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Medtronic reported FY 2Q23 orthopedic sales of $827.4 million, +6.4% compared to the second quarter of FY 2022.
While the company experienced slower-than-expected recovery and supply constraints in some of its businesses, its spine franchise grew in the mid-teens in the U.S. Those gains offset volume-based procurement in China and currency headwinds.
During NASS, Medtronic unveiled Aible, its integrated ecosystem of technologies that spans implants, planning, navigation, robotics and patient follow-up. While hospitals are elongating capital sales cycles, the company achieved a record quarter for certain technology sales.
Medtronic CEO Geoffrey Martha said, “Our capital tends to be tied to profitable procedures, and we had a strong capital performance this quarter, especially in our Cranial & Spinal Technology (CST) business. Navigation and inter-operative imaging had record capital quarters for us. We definitely see it takes a little longer to close a deal, but the demand as you are working with the hospital and how they are going to pay or finance this, we are having strong demand in those areas.”
The company expects sales growth to accelerate in the coming quarter, with the CST business achieving mid-single-digit organic growth.
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 2Q23 | FY 2Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $685.6 | $652.3 | $33.3 | 5.1% |
| Orthobiologics | $141.8 | $125.3 | $16.5 | 13.2% |
| Total | $827.4 | $777.6 | $49.8 | 6.4% |
| FY 1H23 | FY 1H22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $1,303.7 | $1,283.1 | $20.7 | 1.6% |
| Orthobiologics | $250.9 | $252.6 | ($1.7) | (0.7%) |
| Total | $1,554.7 | $1,535.7 | $19.0 | 1.2% |
Orthopedic Sales by Geography
| FY 2Q23 | FY 2Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $625.3 | $545.8 | $79.5 | 14.6% |
| OUS | $202.1 | $231.7 | ($29.7) | (12.8%) |
| EMEA | $109.6 | $108.9 | $0.8 | 0.7% |
| Asia Pacific | $74.5 | $101.1 | ($26.6) | (26.3%) |
| Rest of World | $18.0 | $21.8 | ($3.8) | (17.6%) |
| Total | $827.4 | $777.6 | $49.8 | 6.4% |
| FY 1H23 | FY 1H22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,156.7 | $1,082.5 | $74.1 | 6.8% |
| OUS | $398.0 | $453.2 | ($55.2) | (12.2%) |
| EMEA | $204.2 | $213.1 | ($8.9) | (4.2%) |
| Asia Pacific | $158.1 | $199.6 | ($41.5) | (20.8%) |
| Rest of World | $35.7 | $40.4 | ($4.7) | (11.6%) |
| Total | $1,554.7 | $1,535.7 | $19.0 | 1.2% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $14,956.0 | |
| Cost of Sales | $5,051.0 | 33.8% |
| Selling and Admin | $5,184.0 | 34.7% |
| R & D | $1,368.0 | 9.1% |
| Other | $1,997.0 | 13.4% |
| Net Earnings | $1,356.0 | 9.1% |
Medtronic reported FY 2Q23 orthopedic sales of $827.4 million, +6.4% compared to the second quarter of FY 2022.
While the company experienced slower-than-expected recovery and supply constraints in some of its businesses, its spine franchise grew in the mid-teens in the U.S. Those gains offset volume-based procurement in China and currency...
Medtronic reported FY 2Q23 orthopedic sales of $827.4 million, +6.4% compared to the second quarter of FY 2022.
While the company experienced slower-than-expected recovery and supply constraints in some of its businesses, its spine franchise grew in the mid-teens in the U.S. Those gains offset volume-based procurement in China and currency headwinds.
During NASS, Medtronic unveiled Aible, its integrated ecosystem of technologies that spans implants, planning, navigation, robotics and patient follow-up. While hospitals are elongating capital sales cycles, the company achieved a record quarter for certain technology sales.
Medtronic CEO Geoffrey Martha said, “Our capital tends to be tied to profitable procedures, and we had a strong capital performance this quarter, especially in our Cranial & Spinal Technology (CST) business. Navigation and inter-operative imaging had record capital quarters for us. We definitely see it takes a little longer to close a deal, but the demand as you are working with the hospital and how they are going to pay or finance this, we are having strong demand in those areas.”
The company expects sales growth to accelerate in the coming quarter, with the CST business achieving mid-single-digit organic growth.
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 2Q23 | FY 2Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $685.6 | $652.3 | $33.3 | 5.1% |
| Orthobiologics | $141.8 | $125.3 | $16.5 | 13.2% |
| Total | $827.4 | $777.6 | $49.8 | 6.4% |
| FY 1H23 | FY 1H22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $1,303.7 | $1,283.1 | $20.7 | 1.6% |
| Orthobiologics | $250.9 | $252.6 | ($1.7) | (0.7%) |
| Total | $1,554.7 | $1,535.7 | $19.0 | 1.2% |
Orthopedic Sales by Geography
| FY 2Q23 | FY 2Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $625.3 | $545.8 | $79.5 | 14.6% |
| OUS | $202.1 | $231.7 | ($29.7) | (12.8%) |
| EMEA | $109.6 | $108.9 | $0.8 | 0.7% |
| Asia Pacific | $74.5 | $101.1 | ($26.6) | (26.3%) |
| Rest of World | $18.0 | $21.8 | ($3.8) | (17.6%) |
| Total | $827.4 | $777.6 | $49.8 | 6.4% |
| FY 1H23 | FY 1H22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,156.7 | $1,082.5 | $74.1 | 6.8% |
| OUS | $398.0 | $453.2 | ($55.2) | (12.2%) |
| EMEA | $204.2 | $213.1 | ($8.9) | (4.2%) |
| Asia Pacific | $158.1 | $199.6 | ($41.5) | (20.8%) |
| Rest of World | $35.7 | $40.4 | ($4.7) | (11.6%) |
| Total | $1,554.7 | $1,535.7 | $19.0 | 1.2% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $14,956.0 | |
| Cost of Sales | $5,051.0 | 33.8% |
| Selling and Admin | $5,184.0 | 34.7% |
| R & D | $1,368.0 | 9.1% |
| Other | $1,997.0 | 13.4% |
| Net Earnings | $1,356.0 | 9.1% |
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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.
