Medtronic reports 37% increase in Q4 FY21 revenue
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Medtronic reports 37% increase in Q4 FY21 revenue

28 May 2021 (Last Updated May 28th, 2021 15:44)

Medtronic issues fiscal year 2022 guidance, which reflects revenue growth of nearly 9% on an organic basis.

Medtronic reports 37% increase in Q4 FY21 revenue
A 4% increase in revenue of $30.12bn was reported in the fiscal year 2021, which ended on ended 30 April. Credit: Tony Webster on Flickr.

Medtronic has reported global revenue of $8.188bn in the fourth quarter (Q4) of the fiscal year 2021 (FY21), a surge of 37% on reported and 32% on an organic basis from $5.998bn in the same quarter last year.

The company said that these results, for the quarter ended 30 April, indicate a recovery from the Covid-19 pandemic’s impact on its elective procedures seen in April 2020.

The company’s GAAP net income and diluted earnings per share (EPS) in this quarter were $1.36bn and $1, respectively, an increase from $646m and $0.48 in the year-ago quarter.

The non-GAAP net income and non-GAAP diluted EPS also rose 162% and 159%, respectively, from  $777m to $2.04bn and $0.58 to $1.50.

In the US, the company recorded a 47% year-on-year increase in revenue to $4.182bn, representing 51% of the total revenue this quarter. The revenue in the non-US developed market rose 20% to $2.672bn while emerging markets revenue stood at $1.334bn with a 44% surge.

A 4% as reported basis increase in revenue to $30.12bn was seen in the FY21 ended 30 April, while net earnings for the period were $3.60bn or $2.66 per diluted share.

A 3% fall in non-GAAP earnings, as well as diluted EPS, were reported in the FY21 with figures standing at $6bn and $4.44, respectively.

In the FY21, cash flow from operations stood at $6.240bn while free cash flow was $4.86bn, indicating 81% free cash flow conversion from non-GAAP net earnings.

Medtronic chairman and CEO Geoff Martha said: “We reported a strong end to our fiscal year, with our fourth-quarter results demonstrating continued momentum.

“Our recovery improved throughout the quarter, with most of our markets returning to near normal, pre-Covid growth rates.”

The cardiovascular portfolio revenue rose by 2.9% from $10.46bn in FY2020 to $10.77bn in the FY21 while medical surgical portfolio revenue was $8.74bn this year, an increase of 4.6% from $8.35bn last year.

For this fiscal year, neuroscience and diabetic portfolio revenues were $8.2bn and $2.4bn, an increase of 6.1% from $7.7bn and 1.9% from $2.36bn, respectively.

The company issued the FY2022 guidance predicting revenue growth of nearly 9% on an organic basis and diluted non-GAAP EPS between $5.60 to $5.75.

Furthermore, Medtronic’s board of directors has approved an increase in its cash dividend for the first quarter of FY2022, taking the quarterly amount to $0.63 for an ordinary share.

Earlier, Medtronic obtained CE mark for prolonged use of its InPen smart insulin pen for multiple daily injections (MDI) and its Guardian 4 sensor for better diabetes management.