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Medtronic reported fiscal 2Q22 orthopedic sales of $777.6 million, +1% vs. fiscal 2Q21. Like its peers, the company faced end-market headwinds due to COVID’s impact on procedure volumes and critical staffing shortages in hospitals. For the fiscal year 2022, Medtronic lowered its previous guidance of 9% growth to a range of 7% to 8%. The company expects its Cranial and Spine business to grow 4% to 5% in the fiscal third quarter that largely overlaps with the calender fourth quarter.
Medtronic remains focused on driving share gains through greater focus and accountability for its business units. While COVID makes the picture murky, the company believes it’s gaining share in the spine market. In addition to incrementally enhancing the value of its digital ecosystem, Medtronic took aim at a competitor with the Catalyft expandable interbody launch that is designed to attract Globus users.
“It’s definitely a fluid situation, and it’s gotten more difficult to predict. Before, it was more of an epidemiology discussion around COVID cases and their severity and the impact to ICU beds. Now you’ve got this critical staffing shortage in hospitals, particularly this nursing shortage you hear about. That’s been a little bit more difficult to predict. Then finally, you’ve got some supply chain issues, which for us have been manageable so far. But as time goes on, that gets more difficult.” – Medtronic CEO Geoffrey Martha
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 2Q22 | FY 2Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $652.3 | $637.0 | $15.3 | 2.4% |
| Orthobiologics | $125.3 | $133.0 | ($7.7) | (5.8%) |
| Total | $777.6 | $770.0 | $7.6 | 1% |
| FY 1H22 | FY 1H21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $1,283.1 | $1,212.0 | $71.1 | 5.9% |
| Orthobiologics | $252.6 | $246.3 | $6.3 | 2.6% |
| Total | $1,535.7 | $1,458.3 | $77.4 | 5.3% |
Orthopedic Sales by Geography
| FY 2Q22 | FY 2Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $545.8 | $553.6 | ($7.8) | (1.4%) |
| OUS | $231.7 | $216.4 | $15.3 | 7.1% |
| EMEA | $108.9 | $101.6 | $7.2 | 7.1% |
| APAC | $101.1 | $96.3 | $4.8 | 5% |
| ROW | $21.8 | $18.5 | $3.3 | 17.7% |
| Total | $777.6 | $770.0 | $7.6 | 1% |
| FY 1H22 | FY 1H21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,082.5 | $1,058.1 | $24.4 | 2.3% |
| OUS | $453.2 | $400.1 | $53.0 | 13.3% |
| EMEA | $213.1 | $194.6 | $18.5 | 9.5% |
| APAC | $199.6 | $177.5 | $22.2 | 12.5% |
| ROW | $40.4 | $28.1 | $12.3 | 43.8% |
| Total | $1,535.7 | $1,458.3 | $77.4 | 5.3% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $15,834.0 | |
| Cost of Sales | $5,095.0 | 32.2% |
| Selling and Admin | $5,162.0 | 32.6% |
| R & D | $1,426.0 | 9% |
| Other | $2,077.0 | 13.1% |
| Net Earnings | $2,074.0 | 13.1% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Medtronic reported fiscal 2Q22 orthopedic sales of $777.6 million, +1% vs. fiscal 2Q21. Like its peers, the company faced end-market headwinds due to COVID's impact on procedure volumes and critical staffing shortages in hospitals. For the fiscal year 2022, Medtronic lowered its previous guidance of 9% growth to a range of 7% to 8%. The...
Medtronic reported fiscal 2Q22 orthopedic sales of $777.6 million, +1% vs. fiscal 2Q21. Like its peers, the company faced end-market headwinds due to COVID’s impact on procedure volumes and critical staffing shortages in hospitals. For the fiscal year 2022, Medtronic lowered its previous guidance of 9% growth to a range of 7% to 8%. The company expects its Cranial and Spine business to grow 4% to 5% in the fiscal third quarter that largely overlaps with the calender fourth quarter.
Medtronic remains focused on driving share gains through greater focus and accountability for its business units. While COVID makes the picture murky, the company believes it’s gaining share in the spine market. In addition to incrementally enhancing the value of its digital ecosystem, Medtronic took aim at a competitor with the Catalyft expandable interbody launch that is designed to attract Globus users.
“It’s definitely a fluid situation, and it’s gotten more difficult to predict. Before, it was more of an epidemiology discussion around COVID cases and their severity and the impact to ICU beds. Now you’ve got this critical staffing shortage in hospitals, particularly this nursing shortage you hear about. That’s been a little bit more difficult to predict. Then finally, you’ve got some supply chain issues, which for us have been manageable so far. But as time goes on, that gets more difficult.” – Medtronic CEO Geoffrey Martha
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 2Q22 | FY 2Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $652.3 | $637.0 | $15.3 | 2.4% |
| Orthobiologics | $125.3 | $133.0 | ($7.7) | (5.8%) |
| Total | $777.6 | $770.0 | $7.6 | 1% |
| FY 1H22 | FY 1H21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $1,283.1 | $1,212.0 | $71.1 | 5.9% |
| Orthobiologics | $252.6 | $246.3 | $6.3 | 2.6% |
| Total | $1,535.7 | $1,458.3 | $77.4 | 5.3% |
Orthopedic Sales by Geography
| FY 2Q22 | FY 2Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $545.8 | $553.6 | ($7.8) | (1.4%) |
| OUS | $231.7 | $216.4 | $15.3 | 7.1% |
| EMEA | $108.9 | $101.6 | $7.2 | 7.1% |
| APAC | $101.1 | $96.3 | $4.8 | 5% |
| ROW | $21.8 | $18.5 | $3.3 | 17.7% |
| Total | $777.6 | $770.0 | $7.6 | 1% |
| FY 1H22 | FY 1H21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,082.5 | $1,058.1 | $24.4 | 2.3% |
| OUS | $453.2 | $400.1 | $53.0 | 13.3% |
| EMEA | $213.1 | $194.6 | $18.5 | 9.5% |
| APAC | $199.6 | $177.5 | $22.2 | 12.5% |
| ROW | $40.4 | $28.1 | $12.3 | 43.8% |
| Total | $1,535.7 | $1,458.3 | $77.4 | 5.3% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $15,834.0 | |
| Cost of Sales | $5,095.0 | 32.2% |
| Selling and Admin | $5,162.0 | 32.6% |
| R & D | $1,426.0 | 9% |
| Other | $2,077.0 | 13.1% |
| Net Earnings | $2,074.0 | 13.1% |
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.
