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CLAIM #40380 · Medtronic PLC (MDT) · 2024Q1 earnings call · Aug 22, 2023 · due Apr 30, 2025

As we kind of lap this -- these last couple of VBP areas in FY '24, we expect this revenue to get back to historical high single-digit, low double-digit growth for us.

Geoff Martha · CEO

PENDING
graded after results covering Apr 30, 2025 are reported

In context

orruption with the coverage under VBPs, I mean, volume, in this case, is contracted. And with the hospital pricing is determined with VBP and we're less reliant on the field team and distribution, which has also allowed us to take cost out to mitigate the price impact. So no impact at this point from the anticorruption campaign that you read about. And then regarding VBP, I mean this -- it's -- we feel it's been -- it's a 2.5-year kind of impact here and we're -- for us, that fully -- that impact kind of fully takes effect in this fiscal year, FY '24. It's all in our guidance. As Karen pointed out in the commentary, the China growth this past quarter was at 4%, which is slightly higher than we expected, still well below what it used to be, but -- and where we think it's going to get back. As we kind of lap this -- these last couple of VBP areas in FY '24, we expect this revenue to get back to historical high single-digit, low double-digit growth for us. So hope that answers the question. This is something, as you look forward, it's a multibillion dollar of revenue for the company that over the last couple of years has been negative, more recently flat, now starting to get positive. And as we -- as we get out of FY '24, again, we expect a tick up in this growth. So that's coming. Vijay Kumar: Got you. Thanks. Ryan Weispfenning: Yeah. Thanks for the questions, Vijay. We’ll take the next question please, Brad? Brad Welnick: The next question comes from Robbie Marcus at JPMorgan. Robbie, please go ahead. Robbie Marcus: Great, good morning. Congrats on a good quarter. Maybe to start for Geoff or Karen, as we think about guidance for the rest of the year, you raised the organic sales growth from the low end of 4% to 4.5% up to 4.5%. You did 6%

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SEC filings for MDT · Claim quote is verbatim from the 2024Q1 earnings call.