10-KPeriod: FY2022

BOSTON SCIENTIFIC CORP Annual Report, Year Ended Dec 31, 2022

Filed February 23, 2023For Securities:BSX

Summary

Boston Scientific Corporation (BSX) reported strong net sales growth of 6.7% to $12.68 billion for the fiscal year ended December 31, 2022. This growth was driven by a combination of operational expansion, strategic acquisitions, and a diverse product portfolio, particularly in the Cardiovascular and MedSurg segments. Despite facing headwinds from foreign currency fluctuations and global supply chain challenges, the company demonstrated resilience. Financially, BSX reported a net income of $642 million, or $0.45 per diluted share. On an adjusted basis, excluding certain charges and credits, net income was $2.46 billion, or $1.71 per diluted share. The company maintained a robust balance sheet with $928 million in unrestricted cash and cash equivalents and a strong credit facility. The company's strategic imperatives focus on strengthening category leadership, expanding into high-growth adjacencies, and driving global expansion, which are supported by ongoing investments in research and development.

Financial Highlights

53 data points
Beta

Revenue

$12.68B

68.8% Gross Margin

Net Income

$698.00M

5.5% Net Margin

EPS (Diluted)

$0.45

Total Assets

$32.47B

Cash & Equivalents

$928.00M

Free Cash Flow

$938.00M

Financial Statements
Beta
Revenue$12.68B
Cost of Revenue$3.96B
Gross Profit$8.73B
SG&A Expenses$4.52B
Operating Expenses$7.08B
Operating Income$1.65B
Interest Expense$470.00M
Net Income$698.00M
EPS (Basic)$0.45
EPS (Diluted)$0.45
Shares Outstanding (Basic)1.43B
Shares Outstanding (Diluted)1.44B

Key Highlights

  • 1Net sales increased by 6.7% to $12.68 billion in 2022, driven by operational growth and acquisitions.
  • 2Reported net income was $642 million ($0.45 per diluted share), with adjusted net income of $2.46 billion ($1.71 per diluted share).
  • 3The Cardiovascular segment remains the largest contributor to net sales, with Cardiology products generating $5.93 billion.
  • 4The MedSurg segment also showed growth, with Urology sales up 12.0% and Endoscopy sales up 3.7%.
  • 5The company continues to invest in R&D, with R&D expenses increasing by 10% to $1.32 billion.
  • 6Boston Scientific repurchased no shares in 2022 but has $1 billion remaining on its stock repurchase program authorization.
  • 7The company announced a new global restructuring program (2023 Restructuring Plan) expected to result in pre-tax charges of $450-$550 million to improve operating performance.

Frequently Asked Questions

In 2022, Boston Scientific reported net sales of $12.68 billion, a 6.7% increase year-over-year, driven by operational growth and strategic acquisitions. Reported net income was $642 million, or $0.45 per diluted share. On an adjusted basis, excluding certain charges and credits, net income was $2.46 billion, or $1.71 per diluted share.

The Cardiovascular segment was the largest contributor to net sales, accounting for $7.83 billion (47% of total). The Cardiology division within Cardiovascular was particularly strong, with net sales of $5.93 billion. The MedSurg segment generated $4.91 billion in net sales.

Boston Scientific's strategy focuses on five key imperatives: strengthening category leadership, expanding into high-growth adjacencies, driving global expansion, funding growth initiatives, and developing key capabilities. This involves continued investment in R&D, strategic acquisitions, and optimizing its global presence.

The company is focused on continuously improving its supply chain effectiveness and manufacturing processes. It has an ongoing supplier resiliency program to identify and mitigate risks and has taken measures to address challenges within the global supply chain, including those exacerbated by the COVID-19 pandemic and inflationary pressures. Management expects similar macroeconomic and supply chain conditions in 2023 as experienced in 2022.