Company: BSX
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000885725-25-000026
Chunk: 6

Company: BOSTON SCIENTIFIC CORP
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 2
Chunk 6
---
 the U.S., China or any other country as well as sanctions or other measures that restrict international trade could materially negatively affect our business operations and results. While we are exploring opportunities to mitigate these negative impacts, there can be no guarantee that we will be able to offset the impact of tariffs, the ultimate impact of which will depend on various factors, including the timing, scope, and nature of any tariffs or other trade policies. In addition, geopolitical developments, including related to various ongoing global 

36

conflicts and tensions, may create economic, supply chain, transportation, energy, and other challenges, including disruptions to business operations, which could negatively impact our business and results of operations. 

Gross Profit 

Our Gross profit was $3.210 billion for the first quarter of 2025 and $2.648 billion for the first quarter of 2024. The following is a reconciliation of our gross profit margin and a description of the drivers of the changes from period to period:

Percentage of Net SalesThree MonthsGross profit margin - period ended March 31, 202468.7%Sales pricing, volume and mix2.1All other, including inventory charges and other period expenses(1.9)Gross profit margin - period ended March 31, 202568.8%

Gross profit margin increased in the first quarter of 2025 as compared to the same period in the prior year. The primary factors that impacted gross profit margin in the first quarter of 2025 were increased sales of higher margin products, offset by inventory charges and other period expenses.

Operating Expenses 

The following table provides a summary of our key operating expenses:

 Three Months Ended March 31, 20252024(in millions)$% of Net Sales$% of Net SalesSelling, general and administrative expenses$1,597 34.2 %$1,364 35.4 %Research and development expenses443 9.5 %366 9.5 %

Selling, General and Administrative (SG&A) Expenses

During the first quarter of 2025, SG&A expenses increased $233 million, or 17 percent, compared to the prior year period and were 120 basis points lower as a percentage of net sales. The increase in SG&A expenses was driven in part by higher selling costs driven by higher global net sales and costs to support product launches, including the Farapulse™ Pulsed Field Ablation System in our Electrophysiology business unit.

Research and Development (R