Medtronic has reported $7.585bn global revenue for the second quarter (Q2) of the fiscal year 2023 (FY23), representing a 3% decline as reported and 2% increase on an organic basis.

This organic comparison excludes $25m from the Intersect ENT acquisition as well as a $457m negative impact from foreign currency translation.

For the quarter, which ended on 28 October, the company’s GAAP net income was $427m and diluted earnings per share (EPS) stood at $0.32, both represented a 67% decline compared to the same quarter of the previous year.

Its non-GAAP net income stood at $1.725bn, a decrease of 3.7% from the $1.792bn reported the prior year.

Medtronic ’s non-GAAP diluted EPS was $1.30, a 1.5% decline compared to $1.32 in the same quarter of the prior year.

The company stated the decrease in its earnings reflects the continued macroeconomic effect of inflation on labour, utilities, materials and freight.

Its reported US revenue was $4.069bn, representing 54% of the total revenues, which was an increase of 2% on a reported basis and 1% on an organic basis.

Non-US developed market revenues, which represented 28% of the total revenues, decreased 13% on a reported basis and 3% on an organic basis to $2.157bn.

Medtronic’s Cardiovascular portfolio revenue fell by 2% as reported and increased by 4% on an organic basis to $2.773bn.

The Medical Surgical revenue for the reported quarter was $2.070bn, representing a decline of 10% as reported and 3% on an organic basis.

This decline was partially offset by low single-digit growth in Surgical Innovations (SI).

In the NeuroScience portfolio, the company’s revenue was $2.186bn, a 2% increase as reported and 5% increase on an organic basis.

Revenue from the Diabetes portfolio decreased by 5% as reported and increased by 3% on an organic basis to $556m.

Medtronic chairman and CEO Geoff Martha said: “Slower than predicted procedure and supply recovery drove revenue below our expectations this quarter.

“We continue to take decisive actions to improve the overall performance of the company, including streamlining our organisational structure, strengthening our supply chain, driving a performance culture, and strategically allocating capital to support our best growth opportunities with the investments they deserve.

“We’re seeing the benefit of these changes – along with new incentives and strong execution – in certain businesses, and we’re focused on ensuring these efforts translate into improved performance across the company.”