The company is “confident in delivering durable revenue growth in the year ahead” amid continued improvements in procedure volumes.
By the numbers
Q4 Non-GAAP Net income: $2.1 billion
Q4 Earnings per share (non-GAAP diluted): $1.57
FY2023 non-GAAP Net income: $7.05 billion
FY2023 non-GAAP EPS (diluted): $5.29
Medtronic, the world’s largest medtech company by revenue, reported a 2.6% gain in fourth-quarter profit amid growth at its cardiovascular business and as procedure volumes continue to improve.
Minneapolis-based Medtronic also on Thursday announced a boost to its diabetes treatment portfolio with an agreement to buy a Korean diabetes tech firm EOFlow for 971 billion Korean won ($738 million).
CEO Geoff Martha said in a earnings statement that growth in the quarter ended April 28 exceeded the company’s forecasts with revenue rising 5.6% to $8.5 billion. Full-year sales dropped 1.4% to 31.23 billion, hurt in part by foreign-exchange fluctuations.
“Our accelerating revenue growth was broad-based, driven by procedure volume recovery, supply improvements, and innovative product introductions,” Martha said in the statement. “We’re confident in delivering durable revenue growth in the year ahead as we drive execution across our businesses.”
Shares in Medtronic fell 2.6%, or $2.29, to $85.18 in early trading on Thursday.
Portfolio highlights:
- Cardiovascular: FY23 revenue grew 1.3% as reported, or 4.0% organic, to $11.5 billion.
- Medical Surgical: FY23 revenue fell 7.7% as reported, and 2.4% organically, to $8.43 billion, which the company blamed on falling post-COVID demand for respirators, continued COVID-related lack of growth in procedures, and China’s volume-based purchasing rules.
- Neuroscience: FY23 revenue rose 2% as reported, and 4.1% organically, to $8.96 billion, with growth across cranial and spinal technologies, specialty therapies and neuromodulation.
- Diabetes: FY23 revenue fell 3.3% as reported, while increasing 2.4% organically, to $2.26 billion, with the European launch of the MiniMed 780G system boosting revenue, and the lifting of a warning letter from the U.S. Food and Drug Administration, which the company said would “clear the path for future innovations.”
The company said it expects fiscal year 2024 organic revenue growth in the range of 4.0% to 4.5%, excluding the impact of foreign currency.