Solventum Corp
For the period ended Dec 31, 2024. Filed Feb 28, 2025.
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FY2024 · Filed Feb 28, 2025
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Overview
Solventum is a leading global healthcare company developing, manufacturing, and commercializing a broad portfolio of solutions that leverages deep material science, data science, and digital capabilities to address critical customer and patient needs. We constantly seek to enable the improvement of standards of care and move healthcare forward with innovation powered by insights, clinical intelligence, technology, and manufacturing expertise. Our 70+ year history of discovering and innovating advanced solutions has helped us solve our customers’ toughest challenges and become a trusted partner.
Operating Segments and Sales Change Information
Solventum manages its operations in four business segments: MedSurg, Dental Solutions, Health Information Systems, and Purification and Filtration.
References are made to organic sales change, which is defined as the change in net sales, absent the separate impacts on sales from foreign currency translation and acquisitions, net of divestitures. Other, as comprised in the tables below, includes acquisition and divestiture-related activities. Acquisitions include non-health care related supply agreements that conveyed from 3M to the Company at Spin-Off and sales from new supply agreements with 3M that commenced at Spin-Off. Divestiture impacts include lost sales from the Company’s dental anesthetics business that was sold in August 2023 as well as lost sales from certain health care businesses retained by 3M India in connection with the Spin-Off. Solventum believes this information is useful to investors and management in understanding ongoing operations and in analysis of ongoing operating trends.
Sales and operating income by business segment:
The following tables contain sales and operating results by business segment for all periods presented. The Company’s use of the term “NM” reflects results considered not material due to not having material activity in comparable prior years. Refer to the section entitled“—Performance by Business Segment” below for discussion of sales change and operating performance. Refer to Note 17 to the consolidated financial statements for additional information on business segments.
Segment and Total Company Net Sales
| Year ended December 31, | ||||||
|---|---|---|---|---|---|---|
| (Dollars in millions) | 2024 | 2023 | Total | Currency Impact | Other | Organic |
| Segment Sales | ||||||
| MedSurg | $4,637 | $4,632 | 0.1% | (0.6)% | (0.5)% | 1.2% |
| Dental Solutions | 1,295 | 1,329 | (2.6) | (0.7) | (1.5) | (0.4) |
| Health Information Systems | 1,306 | 1,285 | 1.6 | — | — | 1.6 |
| Purification and Filtration | 956 | 951 | 0.6 | (0.7) | (0.9) | 2.1 |
| Corporate and Unallocated | 59 | — | NM | NM | NM | NM |
| Total Company | $8,254 | $8,197 | 0.7% | (0.5)% | —% | 1.2% |
| Year ended December 31, | ||||||
| (Dollars in millions) | 2023 | 2022 | Total | Currency Impact | Other | Organic |
| Segment Sales | ||||||
| MedSurg | $4,632 | $4,585 | 1.0% | (0.6)% | —% | 1.6% |
| Dental Solutions | 1,329 | 1,327 | 0.2 | (0.4) | (1.0) | 1.6 |
| Health Information Systems | 1,285 | 1,227 | 4.7 | — | — | 4.7 |
| Purification and Filtration | 951 | 991 | (4.0) | (0.4) | — | (3.6) |
| Corporate and Unallocated | — | — | — | — | — | — |
| Total Company | $8,197 | $8,130 | 0.8% | (0.4)% | (0.2)% | 1.4% |
Segment and Total Company Operating Income
| Year ended December 31, | |||
|---|---|---|---|
| (Dollars in millions) | 2024 | 2023 | 2024 vs 2023 change |
| Segment Operating Income | |||
| MedSurg | $887 | $1,107 | (19.9)% |
| Dental Solutions | 350 | 442 | (20.8) |
| Health Information Systems | 431 | 423 | 1.9 |
| Purification and Filtration | 94 | 162 | (42.0) |
| Corporate and Unallocated | (726) | (442) | 64.3 |
| Total Company | $1,036 | $1,692 | (38.8)% |
| Year ended December 31, | |||
| (Dollars in millions) | 2023 | 2022 | 2023 vs 2022 change |
| Segment Operating Income | |||
| MedSurg | $1,107 | $1,061 | 4.3% |
| Dental Solutions | 442 | 437 | 1.1 |
| Health Information Systems | 423 | 359 | 17.8 |
| Purification and Filtration | 162 | 177 | (8.5) |
| Corporate and Unallocated | (442) | (341) | 29.6 |
| Total Company | $1,692 | $1,693 | (0.1)% |
Net Sales by Geographic Area
While the Company manages its businesses globally and believes its business segment results are the most relevant measure of performance, the Company also utilizes geographic area data as a secondary performance measure. Sales are generally reported within the geographic area that originated the invoice to the Company's customer. Additional geographic financial information related to the Company’s operations is provided in Note 17 in the accompanying consolidated financial statements.
Percent change information compares year ended December 31, 2024 and December 31, 2023 with the same periods for the prior year, unless otherwise indicated.
| United States | International | Worldwide | |
|---|---|---|---|
| Net sales (millions) | $4,749 | $3,505 | $8,254 |
| % of worldwide sales | 57.5% | 42.5% | 100.0% |
| Increase/(decrease) | |||
| Total | 3.2% | (2.5)% | 0.7% |
| Currency Impact | — | (1.2) | (0.5) |
| Other | 1.5 | (1.9) | — |
| Organic | 1.7% | 0.6% | 1.2% |
| United States | International | Worldwide | |
| Net sales (millions) | $4,603 | $3,594 | $8,197 |
| % of worldwide sales | 56.2% | 43.8% | 100.0% |
| Increase/(decrease) | |||
| Total | 3.4% | (2.3)% | 0.8% |
| Currency Impact | — | (1.0) | (0.4) |
| Other | — | (0.4) | (0.2) |
| Organic | 3.4% | (0.9)% | 1.4% |
Additional information beyond what is included in the preceding table is as follows:
Year ended 2024 results
In the United States geographic area, both total sales and organic sales increased. Organic growth was led by MedSurg and Health Information Systems.
In the International geographic area, total sales decreased while organic sales increased. Organic growth was led by Purification and Filtration.
Year ended 2023 results
In the United States geographic area, all business segments saw organic sales growth year on year, led by Health Information Systems and MedSurg.
In the International geographic area, total sales growth and organic sales growth decreased. Organic growth decline in Purification and Filtration was partially offset by organic growth in MedSurg and Dental Solutions.
Managing currency risks
Prior to April 1, 2024, Solventum indirectly participated in 3M’s centrally managed hedging program, which utilizes a number of tools to manage currency risk including natural hedges such as pricing, productivity, hard currency, hard currency-indexed billings, and localizing source of supply. 3M also used financial hedges to mitigate currency risk. Starting in the second quarter of 2024, Solventum established its own hedging program. Refer to Note 10 to the consolidated financial statements for additional details.
The stronger U.S. dollar had a negative worldwide impact on sales for the year ended December 31, 2024 compared to 2023. Solventum estimates that year-on-year foreign currency transaction effects, including hedging impacts, decreased pre-tax income by approximately $23 million in 2024.
Financial condition
Refer to the section entitled“—Financial Condition and Liquidity” below for a discussion of items impacting cash flows.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.