Medtronic registers 3% reported increase in Q2 FY22 revenue
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Medtronic registers 3% reported increase in Q2 FY22 revenue

24 Nov 2021 (Last Updated November 24th, 2021 12:04)

The medical device company’s global revenue missed forecasts due to labour shortages and a resurgence of Covid-19 cases.

Medtronic registers 3% reported increase in Q2 FY22 revenue
Medtronic offices in Brooklyn Center, Minnesota, US. Credit: Tony Webster / Flickr.

Medical device company Medtronic has posted global revenue of $7.847bn for the second quarter of the fiscal year 2022 (FY22), which ended on 29 October 2021. The figure represents a growth of 3% on reported and 2% on an organic basis.

The company’s net sales totalled $7.647bn in the same period last year.

Despite the increase, the company’s revenue results in the quarter missed forecasts due to the adverse impact of a resurgence in Covid-19 cases as well as labour shortages in the US.

Medtronic’s second quarter GAAP net income and diluted earnings per share (EPS) were $1.311bn and $0.97, up 168% and 169% respectively on a reported basis.

The company’s US revenue totalled $3.997bn in the quarter, down 1.4% compared to $4.054bn recorded a year ago.

Non-US developed market revenue and emerging markets revenue were $2.478bn and $1.372bn, respectively. The figures recorded year-on-year growth of 1.3% and 19.6%, respectively.

Medtronic chairman and CEO Geoff Martha said: “Our second quarter results reflect focused execution of our strategy and the strong underlying health of the business, despite the market impact of the pandemic resurgence and healthcare system staffing challenges on medical procedure volumes, particularly in the US, which affected our quarterly revenue growth.

“During the quarter, we continued to advance our pipeline, launched new products and grew share in the majority of our businesses.”

The company has also updated its revenue growth guidance due to the greater-than-expected market impact of the pandemic and related staffing challenges.

Medtronic now expects to achieve a revenue growth of 7% to 8% in the fiscal year 2022. Previously, the figure was forecast at around 9%.

Recently, the company received US Food and Drug Administration (FDA) 510(k) clearance for its PillCam Small Bowel 3 (SB3) @HOME endoscopy procedure.