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Medtronic reported FY 1Q23 orthopedic sales of $727.3 million, -4.1% compared to FY 1Q22.
The company estimates that it won share through its core spine offerings in the U.S., but volume-based procurement in China and unfavorable ordering patterns in biologics offset that strength. Medtronic expects incremental pressure from VBP as China advances toward a national tender for spine.
The company’s expansive enabling technology portfolio experienced softer sales in the first quarter. Shortfalls in navigation and robotics were exacerbated by supply disruption of disposables.
Brett Wall, President of Medtronic’s Neuroscience Portfolio, said, “What we saw was extended purchasing times, particularly as we move through to the end of our quarter. We have a variety of different selling approaches that we use. Hospitals are in a mode of preserving cash. We have more opportunities to put forth different models where we actually utilize the implantables and other disposable products as a way of financing this particular capital, and that works very well.”
Medtronic expects its fiscal second quarter to bring a return to growth, with its Neuroscience portfolio (including spine and biologics) reaching organic growth of +5.5% to +6%. For the full fiscal year of 2023, the company expects organic growth of +4.75% to +5.75% in Neuroscience.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| FY 1Q23 | FY 1Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $618.2 | $630.8 | ($12.6) | (2%) |
| Orthobiologics | $109.1 | $127.3 | ($18.2) | (14.3%) |
| Total | $727.3 | $758.1 | ($30.8) | (4.1%) |
Orthopedic Sales by Geography
| FY 1Q23 | FY 1Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $531.3 | $536.7 | ($5.3) | (1%) |
| OUS | $195.9 | $221.4 | ($25.5) | (11.5%) |
| EMEA | $94.5 | $104.2 | ($9.7) | (9.3%) |
| Asia Pacific | $83.6 | $98.6 | ($14.9) | (15.1%) |
| Rest of World | $17.8 | $18.6 | ($0.9) | (4.7%) |
| Total | $727.3 | $758.1 | ($30.8) | (4.1%) |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $7,371.0 | |
| Cost of Sales | $2,516.0 | 34.1% |
| Selling and Admin | $2,567.0 | 34.8% |
| R & D | $692.0 | 9.4% |
| Other | $667.0 | 9% |
| Net Earnings | $929.0 | 12.6% |
Medtronic reported FY 1Q23 orthopedic sales of $727.3 million, -4.1% compared to FY 1Q22.
The company estimates that it won share through its core spine offerings in the U.S., but volume-based procurement in China and unfavorable ordering patterns in biologics offset that strength. Medtronic expects incremental pressure from VBP as China...
Medtronic reported FY 1Q23 orthopedic sales of $727.3 million, -4.1% compared to FY 1Q22.
The company estimates that it won share through its core spine offerings in the U.S., but volume-based procurement in China and unfavorable ordering patterns in biologics offset that strength. Medtronic expects incremental pressure from VBP as China advances toward a national tender for spine.
The company’s expansive enabling technology portfolio experienced softer sales in the first quarter. Shortfalls in navigation and robotics were exacerbated by supply disruption of disposables.
Brett Wall, President of Medtronic’s Neuroscience Portfolio, said, “What we saw was extended purchasing times, particularly as we move through to the end of our quarter. We have a variety of different selling approaches that we use. Hospitals are in a mode of preserving cash. We have more opportunities to put forth different models where we actually utilize the implantables and other disposable products as a way of financing this particular capital, and that works very well.”
Medtronic expects its fiscal second quarter to bring a return to growth, with its Neuroscience portfolio (including spine and biologics) reaching organic growth of +5.5% to +6%. For the full fiscal year of 2023, the company expects organic growth of +4.75% to +5.75% in Neuroscience.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| FY 1Q23 | FY 1Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $618.2 | $630.8 | ($12.6) | (2%) |
| Orthobiologics | $109.1 | $127.3 | ($18.2) | (14.3%) |
| Total | $727.3 | $758.1 | ($30.8) | (4.1%) |
Orthopedic Sales by Geography
| FY 1Q23 | FY 1Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $531.3 | $536.7 | ($5.3) | (1%) |
| OUS | $195.9 | $221.4 | ($25.5) | (11.5%) |
| EMEA | $94.5 | $104.2 | ($9.7) | (9.3%) |
| Asia Pacific | $83.6 | $98.6 | ($14.9) | (15.1%) |
| Rest of World | $17.8 | $18.6 | ($0.9) | (4.7%) |
| Total | $727.3 | $758.1 | ($30.8) | (4.1%) |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $7,371.0 | |
| Cost of Sales | $2,516.0 | 34.1% |
| Selling and Admin | $2,567.0 | 34.8% |
| R & D | $692.0 | 9.4% |
| Other | $667.0 | 9% |
| Net Earnings | $929.0 | 12.6% |
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ME
Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
