Merit Medical Systems, Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total revenues reaching $1.357 billion, a 7.9% increase from $1.257 billion in 2023. The company's net income also rose to $120.4 million, or $2.03 per share, compared to $94.4 million, or $1.62 per share, in the previous year. This growth was primarily driven by strong demand in the U.S. market and favorable international sales trends, particularly in Europe, the Middle East, and Africa.
The company experienced notable changes in its operational metrics compared to the previous fiscal period. Gross profit as a percentage of sales improved to 47.4% from 46.4% in 2023, attributed to increased sales and favorable changes in product mix. Additionally, Merit Medical's selling, general, and administrative expenses as a percentage of sales decreased slightly to 29.5% from 29.7%, reflecting effective cost management despite rising labor-related costs and increased variable compensation linked to company performance.
Strategically, Merit Medical has been active in expanding its product offerings through acquisitions. In 2024, the company acquired the EsophyX® Z+ device from EndoGastric Solutions, Inc. for $105 million and a portfolio of lead management products from Cook Medical for $210 million. These acquisitions are expected to enhance the company's capabilities in the endoscopy and cardiovascular segments, respectively. The company also launched its "Continued Growth Initiatives" program, setting multi-year financial targets aimed at sustainable growth and profitability.
Operationally, Merit Medical reported a headcount of approximately 7,400 employees across 40 countries as of December 31, 2024. The company’s international sales accounted for 41% of total revenues, with China being the largest non-U.S. market, generating $149.8 million in sales. The company noted that its international sales growth was impacted by foreign currency exchange rate fluctuations, which decreased sales by approximately $7.2 million in 2024.
Looking ahead, Merit Medical anticipates continued growth driven by its strategic initiatives and product innovations. The company is focused on integrating its recent acquisitions and enhancing its product portfolio to meet evolving healthcare needs. However, it also faces challenges, including potential impacts from regulatory changes and market conditions, particularly in its largest international market, China, where pricing pressures from government policies may persist.
About MERIT MEDICAL SYSTEMS INC
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