10-KPeriod: FY2023

BOSTON SCIENTIFIC CORP Annual Report, Year Ended Dec 31, 2023

Filed February 20, 2024For Securities:BSX

Summary

Boston Scientific Corporation (BSX) reported a strong fiscal year 2023 with net sales reaching $14.24 billion, a 12.3% increase compared to 2022. This growth was driven by robust organic net sales growth of 12.3% and strategic acquisitions, demonstrating the company's diversified product portfolio and effective commercial execution across its MedSurg and Cardiovascular segments. Financially, the company reported a net income of $1.57 billion ($1.07 per diluted share) for 2023. On an adjusted basis, excluding certain charges and credits, adjusted net income was $3.00 billion ($2.05 per diluted share), highlighting operational improvements and strategic reinvestments. The company also strengthened its balance sheet, with significant operating cash flow and a healthy leverage ratio, positioning it well for future growth and strategic initiatives, including the pending acquisition of Axonics, Inc.

Financial Highlights

51 data points
Beta

Revenue

$14.24B

69.5% Gross Margin

Net Income

$1.59B

11.2% Net Margin

EPS (Diluted)

$1.07

Total Assets

$35.14B

Cash & Equivalents

$865.00M

Free Cash Flow

$1.79B

Financial Statements
Beta
Revenue$14.24B
Cost of Revenue$4.34B
Gross Profit$9.90B
SG&A Expenses$5.19B
Operating Expenses$7.55B
Operating Income$2.34B
Interest Expense$265.00M
Net Income$1.59B
EPS (Basic)$1.08
EPS (Diluted)$1.07
Shares Outstanding (Basic)1.45B
Shares Outstanding (Diluted)1.46B

Key Highlights

  • 1Net sales increased by 12.3% to $14.24 billion in 2023, driven by strong organic growth and strategic acquisitions.
  • 2Reported net income was $1.57 billion, or $1.07 per diluted share, while adjusted net income was $3.00 billion, or $2.05 per diluted share.
  • 3The company completed three significant acquisitions in 2023: Apollo Endosurgery, Inc., Relievant Medsystems, Inc., and a majority stake in Acotec Scientific Holdings Limited.
  • 4The Cardiovascular segment, particularly Cardiology and Electrophysiology, showed strong performance, with net sales increasing by 13.1% and 12.6% respectively.
  • 5MedSurg segment also demonstrated solid growth, with Endoscopy up 11.7% and Urology up 10.8%.
  • 6Operating cash flow improved significantly, reaching $2.50 billion in 2023, compared to $1.53 billion in 2022.
  • 7Boston Scientific announced a definitive agreement to acquire Axonics, Inc. for approximately $3.67 billion, expected to close in the first half of 2024, further enhancing its Urology portfolio.

Frequently Asked Questions

Boston Scientific reported net sales of $14.24 billion in 2023, a 12.3% increase from 2022. Net income was $1.57 billion ($1.07 per diluted share), and adjusted net income was $3.00 billion ($2.05 per diluted share). Operating cash flow significantly improved to $2.50 billion.

Growth was primarily driven by strong organic net sales growth across its diversified product portfolio, particularly in the Cardiovascular segment (Cardiology and Electrophysiology) and the MedSurg segment (Endoscopy and Urology). Strategic acquisitions of Apollo Endosurgery, Relievant Medsystems, and a majority stake in Acotec also contributed significantly to sales growth.

Boston Scientific completed three key acquisitions: Apollo Endosurgery, Relievant Medsystems, and a majority stake in Acotec Scientific Holdings Limited. Additionally, the company announced its intent to acquire Axonics, Inc. for approximately $3.67 billion, a deal expected to close in the first half of 2024, which will bolster its Urology division.

The company ended 2023 with $9.10 billion in total debt and remained compliant with its financial covenants. It generated robust operating cash flow and maintained $865 million in unrestricted cash and cash equivalents, indicating a strong liquidity position to fund operations and strategic investments.