Looking at the balance sheets assets in R&D are both not keeping up with inflation and are shrinking from Gross Sales and Net Income.
CEO likes to mention that the company is positioning for growth but I’m struggling to find it in the last earnings release.
Is there additional insight I’m missing as an employee and investor?
The only growth that Bryan boy is interested is in growing his own net worth. Nothing else matters really for the used car salesman type CEO.
I think they will buy innovation through acquisition.
Regarding growth, I find it surprising that they only focus on growth, somehow leaving out profitable growth. In the selection of the focus markets, try explicitly stated that they focus on growth potential, not margin or profitability. In the MedSurg business that means that they will increase penetration in NPWT by increasing the headcount in that field (and have already done so), which might increase sales, but not necessarily the profitability.
The same method was applied prior to the acquisition of KCI, sales were blown up artificially, whilst the profitability of that business is still unclear to me.
The answer is: NO
https://investors.solventum.com/image/0001964738+%28%29++%2810-Q%29+2024-11-08.pdf_.pdf
Read the Report. The investment in R&D increased by a mere 0.1% (which is less than inflation).
Also interesting reads:
https://investors.solventum.com/image/SOLV+Q3+earnings+transcript.pdf
https://investors.solventum.com/2024-11-07-Solventum-Reports-Third-Quarter-2024-Financial-Results-and-Raises-Full-Year-Guidance
All can be find on the Solventum Investor page.
The only way Solventum is “growing” is via massive layoffs. It will make the Q4 results look good but only because they laid off a ton of people and reduced their expenses.