Human Rights Campaign Foundation recognizes the company's ongoing commitment to inclusion, diversity, and equity
Recognizing the company's ongoing commitment to inclusion, diversity, and equity (ID&E) and the LGBTQ+ community, Medtronic earned a top score of 100 again this year on the Human Rights Campaign Foundation's 2023-2024 Corporate Equality Index
To earn top ratings, employers must demonstrate taking concrete steps to establish and implement comprehensive policies, benefits and practices that ensure greater equity for LGBTQ+ workers and their families.
As a top-scoring company, Medtronic also earned the designation of being an "Equality 100 Award: Leader in LGBTQ+ Workplace Inclusion" recipient.
Anchored in its Mission, the company continues to drive ID&E forward both to enhance the well-being of Medtronic employees and to accelerate innovation that brings lifesaving technologies to more people in more places around the world.
Learn more about the company's year-round efforts in the Medtronic Sustainability Report and Medtronic Global Inclusion, Diversity & Equity Report.
As the national benchmarking tool measuring policies, practices, and benefits pertinent to LGBTQ+ employees, the Human Rights Campaign Foundation's Corporate Equality Index is a primary driving force for LGBTQ+ workplace inclusion. Data from the CEI tells the story of over two decades of year-over-year growth in the adoption of these critical policies and practices indicative of employers' commitment to equality.
View additional multimedia and more ESG storytelling from Medtronic on 3blmedia.com.
Contact Info:
Spokesperson: Medtronic
Website: https://www.3blmedia.com/profiles/medtronic
Email: info@3blmedia.com
SOURCE: Medtronic
News Provided by ACCESSWIRE via QuoteMedia
Offer Now Scheduled to Expire at 5:00 p.m., New York Time, on December 14, 2023
Thermo Fisher Scientific Inc. (NYSE: TMO) ("Thermo Fisher"), the world leader in serving science, announced that its wholly owned subsidiary, Orion Acquisition AB (the "Buyer"), has extended the expiration time of the offering period of its previously announced tender offer (the "Offer") to acquire all of the outstanding common shares ("Shares") and all of the outstanding American Depositary Shares, each representing one Share ("ADSs" and, together with the Shares, the "Offer Securities"), of Olink Holding AB (publ) ("Olink") for $26.00 per Share and per ADS, in cash.
The Offer is being made pursuant to the Purchase Agreement, dated as of October 17, 2023, by and between Thermo Fisher and Olink. The Offer is now scheduled to expire at 5:00 p.m., New York time, on December 14, 2023, unless the Offer is extended or earlier terminated.
DNB Markets, a part of DNB Bank ASA, Sweden Branch, the depositary and paying agent for the Offer with respect to the Shares, has advised Thermo Fisher and Buyer that, as of 6:00 p.m., New York time, on November 30, 2023, the last business day prior to the announcement of the extension of the Offer, approximately 84,597,461 Shares have been validly tendered and not properly withdrawn pursuant to the Offer. The Bank of New York Mellon, the tender agent for the Offer with respect to the ADSs, has advised Thermo Fisher and Buyer that, as of 6:00 p.m., New York time, on November 30, 2023, the last business day prior to the announcement of the extension of the Offer, approximately 33,835,892 ADSs have been validly tendered and not properly withdrawn pursuant to the Offer. These Shares and ADSs collectively represent approximately 95.2% of the outstanding Shares as of such time.
Olink shareholders who have already tendered their Shares or ADSs of Olink do not have to re-tender their Shares or ADSs or take any other action as a result of the extension of the expiration time of the Offer.
Completion of the Offer remains subject to the conditions described in the tender offer statement on Schedule TO, as amended and supplemented from time to time, filed by Thermo Fisher with the U.S. Securities and Exchange Commission on October 31, 2023.
Requests for copies of the Offer to Purchase (as amended or supplemented from time to time), the ADS letter of transmittal and the acceptance form for Shares (including the instructions attached thereto) and other Offer materials may be directed to the call service of Georgeson LLC at +1-866-821-2550 (U.S. toll-free), +1-781-222-0033 (outside U.S. & Canada) or +46-846-007-389 (Sweden), or via email at olink@georgeson.com . A copy of these documents may be obtained at the website maintained by the SEC at www.sec.gov .
About Thermo Fisher Scientific
Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue over $40 billion. Our Mission is to enable our customers to make the world healthier, cleaner and safer. Whether our customers are accelerating life sciences research, solving complex analytical challenges, increasing productivity in their laboratories, improving patient health through diagnostics or the development and manufacture of life-changing therapies, we are here to support them. Our global team delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services, Patheon and PPD. For more information, please visit www.thermofisher.com .
Forward-looking Statements
This press release contains forward-looking statements that involve a number of risks and uncertainties. Words such as "believes," "anticipates," "plans," "expects," "seeks," "estimates," and similar expressions are intended to identify forward-looking statements, but other statements that are not historical facts may also be deemed to be forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by forward-looking statements include risks and uncertainties relating to: the COVID-19 pandemic, the need to develop new products and adapt to significant technological change; implementation of strategies for improving growth; general economic conditions and related uncertainties; dependence on customers' capital spending policies and government funding policies; the effect of economic and political conditions and exchange rate fluctuations on international operations; use and protection of intellectual property; the effect of changes in governmental regulations; any natural disaster, public health crisis or other catastrophic event; and the effect of laws and regulations governing government contracts, as well as the possibility that expected benefits related to recent or pending acquisitions, including the proposed acquisition, may not materialize as expected; the proposed acquisition not being timely completed, if completed at all; regulatory approvals required for the transaction not being timely obtained, if obtained at all, or being obtained subject to conditions; prior to the completion of the transaction, Olink's business experiencing disruptions due to transaction-related uncertainty or other factors making it more difficult to maintain relationships with employees, customers, licensees, other business partners or governmental entities; difficulty retaining key employees; the outcome of any legal proceedings related to the proposed acquisition; and the parties being unable to successfully implement integration strategies or to achieve expected synergies and operating efficiencies within the expected time-frames or at all. Additional important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are set forth in Thermo Fisher's Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q, which are on file with the U.S. Securities and Exchange Commission ("SEC") and available in the "Investors" section of Thermo Fisher's website, ir.thermofisher.com, under the heading "SEC Filings", and in any subsequent documents Thermo Fisher files or furnishes with the SEC, and in Olink's Annual Report on Form 20-F and subsequent interim reports on Form 6-K, which are on file with the SEC and available in the "Investor Relations" section of Olink's website, https://investors.olink.com/investor-relations , under the heading "SEC Filings," and in any subsequent documents Olink files or furnishes with the SEC. While Thermo Fisher or Olink may elect to update forward-looking statements at some point in the future, Thermo Fisher and Olink specifically disclaim any obligation to do so, even if estimates change and, therefore, you should not rely on these forward-looking statements as representing either Thermo Fisher's or Olink's views as of any date subsequent to today.
Additional Information and Where to Find It
This communication is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell any common shares or American Depositary Shares of Olink or any other securities, nor is it a substitute for the tender offer materials that Thermo Fisher or the Buyer has filed with the SEC. The terms and conditions of the tender offer are published in, and the offer to purchase common shares and American Depositary Shares of Olink is made only pursuant to, the offer document and related offer materials prepared by Thermo Fisher and the Buyer and is filed with the SEC in a tender offer statement on Schedule TO. In addition, Olink has filed a solicitation/recommendation statement on Schedule 14D-9 with the SEC with respect to the tender offer.
THE TENDER OFFER MATERIALS (INCLUDING AN OFFER TO PURCHASE, AN ADS LETTER OF TRANSMITTAL, ACCEPTANCE FORM FOR SHARES AND CERTAIN OTHER TENDER OFFER DOCUMENTS) AND THE SOLICITATION/RECOMMENDATION STATEMENT ON SCHEDULE 14D-9, AS THEY MAY BE AMENDED FROM TIME TO TIME, CONTAIN IMPORTANT INFORMATION. INVESTORS AND SHAREHOLDERS OF OLINK ARE URGED TO READ THESE DOCUMENTS CAREFULLY BECAUSE THEY, AND NOT THIS DOCUMENT, GOVERN THE TERMS AND CONDITIONS OF THE TENDER OFFER, AND BECAUSE THEY CONTAIN IMPORTANT INFORMATION THAT SUCH PERSONS SHOULD CONSIDER BEFORE MAKING ANY DECISION REGARDING TENDERING THEIR COMMON SHARES AND AMERICAN DEPOSITARY SHARES.
The tender offer materials, including the offer to purchase, the related ADS letter of transmittal and acceptance form for shares and certain other tender offer documents, and the solicitation/recommendation statement and other documents filed with the SEC by Thermo Fisher or Olink, may be obtained free of charge at the SEC's website at www.sec.gov , at Olink's website https://investors.olink.com/investor-relations , at Thermo Fisher's website at www.thermofisher.com or by contacting Thermo Fisher's investor relations department at 781-622-1111. In addition, Thermo Fisher's tender offer statement and other documents it will file with the SEC will be available at https://ir.thermofisher.com/investors .
View source version on businesswire.com: https://www.businesswire.com/news/home/20231201834518/en/
Media Contact Information:
Sandy Pound
Phone: 781-622-1223
E-mail: sandy.pound@thermofisher.com
Website: www.thermofisher.com
Investor Contact Information:
Rafael Tejada
Phone: 781-622-1356
E-mail: rafael.tejada@thermofisher.com
News Provided by Business Wire via QuoteMedia
Medtronic
Medtronic LABS makes its digital health platform open source
Medtronic LABS accelerates access to healthcare in underserved communities around the world through technology. And now, the code behind its digital health platform SPICE is open source - making it available to anyone.
Since Medtronic LABS launched in 2013, the independent nonprofit with Medtronic funding has enrolled over 217,000 people in one million patients healthcare and trained over 8,000 community health workers in Kenya, Tanzania, Rwanda, Ghana, Sierra Leone, Bangladesh, Bhutan, and the United States.
SPICE is a digital health platform embedded directly within health systems and government digital ecosystems. Making its code available to health system partners and governments is just one way LABS approaches global health collaboratively.
And it's that spirit of collaboration that accelerates access in low-and middle-income communities.
How it works
At any given moment, community health workers are visiting patients in their homes and at community events, often in hard-to-reach places. Equipped with screening tools and SPICE, they screen patients for a range of conditions including hypertension, diabetes, malaria, and TB.
If needed, they refer patients to the nearest health facility where they are immediately connected to care. Medical staff confirm the diagnosis, and enroll the patient in LABS' programs, where they receive a personalized care plan.
The community health worker continues to follow up with patients directly based on their care plan.
This approach - pairing health tech with strong partnerships and community care - is working. LABS has screened half a million people for non-communicable diseases since 2014.
And open-source technology means more organizations, health systems, and governments can access LABS' health tech - connecting even more people to care.
"We offer a fundamentally new take on risk-based, data-driven community health, and we hope that by open sourcing our platform, our approach might be widely adopted," said LABS' Chief Strategy and Product Officer, Anne Stake.
Becoming open source also allowed LABS to receive the designation as a Digital Public Good by a multi-stakeholder United Nations-endorsed initiative that works to reduce barriers to the digitization of health systems.
"We made SPICE open source and applied to be a Digital Public Good to enable any health system innovator to use the technology and ultimately improve population health outcomes," said Stake.
Learn more about how Medtronic LABS is reimagining healthcare for communities around the world.
View additional multimedia and more ESG storytelling from Medtronic on 3blmedia.com.
Contact Info:
Spokesperson: Medtronic
Website: https://www.3blmedia.com/profiles/medtronic
Email: info@3blmedia.com
SOURCE: Medtronic
News Provided by ACCESSWIRE via QuoteMedia
Thermo Fisher Scientific Inc. (NYSE: TMO), the world leader in serving science, and Flagship Pioneering, the bioplatform innovation company, today announced the formation of a strategic partnership to develop and commercially scale multiproduct platforms on an accelerated basis.
Through this collaboration, Thermo Fisher and Flagship will work together to create new platform companies focusing on novel tools and capabilities that seek to power the biotech ecosystem and accelerate the development of first-in-class therapies. The newly formed strategic partnership is an expansion of the long-standing supply relationship between Thermo Fisher and Flagship, which extends to Flagship's ecosystem of companies and leverages the expertise of both organizations including the areas of life science tools, diagnostics, and services.
"As the trusted partner in our industry, collaborating on innovation is an important evolution of the long-standing relationship between our companies," said Michel Lagarde, executive vice president and chief operating officer, Thermo Fisher Scientific. "We look forward to seeing the accelerating effect of Thermo Fisher's deep technical expertise and extensive commercial capabilities on the future innovations Flagship and its companies will bring to market."
"Pioneering new modalities for human health and environmental health require complementary capabilities and ecosystem elements to realize the full potential," said Justine Levin-Allerhand, Ph.D., Flagship Pioneering Senior Partner. "Our partnership will couple Flagship's innovative company formation process with Thermo Fisher's deep understanding of the life sciences industry, as we collaborate to develop transformative capabilities for the ecosystem. We are pleased to expand our relationship with Thermo Fisher and together take bigger leaps in life sciences capabilities, while further empowering our industry."
About Thermo Fisher Scientific
Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue over $40 billion. Our Mission is to enable our customers to make the world healthier, cleaner and safer. Whether our customers are accelerating life sciences research, solving complex analytical challenges, increasing productivity in their laboratories, improving patient health through diagnostics or the development and manufacture of life-changing therapies, we are here to support them. Our global team delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services, Patheon and PPD.
About Flagship Pioneering
Flagship Pioneering is a biotechnology company that invents and builds platform companies, each with the potential for multiple products that transform human health or sustainability. Since its launch in 2000, Flagship has originated and fostered more than 100 scientific ventures, resulting in more than $90 billion in aggregate value. To date, Flagship has deployed over $3.4 billion in capital toward the founding and growth of its pioneering companies alongside more than $26 billion of follow-on investments from other institutions. The current Flagship ecosystem comprises 40 companies, including Denali Therapeutics (NASDAQ: DNLI), Foghorn Therapeutics (NASDAQ: FHTX), Generate:Biomedicines , Inari , Indigo Agriculture , Moderna (NASDAQ: MRNA), Omega Therapeutics (NASDAQ: OMGA), Sana Biotechnology (NASDAQ: SANA), Seres Therapeutics (NASDAQ: MCRB) and Tessera Therapeutics .
View source version on businesswire.com: https://www.businesswire.com/news/home/20231128400906/en/
Media Contact Information:
Sandy Pound
Phone: 781-622-1223
E-mail: sandy.pound@thermofisher.com
Investor Contact Information:
Rafael Tejada
Phone: 781-622-1356
E-mail: rafael.tejada@thermofisher.com
Flagship Pioneering:
press@flagshippioneering.com
News Provided by Business Wire via QuoteMedia
Solid execution results in mid-single digit revenue growth, driven by broad-based strength across multiple businesses and geographies; Major innovative product approvals; Raises fiscal year guidance
Medtronic plc (NYSE:MDT) today announced financial results for its second quarter of fiscal year 2024 (FY24), which ended October 27, 2023 .
Key Highlights
Financial Results
Medtronic reported Q2 worldwide revenue of $7.984 billion , an increase of 5.3% as reported and 5.0% on an organic basis. The company's organic revenue results reflect continued broad strength across businesses and geographies benefiting from durable fundamentals. The organic revenue growth comparison excludes:
As reported, Q2 GAAP net income and diluted EPS were $909 million and $0.68 , respectively, both representing increases of 113%. As detailed in the financial schedules included at the end of this release, Q2 non-GAAP net income of $1.667 billion decreased 3% and non-GAAP diluted EPS of $1.25 decreased 4%. Included in non-GAAP diluted EPS was an 8 cent , or 6%, unfavorable impact from foreign currency translation.
"We're delivering a track record of durable, mid-single digit revenue growth. The underlying fundamentals are strong, and our solid results were broad-based across our businesses and geographies," said Geoff Martha , Medtronic chairman and chief executive officer. "We're bringing game changing innovation to market, with numerous recent regulatory approvals and major product launches, which give us confidence in our ability to continue delivering dependable growth."
Cardiovascular Portfolio
The Cardiovascular Portfolio includes the Cardiac Rhythm & Heart Failure (CRHF), Structural Heart & Aortic (SHA), and Coronary & Peripheral Vascular (CPV) divisions. Revenue of $2.923 billion increased 5.9% as reported and 4.8% organic, with a high-single digit organic increase in SHA and mid-single digit organic increases in CRHF and CPV.
Neuroscience Portfolio
The Neuroscience Portfolio includes the Cranial & Spinal Technologies (CST), Specialty Therapies, and Neuromodulation divisions. Revenue of $2.288 billion increased 4.7% as reported and 4.2% organic, with a high-single digit organic increase in CST and low-single digit organic increases in Specialty Therapies and Neuromodulation.
Medical Surgical Portfolio
The Medical Surgical Portfolio includes the Surgical & Endoscopy (SE) and the Patient Monitoring & Respiratory Interventions (PMRI) divisions. Revenue of $2.142 billion increased 7.0% as reported and 5.6% organic, with a high-single digit organic increase in SE and low-single digit organic increase in PMRI.
Diabetes
Diabetes revenue of $610 million increased 9.7% as reported and 6.7% organic.
Guidance
The company today raised its FY24 revenue growth and EPS guidance.
The company increased its FY24 organic revenue growth guidance to 4.75% versus the prior 4.5%. The organic revenue growth guidance excludes the impact of foreign currency and revenue related to certain businesses reported as Other. Including Other revenue and the impact of foreign currency, if foreign currency exchange rates as of the beginning of November hold, FY24 revenue growth on a reported basis would be approximately 2.6%.
The company increased its FY24 diluted non-GAAP EPS guidance from the prior range of $5.08 to $5.16 to the new range of $5.13 to $5.19 , a 4 cent increase at the midpoint. Given the change in foreign currency exchange rates over the past quarter, the foreign exchange impact on FY24 diluted non-GAAP EPS is now estimated to be 2 cents more unfavorable in the second half and is estimated to be a 6% unfavorable impact for the full year.
"Overall, it was another good quarter as we delivered revenue, margins, and earnings ahead of expectations. Combining our second quarter outperformance with our updated tax and foreign currency estimates, we're raising our full year organic revenue growth and EPS guidance," said Karen Parkhill , Medtronic EVP & chief financial officer. "Based on the changes we've made to our operating model, incentives, and capital allocation, among other drivers, we've positioned the company to deliver consistent mid-single digit growth on the top line. As we move ahead, translating this durable revenue growth into durable earnings power remains a top priority."
Video Webcast Information
Medtronic will host a video webcast today, November 21 , at 8:00 a.m. EST ( 7:00 a.m. CST ) to provide information about its businesses for the public, investors, analysts, and news media. This webcast can be accessed by clicking on the Events icon at investorrelations.medtronic.com , and this earnings release will be archived at news.medtronic.com . Within 24 hours of the webcast, a replay of the webcast and transcript of the company's prepared remarks will be available by clicking on the Events icon at investorrelations.medtronic.com .
Medtronic plans to report its FY24 third and fourth quarter results on Tuesday, February 20, 2024 , and Thursday, May 23, 2024 , respectively. Confirmation and additional details will be provided closer to the specific event.
Financial Schedules
The second quarter financial schedules and non-GAAP reconciliations can be viewed by clicking on the Investor Events link at investorrelations.medtronic.com . To view a printable PDF of the financial schedules and non-GAAP reconciliations, click here . To view the second quarter earnings presentation, click here .
MEDTRONIC PLC | ||||||||||||||||||||||||||||
WORLD WIDE REVENUE (1) | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
SECOND QUARTER | YEAR-TO-DATE | |||||||||||||||||||||||||||
REPORTED | ORGANIC | REPORTED | ORGANIC | |||||||||||||||||||||||||
(in millions) | FY24 | FY23 | Growth | Currency | Adjusted | Adjusted | Growth | FY24 | FY23 | Growth | Currency | Adjusted | Adjusted | Growth | ||||||||||||||
Cardiovascular | $Â Â Â 2,923 | $Â Â Â 2,759 | 5.9Â % | $Â Â Â Â Â Â Â 31 | $Â Â Â 2,892 | $Â Â Â 2,759 | 4.8Â % | $Â Â Â 5,773 | $Â Â Â 5,459 | 5.8Â % | $Â Â Â Â Â Â Â 12 | $Â Â Â 5,761 | $Â Â Â 5,459 | 5.5Â % | ||||||||||||||
Cardiac Rhythm & Heart Failure | 1,492 | 1,417 | 5.3 | 18 | 1,474 | 1,417 | 4.0 | 2,938 | 2,798 | 5.0 | 11 | 2,927 | 2,798 | 4.6 | ||||||||||||||
Structural Heart & Aortic | 819 | 757 | 8.2 | 11 | 808 | 757 | 6.7 | 1,633 | 1,499 | 8.9 | 6 | 1,627 | 1,499 | 8.5 | ||||||||||||||
Coronary & Peripheral Vascular | 613 | 584 | 5.0 | 2 | 611 | 584 | 4.6 | 1,202 | 1,163 | 3.4 | (5) | 1,207 | 1,163 | 3.8 | ||||||||||||||
Neuroscience | 2,288 | 2,186 | 4.7 | 10 | 2,278 | 2,186 | 4.2 | 4,506 | 4,301 | 4.8 | (5) | 4,511 | 4,301 | 4.9 | ||||||||||||||
Cranial & Spinal Technologies | 1,157 | 1,081 | 7.0 | 4 | 1,153 | 1,081 | 6.7 | 2,260 | 2,124 | 6.4 | (3) | 2,263 | 2,124 | 6.5 | ||||||||||||||
Specialty Therapies | 705 | 686 | 2.8 | 1 | 704 | 686 | 2.6 | 1,400 | 1,353 | 3.5 | (7) | 1,407 | 1,353 | 4.0 | ||||||||||||||
Neuromodulation | 426 | 419 | 1.7 | 5 | 421 | 419 | 0.5 | 846 | 824 | 2.7 | 5 | 841 | 824 | 2.1 | ||||||||||||||
Medical Surgical | 2,142 | 2,002 | 7.0 | 27 | 2,115 | 2,002 | 5.6 | 4,181 | 3,935 | 6.3 | 16 | 4,165 | 3,935 | 5.8 | ||||||||||||||
Surgical & Endoscopy | 1,641 | 1,513 | 8.5 | 25 | 1,616 | 1,513 | 6.8 | 3,187 | 2,968 | 7.4 | 17 | 3,170 | 2,968 | 6.8 | ||||||||||||||
Patient Monitoring & Respiratory Interventions | 501 | 489 | 2.5 | 3 | 498 | 489 | 1.8 | 994 | 967 | 2.8 | (2) | 996 | 967 | 3.0 | ||||||||||||||
Diabetes | 610 | 556 | 9.7 | 17 | 593 | 556 | 6.7 | 1,189 | 1,098 | 8.3 | 20 | 1,169 | 1,098 | 6.5 | ||||||||||||||
Other (3) | 22 | 82 | (73.2) | (1) | — | — | — | 37 | 162 | (77.2) | (5) | — | — | — | ||||||||||||||
TOTAL | $Â Â Â 7,984 | $Â Â Â 7,585 | 5.3Â % | $Â Â Â Â Â Â Â 85 | $Â Â Â 7,876 | $Â Â Â 7,503 | 5.0Â % | $Â 15,686 | $Â 14,955 | 4.9Â % | $Â Â Â Â Â Â Â 38 | $Â 15,605 | $Â 14,793 | 5.5Â % | ||||||||||||||
(1) | The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. |
(2) | The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates. |
(3) | Includes inorganic revenue from the divested Renal Care Solutions business and Transition Manufacturing Agreements from previously divested businesses. |
MEDTRONIC PLC | ||||||||||||||||||||||||
U.S. (1)(2) REVENUE | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
SECOND QUARTER | YEAR-TO-DATE | |||||||||||||||||||||||
REPORTED | ORGANIC | REPORTED | ORGANIC | |||||||||||||||||||||
(in millions) | FY24 | FY23 | Growth | Adjusted | Adjusted | Growth | FY24 | FY23 | Growth | Adjusted | Adjusted | Growth | ||||||||||||
Cardiovascular | $Â Â Â 1,427 | $Â Â Â 1,410 | 1.2Â % | $Â Â Â 1,427 | $Â Â Â 1,410 | 1.2Â % | $Â Â Â 2,776 | $Â Â Â 2,696 | 3.0Â % | $Â Â Â 2,776 | $Â Â Â 2,696 | 3.0Â % | ||||||||||||
Cardiac Rhythm & Heart Failure | 782 | 776 | 0.8 | 782 | 776 | 0.8 | 1,502 | 1,481 | 1.4 | 1,502 | 1,481 | 1.4 | ||||||||||||
Structural Heart & Aortic | 367 | 348 | 5.5 | 367 | 348 | 5.5 | 724 | 660 | 9.7 | 724 | 660 | 9.7 | ||||||||||||
Coronary & Peripheral Vascular | 278 | 286 | (2.8) | 278 | 286 | (2.8) | 550 | 555 | (0.9) | 550 | 555 | (0.9) | ||||||||||||
Neuroscience | 1,560 | 1,512 | 3.2 | 1,560 | 1,512 | 3.2 | 3,057 | 2,931 | 4.3 | 3,057 | 2,931 | 4.3 | ||||||||||||
Cranial & Spinal Technologies | 863 | 817 | 5.6 | 863 | 817 | 5.6 | 1,685 | 1,580 | 6.6 | 1,685 | 1,580 | 6.6 | ||||||||||||
Specialty Therapies | 403 | 403 | — | 403 | 403 | — | 795 | 784 | 1.4 | 795 | 784 | 1.4 | ||||||||||||
Neuromodulation | 293 | 291 | 0.7 | 293 | 291 | 0.7 | 577 | 567 | 1.8 | 577 | 567 | 1.8 | ||||||||||||
Medical Surgical | 963 | 895 | 7.6 | 963 | 895 | 7.6 | 1,845 | 1,726 | 6.9 | 1,845 | 1,726 | 6.9 | ||||||||||||
Surgical & Endoscopy | 688 | 633 | 8.7 | 688 | 633 | 8.7 | 1,308 | 1,214 | 7.7 | 1,308 | 1,214 | 7.7 | ||||||||||||
Patient Monitoring & Respiratory Interventions | 275 | 262 | 5.0 | 275 | 262 | 5.0 | 537 | 512 | 4.9 | 537 | 512 | 4.9 | ||||||||||||
Diabetes | 217 | 228 | (4.8) | 217 | 228 | (4.8) | 405 | 434 | (6.7) | 405 | 434 | (6.7) | ||||||||||||
Other (3) | 8 | 23 | (65.2) | — | — | — | 16 | 49 | (67.3) | — | — | — | ||||||||||||
TOTAL | $Â Â Â 4,175 | $Â Â Â 4,069 | 2.6Â % | $Â Â Â 4,167 | $Â Â Â 4,046 | 3.0Â % | $Â Â Â 8,099 | $Â Â Â 7,835 | 3.4Â % | $Â Â Â 8,083 | $Â Â Â 7,787 | 3.8Â % | ||||||||||||
(1) | U.S. includes the United States and U.S. territories. |
(2) | The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. |
(3) | Includes inorganic revenue from the divested Renal Care Solutions business and Transition Manufacturing Agreements from previously divested businesses. |
MEDTRONIC PLC | ||||||||||||||||||||||||||||
WORLD WIDE REVENUE: GEOGRAPHIC (1)(2) | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
SECOND QUARTER | YEAR-TO-DATE | |||||||||||||||||||||||||||
REPORTED | ORGANIC | REPORTED | ORGANIC | |||||||||||||||||||||||||
(in millions) | FY24 | FY23 | Growth | Currency | Adjusted | Adjusted | Growth | FY24 | FY23 | Growth | Currency | Adjusted | Adjusted | Growth | ||||||||||||||
U.S. | $   1,427 | $   1,410 | 1.2 % | $        — | $   1,427 | $   1,410 | 1.2 % | $   2,776 | $   2,696 | 3.0 % | $        — | $   2,776 | $    2,696 | 3.0 % | ||||||||||||||
Non-U.S. Developed | 912 | 802 | 13.7 | 43 | 869 | 802 | 8.4 | 1,869 | 1,694 | 10.3 | 45 | 1,824 | 1,694 | 7.7 | ||||||||||||||
Emerging Markets | 584 | 546 | 7.0 | (12) | 596 | 546 | 9.2 | 1,128 | 1,070 | 5.4 | (33) | 1,161 | 1,070 | 8.5 | ||||||||||||||
Cardiovascular | 2,923 | 2,759 | 5.9 | 31 | 2,892 | 2,759 | 4.8 | 5,773 | 5,459 | 5.8 | 12 | 5,761 | 5,459 | 5.5 | ||||||||||||||
U.S. | 1,560 | 1,512 | 3.2 | — | 1,560 | 1,512 | 3.2 | 3,057 | 2,931 | 4.3 | — | 3,057 | 2,931 | 4.3 | ||||||||||||||
Non-U.S. Developed | 399 | 382 | 4.5 | 14 | 385 | 382 | 0.8 | 815 | 788 | 3.4 | 10 | 805 | 788 | 2.2 | ||||||||||||||
Emerging Markets | 329 | 292 | 12.7 | (4) | 333 | 292 | 14.0 | 634 | 582 | 8.9 | (15) | 649 | 582 | 11.5 | ||||||||||||||
Neuroscience | 2,288 | 2,186 | 4.7 | 10 | 2,278 | 2,186 | 4.2 | 4,506 | 4,301 | 4.8 | (5) | 4,511 | 4,301 | 4.9 | ||||||||||||||
U.S. | 963 | 895 | 7.6 | — | 963 | 895 | 7.6 | 1,845 | 1,726 | 6.9 | — | 1,845 | 1,726 | 6.9 | ||||||||||||||
Non-U.S. Developed | 740 | 685 | 8.0 | 27 | 713 | 685 | 4.1 | 1,512 | 1,420 | 6.5 | 21 | 1,491 | 1,420 | 5.0 | ||||||||||||||
Emerging Markets | 438 | 421 | 4.0 | 1 | 437 | 421 | 3.8 | 824 | 789 | 4.4 | (5) | 829 | 789 | 5.1 | ||||||||||||||
Medical Surgical | 2,142 | 2,002 | 7.0 | 27 | 2,115 | 2,002 | 5.6 | 4,181 | 3,935 | 6.3 | 16 | 4,165 | 3,935 | 5.8 | ||||||||||||||
U.S. | 217 | 228 | (4.8) | — | 217 | 228 | (4.8) | 405 | 434 | (6.7) | — | 405 | 434 | (6.7) | ||||||||||||||
Non-U.S. Developed | 310 | 254 | 22.0 | 18 | 292 | 254 | 15.0 | 625 | 518 | 20.7 | 22 | 603 | 518 | 16.4 | ||||||||||||||
Emerging Markets | 84 | 74 | 13.5 | (1) | 85 | 74 | 14.9 | 159 | 145 | 9.7 | (3) | 162 | 145 | 11.7 | ||||||||||||||
Diabetes | 610 | 556 | 9.7 | 17 | 593 | 556 | 6.7 | 1,189 | 1,098 | 8.3 | 20 | 1,169 | 1,098 | 6.5 | ||||||||||||||
U.S. | 8 | 23 | (65.2) | — | — | — | — | 16 | 49 | (67.3) | — | — | — | — | ||||||||||||||
Non-U.S. Developed | 7 | 33 | (78.8) | (1) | — | — | — | 12 | 65 | (81.5) | (2) | — | — | — | ||||||||||||||
Emerging Markets | 7 | 25 | (72.0) | (1) | — | — | — | 10 | 48 | (79.2) | (2) | — | — | — | ||||||||||||||
Other (4) | 22 | 82 | (73.2) | (1) | — | — | — | 37 | 162 | (77.2) | (5) | — | — | — | ||||||||||||||
U.S. | 4,175 | 4,069 | 2.6 | — | 4,167 | 4,046 | 3.0 | 8,099 | 7,835 | 3.4 | — | 8,083 | 7,787 | 3.8 | ||||||||||||||
Non-U.S. Developed | 2,368 | 2,157 | 9.8 | 101 | 2,259 | 2,123 | 6.4 | 4,831 | 4,485 | 7.7 | 96 | 4,722 | 4,420 | 6.8 | ||||||||||||||
Emerging Markets | 1,441 | 1,359 | 6.0 | (17) | 1,451 | 1,334 | 8.8 | 2,755 | 2,635 | 4.6 | (57) | 2,800 | 2,586 | 8.3 | ||||||||||||||
TOTAL | $Â Â Â 7,984 | $Â Â Â 7,585 | 5.3Â % | $Â Â Â Â Â Â Â Â 85 | $Â Â Â 7,876 | $Â Â Â 7,503 | 5.0Â % | $Â Â 15,686 | $Â Â 14,955 | 4.9Â % | $Â Â Â Â Â Â Â Â 38 | $Â Â 15,605 | $Â Â 14,793 | 5.5Â % | ||||||||||||||
(1) | U.S. includes the United States and U.S. territories. Non-U.S. developed markets include Japan, Australia, New Zealand, Korea, Canada, and the countries within Western Europe. Emerging Markets include the countries of the Middle East, Africa, Latin America, Eastern Europe, and the countries of Asia that are not included in the non-U.S. developed markets, as previously defined. |
(2) | The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. |
(3) | The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates. |
(4) | Includes inorganic revenue from the divested Renal Care Solutions business and Transition Manufacturing Agreements from previously divested businesses. |
MEDTRONIC PLC | |||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||
(Unaudited) | |||||||
Three months ended | Six months ended | ||||||
(in millions, except per share data) | October 27, | October 28, | October 27, | October 28, | |||
Net sales | $Â Â Â Â Â Â Â 7,984 | $Â Â Â Â Â Â Â 7,585 | $Â Â Â Â Â Â 15,686 | $Â Â Â Â Â Â 14,955 | |||
Costs and expenses: | |||||||
Cost of products sold, excluding amortization of intangible assets | 2,761 | 2,535 | 5,390 | 5,051 | |||
Research and development expense | 698 | 676 | 1,365 | 1,368 | |||
Selling, general, and administrative expense | 2,686 | 2,617 | 5,299 | 5,184 | |||
Amortization of intangible assets | 425 | 421 | 855 | 844 | |||
Restructuring charges, net | 40 | 30 | 94 | 44 | |||
Certain litigation charges | 65 | — | 105 | — | |||
Other operating income, net | (31) | (97) | (30) | (62) | |||
Operating profit | 1,340 | 1,404 | 2,608 | 2,528 | |||
Other non-operating income, net | (154) | (109) | (230) | (192) | |||
Interest expense, net | 180 | 118 | 329 | 282 | |||
Income before income taxes | 1,313 | 1,395 | 2,510 | 2,438 | |||
Income tax provision | 402 | 959 | 802 | 1,072 | |||
Net income | 911 | 435 | 1,708 | 1,367 | |||
Net income attributable to noncontrolling interests | (2) | (8) | (8) | (10) | |||
Net income attributable to Medtronic | $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 909 | $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 427 | $Â Â Â Â Â Â Â 1,700 | $Â Â Â Â Â Â Â 1,356 | |||
Basic earnings per share | $Â Â Â Â Â Â Â Â Â Â Â Â Â Â 0.68 | $Â Â Â Â Â Â Â Â Â Â Â Â Â Â 0.32 | $Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1.28 | $Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1.02 | |||
Diluted earnings per share | $Â Â Â Â Â Â Â Â Â Â Â Â Â Â 0.68 | $Â Â Â Â Â Â Â Â Â Â Â Â Â Â 0.32 | $Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1.28 | $Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1.02 | |||
Basic weighted average shares outstanding | 1,330.2 | 1,329.4 | 1,330.3 | 1,329.4 | |||
Diluted weighted average shares outstanding | 1,331.9 | 1,332.0 | 1,332.8 | 1,333.3 | |||
The data in the schedule above has been intentionally rounded to the nearest million, and therefore, the quarterly amounts may not sum to the fiscal year-to-date amounts. |
MEDTRONIC PLC | |||||||||||||||||
GAAP TO NON-GAAP RECONCILIATIONS (1) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Three months ended October 27, 2023 | |||||||||||||||||
(in millions, except per share data) | Net | Cost of | Gross | Operating | Operating | Income | Net Income | Diluted | Effective | ||||||||
GAAP | $Â 7,984 | $Â Â 2,761 | 65.4Â % | $Â Â Â Â 1,340 | 16.8Â % | $Â Â Â 1,313 | $Â Â Â Â Â Â Â Â Â 909 | $Â Â Â Â 0.68 | 30.6Â % | ||||||||
Non-GAAP Adjustments: | |||||||||||||||||
Amortization of intangible assets | — | — | — | 425 | 5.3 | 425 | 360 | 0.27 | 15.3 | ||||||||
Restructuring and associated costs (2) | — | (15) | 0.2 | 91 | 1.1 | 91 | 76 | 0.06 | 17.6 | ||||||||
Acquisition and divestiture-related items (3) | — | (6) | 0.1 | 58 | 0.7 | 58 | 51 | 0.04 | 12.1 | ||||||||
Certain litigation charges | — | — | — | 65 | 0.8 | 65 | 50 | 0.04 | 23.1 | ||||||||
(Gain)/loss on minority investments (4) | — | — | — | — | — | 25 | 21 | 0.02 | 20.0 | ||||||||
Medical device regulations (5) | — | (21) | 0.3 | 30 | 0.4 | 30 | 24 | 0.02 | 20.0 | ||||||||
Certain tax adjustments, net (6) | — | — | — | — | — | — | 176 | 0.13 | — | ||||||||
Non-GAAP | $Â 7,984 | $Â Â 2,720 | 65.9Â % | $Â Â Â Â 2,009 | 25.2Â % | $Â Â Â 2,008 | $Â Â Â Â Â Â 1,667 | $Â Â Â Â 1.25 | 16.9Â % | ||||||||
Currency impact | (85) | (65) | 0.5 | 121 | 1.8 | 0.08 | |||||||||||
Currency Adjusted | $Â 7,899 | $Â Â 2,655 | 66.4Â % | $Â Â Â Â 2,130 | 27.0Â % | $Â Â Â Â 1.33 | |||||||||||
Three months ended October 28, 2022 | |||||||||||||||||
(in millions, except per share data) | Net | Cost of | Gross | Operating | Operating | Income | Net Income | Diluted | Effective | ||||||||
GAAP | $Â 7,585 | $Â Â 2,535 | 66.6Â % | $Â Â Â Â 1,404 | 18.5Â % | $Â Â Â 1,395 | $Â Â Â Â Â Â Â Â Â 427 | $Â Â Â Â 0.32 | 68.7Â % | ||||||||
Non-GAAP Adjustments: | |||||||||||||||||
Amortization of intangible assets | — | — | — | 421 | 5.6 | 421 | 356 | 0.27 | 15.4 | ||||||||
Restructuring and associated costs (2) | — | (21) | 0.3 | 95 | 1.3 | 95 | 76 | 0.06 | 20.0 | ||||||||
Acquisition and divestiture-related items (3) | — | (39) | 0.5 | 63 | 0.8 | 63 | 55 | 0.05 | 404.2 | ||||||||
(Gain)/loss on minority investments (4) | — | — | — | — | — | (11) | (11) | (0.01) | — | ||||||||
Medical device regulations (5) | — | (22) | 0.3 | 37 | 0.5 | 37 | 30 | 0.02 | 18.9 | ||||||||
Certain tax adjustments, net (7) | — | — | — | — | — | — | 793 | 0.60 | — | ||||||||
Non-GAAP | $Â 7,585 | $Â Â 2,454 | 67.6Â % | $Â Â Â Â 2,020 | 26.6Â % | $Â Â Â 1,999 | $Â Â Â Â Â Â 1,725 | $Â Â Â Â 1.30 | 13.3Â % | ||||||||
See description of non-GAAP financial measures contained in the press release dated November 21, 2023. | |
(1) | The data in this schedule has been intentionally rounded to the nearest million or $0.01 for EPS figures, and, therefore, may not sum. |
(2) | Associated costs include costs incurred as a direct result of the restructuring program, such as salaries for employees supporting the program, consulting expenses, and asset write-offs. |
(3) | The charges primarily include business combination costs, changes in fair value of contingent consideration, and charges related to the impending separation of the Patient Monitoring and Respiratory Interventions businesses within our Medical Surgical Portfolio. |
(4) | We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations. |
(5) | The charges represent incremental costs of complying with the new European Union (E.U.) medical device regulations for previously registered products and primarily include charges for contractors supporting the project and other direct third-party expenses. We consider these costs to be duplicative of previously incurred costs and/or one-time costs, which are limited to a specific time period. |
(6) | The charge primarily relates to the establishment of a valuation allowance against certain net operating losses, and a withholding tax cost related to the impending separation of the Patient Monitoring and Respiratory Interventions businesses within our Medical Surgical Portfolio. |
(7) | The charge primarily relates to a $764 million reserve adjustment that was a direct result of the U.S. Tax Court opinion, issued on August 18, 2022, on the previously disclosed litigation regarding the allocation of income between Medtronic, Inc. and its wholly owned subsidiary operating in Puerto Rico. |
MEDTRONIC PLC | |||||||||||||||||
GAAP TO NON-GAAP RECONCILIATIONS (1) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Six months ended October 27, 2023 | |||||||||||||||||
(in millions, except per share data) | Net | Cost of | Gross | Operating | Operating | Income | Net Income | Diluted | Effective | ||||||||
GAAP | $Â 15,686 | $Â Â 5,390 | 65.6Â % | $Â Â Â Â 2,608 | 16.6Â % | $Â Â Â 2,510 | $Â Â Â Â Â Â Â Â 1,700 | $Â Â Â Â 1.28 | 32.0Â % | ||||||||
Non-GAAP Adjustments: | |||||||||||||||||
Amortization of intangible assets | — | — | — | 855 | 5.5 | 855 | 724 | 0.54 | 15.2 | ||||||||
Restructuring and associated costs (2) | — | (30) | 0.2 | 182 | 1.2 | 182 | 152 | 0.11 | 16.5 | ||||||||
Acquisition and divestiture-related items (3) | — | (12) | — | 107 | — | 107 | 97 | 0.07 | 9.3 | ||||||||
Certain litigation charges | — | — | — | 105 | 0.7 | 105 | 81 | 0.06 | 22.9 | ||||||||
(Gain)/loss on minority investments (4) | — | — | — | — | — | 89 | 85 | 0.06 | 5.6 | ||||||||
Medical device regulations (5) | — | (42) | 0.3 | 62 | 0.4 | 62 | 49 | 0.04 | 21.0 | ||||||||
Certain tax adjustments, net (6) | — | — | — | — | — | — | 375 | 0.28 | — | ||||||||
Non-GAAP | $Â 15,686 | $Â Â 5,306 | 66.2Â % | $Â Â Â Â 3,919 | 25.0Â % | $Â Â Â 3,910 | $Â Â Â Â Â Â Â Â 3,262 | $Â Â Â Â 2.45 | 16.4Â % | ||||||||
Currency impact | (38) | (66) | 0.3 | 243 | 1.6 | 0.16 | |||||||||||
Currency Adjusted | $Â 15,648 | $Â Â 5,240 | 66.5Â % | $Â Â Â Â 4,162 | 26.6Â % | $Â Â Â Â 2.61 | |||||||||||
Six month ended October 28, 2022 | |||||||||||||||||
(in millions, except per share data) | Net | Cost of | Gross | Operating | Operating | Income | Net Income | Diluted | Effective | ||||||||
GAAP | $Â 14,955 | $Â Â 5,051 | 66.2Â % | $Â Â Â Â 2,528 | 16.9Â % | $Â Â Â 2,438 | $Â Â Â Â Â Â Â Â 1,356 | $Â Â Â Â 1.02 | 44.0Â % | ||||||||
Non-GAAP Adjustments: | |||||||||||||||||
Amortization of intangible assets | — | — | — | 844 | 5.6 | 844 | 715 | 0.54 | 15.3 | ||||||||
Restructuring and associated costs (2) | — | (41) | 0.3 | 171 | 1.1 | 171 | 136 | 0.10 | 20.5 | ||||||||
Acquisition and divestiture-related items (3) | — | (50) | 0.3 | 174 | 1.2 | 174 | 157 | 0.12 | 38.8 | ||||||||
(Gain)/loss on minority investments (4) | — | — | — | — | — | (15) | (15) | (0.01) | — | ||||||||
Medical device regulations (5) | — | (40) | 0.3 | 70 | 0.5 | 70 | 56 | 0.04 | 20.0 | ||||||||
Debt redemption premium and other charges (7) | — | — | — | — | — | 53 | 42 | 0.03 | 20.8 | ||||||||
Certain tax adjustments, net (8) | — | — | — | — | — | — | 780 | 0.59 | — | ||||||||
Non-GAAP | $Â 14,955 | $Â Â 4,921 | 67.1Â % | $Â Â Â Â 3,785 | 25.3Â % | $Â Â Â 3,733 | $Â Â Â Â Â Â Â Â 3,226 | $Â Â Â Â 2.42 | 13.3Â % | ||||||||
See description of non-GAAP financial measures contained in the press release dated November 21, 2023. | |
(1) | The data in this schedule has been intentionally rounded to the nearest million or $0.01 for EPS figures, and, therefore, may not sum. |
(2) | Associated costs include costs incurred as a direct result of the restructuring program, such as salaries for employees supporting the program, consulting expenses, and asset write-offs. |
(3) | The charges primarily include business combination costs, changes in fair value of contingent consideration, and charges related to the impending separation of the Patient Monitoring and Respiratory Interventions businesses within our Medical Surgical Portfolio. The prior year included non-cash pre-tax impairments, primarily related to goodwill and other associated costs, as a result of the April 1, 2023, sale of half of the Company's Renal Care Solutions (RCS) business. |
(4) | We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations. |
(5) | The charges represent incremental costs of complying with the new European Union medical device regulations for previously registered products and primarily include charges for contractors supporting the project and other direct third-party expenses. We consider these costs to be duplicative of previously incurred costs and/or one-time costs, which are limited to a specific period. |
(6) | The charge relates to an income tax reserve adjustment associated with the June 1, 2023, Israeli Central-Lod District Court decision, the establishment of a valuation allowance against certain net operating losses, a withholding tax cost related to the impending separation of the Patient Monitoring and Respiratory Interventions businesses, and amortization of previously established deferred tax assets from intercompany intellectual property transactions. |
(7) | The charges relate to the early redemption of approximately $2.3 billion of debt and were recorded within interest expense, net within the consolidated statements of income. |
(8) | The charge primarily relates to a $764 million reserve adjustment that was a direct result of the U.S. Tax Court opinion, issued on August 18, 2022, on the previously disclosed litigation regarding the allocation of income between Medtronic, Inc. and its wholly owned subsidiary operating in Puerto Rico. |
MEDTRONIC PLC | |||||||||||||||
GAAP TO NON-GAAP RECONCILIATIONS (1) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended October 27, 2023 | |||||||||||||||
(in millions) | Net Sales | SG&A | SG&A | R&D | R&D | Other | Other | Other Non- | |||||||
GAAP | $Â Â Â Â Â 7,984 | $Â Â Â Â 2,686 | 33.6Â % | $Â Â Â Â Â Â 698 | 8.7Â % | $Â Â Â Â Â Â Â Â (31) | (0.4)Â % | $Â Â Â Â Â Â Â Â Â (154) | |||||||
Non-GAAP Adjustments: | |||||||||||||||
Restructuring and associated costs (2) | — | (36) | (0.5) | — | — | — | — | — | |||||||
Acquisition and divestiture-related items (3) | — | (26) | (0.3) | — | — | (26) | (0.3) | — | |||||||
Medical device regulations (4) | — | — | — | (9) | (0.1) | — | — | — | |||||||
(Gain)/loss on minority investments (5) | — | — | — | — | — | — | — | (25) | |||||||
Non-GAAP | $Â Â Â Â Â 7,984 | $Â Â Â Â 2,623 | 32.9Â % | $Â Â Â Â Â Â 688 | 8.6Â % | $Â Â Â Â Â Â Â Â (57) | (0.7)Â % | $Â Â Â Â Â Â Â Â Â (179) | |||||||
Currency impact | (85) | (36) | (0.1) | (1) | 0.1 | (104) | (1.3) | 4 | |||||||
Currency Adjusted | $Â Â Â Â Â 7,899 | $Â Â Â Â 2,587 | 32.8Â % | $Â Â Â Â Â Â 687 | 8.7Â % | $Â Â Â Â Â Â (161) | (2.0)Â % | $Â Â Â Â Â Â Â Â Â (175) | |||||||
Six months ended October 27, 2023 | |||||||||||||||
(in millions) | Net Sales | SG&A | SG&A | R&D | R&D | Other | Other Operating | Other Non- | |||||||
GAAP | $Â Â Â 15,686 | $Â Â Â Â 5,299 | 33.8Â % | $Â Â Â 1,365 | 8.7Â % | $Â Â Â Â Â Â Â Â (30) | (0.2)Â % | $Â Â Â Â Â Â Â Â Â (230) | |||||||
Non-GAAP Adjustments: | |||||||||||||||
Restructuring and associated costs (2) | — | (57) | (0.4) | — | — | 1 | — | — | |||||||
Acquisition and divestiture-related items (3) | — | (42) | (0.3) | — | — | (53) | (0.3) | — | |||||||
Medical device regulations (4) | — | (1) | — | (19) | (0.1) | — | — | — | |||||||
(Gain)/loss on minority investments (5) | — | — | — | — | — | — | — | (89) | |||||||
Non-GAAP | $Â Â Â 15,686 | $Â Â Â Â 5,199 | 33.1Â % | $Â Â Â 1,346 | 8.6Â % | $Â Â Â Â Â Â Â Â (83) | (0.5)Â % | $Â Â Â Â Â Â Â Â Â (320) | |||||||
Currency impact | (38) | (31) | (0.1) | 2 | — | (186) | (1.2) | 5 | |||||||
Currency Adjusted | $Â Â Â 15,648 | $Â Â Â Â 5,168 | 33.0Â % | $Â Â Â 1,348 | 8.6Â % | $Â Â Â Â Â Â (269) | (1.7)Â % | $Â Â Â Â Â Â Â Â Â (315) | |||||||
See description of non-GAAP financial measures contained in the press release dated November 21, 2023. | |
(1) | The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum. |
(2) | Associated costs include costs incurred as a direct result of the restructuring program, such as salaries for employees supporting the program, consulting expenses, and asset write-offs. |
(3) | The charges primarily include business combination costs, changes in fair value of contingent consideration, and charges related to the impending separation of the Patient Monitoring and Respiratory Interventions businesses within our Medical Surgical Portfolio. |
(4) | The charges represent incremental costs of complying with the new European Union medical device regulations for previously registered products and primarily include charges for contractors supporting the project and other direct third-party expenses. We consider these costs to be duplicative of previously incurred costs and/or one-time costs, which are limited to a specific time period. |
(5) | We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations. |
MEDTRONIC PLC | |||
GAAP TO NON-GAAP RECONCILIATIONS (1) | |||
(Unaudited) | |||
Six months ended | |||
(in millions) | October 27, 2023 | October 28, 2022 | |
Net cash provided by operating activities | $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,536 | $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 2,005 | |
Additions to property, plant, and equipment | (815) | (749) | |
Free Cash Flow (2) | $Â Â Â Â Â Â Â Â Â Â Â Â Â 721 | $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,256 | |
See description of non-GAAP financial measures contained in the press release dated November 21, 2023. | |
(1) | The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum. |
(2) | Free cash flow represents operating cash flows less property, plant, and equipment additions. |
MEDTRONIC PLC | ||||
CONSOLIDATED BALANCE SHEETS | ||||
(Unaudited) | ||||
(in millions) | October 27, 2023 | April 28, 2023 | ||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,311 | $Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,543 | ||
Investments | 6,423 | 6,416 | ||
Accounts receivable, less allowances and credit losses of $177 and $176, respectively | 5,934 | 5,998 | ||
Inventories, net | 5,754 | 5,293 | ||
Other current assets | 2,658 | 2,425 | ||
Total current assets | 22,081 | 21,675 | ||
Property, plant, and equipment, net | 5,735 | 5,569 | ||
Goodwill | 40,821 | 41,425 | ||
Other intangible assets, net | 14,060 | 14,844 | ||
Tax assets | 3,428 | 3,477 | ||
Other assets | 3,962 | 3,959 | ||
Total assets | $Â Â Â Â Â Â Â Â Â Â Â Â 90,087 | $Â Â Â Â Â Â Â Â Â Â Â Â 90,948 | ||
LIABILITIES AND EQUITY | ||||
Current liabilities: | ||||
Current debt obligations | $Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,339 | $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 20 | ||
Accounts payable | 2,174 | 2,662 | ||
Accrued compensation | 1,758 | 1,949 | ||
Accrued income taxes | 1,088 | 840 | ||
Other accrued expenses | 3,299 | 3,581 | ||
Total current liabilities | 9,659 | 9,051 | ||
Long-term debt | 23,741 | 24,344 | ||
Accrued compensation and retirement benefits | 1,020 | 1,093 | ||
Accrued income taxes | 1,777 | 2,360 | ||
Deferred tax liabilities | 686 | 708 | ||
Other liabilities | 1,556 | 1,727 | ||
Total liabilities | 38,440 | 39,283 | ||
Commitments and contingencies | ||||
Shareholders' equity: | ||||
Ordinary shares— par value $0.0001, 2.6 billion shares authorized, | — | — | ||
Additional paid-in capital | 24,580 | 24,590 | ||
Retained earnings | 30,256 | 30,392 | ||
Accumulated other comprehensive loss | (3,377) | (3,499) | ||
Total shareholders' equity | 51,460 | 51,483 | ||
Noncontrolling interests | 187 | 182 | ||
Total equity | 51,647 | 51,665 | ||
Total liabilities and equity | $Â Â Â Â Â Â Â Â Â Â Â Â 90,087 | $Â Â Â Â Â Â Â Â Â Â Â Â 90,948 | ||
The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum. |
MEDTRONIC PLC | |||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(Unaudited) | |||
Six months ended | |||
(in millions) | October 27, 2023 | October 28, 2022 | |
Operating Activities: | |||
Net income | $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,708 | $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,367 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 1,344 | 1,339 | |
Provision for credit losses | 37 | 41 | |
Deferred income taxes | (36) | (92) | |
Stock-based compensation | 219 | 199 | |
Loss on debt extinguishment | — | 53 | |
Other, net | 182 | 148 | |
Change in operating assets and liabilities, net of acquisitions and divestitures: | |||
Accounts receivable, net | (117) | (346) | |
Inventories, net | (616) | (784) | |
Accounts payable and accrued liabilities | (699) | (14) | |
Other operating assets and liabilities | (486) | 94 | |
Net cash provided by operating activities | 1,536 | 2,005 | |
Investing Activities: | |||
Acquisitions, net of cash acquired | (22) | (1,867) | |
Additions to property, plant, and equipment | (815) | (749) | |
Purchases of investments | (3,403) | (3,743) | |
Sales and maturities of investments | 3,336 | 3,609 | |
Other investing activities, net | (59) | 19 | |
Net cash used in investing activities | (963) | (2,731) | |
Financing Activities: | |||
Change in current debt obligations, net | 1,321 | 349 | |
Proceeds from short-term borrowings (maturities greater than 90 days) | — | 2,284 | |
Issuance of long-term debt | — | 3,430 | |
Payments on long-term debt | — | (2,311) | |
Dividends to shareholders | (1,836) | (1,807) | |
Issuance of ordinary shares | 149 | 153 | |
Repurchase of ordinary shares | (378) | (477) | |
Other financing activities | 153 | 443 | |
Net cash (used in) provided by financing activities | (591) | 2,064 | |
Effect of exchange rate changes on cash and cash equivalents | (214) | (223) | |
Net change in cash and cash equivalents | (232) | 1,114 | |
Cash and cash equivalents at beginning of period | 1,543 | 3,714 | |
Cash and cash equivalents at end of period | $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,311 | $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 4,828 | |
Supplemental Cash Flow Information | |||
Cash paid for: | |||
Income taxes | $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,110 | $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 821 | |
Interest | 476 | 234 | |
The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum. |
About Medtronic
Bold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered in Dublin, Ireland , is the leading global healthcare technology company that boldly attacks the most challenging health problems facing humanity by searching out and finding solutions. Our Mission — to alleviate pain, restore health, and extend life — unites a global team of 95,000+ passionate people across 150 countries. Our technologies and therapies treat 70 health conditions and include cardiac devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems, and more. Powered by our diverse knowledge, insatiable curiosity, and desire to help all those who need it, we deliver innovative technologies that transform the lives of two people every second, every hour, every day. Expect more from us as we empower insight-driven care, experiences that put people first, and better outcomes for our world. In everything we do, we are engineering the extraordinary. For more information on Medtronic (NYSE:MDT), visit www.Medtronic.com and follow @Medtronic on X (formerly Twitter) and LinkedIn .
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties, including risks related to competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products, government regulation, geopolitical conflicts, general economic conditions, and other risks and uncertainties described in the company's periodic reports on file with the U.S. Securities and Exchange Commission including the most recent Annual Report on Form 10-K of the company. In some cases, you can identify these statements by forward-looking words or expressions, such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "looking ahead," "may," "plan," "possible," "potential," "project," "should," "going to," "will," and similar words or expressions, the negative or plural of such words or expressions and other comparable terminology. Actual results may differ materially from anticipated results. Medtronic does not undertake to update its forward-looking statements or any of the information contained in this press release, including to reflect future events or circumstances.
NON-GAAP FINANCIAL MEASURES
This press release contains financial measures, including adjusted net income, adjusted diluted EPS, and organic revenue, which are considered "non-GAAP" financial measures under applicable SEC rules and regulations. References to quarterly or annual figures increasing, decreasing or remaining flat are in comparison to fiscal year 2023.
Medtronic management believes that non-GAAP financial measures provide information useful to investors in understanding the company's underlying operational performance and trends and to facilitate comparisons with the performance of other companies in the med tech industry. Non-GAAP net income and diluted EPS exclude the effect of certain charges or gains that contribute to or reduce earnings but that result from transactions or events that management believes may or may not recur with similar materiality or impact to operations in future periods (Non-GAAP Adjustments). Medtronic generally uses non-GAAP financial measures to facilitate management's review of the operational performance of the company and as a basis for strategic planning. Non-GAAP financial measures should be considered supplemental to and not a substitute for financial information prepared in accordance with U.S. generally accepted accounting principles (GAAP), and investors are cautioned that Medtronic may calculate non-GAAP financial measures in a way that is different from other companies. Management strongly encourages investors to review the company's consolidated financial statements and publicly filed reports in their entirety. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial schedules accompanying this press release.
Medtronic calculates forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, forward-looking organic revenue growth guidance excludes the impact of foreign currency fluctuations, as well as significant acquisitions or divestitures. Forward-looking diluted non-GAAP EPS guidance also excludes other potential charges or gains that would be recorded as Non-GAAP Adjustments to earnings during the fiscal year. Medtronic does not attempt to provide reconciliations of forward-looking non-GAAP EPS guidance to projected GAAP EPS guidance because the combined impact and timing of recognition of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance.
Contacts: | |
Erika Winkels | Ryan Weispfenning |
Public Relations | Investor Relations |
+1-763-526-8478 | +1-763-505-4626 |
View original content to download multimedia: https://www.prnewswire.com/news-releases/medtronic-reports-second-quarter-fiscal-2024-financial-results-301994289.html
SOURCE Medtronic plc
News Provided by PR Newswire via QuoteMedia
The Symplicity â„¢ blood pressure procedure offers patients a new adjunct approach to lowering blood pressure
Approval is the culmination of ten years of clinical research and development of the Medtronic renal denervation technology
-Â Medtronic plc (NYSE: MDT), a global leader in healthcare technology, today announced that the United States Food and Drug Administration (FDA) has approved the Symplicity Spyral â„¢ renal denervation (RDN) system, also known as the Symplicity â„¢ blood pressure procedure, for the treatment of hypertension. With this approval, Medtronic will immediately begin commercialization.
Hypertension, or high blood pressure, is the leading modifiable cause of heart attack, stroke, and death, and its prevalence is notably worse in underserved U.S. populations. Despite available medications and lifestyle interventions, control rates remain low. These challenges speak to the possibility that patients may benefit from an adjunctive treatment option to better manage their blood pressure.
"Medtronic has always believed in the potential of this therapy. We partnered closely with leading experts in our clinical community who could help us in our journey to get this technology to the people who need it most," said Jason Weidman , senior vice president and president of the Coronary and Renal Denervation business within the Cardiovascular Portfolio at Medtronic. "It was the promise of this therapy that enabled Medtronic to keep going, even when others exited the renal denervation space. High blood pressure is a global health issue, and patients need more options to manage their blood pressure. The approval of the Symplicity blood pressure procedure represents a significant milestone for physicians and patients in the treatment of hypertension."
The Medtronic Symplicity blood pressure procedure is an innovative, minimally invasive procedure that delivers radiofrequency energy to nerves near the kidneys that can become overactive and contribute to high blood pressure. After sedation, the doctor inserts a single thin tube (known as a catheter) into the artery leading to the kidney. Once the tube is in place, the doctor administers energy to the system to calm the excessive activity of the nerves connected to the kidney. The tube is removed, leaving no implant behind.
"The Symplicity blood pressure procedure is safe and effective, providing significant 'always on' blood pressure reductions for patients," said David Kandzari , M.D., chief, Piedmont Heart Institute and Cardiovascular Service and co-principal investigator of the SPYRAL clinical program. "This landmark approval is the culmination of rigorous scientific study and clinical trials, including long-term, sham-controlled studies in the presence and absence of medication, and the largest real-world study."
Patient preference and shared decision making have been identified as critical components of developing a hypertension care plan including the Symplicity blood pressure procedure. According to results from a Medtronic-led patient preference study, when presented with an interventional treatment with blood pressure reduction and potential risks in line with those of the Symplicity blood pressure procedure, approximately one third of patients were likely to choose the interventional treatment.
"This approval paves the way for a transformation in hypertension treatment, offering a solution that complements medication and lifestyle changes," said Raymond Townsend , M.D., from the Hypertension Section, Department of Internal Medicine / Renal, University of Pennsylvania School of Medicine and co-principal investigator of the SPYRAL clinical program. "The Symplicity blood pressure procedure is a promising treatment option for clinicians and patients alike and offers opportunity to fulfill a significant unmet need in hypertension care, especially for those patients who are desperately seeking additional approaches to get their blood pressure down."
The Medtronic SPYRAL HTN Global Clinical Program is the most comprehensive clinical program studying RDN and is backed by experience in more than 25,000 patients treated globally, studied in the presence and absence of medication, and in patients with high baseline cardiovascular risk. Although currently limited for investigational use in Japan , China and Canada , the Symplicity Spyral Renal Denervation System is approved for commercial use in more than 70 countries around the world.
About Medtronic
Bold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered in Dublin, Ireland , is the leading global healthcare technology company that boldly attacks the most challenging health problems facing humanity by searching out and finding solutions. Our Mission — to alleviate pain, restore health, and extend life — unites a global team of 95,000+ passionate people across 150 countries. Our technologies and therapies treat 70 health conditions and include cardiac devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems, and more. Powered by our diverse knowledge, insatiable curiosity, and desire to help all those who need it, we deliver innovative technologies that transform the lives of two people every second, every hour, every day. Expect more from us as we empower insight-driven care, experiences that put people first, and better outcomes for our world. In everything we do, we are engineering the extraordinary. For more information on Medtronic (NYSE:MDT), visit www.Medtronic.com , and follow @Medtronic on Twitter and LinkedIn.
Any forward-looking statements are subject to risks and uncertainties such as those described in Medtronic's periodic reports on file with the Securities and Exchange Commission. Actual results may differ materially from anticipated results.
Contacts: | |||
Krystin Hayward Leong | Ryan Weispfenning | ||
Public Relations | Investor Relations | ||
+1-508-261-6512 | +1-763-505-4626 | ||
View original content to download multimedia: https://www.prnewswire.com/news-releases/medtronic-announces-fda-approval-of-minimally-invasive-device-to-treat-hypertension-301992645.html
SOURCE Medtronic plc
News Provided by PR Newswire via QuoteMedia
Australia
