Delivering on commitments, executing ahead of
expectations, and raising guidance
Innovation driving sustained growth across
many franchises: TAVR, PFA, Leadless Pacemakers, Diabetes,
Spine, and Neuromodulation
GALWAY, Ireland, Nov. 19,
2024 /CNW/ -- Medtronic plc (NYSE: MDT) today
announced financial results for its second quarter (Q2) of fiscal
year 2025 (FY25), which ended October 25,
2024.
Key Highlights
- Revenue of $8.4 billion increased
5.3% as reported and 5.0% organic
- GAAP diluted earnings per share (EPS) of $0.99; non-GAAP diluted EPS of $1.26
- Company raises FY25 organic revenue growth and EPS
guidance
Financial Results
Medtronic reported Q2 worldwide
revenue of $8.403 billion, an
increase of 5.3% as reported and 5.0% on an organic basis. Organic
revenue growth comparison excludes:
- Other revenue of $37 million in
the current year and $61 million in
the prior year; and
- Foreign currency translation benefit of $45 million on the remaining segments.
As reported, Q2 GAAP net income and diluted earnings per share
(EPS) were $1.270 billion and
$0.99, respectively, representing
increases of 40% and 46%, respectively. As detailed in the
financial schedules included at the end of this release, Q2
non-GAAP net income and non-GAAP diluted EPS were $1.620 billion and $1.26, respectively, representing a decrease of
3% and an increase of 1%, respectively. Included in Q2 non-GAAP
diluted EPS was a -9 cent impact from
foreign currency translation. Non-GAAP adjusted diluted EPS grew 8%
on a constant currency basis.
"Our momentum is building as we keep executing on our
commitments, delivering yet another consecutive quarter of strong
results that came in ahead of expectations," said Geoff Martha, Medtronic chairman and chief
executive officer. "Innovation matters, and innovation is really
driving our growth today. As we look ahead, we're confident that
this diversified growth will keep going, especially given the
strength of our pipeline in high-impact markets that will allow us
to benefit even more patients around the world."
Cardiovascular Portfolio
The Cardiovascular Portfolio
includes the Cardiac Rhythm & Heart Failure (CRHF), Structural
Heart & Aortic (SHA), and Coronary & Peripheral Vascular
(CPV) divisions. Revenue of $3.102
billion increased 6.1% as reported and 5.6% organic, with a
high-single digit increase in SHA and mid-single digit increases in
CRHF and CPV, all on an organic basis.
- CRHF results included mid-single digit growth in Cardiac Rhythm
Management, driven by high-single digit growth in Defibrillation
Solutions and Cardiac Pacing Therapies, including high-teens growth
in Micra™ transcatheter pacing systems; Cardiac Ablation Solutions
had flat results as strong growth of the PulseSelect™ pulsed field
ablation (PFA) system offset declines in cryoablation
- SHA results driven by high-single digit growth in Structural
Heart, on the U.S. launch of the Evolut™ FX+ TAVR system, and
low-double digit growth in Cardiac Surgery
- CPV delivered mid-single digit growth in both Coronary, with
strength in guide catheters and balloons, and Peripheral Vascular
Health
- Ramping commercial availability of the Affera™ Mapping and
Ablation System and Sphere-9™ catheter following late October U.S.
Food and Drug Administration (FDA) approval
- Received CE Mark for Evolut™ FX+ TAVR system in late October;
started commercial launch across Europe this month
- Launched Avalus Ultra™ surgical valve in Western Europe and VitalFlow™ Extracorporeal
Membrane Oxygenation (ECMO) system in the U.S.
- In September, Symplicity™ blood pressure procedure named to
FORTUNE 2024 'Change the World' list
- Earlier this month, granted transitional pass-through (TPT)
payment under the U.S. Medicare Hospital Outpatient Prospective
Payment System beginning January 1,
2025, for Symplicity Spyral™ renal denervation (RDN)
catheter, used in the Symplicity™ blood pressure procedure
Neuroscience Portfolio
The Neuroscience Portfolio
includes the Cranial & Spinal Technologies (CST), Specialty
Therapies, and Neuromodulation divisions. Revenue of $2.451 billion increased 7.1% as reported and
6.7% organic, with a low-double digits increase in Neuromodulation
and mid-single digit increases in both CST and Specialty Therapies,
all on an organic basis.
- CST above market performance driven by continued adoption of
the AiBLE™ ecosystem of spine implants and enabling technology,
with mid-single digit growth in Core Spine and high-single digit
growth in Biologics and Neurosurgery
- Specialty Therapies results driven by mid-single digit growth
in both Neurovascular, with continued strength in hemorrhagic
stroke products, and Pelvic Health, on continued adoption of the
InterStim X™ system; ENT grew low-single digits on strength in
capital placements
- Neuromodulation drove above market performance, with high-teens
growth in Brain Modulation on the continued launch of the Percept™
RC deep brain stimulator (DBS) with BrainSense™ technology; Pain
Therapies grew low-double digits, including low-double digit growth
in U.S. Pain Stim on the continued launch of the Inceptiv™ spinal
cord stimulator
- Medtronic pioneering ADAPT-PD clinical trial methods and
preliminary data studying adaptive deep brain stimulation (aDBS)
published in September in npj Parkinson's Disease, part of
the prestigious Nature Portfolio of journals
- In September, expanded AiBLE™ spine surgery ecosystem with new
technologies and announced partnership with Siemens Healthineers to
co-market and integrate the Siemens Healthineers Multitom Rax™
imaging system
Medical Surgical Portfolio
The Medical Surgical
Portfolio includes the Surgical & Endoscopy (SE) and the Acute
Care & Monitoring (ACM) divisions. Revenue of $2.128 billion increased 1.2% as reported and
increased 0.7% organic, with low-single digit organic increase in
ACM and flat organic result in SE. SE year-over-year results were
affected by a difficult comparison from prior year supply recovery
in Surgical and increased high-single digits sequentially.
- SE results included flat results in both Advanced Surgical
Technologies, with strength in Advanced Energy, driven by continued
adoption of the LigaSure™ Maryland XP vessel sealer, offsetting
declines in Advanced Stapling; General Surgical Technologies grew
low-single digits, with strength in Hernia and Wound Management
products
- ACM performance included high-single digit growth in Nellcor™
Blood Oxygen Management products
Diabetes
Revenue of $686
million increased 12.4% as reported and 11.0% organic.
- U.S. revenue grew high-single digits on the continued adoption
of the MiniMed™ 780G automated insulin delivery (AID) system
- International revenue grew low-double digits on increasing CGM
attachment rates and the continued roll-out of Simplera Sync™
sensor
- In September, meta-analysis of 28 randomized control trials
published in Diabetes/Metabolism Research and Reviews
concluded MiniMed™ 780G achieved highest time-in-range among seven
commercial AID systems
Guidance
The company today raised its FY25 revenue
growth and EPS guidance.
The company raised its FY25 organic revenue growth guidance to
4.75% to 5% versus the prior range of 4.5% to 5%. The organic
revenue growth guidance excludes the impact of foreign currency and
revenue reported as Other. Including Other revenue and the impact
of foreign currency exchange, if recent foreign currency exchange
rates hold, FY25 revenue growth on an adjusted basis would be in
the range of 3.4% to 3.9%.
The company raised its FY25 diluted non-GAAP EPS guidance to the
new range of $5.44 to $5.50 versus the prior $5.42 to $5.50.
This includes an estimated -5% impact from foreign currency
exchange based on recent rates, unchanged from the prior guidance.
The company's guidance represents FY25 diluted non-GAAP EPS growth
in the range of 4.6% to 5.8%.
"We're restoring our earnings power through our focus on
underlying margin improvement, delivering another quarter of
high-single digit constant currency adjusted EPS growth," said
Gary Corona, Medtronic interim chief
financial officer. "And now, as the impact from foreign currency
abates, we expect to report high-single digit adjusted EPS growth
in the back half of our fiscal year, in line with our long-term
commitment to deliver durable, mid-single digit organic revenue
growth with EPS leverage."
FY24 Impact Report
Today, Medtronic released its FY24
Impact Report demonstrating the company's sustainability
progress. Medtronic also launched a new Impact webpage and
FY24 Highlights Report featuring notable key performance
indicators and stories, as well as an online Data Hub that
shows the company's commitment to transparent disclosure and
reporting:
- Achieved 2025 goal to reduce greenhouse gas intensity by 50% a
year early, with a 52% reduction in FY24
- Exceeded goal to reduce aggregate product complaint rate by 10%
for identified product families, with a 33% reduction in FY24
- More than 78 million patients served through expanded
access strategies
- $2.7B spent in R&D
investments to drive innovation
Video Webcast Information
Medtronic will host a video
webcast today, November 19, 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 FY25 third and fourth quarter
results on Tuesday, February 18,
2025, and Wednesday, May 21,
2025, respectively. Confirmation and additional details will
be provided closer to the specific event.
Financial Schedules and Earnings Presentation
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 first quarter earnings presentation, click here.
|
MEDTRONIC
PLC
WORLD WIDE
REVENUE(1)
(Unaudited)
|
|
|
SECOND
QUARTER
|
|
|
YEAR-TO-DATE
|
|
REPORTED
|
|
|
|
ORGANIC
|
|
|
REPORTED
|
|
|
|
ORGANIC
|
|
(in
millions)
|
FY25
|
|
FY24
|
|
Growth
|
|
Currency
Impact(3)
|
|
Adjusted
FY25(4)
|
|
Adjusted
FY24(4)
|
|
Growth
|
|
|
FY25
|
|
FY24
|
|
Growth
|
|
Currency
Impact(3)
|
|
Adjusted
FY25(5)
|
|
Adjusted
FY24(5)
|
|
Growth
|
|
Cardiovascular
|
$ 3,102
|
|
$ 2,923
|
|
6.1 %
|
|
$
16
|
|
$ 3,086
|
|
$ 2,923
|
|
5.6 %
|
|
|
$ 6,108
|
|
$ 5,773
|
|
5.8 %
|
|
$
(23)
|
|
$ 6,132
|
|
$ 5,773
|
|
6.2 %
|
|
Cardiac Rhythm &
Heart Failure
|
1,578
|
|
1,492
|
|
5.8
|
|
11
|
|
1,567
|
|
1,492
|
|
5.0
|
|
|
3,114
|
|
2,938
|
|
6.0
|
|
(8)
|
|
3,122
|
|
2,938
|
|
6.2
|
|
Structural Heart &
Aortic
|
881
|
|
819
|
|
7.6
|
|
4
|
|
877
|
|
819
|
|
7.1
|
|
|
1,736
|
|
1,633
|
|
6.3
|
|
(8)
|
|
1,744
|
|
1,633
|
|
6.8
|
|
Coronary &
Peripheral Vascular
|
643
|
|
613
|
|
4.9
|
|
1
|
|
642
|
|
613
|
|
4.8
|
|
|
1,259
|
|
1,202
|
|
4.7
|
|
(7)
|
|
1,266
|
|
1,202
|
|
5.3
|
|
Neuroscience
|
2,451
|
|
2,288
|
|
7.1
|
|
10
|
|
2,441
|
|
2,288
|
|
6.7
|
|
|
4,768
|
|
4,506
|
|
5.8
|
|
(8)
|
|
4,776
|
|
4,506
|
|
6.0
|
|
Cranial & Spinal
Technologies
|
1,234
|
|
1,157
|
|
6.7
|
|
3
|
|
1,231
|
|
1,157
|
|
6.4
|
|
|
2,382
|
|
2,260
|
|
5.4
|
|
(6)
|
|
2,387
|
|
2,260
|
|
5.6
|
|
Specialty
Therapies
|
737
|
|
705
|
|
4.6
|
|
5
|
|
732
|
|
705
|
|
3.9
|
|
|
1,450
|
|
1,400
|
|
3.5
|
|
(2)
|
|
1,452
|
|
1,400
|
|
3.7
|
|
Neuromodulation
|
480
|
|
426
|
|
12.6
|
|
2
|
|
478
|
|
426
|
|
12.1
|
|
|
937
|
|
846
|
|
10.8
|
|
(1)
|
|
938
|
|
846
|
|
10.9
|
|
Medical
Surgical
|
2,128
|
|
2,103
|
|
1.2
|
|
10
|
|
2,117
|
|
2,103
|
|
0.7
|
|
|
4,123
|
|
4,107
|
|
0.4
|
|
(18)
|
|
4,142
|
|
4,107
|
|
0.8
|
|
Surgical &
Endoscopy
|
1,649
|
|
1,641
|
|
0.5
|
|
9
|
|
1,641
|
|
1,641
|
|
—
|
|
|
3,193
|
|
3,187
|
|
0.2
|
|
(13)
|
|
3,207
|
|
3,187
|
|
0.6
|
|
Acute Care &
Monitoring
|
478
|
|
462
|
|
3.6
|
|
1
|
|
477
|
|
462
|
|
3.3
|
|
|
930
|
|
921
|
|
1.0
|
|
(5)
|
|
935
|
|
921
|
|
1.6
|
|
Diabetes
|
686
|
|
610
|
|
12.4
|
|
9
|
|
678
|
|
610
|
|
11.0
|
|
|
1,333
|
|
1,189
|
|
12.1
|
|
5
|
|
1,329
|
|
1,189
|
|
11.8
|
|
Total Reportable
Segments
|
8,366
|
|
7,923
|
|
5.6
|
|
45
|
|
8,322
|
|
7,923
|
|
5.0
|
|
|
16,333
|
|
15,575
|
|
4.9
|
|
(46)
|
|
16,379
|
|
15,575
|
|
5.2
|
|
Other(2)
|
37
|
|
61
|
|
(38.9)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
(15)
|
|
111
|
|
(113.5)
|
|
(2)
|
|
—
|
|
—
|
|
—
|
|
TOTAL
|
$ 8,403
|
|
$ 7,984
|
|
5.3 %
|
|
$
45
|
|
$ 8,322
|
|
$ 7,923
|
|
5.0 %
|
|
|
$
16,318
|
|
$
15,686
|
|
4.0 %
|
|
$
(48)
|
|
$
16,379
|
|
$
15,575
|
|
5.2 %
|
|
|
|
(1)
|
The data in this
schedule has been intentionally rounded to the nearest million and,
therefore, may not sum. Percentages have been calculated using
actual, non-rounded figures and, therefore, may not recalculate
precisely.
|
|
(2)
|
Includes historical
operations and ongoing transition agreements from businesses the
Company has exited or divested, and specifically for the three
months ended July 26, 2024, impacting year-to-date figures, $90
million of incremental Italian payback accruals resulting from the
two July 22, 2024 rulings by the Constitutional Court of Italy
relating to certain prior years since 2015.
|
|
(3)
|
The currency impact to
revenue measures the change in revenue between current and prior
year periods using constant exchange rates.
|
|
(4)
|
The three months ended
October 25, 2024 includes $82 million of revenue adjustments
related to $37 million of inorganic revenue for the transition
activity noted in (2) and $45 million of favorable currency impact
on the remaining segments. The three months ended October 27, 2023
excludes $61 million of inorganic revenue related to the transition
activity noted in (2).
|
|
(5)
|
The six months ended
October 25, 2024 excludes $61 million of revenue adjustments
related to $90 million of incremental Italian payback accruals
further described in note (2), $75 million of inorganic revenue
related to the transition activity noted in (2), and $46 million of
unfavorable currency impact on the remaining segments. The six
months ended October 27, 2023 excludes $111 million of inorganic
revenue related to the transition activity noted in (2).
|
|
MEDTRONIC
PLC
U.S.(1)(2) REVENUE
(Unaudited)
|
|
|
SECOND
QUARTER
|
|
|
YEAR-TO-DATE
|
|
REPORTED
|
|
ORGANIC
|
|
|
REPORTED
|
|
ORGANIC
|
|
(in
millions)
|
FY25
|
|
FY24
|
|
Growth
|
|
Adjusted
FY25
|
|
Adjusted
FY24
|
|
Growth
|
|
|
FY25
|
|
FY24
|
|
Growth
|
|
Adjusted
FY25
|
|
Adjusted
FY24
|
|
Growth
|
|
Cardiovascular
|
$ 1,434
|
|
$ 1,427
|
|
0.5 %
|
|
$ 1,434
|
|
$ 1,427
|
|
0.5 %
|
|
|
$ 2,836
|
|
$ 2,776
|
|
2.2 %
|
|
$ 2,836
|
|
$ 2,776
|
|
2.2 %
|
|
Cardiac Rhythm &
Heart Failure
|
768
|
|
782
|
|
(1.8)
|
|
768
|
|
782
|
|
(1.8)
|
|
|
1,534
|
|
1,502
|
|
2.1
|
|
1,534
|
|
1,502
|
|
2.1
|
|
Structural Heart &
Aortic
|
388
|
|
367
|
|
5.7
|
|
388
|
|
367
|
|
5.7
|
|
|
757
|
|
724
|
|
4.5
|
|
757
|
|
724
|
|
4.5
|
|
Coronary &
Peripheral Vascular
|
278
|
|
278
|
|
0.1
|
|
278
|
|
278
|
|
0.1
|
|
|
546
|
|
550
|
|
(0.8)
|
|
546
|
|
550
|
|
(0.8)
|
|
Neuroscience
|
1,677
|
|
1,560
|
|
7.5
|
|
1,677
|
|
1,560
|
|
7.5
|
|
|
3,242
|
|
3,057
|
|
6.0
|
|
3,242
|
|
3,057
|
|
6.0
|
|
Cranial & Spinal
Technologies
|
926
|
|
863
|
|
7.2
|
|
926
|
|
863
|
|
7.2
|
|
|
1,781
|
|
1,685
|
|
5.7
|
|
1,781
|
|
1,685
|
|
5.7
|
|
Specialty
Therapies
|
418
|
|
403
|
|
3.6
|
|
418
|
|
403
|
|
3.6
|
|
|
816
|
|
795
|
|
2.6
|
|
816
|
|
795
|
|
2.6
|
|
Neuromodulation
|
333
|
|
293
|
|
13.7
|
|
333
|
|
293
|
|
13.7
|
|
|
645
|
|
577
|
|
11.8
|
|
645
|
|
577
|
|
11.8
|
|
Medical
Surgical
|
944
|
|
948
|
|
(0.4)
|
|
944
|
|
948
|
|
(0.4)
|
|
|
1,825
|
|
1,815
|
|
0.5
|
|
1,825
|
|
1,815
|
|
0.5
|
|
Surgical &
Endoscopy
|
675
|
|
688
|
|
(1.9)
|
|
675
|
|
688
|
|
(1.9)
|
|
|
1,304
|
|
1,308
|
|
(0.2)
|
|
1,304
|
|
1,308
|
|
(0.2)
|
|
Acute Care &
Monitoring
|
269
|
|
260
|
|
3.6
|
|
269
|
|
260
|
|
3.6
|
|
|
521
|
|
508
|
|
2.6
|
|
521
|
|
508
|
|
2.6
|
|
Diabetes
|
232
|
|
217
|
|
6.9
|
|
232
|
|
217
|
|
6.9
|
|
|
447
|
|
405
|
|
10.4
|
|
447
|
|
405
|
|
10.4
|
|
Total Reportable
Segments
|
4,286
|
|
4,151
|
|
3.3
|
|
4,286
|
|
4,151
|
|
3.3
|
|
|
8,350
|
|
8,054
|
|
3.7
|
|
8,350
|
|
8,054
|
|
3.7
|
|
Other(3)
|
18
|
|
23
|
|
(22.2)
|
|
—
|
|
—
|
|
—
|
|
|
37
|
|
45
|
|
(19.0)
|
|
—
|
|
—
|
|
—
|
|
TOTAL
|
$ 4,304
|
|
$ 4,175
|
|
3.1 %
|
|
$ 4,286
|
|
$ 4,151
|
|
3.3 %
|
|
|
$ 8,387
|
|
$ 8,099
|
|
3.6 %
|
|
$ 8,350
|
|
$ 8,054
|
|
3.7 %
|
|
|
|
(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. Percentages have been calculated using
actual, non-rounded figures and, therefore, may not recalculate
precisely.
|
|
(3)
|
Includes historical
operations and ongoing transition agreements from businesses the
Company has exited or divested.
|
|
MEDTRONIC
PLC
INTERNATIONAL
REVENUE(1)
(Unaudited)
|
|
|
SECOND
QUARTER
|
|
|
YEAR-TO-DATE
|
|
REPORTED
|
|
|
|
ORGANIC
|
|
|
REPORTED
|
|
|
|
ORGANIC
|
|
(in
millions)
|
FY25
|
|
FY24
|
|
Growth
|
|
Currency
Impact(3)
|
|
Adjusted
FY25(4)
|
|
Adjusted
FY24(4)
|
|
Growth
|
|
|
FY25
|
|
FY24
|
|
Growth
|
|
Currency
Impact(3)
|
|
Adjusted
FY25(5)
|
|
Adjusted
FY24(5)
|
|
Growth
|
|
Cardiovascular
|
$ 1,668
|
|
$ 1,496
|
|
11.5 %
|
|
$
16
|
|
$ 1,652
|
|
$ 1,496
|
|
10.4 %
|
|
|
$ 3,272
|
|
$ 2,996
|
|
9.2 %
|
|
$
(23)
|
|
$ 3,295
|
|
$ 2,996
|
|
10.0 %
|
|
Cardiac Rhythm &
Heart Failure
|
811
|
|
710
|
|
14.2
|
|
11
|
|
799
|
|
710
|
|
12.6
|
|
|
1,580
|
|
1,436
|
|
10.0
|
|
(8)
|
|
1,588
|
|
1,436
|
|
10.6
|
|
Structural Heart &
Aortic
|
492
|
|
451
|
|
9.1
|
|
4
|
|
488
|
|
451
|
|
8.3
|
|
|
980
|
|
909
|
|
7.8
|
|
(8)
|
|
988
|
|
909
|
|
8.7
|
|
Coronary &
Peripheral Vascular
|
365
|
|
335
|
|
8.9
|
|
1
|
|
364
|
|
335
|
|
8.7
|
|
|
713
|
|
652
|
|
9.3
|
|
(7)
|
|
720
|
|
652
|
|
10.4
|
|
Neuroscience
|
774
|
|
728
|
|
6.3
|
|
10
|
|
764
|
|
728
|
|
5.0
|
|
|
1,526
|
|
1,449
|
|
5.3
|
|
(8)
|
|
1,535
|
|
1,449
|
|
5.9
|
|
Cranial & Spinal
Technologies
|
308
|
|
293
|
|
5.0
|
|
3
|
|
305
|
|
293
|
|
3.9
|
|
|
600
|
|
576
|
|
4.2
|
|
(6)
|
|
606
|
|
576
|
|
5.2
|
|
Specialty
Therapies
|
319
|
|
302
|
|
5.8
|
|
5
|
|
315
|
|
302
|
|
4.3
|
|
|
634
|
|
605
|
|
4.8
|
|
(2)
|
|
636
|
|
605
|
|
5.1
|
|
Neuromodulation
|
146
|
|
133
|
|
10.4
|
|
2
|
|
144
|
|
133
|
|
8.8
|
|
|
292
|
|
269
|
|
8.8
|
|
(1)
|
|
293
|
|
269
|
|
9.1
|
|
Medical
Surgical
|
1,183
|
|
1,155
|
|
2.5
|
|
10
|
|
1,173
|
|
1,155
|
|
1.6
|
|
|
2,298
|
|
2,292
|
|
0.3
|
|
(18)
|
|
2,317
|
|
2,292
|
|
1.1
|
|
Surgical &
Endoscopy
|
974
|
|
953
|
|
2.3
|
|
9
|
|
966
|
|
953
|
|
1.4
|
|
|
1,889
|
|
1,879
|
|
0.5
|
|
(13)
|
|
1,902
|
|
1,879
|
|
1.2
|
|
Acute Care &
Monitoring
|
209
|
|
202
|
|
3.5
|
|
1
|
|
208
|
|
202
|
|
2.8
|
|
|
409
|
|
413
|
|
(0.9)
|
|
(5)
|
|
414
|
|
413
|
|
0.4
|
|
Diabetes
|
455
|
|
394
|
|
15.5
|
|
9
|
|
446
|
|
394
|
|
13.2
|
|
|
886
|
|
784
|
|
13.1
|
|
5
|
|
882
|
|
784
|
|
12.5
|
|
Total Reportable
Segments
|
4,080
|
|
3,772
|
|
8.2
|
|
45
|
|
4,035
|
|
3,772
|
|
7.0
|
|
|
7,983
|
|
7,521
|
|
6.1
|
|
(46)
|
|
8,028
|
|
7,521
|
|
6.7
|
|
Other(2)
|
19
|
|
37
|
|
(49.4)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
(51)
|
|
66
|
|
(178.3)
|
|
(2)
|
|
—
|
|
—
|
|
—
|
|
TOTAL
|
$ 4,099
|
|
$ 3,809
|
|
7.6 %
|
|
$
45
|
|
$ 4,035
|
|
$ 3,772
|
|
7.0 %
|
|
|
$ 7,931
|
|
$ 7,587
|
|
4.5 %
|
|
$
(48)
|
|
$ 8,028
|
|
$ 7,521
|
|
6.7 %
|
|
|
|
(1)
|
The data in this
schedule has been intentionally rounded to the nearest million and,
therefore, may not sum. Percentages have been calculated using
actual, non-rounded figures and, therefore, may not recalculate
precisely.
|
|
(2)
|
Includes historical
operations and ongoing transition agreements from businesses the
Company has exited or divested, and specifically for the three
months ended July 26, 2024, impacting year-to-date figures, $90
million of incremental Italian payback accruals resulting from the
two July 22, 2024 rulings by the Constitutional Court of Italy
relating to certain prior years since 2015.
|
|
(3)
|
The currency impact to
revenue measures the change in revenue between current and prior
year periods using constant exchange rates.
|
|
(4)
|
The three months ended
October 25, 2024 includes $64 million of revenue adjustments
related to $19 million of inorganic revenue for the transition
activity noted in (2), and $45 million of favorable currency impact
on the remaining segments. The three months ended October 27, 2023
excludes $37 million of inorganic revenue related to the transition
activity noted in (2).
|
|
(5)
|
The six months ended
October 25, 2024 excludes $97 million of revenue adjustments
related to $90 million of incremental Italian payback accruals
further described in note (2), $38 million of inorganic revenue
related to the transition activity noted in (2), and $46 million of
unfavorable currency impact on the remaining segments. The six
months ended October 27, 2023 excludes $66 million of inorganic
revenue related to the transition activity noted in (2).
|
|
MEDTRONIC
PLC
CONSOLIDATED
STATEMENTS OF INCOME
(Unaudited)
|
|
|
Three months ended
|
|
Six months
ended
|
|
(in millions, except
per share data)
|
October 25,
2024
|
|
October 27,
2023
|
|
October 25,
2024
|
|
October 27,
2023
|
|
Net
sales
|
$
8,403
|
|
$
7,984
|
|
$
16,318
|
|
$
15,686
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of products sold,
excluding amortization of intangible assets
|
2,946
|
|
2,761
|
|
5,707
|
|
5,390
|
|
Research and
development expense
|
697
|
|
698
|
|
1,373
|
|
1,365
|
|
Selling, general, and
administrative expense
|
2,757
|
|
2,686
|
|
5,412
|
|
5,299
|
|
Amortization of
intangible assets
|
413
|
|
425
|
|
827
|
|
855
|
|
Restructuring charges,
net
|
30
|
|
40
|
|
77
|
|
94
|
|
Certain litigation
charges, net
|
—
|
|
65
|
|
81
|
|
105
|
|
Other operating
income, net
|
(34)
|
|
(31)
|
|
(33)
|
|
(30)
|
|
Operating
profit
|
1,595
|
|
1,340
|
|
2,873
|
|
2,608
|
|
Other non-operating
income, net
|
(173)
|
|
(154)
|
|
(330)
|
|
(230)
|
|
Interest expense,
net
|
209
|
|
180
|
|
376
|
|
329
|
|
Income before income
taxes
|
1,559
|
|
1,313
|
|
2,827
|
|
2,510
|
|
Income tax
provision
|
281
|
|
402
|
|
500
|
|
802
|
|
Net
income
|
1,278
|
|
911
|
|
2,327
|
|
1,708
|
|
Net income
attributable to noncontrolling interests
|
(9)
|
|
(2)
|
|
(15)
|
|
(8)
|
|
Net income
attributable to Medtronic
|
$
1,270
|
|
$
909
|
|
$
2,312
|
|
$
1,700
|
|
Basic earnings per
share
|
$
0.99
|
|
$
0.68
|
|
$
1.79
|
|
$
1.28
|
|
Diluted earnings per
share
|
$
0.99
|
|
$
0.68
|
|
$
1.79
|
|
$
1.28
|
|
Basic weighted
average shares outstanding
|
1,282.4
|
|
1,330.2
|
|
1,288.6
|
|
1,330.3
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
1,286.9
|
|
1,331.9
|
|
1,292.5
|
|
1,332.8
|
|
|
The data in the schedule above has been intentionally
rounded to the nearest million.
|
|
MEDTRONIC
PLC
GAAP TO NON-GAAP
RECONCILIATIONS(1)
(Unaudited)
|
|
|
Three months ended
October 25, 2024
|
|
(in millions, except
per share data)
|
Net
Sales
|
|
Cost of
Products
Sold
|
|
Gross
Margin
Percent
|
|
Operating
Profit
|
|
Operating
Profit
Percent
|
|
Income
Before
Income
Taxes
|
|
Net Income
attributable
to
Medtronic
|
|
Diluted
EPS
|
|
Effective
Tax Rate
|
|
GAAP
|
$
8,403
|
|
$
2,946
|
|
64.9 %
|
|
$ 1,595
|
|
19.0 %
|
|
$
1,559
|
|
$
1,270
|
|
$ 0.99
|
|
18.0 %
|
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
—
|
|
—
|
|
—
|
|
413
|
|
4.9
|
|
413
|
|
338
|
|
0.26
|
|
18.2
|
|
Restructuring and
associated costs(2)
|
—
|
|
(11)
|
|
0.1
|
|
46
|
|
0.5
|
|
46
|
|
37
|
|
0.03
|
|
19.6
|
|
Acquisition and
divestiture-related items(3)
|
—
|
|
(5)
|
|
0.1
|
|
(25)
|
|
(0.3)
|
|
(25)
|
|
(30)
|
|
(0.02)
|
|
(20.0)
|
|
(Gain)/loss on
minority investments(4)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(10)
|
|
(21)
|
|
(0.02)
|
|
(100.0)
|
|
Medical device
regulations(5)
|
—
|
|
(9)
|
|
0.1
|
|
12
|
|
0.1
|
|
12
|
|
10
|
|
0.01
|
|
16.7
|
|
Certain tax
adjustments, net
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
16
|
|
0.01
|
|
—
|
|
Non-GAAP
|
$
8,403
|
|
$
2,921
|
|
65.2 %
|
|
$ 2,041
|
|
24.3 %
|
|
$
1,995
|
|
$
1,620
|
|
$ 1.26
|
|
18.3 %
|
|
Currency
impact
|
(45)
|
|
(103)
|
|
1.1
|
|
145
|
|
1.9
|
|
|
|
|
|
0.09
|
|
|
|
Currency
Adjusted
|
$
8,358
|
|
$
2,818
|
|
66.3 %
|
|
$ 2,186
|
|
26.2 %
|
|
|
|
|
|
$ 1.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
October 27, 2023
|
|
(in millions, except
per share data)
|
Net
Sales
|
|
Cost of
Products
Sold
|
|
Gross
Margin
Percent
|
|
Operating
Profit
|
|
Operating
Profit
Percent
|
|
Income
Before
Income
Taxes
|
|
Net Income
attributable
to
Medtronic
|
|
Diluted
EPS
|
|
Effective
Tax Rate
|
|
GAAP
|
$
7,984
|
|
$
2,761
|
|
65.4 %
|
|
$ 1,340
|
|
16.8 %
|
|
$
1,313
|
|
$
909
|
|
$ 0.68
|
|
30.6 %
|
|
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, net
|
—
|
|
—
|
|
—
|
|
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
|
$
7,984
|
|
$
2,720
|
|
65.9 %
|
|
$ 2,009
|
|
25.2 %
|
|
$
2,008
|
|
$
1,667
|
|
$ 1.25
|
|
16.9 %
|
|
|
|
See description of
non-GAAP financial measures contained in the press release dated
November 19, 2024.
|
|
(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
primarily include salaries and wages for employees supporting the
restructuring activities, consulting expenses, and asset
write-offs.
|
|
(3)
|
The charges primarily
include business combination costs, changes in fair value of
contingent consideration, and exit of business-related charges. The
three months ended October 25, 2024, also include gains related to
certain business or asset sales.
|
|
(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.
|
|
MEDTRONIC
PLC
GAAP TO NON-GAAP
RECONCILIATIONS(1)
(Unaudited)
|
|
|
Six months ended
October 25, 2024
|
|
(in millions, except
per share data)
|
Net
Sales
|
|
Cost of
Products
Sold
|
|
Gross
Margin
Percent
|
|
Operating
Profit
|
|
Operating
Profit
Percent
|
|
Income
Before
Income
Taxes
|
|
Net Income
attributable
to
Medtronic
|
|
Diluted
EPS
|
|
Effective
Tax Rate
|
|
GAAP
|
$
16,318
|
|
$
5,707
|
|
65.0 %
|
|
$ 2,873
|
|
17.6 %
|
|
$
2,827
|
|
$
2,312
|
|
$ 1.79
|
|
17.7 %
|
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
—
|
|
—
|
|
—
|
|
827
|
|
4.9
|
|
827
|
|
678
|
|
0.52
|
|
18.0
|
|
Restructuring and
associated costs(2)
|
—
|
|
(20)
|
|
0.1
|
|
108
|
|
0.6
|
|
108
|
|
87
|
|
0.07
|
|
19.4
|
|
Acquisition and
divestiture-related items(3)
|
—
|
|
(16)
|
|
0.1
|
|
(13)
|
|
(0.1)
|
|
(13)
|
|
(19)
|
|
(0.01)
|
|
(46.2)
|
|
Certain litigation
charges, net
|
—
|
|
—
|
|
—
|
|
81
|
|
0.5
|
|
81
|
|
68
|
|
0.05
|
|
16.0
|
|
(Gain)/loss on
minority investments(4)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(27)
|
|
(38)
|
|
(0.03)
|
|
(37.0)
|
|
Medical device
regulations(5)
|
—
|
|
(20)
|
|
0.1
|
|
27
|
|
0.2
|
|
27
|
|
22
|
|
0.02
|
|
18.5
|
|
Other(6)
|
90
|
|
—
|
|
0.4
|
|
90
|
|
0.5
|
|
90
|
|
70
|
|
0.05
|
|
22.2
|
|
Certain tax
adjustments, net
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
33
|
|
0.03
|
|
—
|
|
Non-GAAP
|
$
16,408
|
|
$
5,651
|
|
65.6 %
|
|
$ 3,993
|
|
24.3 %
|
|
$
3,921
|
|
$
3,213
|
|
$ 2.49
|
|
17.7 %
|
|
Currency
impact
|
46
|
|
(134)
|
|
0.9
|
|
246
|
|
1.5
|
|
|
|
|
|
0.16
|
|
|
|
Currency
Adjusted
|
$
16,454
|
|
$
5,517
|
|
66.5 %
|
|
$ 4,239
|
|
25.8 %
|
|
|
|
|
|
$ 2.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
October 27, 2023
|
|
(in millions, except
per share data)
|
Net
Sales
|
|
Cost of
Products
Sold
|
|
Gross
Margin
Percent
|
|
Operating
Profit
|
|
Operating
Profit
Percent
|
|
Income
Before
Income
Taxes
|
|
Net Income
attributable
to
Medtronic
|
|
Diluted
EPS
|
|
Effective
Tax Rate
|
|
GAAP
|
$
15,686
|
|
$
5,390
|
|
65.6 %
|
|
$ 2,608
|
|
16.6 %
|
|
$
2,510
|
|
$
1,700
|
|
$ 1.28
|
|
32.0 %
|
|
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)
|
|
0.1
|
|
107
|
|
0.7
|
|
107
|
|
97
|
|
0.07
|
|
9.3
|
|
Certain litigation
charges, net
|
—
|
|
—
|
|
—
|
|
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(7)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
375
|
|
0.28
|
|
—
|
|
Non-GAAP
|
$
15,686
|
|
$
5,306
|
|
66.2 %
|
|
$ 3,919
|
|
25.0 %
|
|
$
3,910
|
|
$
3,262
|
|
$ 2.45
|
|
16.4 %
|
|
|
|
See description of
non-GAAP financial measures contained in the press release dated
November 19, 2024.
|
|
(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
primarily include salaries and wages for employees supporting the
restructuring activities, consulting expenses, and asset
write-offs.
|
|
(3)
|
The charges primarily
include business combination costs, changes in fair value of
contingent consideration, and exit of business-related charges. The
six months ended October 25, 2024, also include gains related to
certain business or asset sales.
|
|
(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)
|
Reflects the
recognition of incremental Italian payback accruals resulting from
the two July 22, 2024 rulings by the Constitutional Court of Italy
relating to certain prior years since 2015.
|
|
(7)
|
The charge relates to
an income tax reserve adjustment associated with the June 2023,
Israeli Central-Lod District Court decision, the establishment of a
valuation allowance against certain net operating losses and
amortization of previously established deferred tax assets from
intercompany intellectual property transactions.
|
|
MEDTRONIC
PLC
GAAP TO NON-GAAP
RECONCILIATIONS(1)
(Unaudited)
|
|
|
Three months ended
October 25, 2024
|
|
(in
millions)
|
Net
Sales
|
|
SG&A
Expense
|
|
SG&A
Expense as
a % of Net
Sales
|
|
R&D
Expense
|
|
R&D
Expense
as a % of
Net Sales
|
|
Other
Operating
(Income)
Expense,
net
|
|
Other
Operating
(Inc.)/Exp.,
net as a % of
Net Sales
|
|
Other Non-
Operating
Income, net
|
|
GAAP
|
$
8,403
|
|
$ 2,757
|
|
32.8 %
|
|
$
697
|
|
8.3 %
|
|
$
(34)
|
|
(0.4) %
|
|
$
(173)
|
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
associated costs(2)
|
—
|
|
(6)
|
|
(0.1)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Acquisition and
divestiture-related items(3)
|
—
|
|
(19)
|
|
(0.2)
|
|
—
|
|
—
|
|
50
|
|
0.6
|
|
—
|
|
Medical device
regulations(4)
|
—
|
|
—
|
|
—
|
|
(4)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(Gain)/loss on
minority investments(5)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
10
|
|
Non-GAAP
|
$
8,403
|
|
$ 2,732
|
|
32.5 %
|
|
$
693
|
|
8.2 %
|
|
$
16
|
|
0.2 %
|
|
$
(163)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
October 25, 2024
|
|
(in
millions)
|
Net
Sales
|
|
SG&A
Expense
|
|
SG&A
Expense as
a % of Net
Sales
|
|
R&D
Expense
|
|
R&D
Expense
as a % of
Net Sales
|
|
Other
Operating
(Income)
Expense,
net
|
|
Other
Operating
(Inc.)/Exp.,
net as a % of
Net Sales
|
|
Other Non-
Operating
Income, net
|
|
GAAP
|
$
16,318
|
|
$ 5,412
|
|
33.2 %
|
|
$
1,373
|
|
8.4 %
|
|
$
(33)
|
|
(0.2) %
|
|
$
(330)
|
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
associated costs(2)
|
—
|
|
(11)
|
|
(0.1)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Acquisition and
divestiture-related items(3)
|
—
|
|
(27)
|
|
(0.3)
|
|
—
|
|
—
|
|
55
|
|
0.3
|
|
—
|
|
Medical device
regulations(4)
|
—
|
|
—
|
|
—
|
|
(7)
|
|
(0.1)
|
|
—
|
|
—
|
|
—
|
|
Other(6)
|
90
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(Gain)/loss on
minority investments(5)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
27
|
|
Non-GAAP
|
$
16,408
|
|
$ 5,374
|
|
32.8 %
|
|
$
1,366
|
|
8.3 %
|
|
$
23
|
|
0.1 %
|
|
$
(303)
|
|
See description of
non-GAAP financial measures contained in the press release dated
November 19, 2024.
|
|
(1)
|
The data in this
schedule has been intentionally rounded to the nearest million,
and, therefore, may not sum.
|
|
(2)
|
Associated costs
primarily include salaries and wages for employees supporting the
restructuring activities, consulting expenses, and asset
write-offs.
|
|
(3)
|
The charges primarily
include business combination costs, changes in fair value of
contingent consideration, exit of business-related charges, and
gains related to certain business or asset sales.
|
|
(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.
|
|
(6)
|
Reflects the
recognition of incremental Italian payback accruals resulting from
the two July 22, 2024 rulings by the Constitutional Court of Italy
relating to certain prior years since 2015.
|
|
MEDTRONIC
PLC
GAAP TO NON-GAAP
RECONCILIATIONS(1)
(Unaudited)
|
|
|
Six months
ended
|
|
(in
millions)
|
October 25,
2024
|
|
October 27,
2023
|
|
Net cash provided by
operating activities
|
$
1,944
|
|
$
1,536
|
|
Additions to property,
plant, and equipment
|
(924)
|
|
(815)
|
|
Free Cash
Flow(2)
|
$
1,020
|
|
$
721
|
|
|
|
See description of
non-GAAP financial measures contained in the press release dated
November 19, 2024.
|
|
(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 25,
2024
|
|
April 26,
2024
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,394
|
|
$
1,284
|
|
Investments
|
|
6,595
|
|
6,721
|
|
Accounts receivable,
less allowances and credit losses of $195 and $173,
respectively
|
|
6,260
|
|
6,128
|
|
Inventories
|
|
5,479
|
|
5,217
|
|
Other current
assets
|
|
2,710
|
|
2,584
|
|
Total current
assets
|
|
22,438
|
|
21,935
|
|
Property, plant, and
equipment, net
|
|
6,438
|
|
6,131
|
|
Goodwill
|
|
41,161
|
|
40,986
|
|
Other intangible
assets, net
|
|
12,423
|
|
13,225
|
|
Tax
assets
|
|
3,572
|
|
3,657
|
|
Other
assets
|
|
4,009
|
|
4,047
|
|
Total
assets
|
|
$
90,042
|
|
$
89,981
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Current debt
obligations
|
|
$
3,719
|
|
$
1,092
|
|
Accounts
payable
|
|
2,376
|
|
2,410
|
|
Accrued
compensation
|
|
1,893
|
|
2,375
|
|
Accrued income
taxes
|
|
947
|
|
1,330
|
|
Other accrued
expenses
|
|
3,260
|
|
3,582
|
|
Total current
liabilities
|
|
12,195
|
|
10,789
|
|
Long-term
debt
|
|
24,607
|
|
23,932
|
|
Accrued compensation
and retirement benefits
|
|
1,084
|
|
1,101
|
|
Accrued income
taxes
|
|
1,432
|
|
1,859
|
|
Deferred tax
liabilities
|
|
473
|
|
515
|
|
Other
liabilities
|
|
1,534
|
|
1,365
|
|
Total
liabilities
|
|
41,326
|
|
39,561
|
|
Commitments and
contingencies
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Ordinary shares— par
value $0.0001, 2.6 billion shares authorized, 1,282,553,150 and
1,311,337,531 shares issued and outstanding,
respectively
|
|
—
|
|
—
|
|
Additional paid-in
capital
|
|
20,824
|
|
23,129
|
|
Retained
earnings
|
|
30,919
|
|
30,403
|
|
Accumulated other
comprehensive loss
|
|
(3,250)
|
|
(3,318)
|
|
Total shareholders'
equity
|
|
48,494
|
|
50,214
|
|
Noncontrolling
interests
|
|
222
|
|
206
|
|
Total
equity
|
|
48,716
|
|
50,420
|
|
Total liabilities
and equity
|
|
$
90,042
|
|
$
89,981
|
|
|
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 25,
2024
|
|
October 27,
2023
|
|
Operating
Activities:
|
|
|
|
|
Net income
|
$
2,327
|
|
$
1,708
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and amortization
|
1,337
|
|
1,344
|
|
Provision
for credit losses
|
45
|
|
37
|
|
Deferred
income taxes
|
57
|
|
(36)
|
|
Stock-based compensation
|
242
|
|
219
|
|
Other,
net
|
(98)
|
|
182
|
|
Change in
operating assets and liabilities, net of acquisitions and
divestitures:
|
|
|
|
|
Accounts receivable,
net
|
(181)
|
|
(117)
|
|
Inventories
|
(278)
|
|
(616)
|
|
Accounts payable and
accrued liabilities
|
(707)
|
|
(699)
|
|
Other operating assets
and liabilities
|
(800)
|
|
(486)
|
|
Net cash provided by
operating activities
|
1,944
|
|
1,536
|
|
Investing
Activities:
|
|
|
|
|
Acquisitions, net of
cash acquired
|
—
|
|
(22)
|
|
Additions to property,
plant, and equipment
|
(924)
|
|
(815)
|
|
Purchases of
investments
|
(4,019)
|
|
(3,403)
|
|
Sales and maturities
of investments
|
4,338
|
|
3,336
|
|
Other investing
activities, net
|
1
|
|
(59)
|
|
Net cash used in
investing activities
|
(604)
|
|
(963)
|
|
Financing
Activities:
|
|
|
|
|
Change in current debt
obligations, net
|
(67)
|
|
1,321
|
|
Issuance of long-term
debt
|
3,209
|
|
—
|
|
Dividends to
shareholders
|
(1,795)
|
|
(1,836)
|
|
Issuance of ordinary
shares
|
232
|
|
149
|
|
Repurchase of ordinary
shares
|
(2,780)
|
|
(378)
|
|
Other financing
activities, net
|
(64)
|
|
153
|
|
Net cash used in
financing activities
|
(1,265)
|
|
(591)
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
35
|
|
(214)
|
|
Net change in cash
and cash equivalents
|
110
|
|
(232)
|
|
Cash and cash
equivalents at beginning of period
|
1,284
|
|
1,543
|
|
Cash and cash
equivalents at end of period
|
$
1,394
|
|
$
1,311
|
|
|
|
|
|
Supplemental Cash
Flow Information
|
|
|
|
|
Cash paid
for:
|
|
|
|
|
Income
taxes
|
$
1,335
|
|
$
1,110
|
|
Interest
|
513
|
|
476
|
|
|
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 Galway, 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 more than
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 on 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 2024,
and references to sequential changes are in comparison to the prior
fiscal quarter.
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.
Multitom Rax™ is a trademark of Siemens Healthcare GmbH.
|
Contacts:
|
|
|
|
|
Erika Winkels
|
Ryan
Weispfenning
|
|
Public Relations
|
Investor
Relations
|
|
+1-763-526-8478
|
+1-763-505-4626
|
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SOURCE Medtronic plc
