01—Abstract
Summary
Summary of the 10-K filed February 20, 2024. Cited figures are marked; the original filing is the authoritative source.
Boston Scientific Corporation (BSX) reported a strong fiscal year 2023 with net sales reaching $14.24 billiona, 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 billionb ($1.07 per diluted share) for 2023.
On an adjusted basis, excluding certain charges and credits, adjusted net income was $3.00 billionc ($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.
02—Key points
Key Highlights
- Net sales increased by 12.3% to $14.24 billion in 2023, driven by strong organic growth and strategic acquisitions.
- Reported 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.
- The company completed three significant acquisitions in 2023: Apollo Endosurgery, Inc., Relievant Medsystems, Inc., and a majority stake in Acotec Scientific Holdings Limited.
- The Cardiovascular segment, particularly Cardiology and Electrophysiology, showed strong performance, with net sales increasing by 13.1% and 12.6% respectively.
- MedSurg segment also demonstrated solid growth, with Endoscopy up 11.7% and Urology up 10.8%.
- Operating cash flow improved significantly, reaching $2.50 billion in 2023, compared to $1.53 billion in 2022.
- Boston 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.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, Boston Scientific Corp kept $0.11.
- Revenue$14.24B100.0%
- Cost of revenue−$4.34B30.5%
- Gross profit$9.90B69.5%
- Operating costs−$7.55B53.0%
- Operating income$2.34B16.5%
- Interest, other & tax−$751.0M5.3%
- Net income$1.59B11.2%
Where FY2023 revenue went
$14.24B- SG&A: $5.19B, 36% of revenue
- Cost of revenue: $4.34B, 31% of revenue
- Other operating costs: $2.36B, 17% of revenue
- Net income: $1.59B, 11% of revenue
- Interest, other & tax: $751.0M, 5.3% of revenue
Kept 11% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 20, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $14.24B$12.68B | +12.3% |
| Cost of Revenue | $4.34B$3.96B | +9.8% |
| Gross Profit | $9.90B$8.73B | +13.4% |
| SG&A Expenses | $5.19B$4.52B | +14.8% |
| Operating Expenses | $7.55B$7.08B | +6.7% |
| Operating Income | $2.34B$1.65B | +42.1% |
| Interest Expense | $265.00M$470.00M | −43.6% |
| Net Income | $1.59B$698.00M | +128.1% |
| EPS (Basic) | $1.08$0.45 | +140.0% |
| EPS (Diluted) | $1.07$0.45 | +137.8% |
| Shares Outstanding (Basic) | 1.45B1.43B | +1.6% |
| Shares Outstanding (Diluted) | 1.46B1.44B | +1.7% |
05—Questions
Frequently Asked Questions
What was Boston Scientific's financial performance in 2023?
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.
What were the key growth drivers for Boston Scientific in 2023?
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.
What major strategic initiatives were undertaken in 2023?
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.
How is the company managing its debt and liquidity?
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.
06—Continue