Medtronic Reports Strong FY2021 Financial Results with Full-Year Revenue of $30.117 Billion

Compiled & Translated by | Fan Dongdong

Recently, Medtronic announced its financial results for the fourth quarter and fiscal year 2021 ended April 30, 2021. The company reported global revenues of $8.188 billion for the fourth quarter, up 37% year-over-year. Excluding a $241 million favorable foreign currency translation impact, organic growth was 32%.

Medtronic's fourth-quarter results reflect a strong recovery from the impact of the COVID-19 pandemic on the company's elective procedures in April 2020. According to reports, the company's fourth-quarter net income and diluted earnings per share (EPS) on a GAAP basis were $1.361 billion and $1.00, respectively. The company's non-GAAP net income and non-GAAP diluted EPS for the fourth quarter were $2.038 billion and $1.50, respectively, representing significant increases of 162% and 159%. Excluding a 4% negative impact from foreign currency fluctuations, Medtronic's fourth-quarter non-GAAP diluted EPS grew by 166%.

Medtronic's fourth-quarter revenue in the U.S. market was $4.182 billion, accounting for 51% of the company's revenue, an increase of 47%. Revenue in other developed markets outside the U.S. was $2.672 billion, accounting for 33% of the company's revenue, with reported revenue growth of 20% and organic revenue growth of 11%. Revenue in emerging markets was $1.334 billion, accounting for 16% of the company's revenue, an increase of 44%, with an adjusted organic growth rate of 41%.

Medtronic reported fiscal 2021 revenue of $30.117 billion, reflecting a 4% increase in reported revenue and a 2% organic growth rate, excluding $331 million in foreign currency translation gains. This includes $15 million from the acquisition of Titan Spine within the Cranial & Spinal Technologies division of the Neuroscience portfolio. Compared to the first quarter of fiscal 2020, the company benefited from approximately $360 million to $390 million due to the extra week in the first quarter.

According to reports, net income for fiscal year 2021 was $3.606 billion, representing diluted earnings per share (EPS) of $2.66. Non-GAAP earnings and diluted EPS for fiscal year 2021 were $6.05 billion and $4.44, respectively, both decreased by 3%. On a non-GAAP basis, diluted EPS increased by 2%. Operating cash flow for fiscal year 2021 was $6.240 billion. Free cash flow for fiscal year 2021 was $4.885 billion, representing a free cash flow conversion rate of 81% of non-GAAP net income.

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