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Medtronic reported FY 4Q23 orthopedic sales of $854.3 million, +2.9% compared to 4Q22. For the full fiscal year, the company amassed orthopedic sales of $3.2 billion, +0.5% compared to the prior year.
Procedure volume recovery and supply improvements drove the growth. However, volume-based procurement in China, inflation and foreign exchange rates remained headwinds.
Medtronic’s market-leading spinal technology portfolio is driving implant pull-through and, according to the company, driving some of the consolidation trends in the segment.
“The value proposition in the spine industry is centered around enabling technology,” said Medtronic CEO Geoffrey Martha. “You are now seeing the impact of that in the marketplace. You’re seeing what it’s doing to the marketplace around consolidation. This is where the business is heading, the industry is heading, and it takes a lot of technology prowess and it takes a lot of balance sheet to do this. It’s having a big impact on the consolidation that you’re seeing. We’re really excited about our position.”
Medtronic expects fiscal year 2024 organic growth between 4% and 4.5%, and advised analysts to model toward the low end of that range.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic sales and growth on an as-reported basis.
Orthopedic Sales by Segment
| FY 4Q23 | FY 4Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $588.7 | $572.7 | $16.0 | 2.8% |
| Orthobiologics | $132.5 | $130.7 | $1.8 | 1.4% |
| Enabling Technology | $51.6 | $48.3 | $3.3 | 6.9% |
| Other | $81.4 | $78.7 | $2.8 | 3.5% |
| Total | $854.3 | $830.3 | $24.0 | 2.9% |
| FY23 | FY22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $2,262.9 | $2,212.7 | $50.2 | 2.3% |
| Orthobiologics | $495.6 | $527.3 | ($31.7) | (6%) |
| Enabling Technology | $155.0 | $145.6 | $9.4 | 6.5% |
| Other | $323.1 | $335.0 | ($11.9) | (3.6%) |
| Total | $3,236.6 | $3,220.6 | $16.0 | 0.5% |
Orthopedic Sales by Geography
| FY 4Q23 | FY 4Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $627.9 | $602.4 | $25.5 | 4.2% |
| OUS | $226.4 | $227.9 | ($1.5) | (0.7%) |
| EMEA | $125.6 | $112.1 | $13.5 | 12% |
| Asia Pacific | $85.4 | $99.6 | ($14.2) | (14.3%) |
| Rest of World | $15.4 | $16.2 | ($0.8) | (5.1%) |
| Total | $854.3 | $830.3 | $24.0 | 2.9% |
| FY23 | FY22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $2,395.3 | $2,299.3 | $96.0 | 4.2% |
| OUS | $841.4 | $921.3 | ($79.9) | (8.7%) |
| EMEA | $413.5 | $430.9 | ($17.4) | (4%) |
| Asia Pacific | $335.2 | $386.5 | ($51.3) | (13.3%) |
| Rest of World | $92.7 | $103.9 | ($11.2) | (10.8%) |
| Total | $3,236.6 | $3,220.6 | $16.0 | 0.5% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $8,544.0 | |
| Cost of Sales | $2,980.0 | 34.9% |
| Selling and Admin | $2,616.0 | 30.6% |
| R & D | $640.0 | 7.5% |
| Other | $1,120.0 | 13.1% |
| Net Earnings | $1,188.0 | 13.9% |
Medtronic reported FY 4Q23 orthopedic sales of $854.3 million, +2.9% compared to 4Q22. For the full fiscal year, the company amassed orthopedic sales of $3.2 billion, +0.5% compared to the prior year.
Procedure volume recovery and supply improvements drove the growth. However, volume-based procurement in China, inflation and foreign...
Medtronic reported FY 4Q23 orthopedic sales of $854.3 million, +2.9% compared to 4Q22. For the full fiscal year, the company amassed orthopedic sales of $3.2 billion, +0.5% compared to the prior year.
Procedure volume recovery and supply improvements drove the growth. However, volume-based procurement in China, inflation and foreign exchange rates remained headwinds.
Medtronic’s market-leading spinal technology portfolio is driving implant pull-through and, according to the company, driving some of the consolidation trends in the segment.
“The value proposition in the spine industry is centered around enabling technology,” said Medtronic CEO Geoffrey Martha. “You are now seeing the impact of that in the marketplace. You’re seeing what it’s doing to the marketplace around consolidation. This is where the business is heading, the industry is heading, and it takes a lot of technology prowess and it takes a lot of balance sheet to do this. It’s having a big impact on the consolidation that you’re seeing. We’re really excited about our position.”
Medtronic expects fiscal year 2024 organic growth between 4% and 4.5%, and advised analysts to model toward the low end of that range.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic sales and growth on an as-reported basis.
Orthopedic Sales by Segment
| FY 4Q23 | FY 4Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $588.7 | $572.7 | $16.0 | 2.8% |
| Orthobiologics | $132.5 | $130.7 | $1.8 | 1.4% |
| Enabling Technology | $51.6 | $48.3 | $3.3 | 6.9% |
| Other | $81.4 | $78.7 | $2.8 | 3.5% |
| Total | $854.3 | $830.3 | $24.0 | 2.9% |
| FY23 | FY22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $2,262.9 | $2,212.7 | $50.2 | 2.3% |
| Orthobiologics | $495.6 | $527.3 | ($31.7) | (6%) |
| Enabling Technology | $155.0 | $145.6 | $9.4 | 6.5% |
| Other | $323.1 | $335.0 | ($11.9) | (3.6%) |
| Total | $3,236.6 | $3,220.6 | $16.0 | 0.5% |
Orthopedic Sales by Geography
| FY 4Q23 | FY 4Q22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $627.9 | $602.4 | $25.5 | 4.2% |
| OUS | $226.4 | $227.9 | ($1.5) | (0.7%) |
| EMEA | $125.6 | $112.1 | $13.5 | 12% |
| Asia Pacific | $85.4 | $99.6 | ($14.2) | (14.3%) |
| Rest of World | $15.4 | $16.2 | ($0.8) | (5.1%) |
| Total | $854.3 | $830.3 | $24.0 | 2.9% |
| FY23 | FY22 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $2,395.3 | $2,299.3 | $96.0 | 4.2% |
| OUS | $841.4 | $921.3 | ($79.9) | (8.7%) |
| EMEA | $413.5 | $430.9 | ($17.4) | (4%) |
| Asia Pacific | $335.2 | $386.5 | ($51.3) | (13.3%) |
| Rest of World | $92.7 | $103.9 | ($11.2) | (10.8%) |
| Total | $3,236.6 | $3,220.6 | $16.0 | 0.5% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $8,544.0 | |
| Cost of Sales | $2,980.0 | 34.9% |
| Selling and Admin | $2,616.0 | 30.6% |
| R & D | $640.0 | 7.5% |
| Other | $1,120.0 | 13.1% |
| Net Earnings | $1,188.0 | 13.9% |
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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.
