Medtronic reports 3% drop in Q2 2023 global revenue

Medtronic reported global revenue of $7.585 billion for the second quarter (2Q) of fiscal 2023 (FY23), representing a 3% decline as reported and a 2% increase on an organic basis.

This organic comparison excludes $25 million from the Intersect ENT acquisition, as well as a negative $457 million impact from foreign currency translation.

For the quarter ended Oct. 28, the company’s GAAP net income was $427 million and diluted earnings per share (EPS) was $0.32, both representing a 67% decline compared to the same period. quarter of the previous year.

Its non-GAAP net income was $1.725 billion, down 3.7% from the $1.792 billion reported a year earlier.

Medtronic non-GAAP diluted EPS was $1.30, down 1.5% from $1.32 in the year-earlier quarter.

The company said the drop in its earnings reflects the ongoing macroeconomic effect of inflation on labor, utilities, materials and freight.

Its US revenue was $4.069 billion, representing 54% of total revenue, representing an increase of 2% on a reported basis and 1% on an organic basis.

Developed markets revenues outside the US, which represented 28% of total revenues, decreased 13% on a reported basis and 3% on an organic basis to $2.157 billion.

Medtronic’s Cardiovascular portfolio revenue declined 2% as reported and increased 4% on an organic basis to $2.773 billion.

Medical-surgical revenue for the reported quarter was $2.070 billion, down 10% as reported and 3% on an organic basis.

This decline was partially offset by low single-digit growth in Surgical Innovations (SI).

Across NeuroScience’s portfolio, company revenue was $2.186 billion, up 2% as reported and up 5% on an organic basis.

Diabetes portfolio revenue decreased 5% as reported and increased 3% on an organic basis to $556 million.

Medtronic President and CEO Geoff Martha said, “The slower-than-expected procedure and supply recovery drove revenue below our expectations this quarter.

“We continue to take decisive actions to improve the company’s overall performance, including streamlining our organizational structure, strengthening our supply chain, driving a culture of performance and strategically allocating capital to support our best growth opportunities with the investments they deserve.

“We are seeing the benefit of these changes – along with new incentives and strong execution – in certain businesses, and we are focused on ensuring these efforts translate into better performance across the entire company.”

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Medtronic reports 3% drop in Q2 2023 global revenue

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