For fiscal year (FY) 2016, Medtronic generated $28.8 billion in revenue and $3.5 billion in net earnings and achieved several milestones pertaining to research and philanthropy.
The company outlined the results in a report released on Nov. 16. It is the third annual integrated report and the first since Medtronic acquired Covidien for $50 billion in January 2015.
The divisional revenues were $10.2 billion for the cardiac and vascular group, $9.6 billion for the minimally invasive therapies group, $7.2 billion for the restorative therapies group and $1.8 billion for the diabetes group. Approximately 61 percent of sales occurred in the U.S, followed by 23 percent in Europe, Middle East and Africa, 11 percent in Asia Pacific and 5 percent in greater China.
For the year, Medtronic had $4.2 billion in free cash flow, returned $4.5 billion to shareholders, spent $2.2 billion on research and development and donated $114.6 million (more than 2 percent of pre-tax profits) to charitable causes. The company also met the following goals: reduce non-regulated waste per unit of revenue by 15 percent; reduce energy use per unit of revenue by 15 percent; reduce greenhouse gas emissions per unit of revenue by 15 percent; and reduce water use per unit of revenue by 10 percent.
In addition, Medtronic made a few acquisitions during the year, including RF Surgical Systems in August 2015, Medina Medical in August 2015 and Twelve in October 2015.
“For more than half a century, Medtronic has operated with a clear, compelling mission: to alleviate pain, restore health and extend life,” Medtronic CEO Omar Ishrek wrote in the report. “We believe that access to quality healthcare is a fundamental right of all people around the world. We believe that continuously improving clinical outcomes through innovation will present virtually limitless opportunities to extend our mission. Each day we challenge ourselves to make this a reality for more people. I’m incredibly proud of our performance in [FY2016] and even more excited about our future as we continue to challenge the status quo. In my five years with Medtronic, I see our value as a company, and our business performance, tied more closely than ever to our citizenship impact.”
Executive Editor
Tim Casey joined TriMed Media Group in 2015 as Executive Editor. For the previous four years, he worked as an editor and writer for HMP Communications, primarily focused on covering managed care issues and reporting from medical and health care conferences. He was also a staff reporter at the Sacramento Bee for more than four years covering professional, college and high school sports. He earned his undergraduate degree in psychology from the University of Notre Dame and his MBA degree from Georgetown University.