripheral Vascular Health also achieved mid-single-digit growth.Drug-Coated BalloonThe growth of vascular embolization products reached approximately 15%.
In March this year, the Evolut™FX+ TAVR system received approval from the U.S. FDA and is expected to be fully launched in the market by summer 2024. The Simplicity Spyral™ renal denervation system received approval from China's National Medical Products Administration (NMPA) and authorization from Health Canada.
The one-year results of the SMART trial, presented at the American College of Cardiology and published in The New England Journal of Medicine in April, indicate that the Medtronic Evolut™ TAVR platform is the optimal treatment for severe aortic stenosis in patients with small annuli, primarily women.
At the European Heart Rhythm Association Annual Meeting in April, the human data for the Sphere-360™ PFA catheter was unveiled for the first time; SPHERE-PER AF conducted a one-year pivotal study on Sphere-9™ Pulse Field (PF) and Radiofrequency (RF) ablation as well as High-Density (HD) mapping catheters with the Affera cardiac mapping and navigation platform. The system has been submitted to the U.S. FDA for approval.

2. Neuroscience Product Portfolio

Including Cranial & Spinal Technologies (CST), Specialty Therapies, and Neuromodulation divisions.

Fourth Quarter Revenue of $2.545 Billion, Reported Revenue Growth of 5.6%, Organic Revenue Growth of 6.5%, including high single-digit growth in CST, mid-single-digit growth in neuromodulation, and low single-digit growth in specialized therapies;20Revenue of $9.406 billion in FY24, reported growth of 5.0%, organic growth of 5.2%, where CST grew by a high single-digit percentage,Professional TherapyGrowth in the mid-single digits, neuromodulation growth in the low single digits.

Department Highlights:

CST's fourth-quarter performance was driven by the continued adoption of the AiBLE™ ecosystem, with neurosurgery achieving approximately 15% growth in device sales, biologics delivering high single-digit growth, and core spine business realizing mid-single-digit growth.
Professional TherapyThe fourth-quarter performance was driven by high single-digit growth in ENT, with strong performance in disposable and localized drug-delivery sinus implants; the neurovascular business declined to a low single-digit rate, significantly impacted by China's volume-based procurement; pelvic health grew at a low single-digit rate, benefiting from the continued adoption of the InterStim X™ system.
Following the launch of the Percept™ PC neurostimulator with BrainSense™ technology, Neuromodulation achieved low double-digit growth in the fourth quarter; pain therapies grew at a mid-single-digit rate, including low double-digit growth in targeted drug delivery and low single-digit growth in pain stimulation.
On the last day of the fourth quarter, the Inceptiv™ Closed-Loop Spinal Cord Stimulator received FDA approval in the United States; the OsteoCool™ 2.0 Bone Tumor Ablation System also gained FDA approval in the fourth quarter and is planned for a broader market release later this year.

3. Medical Surgical Portfolio

The Medical Surgical portfolio includes the Surgical and Endoscopy (SE) and the Acute Care and Monitoring (ACM) divisions.

Q4 Revenue $2.198 Billion, Up 3.5% Year-over-Year, Organic Growth 4.5%, where SE's organic growth is in the mid-single digits, and ACM's organic growth is in the low single digits;Revenue of $8.417 billion in FY2024, reported revenue growth of 5.4%, organic growth of 4.7%, where SE grew by a median rate and ACM grew by a low single-digit rate, both on an organic basis.

Department Highlights：

SE's fourth-quarter performance included high single-digit growth in the General Surgery Technology business, driven by strong growth in wound management and hernia products; low single-digit growth in the Advanced Surgical Technology business; and high single-digit growth in the Endoscopy business due to robust sales figures.
ACM's Median Growth in Q4 Results Driven by Strong Sales of Nellcor™ Pulse Oximetry Products and Airways' Median Growth Fueled by Robust Demand for McGRATH™ MAC Video Laryngoscopes;
Launched Touch Surgery™ Live Stream and 14 new AI-driven algorithms for laparoscopic and robot-assisted surgery on the Touch Surgery™ Performance Insights platform; BIS™ Advance anesthesia monitor received U.S. FDA approval; initiated enrollment for two new U.S. indication studies of the Hugo™ robot-assisted surgery system: hernia and gynecology.

4. Diabetes Business

Diabetes BusinessRevenue in the fourth quarter was $6.6 billion, a year-on-year increase of 10.9%, with organic growth of 11.1%;Revenue of $2.488 billion in FY2024, increased by 10.0%, with organic growth of 8.6%。

Department Highlights:

Due to the continued launch of the MiniMed™780G system, the U.S. Q4 revenue achieved low double-digit growth; U.S. insulin pump sales increased by 40%, with strong growth in new patient volume.
With the continued adoption of the MiniMed™780G system and the increase in CGM adoption, high single-digit growth was achieved in non-U.S. developed markets;
In the 4th quarter, submitted Simplera Sync™ CGM to the U.S. FDA for approval to be used with the MiniMed™ 780G system;

# Steady Growth! Positive Outlook for Fiscal Year 2025

Medtronic also released its revenue growth and earnings per share guidance for the fiscal year 2025 (FY25). The company expects organic revenue growth for FY25 to be in the range of4% to 5%Between. Organic revenue growth guidance excludes the impact of foreign exchange and other income reporting.The company expects diluted non-GAAP earnings per share to be between $5.40 and $5.50 for fiscal year 2025.

Medtronic Chairman and CEO Geoff Martha said, "We finished the fiscal year on a strong note, with all businesses performing well and each of our four segments achieving organic revenue growth in the mid-single digits or higher."

▲Geoff Martha

"Our momentum is carrying into the new fiscal year. We are launching a new product cycle in some of the most attractive markets for medical technology, which will be further enhanced as we apply artificial intelligence to our portfolio. We are very optimistic about what we can achieve in fiscal year 25 and beyond."

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Editor-in-Chief | Zhao Qing Reviewed by | Yi He