
Zimmer Sees Similar Trend Line to Peers With Elective Procedures Slowing From Early 2023; New CEO Focused on Innovation
11-7-23 (by: Scott Gleason) Zimmer Biomet has released its financial results for the third quarter reporting net sales of $1.754 billion, reflecting a increase of 5.0% compared to the same period in the previous year. This was in line with street forecasts for the quarter. In the United States, the company reported net sales of $1,031.4 million, growing 6% year-over-year. On the international front, Zimmer Biomet’s net sales amounted to $722.2 million, reflecting a 3.6% growth compared to the previous year. Within product categories, the knees segment revenue increased to $706.3 million and was up 7.5% year-over-year. The hips segment decreased 0.6% year-over-year to $465.3 million Management noted tough comps in China and headwinds in Russia impacting international sales. The Sports Medicine, Extremities, Trauma, Craniomaxillofacial, and Thoracic category reported $423.2 million in net sales, with a 3.3% growth rate. While overall growth rates were inline with historical norms, they declined meaningfully from rates seen earlier in 2023 showing that pandemic related tailwinds could be coming to an end and consumer driven headwinds may be manifesting.
New CEO Ivan Tornos did highlight an increased focus on innovation and stated that there are 40 new product launches planned over the next 36 months. He also expressed a willingness to use the balance sheet to subsidize internal development with non-organic innovation and growth. He also spoke about adapting to the change where more orthopedic procedures are performed in the ambulatory surgery center setting given new minimally invasive techniques. The company also noted enrolling 100,000 patients since the launch of the mymobility care management platform, which provides a guided orthopedic patient experience, with automation, data, and insights for clinicians. The company plans to host an upcoming analyst day to discuss its strategic plans in greater detail.
Adjusted diluted earnings per share were $1.65 compared to consensus estimates of $1.60.
Ivan Tornos, Zimmer Biomet’s President and Chief Executive Officer, expressed his satisfaction with the company’s performance, stating, “We’re very pleased to report another Zimmer Biomet quarter with strong revenue growth and earnings per share. Our team continues to successfully drive execution and growth, focusing on innovation to create value for the stakeholders we serve.”