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Medtronic reported FY 1Q22 orthopedic revenue of $758.1 million, +10.1% vs. FY 1Q21. Strength in biologics, ongoing procedure recovery for core spine and strong capital sales of navigation and imaging drove sales.
Medtronic’s spine franchise declined -1.8% compared to the same period in the calendar year 2019, but the company remains confident in the underlying strength of its business. Volumes slowed in late July as the delta variant impacted hospitals, and leadership anticipates negative impact from the surge next quarter.
Medtronic provided FY 2022 guidance of +11% growth for its Neuroscience division, which houses spine. The company assumes no recovery of backlogged procedures in that guidance, but noted that previous COVID waves brought quick recovery of deferred surgeries.
The company referenced spine only obliquely during its quarterly earnings call. However, in comments not specific to orthopedics, it did reaffirm its commitment to a tuck-in acquisition strategy aimed at earlier stage companies.
“The tuck-in strategy is definitely the one that we’re focused on. We’re not buying growth. We’re growing what we buy. We buy these earlier stage companies. It’s been consistent with what we’ve been doing over the last couple of quarters. I think we’ve done seven deals over the last year and a half for about $2.3 billion. This one [Intersect ENT] is roughly a billion dollars. This is the kind of deal I would expect from us.” – Medtronic CEO Geoffrey Martha
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| FY 1Q22 | FY 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $630.8 | $575.0 | $55.8 | 9.7% |
| Orthobiologics | $127.3 | $113.3 | $14.0 | 12.4% |
| Total | $758.1 | $688.3 | $69.8 | 10.1% |
Geographic Sales
| FY 1Q22 | FY 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $536.7 | $504.5 | $32.1 | 6.4% |
| OUS | $221.4 | $183.7 | $37.7 | 20.5% |
| EMEA | $104.2 | $92.9 | $11.3 | 12.2% |
| Asia Pacific | $98.6 | $81.2 | $17.3 | 21.3% |
| Rest of World | $18.6 | $9.6 | $9.0 | 94% |
| Total | $758.1 | $688.3 | $69.8 | 10.1% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $7,987.0 | |
| Cost of Sales | $2,598.0 | 32.5% |
| Selling and Admin | $2,547.0 | 31.9% |
| R & D | $750.0 | 9.4% |
| Other | $1,329.0 | 16.6% |
| Net Earnings | $763.0 | 9.6% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Medtronic reported FY 1Q22 orthopedic revenue of $758.1 million, +10.1% vs. FY 1Q21. Strength in biologics, ongoing procedure recovery for core spine and strong capital sales of navigation and imaging drove sales.
Medtronic's spine franchise declined -1.8% compared to the same period in the calendar year 2019, but the company remains...
Medtronic reported FY 1Q22 orthopedic revenue of $758.1 million, +10.1% vs. FY 1Q21. Strength in biologics, ongoing procedure recovery for core spine and strong capital sales of navigation and imaging drove sales.
Medtronic’s spine franchise declined -1.8% compared to the same period in the calendar year 2019, but the company remains confident in the underlying strength of its business. Volumes slowed in late July as the delta variant impacted hospitals, and leadership anticipates negative impact from the surge next quarter.
Medtronic provided FY 2022 guidance of +11% growth for its Neuroscience division, which houses spine. The company assumes no recovery of backlogged procedures in that guidance, but noted that previous COVID waves brought quick recovery of deferred surgeries.
The company referenced spine only obliquely during its quarterly earnings call. However, in comments not specific to orthopedics, it did reaffirm its commitment to a tuck-in acquisition strategy aimed at earlier stage companies.
“The tuck-in strategy is definitely the one that we’re focused on. We’re not buying growth. We’re growing what we buy. We buy these earlier stage companies. It’s been consistent with what we’ve been doing over the last couple of quarters. I think we’ve done seven deals over the last year and a half for about $2.3 billion. This one [Intersect ENT] is roughly a billion dollars. This is the kind of deal I would expect from us.” – Medtronic CEO Geoffrey Martha
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| FY 1Q22 | FY 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $630.8 | $575.0 | $55.8 | 9.7% |
| Orthobiologics | $127.3 | $113.3 | $14.0 | 12.4% |
| Total | $758.1 | $688.3 | $69.8 | 10.1% |
Geographic Sales
| FY 1Q22 | FY 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $536.7 | $504.5 | $32.1 | 6.4% |
| OUS | $221.4 | $183.7 | $37.7 | 20.5% |
| EMEA | $104.2 | $92.9 | $11.3 | 12.2% |
| Asia Pacific | $98.6 | $81.2 | $17.3 | 21.3% |
| Rest of World | $18.6 | $9.6 | $9.0 | 94% |
| Total | $758.1 | $688.3 | $69.8 | 10.1% |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $7,987.0 | |
| Cost of Sales | $2,598.0 | 32.5% |
| Selling and Admin | $2,547.0 | 31.9% |
| R & D | $750.0 | 9.4% |
| Other | $1,329.0 | 16.6% |
| Net Earnings | $763.0 | 9.6% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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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.
