01—Abstract
Summary
Summary of the 10-K filed February 23, 2023. Cited figures are marked; the original filing is the authoritative source.
Boston Scientific Corporation (BSX) reported strong net sales growth of 6.7% to $12.68 billiona 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 millionb, or $0.45 per diluted share.
On an adjusted basis, excluding certain charges and credits, net income was $2.46 billionc, 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.
02—Key points
Key Highlights
- Net sales increased by 6.7% to $12.68 billion in 2022, driven by operational growth and acquisitions.
- Reported net income was $642 million ($0.45 per diluted share), with adjusted net income of $2.46 billion ($1.71 per diluted share).
- The Cardiovascular segment remains the largest contributor to net sales, with Cardiology products generating $5.93 billion.
- The MedSurg segment also showed growth, with Urology sales up 12.0% and Endoscopy sales up 3.7%.
- The company continues to invest in R&D, with R&D expenses increasing by 10% to $1.32 billion.
- Boston Scientific repurchased no shares in 2022 but has $1 billion remaining on its stock repurchase program authorization.
- The 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.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2022, Boston Scientific Corp kept $0.06.
- Revenue$12.68B100.0%
- Cost of revenue−$3.96B31.2%
- Gross profit$8.73B68.8%
- Operating costs−$7.08B55.8%
- Operating income$1.65B13.0%
- Interest, other & tax−$951.0M7.5%
- Net income$698.0M5.5%
Where FY2022 revenue went
$12.68B- SG&A: $4.52B, 36% of revenue
- Cost of revenue: $3.96B, 31% of revenue
- Other operating costs: $2.56B, 20% of revenue
- Net income: $698.0M, 5.5% of revenue
- Interest, other & tax: $951.0M, 7.5% of revenue
Kept 5.5% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2022filed February 23, 2023Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $12.68B$11.89B | +6.7% |
| Cost of Revenue | $3.96B$3.71B | +6.6% |
| Gross Profit | $8.73B$8.18B | +6.7% |
| SG&A Expenses | $4.52B$4.36B | +3.7% |
| Operating Expenses | $7.08B$6.98B | +1.4% |
| Operating Income | $1.65B$1.20B | +37.5% |
| Interest Expense | $470.00M$341.00M | +37.8% |
| Net Income | $698.00M$1.04B | −32.9% |
| EPS (Basic) | $0.45$0.69 | −34.8% |
| EPS (Diluted) | $0.45$0.69 | −34.8% |
| Shares Outstanding (Basic) | 1.43B1.42B | +0.6% |
| Shares Outstanding (Diluted) | 1.44B1.43B | +0.4% |
05—Questions
Frequently Asked Questions
What was Boston Scientific's overall financial performance in 2022?
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.
Which business segments contributed most to the company's net sales?
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.
What is the company's strategy for future growth?
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.
How is the company addressing potential supply chain disruptions and economic challenges?
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.
06—Continue