01—Abstract
Summary
Summary of the 10-K filed June 20, 2024. Cited figures are marked; the original filing is the authoritative source.
Medtronic plc reported solid performance in its fiscal year 2024, with total net sales increasing by 4% to $32.36 billiona.
The company's growth was driven by its Neuroscience Portfolio (up 5%), Medical Surgical Portfolio (up 5%), and particularly its Diabetes Operating Unit (up 10%). Key product areas showing strength include Cardiac Rhythm & Heart Failure, Coronary & Peripheral Vascular, Cranial & Spinal Technologies, and Surgical & Endoscopy divisions. Financially, Medtronic demonstrated strong operating cash flow and free cash flow, with free cash flow reaching $5.2 billionb.
The company also returned value to shareholders through dividends and share repurchases, authorizing an additional $5.0 billionc for repurchases. Despite global economic uncertainties and some product-specific challenges, Medtronic's diversified business segments and international presence contributed to resilient growth. The company continues to invest in innovation, with R&D expenses remaining consistent year-over-year.
02—Key points
Key Highlights
- Total net sales increased by 4% to $32.36 billion for fiscal year 2024.
- Neuroscience, Medical Surgical, and Diabetes segments showed robust growth of 5%, 5%, and 10% respectively.
- Free cash flow was strong at $5.2 billion, indicating healthy operational performance and cash generation.
- Medtronic authorized an additional $5.0 billion for share repurchases, demonstrating commitment to shareholder returns.
- Key product launches and adoption of new technologies, such as the PulseSelect PFA system and the Aurora EV-ICD system, are driving growth in the Cardiovascular segment.
- The company is strategically exiting certain product lines, such as ventilators, to focus resources on core growth areas.
- R&D expenses remained stable at $2.7 billion, underscoring continued investment in innovation across its portfolios.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Medtronic plc kept $0.11.
- Revenue$32.36B100.0%
- Cost of revenue−$11.22B34.7%
- Gross profit$21.15B65.3%
- Operating costs−$16.00B49.5%
- Operating income$5.14B15.9%
- Interest, other & tax−$1.44B4.4%
- Net income$3.71B11.4%
Where FY2024 revenue went
$32.36B- Cost of revenue: $11.22B, 35% of revenue
- SG&A: $10.74B, 33% of revenue
- Other operating costs: $5.27B, 16% of revenue
- Net income: $3.71B, 11% of revenue
- Interest, other & tax: $1.44B, 4.4% of revenue
Kept 11% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed June 20, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $32.36B$31.23B | +3.6% |
| Cost of Revenue | $11.22B$10.72B | +4.6% |
| Gross Profit | $21.15B$20.51B | +3.1% |
| SG&A Expenses | $10.74B$10.41B | +3.1% |
| Operating Income | $5.14B$5.49B | −6.2% |
| Interest Expense | $719.00M$636.00M | +13.1% |
| Net Income | $3.71B$3.78B | −2.1% |
| EPS (Basic) | $2.77$2.83 | −2.1% |
| EPS (Diluted) | $2.76$2.82 | −2.1% |
| Shares Outstanding (Basic) | 1.33B1.33B | −0.2% |
| Shares Outstanding (Diluted) | 1.33B1.33B | −0.2% |
05—Questions
Frequently Asked Questions
What was Medtronic's overall financial performance in fiscal year 2024?
Medtronic reported a 4% increase in total net sales, reaching $32.36 billion for fiscal year 2024. The company demonstrated strong free cash flow of $5.2 billion and continued to return value to shareholders through dividends and share repurchases. Growth was observed across most business segments, with notable strength in Neuroscience, Medical Surgical, and Diabetes.
Which segments of Medtronic's business performed best in fiscal year 2024?
The Diabetes Operating Unit showed the strongest growth at 10%. The Neuroscience Portfolio and Medical Surgical Portfolio also performed well, with 5% growth each. Within the Cardiovascular Portfolio, Cardiac Rhythm & Heart Failure and Coronary & Peripheral Vascular segments grew by 4%.
What is Medtronic's strategy regarding innovation and product development?
Medtronic remains committed to innovation, maintaining R&D expenses at $2.7 billion. The company is focusing on leveraging its pipeline to accelerate revenue growth, creating and disrupting markets with technology, and utilizing AI and data analytics. Specific growth drivers highlighted include new product introductions and market adoption in areas like pulsed field ablation (PFA) and extravascular ICDs.
How is Medtronic managing its capital and shareholder returns?
Medtronic generated strong free cash flow and demonstrated its commitment to shareholder returns by authorizing an additional $5.0 billion for share repurchases. The company also announced an increase in its quarterly cash dividend. This financial flexibility allows for continued investment in R&D and strategic acquisitions.
06—Continue