Fiscal 2022 was another dynamic year for Hologic. As an organization, we remained steadfast in our commitment to our Purpose, Passion and Promise. We continued on our path of being purpose driven and results driven, where we continued to elevate women’s health and deliver strong financial results – all while navigating the challenges of persistent macro headwinds. These efforts set the foundation to embed ESG in our business.
The strength of our business in these uncertain times is no coincidence. We believe the decisions we made and the steps we took during the pandemic position Hologic to deliver strong top-line growth and profitability in our fiscal 2023 and beyond.
Starting with our pursuit of our Purpose, Passion and Promise, and elevating women’s health in fiscal 2022, we brought the results of the Hologic Global Women’s Health Index to the global stage at the World Economic Forum in Davos, Switzerland. A remarkable opportunity where we connected with world leaders and change-makers to influence the improvement of the health and wellbeing of women around the world. We also continued progress with our Project Health Equality and Global Access Initiative – both programs aimed at increasing awareness and access to high quality diagnostic testing and screening to underserved communities and regions.
Taking a step further in 2022, we partnered with Mary J. Blige, a fellow champion for women’s health, in our first ever Super Bowl commercial. In the commercial, we urged women to prioritize their health and to prioritize their well woman’s visit. We did so at a time when COVID-19 was declining from the highest and steepest COVID-19 surge to date. It was the right time, and Hologic and Mary J. were the right voices to reach out to women and encourage women to return to their physicians’ offices after months of cancelling routine check-ups and screenings due to COVID-19.
And finally we partnered with the Women’s Tennis Association (WTA), an organization with global reach, to achieve significant progress through a shared vision of greater wellness and equality for women.
Together, the WTA and Hologic rally around our collective mission to champion women, while modernizing our respective industries of healthcare and sports. We are off to an incredible start and look forward to further the opportunities for our organizations to continue to positively influence change.
Through our commitment to purpose, we elevated women’s health and elevated the Hologic brand. In doing so, we enabled Hologic to drive excellent results. In fiscal 2022, we significantly exceeded our goals, driven by the strength of our base Diagnostics and GYN Surgical businesses, as well as continuing to capture COVID-19 testing demand.
In Diagnostics, constant currency revenue growth of over 10%, excluding the impact of COVID-19, was powered by our Molecular Diagnostics business. Within Molecular, the strong performance was broad based and fueled by a combination of legacy and newer assays in our broad and growing portfolio. Our Panther instrumentation continues to deliver incredible benefits for our customers through assay consolidation, scalability, and automation. With 19 assays and a vastly expanded installed base of approximately 3,250 instruments, we are eager to capitalize on the opportunity in front of us.
In GYN Surgical, we continue to deliver on a strategy to expand the business and add new growth drivers. We are excited about the outlook for our laparoscopic portfolio of Acessa and Bolder, as well as strong performance from MyoSure and the complementary Fluent Fluid Management System. While the business was challenged by high COVID-19 prevalence in our fiscal second quarter of 2022, we achieved strong organic constant currency growth exiting the year at nearly 9% in our fiscal fourth quarter.
In Breast Health, we are proud of the resilience of our teams. While we experienced a significant headwind to revenue and profitability due to constrained supply of semi-conductor chips in 2022, we believe that the worst of this supply chain challenge is in
the rearview mirror, and we expect a recovery of the business throughout fiscal 2023. The Breast Health business is fundamentally more diverse with more recurring revenue than ever before with substantial service and disposables revenue.
Beyond our core business performance, our balance sheet and low leverage continue to be pillars of strength. With over $2.3 billion of cash and cash equivalents, a net leverage ratio of 0.2x, and excellent cash flow generation, we have valuable flexibility in a period of macro instability.
As we look ahead to 2023 and beyond, we expect our strong financial performance to continue to enable us to lean into our purpose-based initiatives and continue our positive impact by delivering products and services that advance the state of women’s health globally.
To conclude, I would like to acknowledge our nearly 7,000 employees worldwide who truly make these results possible. In 2022, Hologic was named to the annual lists of Top Workplaces by both The Boston Globe and The San Diego Union-Tribune, ranking fifth on the list for largest companies in Massachusetts and fourth for large companies in San Diego County. Our sites in Marlborough, Massachusetts and San Diego, California represent two of our three largest employee campuses. This recognition speaks to the incredible employees and culture we have at Hologic – a culture that is the foundation of our engagement and commitment to our purpose.
I would also like to thank our Board of Directors (“Board”) and stockholders for your confidence and support throughout another a great year. I am more excited than ever about Hologic’s future.
Stephen P. MacMillan
Chairman, President and
Chief Executive Officer